Interest of conflict?

Good Afternoon All,

I'm asking this question for one of my friends. He was working for Company A for 10 years, on the last two years of his employment he started his own business which is Company B. Company A and B have very similar business model. Recently company found out all these and fired him. Company A is planning to take my friend into court.

Is it legal to start your own business while you working for someone who has similar business model?

Thank you for the help

7 Answers

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  • 1 month ago

    Your friend should retain an attorney to look over the case.  In some states 'non compete' is implied by hiring..in others it is the 'Wild West'  But $300.00 spent on a lawyer will help win or evaporate any case the employer may have.

    Warning - if the company is a large corporation...they have lawyers on retainer who are bored and have nothing better to do than to make your friend's life a living hell.

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  • 1 month ago

    Unless he signed a non compete agreement while he was working...then yes, in most places he can do that.

    However, the company he was working for has more money and better lawyers so they will probably win.

    And if your friend signed any agreement or employment application which says...in any wording...that you "may not engage in activities for profit that are similar to what you are being paid at the company"...if your friend signed anything like that...your friend is....as we say on the East Coast...totally BUM DUCKED up FITS SHREAK without a paddle.

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  • 1 month ago

    Many businesses have you agree to a 'no competition' clause. Did he?

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  • Anonymous
    1 month ago

    It’s “conflict of interest”.

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  • Peter
    Lv 7
    1 month ago

    Your friend might not remember signing a contract of employment, that doesn't mean there isn't one. In civil law, his former employers stand a good chance of putting a stop to his business, if his company operates in direct conflict with his former employers, more especially if he is approaching any of his former employers clients/customers.

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    • Peter
      Lv 7
      1 month agoReport

      Yes. Some companies simply give out contracts of employment which are not signed by the employee, but the terms are still enforceable by the company. Maybe he should ask the company for a copy of the contract that they intend to sue him on.

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  • Anonymous
    1 month ago

    Direct competition would lead to dismissal and many places. My dads old job included stock options and he had to sign a non compete to get them. So if he were to quit and go to work for a competitor they could keep what options he had.

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  • Anonymous
    1 month ago

    "Is it legal to start your own business while you working for someone who has similar business model?"

    Yes.   But this is not a matter of criminal law (legal vs. illegal).

    This is a matter of civil/contract law.  If your friend signed a non-compete agreement, he's likely in violation of his contract and has been so for several years.  In this instance his former employer has every right to sue him.

    No one here knows what your friend signed or what the terms/conditions of his employment were.   You you know?   Does your friend know?   Ten years was a long time ago.  This is why you keep copies of everything you sign and know what it says/means. 

    • nick1 month agoReport

      Hi, your information is very helpful. He’s sure he didn’t sign any contract or agreement with his employer

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