Legal Question in Business Law in Pennsylvania

Re: Employee business practices

Possibly, he or she can. Is there a no compete agreement? Did the employee steal a customer list? Ask your self these questions. If the answer is no to both then the employee can freely open the business. That is what they call free enterprise.

Re: Employee business practices

Customer lists are considered protected trade secrets depending on the business and there is also a question of third party interference with contracts if the customers entered into contracts with the employer. On the other hand, if there's no non-compete agreement and the former employee can obtain the names of prospects from telephone directories or other public sources, and the former employer did not expend a substantial amount of effort and money to establish its own customer base, there may be no problem. Before doing this you should consult with an attorney local to your area.