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Can You Start a Competing Business While Still Working for Your Employer

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  • 04-30-2017, 02:02 PM
    nevaga
    Can You Start a Competing Business While Still Working for Your Employer
    My question involves business law in the state of: Texas
    If a person is employed with a retail store and he decide to open his own store (same products) while working and start promoting with the clients about his business what legal consequenses can he have?
    note he didnt sign any contract at the moment he got hired.
  • 04-30-2017, 02:18 PM
    free9man
    Re: Promoting While Working for Other Company
    If he is operating in direct competition with his current employer and/or promotes his business on his employer's clock, he can be fired. Not much beyond that is likely but termination is almost guaranteed.
  • 04-30-2017, 03:33 PM
    cbg
    Re: Promoting While Working for Other Company
    note he didnt sign any contract at the moment he got hired.

    The way this is worded concerns me. Okay, he didn't sign any contract at hire. Did he sign a contract after hire, and if so what did it say?
  • 04-30-2017, 04:17 PM
    jk
    Re: Promoting While Working for Other Company
    If he is on the clock and promoting his business he is guilty of taking pay without performance. That is a civil wrong but depending on the circumstances it could be criminal.

    There is also the possibility of tortious interference with a business relationship.


    And tou wouldnt have to sign any sort of contract or be told those actions were not allowed for them to be applicable.


    If he is not on thr clock the tortious interference could still
    be a possibility depending on all of the facts.
  • 04-30-2017, 05:27 PM
    hr for me
    Re: Promoting While Working for Other Company
    and I will also state that there are many customers and clients who will not support the new business because they view it as unethical.
  • 04-30-2017, 06:17 PM
    nevaga
    Re: Promoting While Working for Other Company
    He only told the clients I have a store if you ever are around, never interfiere with a sale and there is no contract at all.
    Thank you for all the comments
  • 04-30-2017, 06:38 PM
    jk
    Re: Promoting While Working for Other Company
    Quote:

    Quoting nevaga
    View Post
    He only told the clients I have a store if you ever are around, never interfiere with a sale and there is no contract at all.
    Thank you for all the comments

    yes there is a contract lest he wouldn't be paid for his efforts.

    He is interefering with sales if he attempts to sway them to not shop at his current employer but go to his own store.
  • 04-30-2017, 06:42 PM
    nevaga
    Re: Promoting While Working for Other Company
    OK I got it so he can be sue then
  • 05-01-2017, 01:43 AM
    jk
    Re: Promoting While Working for Other Company
    Quote:

    Quoting nevaga
    View Post
    OK I got it so he can be sue then

    It is a very fact specific situstion. While anybody can be sued, whether there is a valid basis for a suit will depend on the totality of the facts of
    the situstion.
  • 05-01-2017, 05:50 AM
    eerelations
    Re: Promoting While Working for Other Company
    So here's the best we can do: He can be legally fired for doing this. It is unlikely he will be entitled to UI because he has his own business. His former employer will be legally free to tell his future prospective employers (or pretty much anyone else for that matter) that he did this highly unethical thing. His former employer may sue him over this; whether or not his former employer will prevail in such a lawsuit, we cannot say. But if his former employer does sue him, he will have to spend some considerable amount of money to defend himself in court.
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