Non-Compete Agreement

Last summer I and two coworkers left our previous employer because he was going to sell his business to some other people. The three of us did not feel comfortable with the sale, so we left the company. After we left the company, my old boss decided not to sell his company after all.

However, two of us who had left his company decided to form a new corporation. We began doing business about two months later.

We NEVER signed a non-compete agreement with our previous employer. But we are currently working with some of the customers that we had worked with before. And I have heard rumors that my old employer is thinking of suing us.

I wanted to find out if my old employer has a case against me personally or against my new corporation?

Thanks for your help.

1 answer  |  asked Jan 6, 2006 2:26 PM [EST]  |  applies to California

Answers (1)

George Allen
Fact-Specific

CA generally allows you to compete with your former employer. However, there are prohibitions on using "trade secrets" learned in your former employment. You should review this with an attorney who has experience in this area.

posted by George Allen  |  Jan 6, 2006 3:14 PM [EST]

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