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Post-employment litigation

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New Contributor
Read Millionaire Fastlane
Dec 4, 2019
Hello Fastlaners,

I just found out that the owner of the company that I work for is suing a former manager for starting his business while he was still working here.

I know that every non-compete is different and that laws in Canada vs. USA are different, but does anyone have experiences of this happening to them or to someone that they know?

I haven't incorporated my business yet, but maybe this is something I should take into consideration before I do.

Any input or advice is welcomed.

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Lucky Lu

Bronze Contributor
Read Millionaire Fastlane
Speedway Pass
Nov 2, 2019
Newport Beach, California
Well there is a difference between a non compete clause or a specific agreement to limit the ability of the former employee to engage in activities that are in direct competition or in the same field as the former employer, and the general legal limitation that prevents an employee or associate to utilize confidential information or trade secrets, formulas or know how in order to disloyally compete with the previous company he worked for.

Also is generally consider on every legislation as an unfair commercial practice to poach clients or engage in detrimental communications regarding the former employer or his company on order to gain new clients or make the previous clients switch.

Without knowing the details on the case it is nos possible to make an assessment and really give an opinion regarding your particular situation but feel free to explain.

The validity of the NCC varies from case to case and can depend on state law, on how restrictive the agreement is in terms of time and the radius of the region, and on what the employer construes as competition.

Non-compete agreements usually are considered legally binding as long as they have reasonable limitations. That refers to time frames, geographical boundaries and personal or commercial reasonable behavior.

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