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Articles

Dos and Don’ts of Fair Competition for Departing Employees (and some Insights for Those Who Employ Them Now or Want to Hire Them)

August 25, 2011

Articles

Dos and Don’ts of Fair Competition for Departing Employees (and some Insights for Those Who Employ Them Now or Want to Hire Them)

August 25, 2011

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The basic rule of fair competition for a departing employee is easy to state and appeals to common sense:

Employees owe their employer a duty of loyalty while employed and, absent an enforceable non-competition agreement, the employee is free to go into competition with employer and use his or her general knowledge, skills, and experience.

That simple statement becomes a complicated reality when one starts to look at issues such as the skills and knowledge the employee brought to the employer, the discoveries and inventions that may have been made by or disclosed to the employee during employment, and the competitive niche to which the employee proposes to migrate with his or her skills.

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