Would there be any legal consequences if I do work for 2 competitors at the same time ?

I do not work with confidential information, I do not have any relation with account management, clients or suppliers or any other case that would affect any of the 2 companies business but I have signed an Employment agreement that states:
"During the period of time you are employed by XXX, or are continuing to receive compensation from XXX, you agree to devote your full business time and services exclusively to XXX. You will not, without prior written consent of XXX, participate in any other business or venture which is competitive with or of a nature similar to the business of XXX. The terms of this letter and the resolution of disputes shall be governed by Arizona Law. This letter sets forth the terms of your employment with XXX and supersedes any prior representations or agreements, whether written or oral."

1 answer  |  asked Aug 23, 2011 4:13 PM [EST]  |  applies to Arizona

Answers (1)

Francis Fanning
Arizona courts have held that an employee has a duty of loyalty to the employer while the employment relationship exists. That duty prohibits an employee from acting in a way that contravenes the employer's interests, such as giving information or customers to competitors, making derogatory remarks about the employer that would harm the employer's business, or doing anything else that would undermine the employer's interests. The agreement you signed doesn't seem to prohibit "moonlighting" by holding a second job, but if the second job is working for a competitor of the employer, to do so would be a breach of the terms of the agreement. It doesn't matter that you may think that your second job causes your first employer no harm. While you are employed, your employer dictates the terms of employment as long as those terms do not require you to violate the law. If you don't comply with those terms, expect to get fired.

posted by Francis Fanning  |  Aug 23, 2011 5:21 PM [EST]

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