When may I compete with my employer?

While employed with your employer, you should:

• not use any of your employer's trade secrets outside of you employer’s business. This is a violation of California law. “Trade secrets” arise from your employer taking reasonable measures to protect information, which is valuable, because it is secret, such as customer lists, business plans, spreadsheets, bid specifications, etc;
• not develop your new business on your employer’s time or using your employer's resources, such as computers, printers, telephone, etc.;
• not violate any other employment policies and procedures related to competition, loyalty, etc., signed employment agreements, nondisclosure agreements, proprietary rights agreements, or other similar agreements with your employer; and
• not advise your employer's customers that you will be soon starting a competing business.

After employment with your employer, you may “freely” compete with your employer, but you should:

• still not use any of your employer's trade secrets, as discussed above; and
• still not violate any signed past employment agreements, nondisclosure agreements, proprietary rights agreements, or other similar agreements, which by their terms extend beyond your employment.

Important Proviso: The above material does not constitute legal advice and should not be relied on. It does not create an attorney-client relationship. Each locality has differing laws. A legal matter cannot be satisfactorily resolved without a comprehensive review and analysis of all the unique facts and laws at issue by an able attorney. Your matter may result in a loss of rights if you do not timely retain such an attorney.

Contact: If you would like to discuss this matter further in a more private forum, please feel free to contact me directly at the email address provided through my firm’s website located at http://www.BealBusinessLaw.com.