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  1. #1
    Join Date
    Jun 2015
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    9

    Default 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.

  2. #2
    Join Date
    Jul 2010
    Posts
    8,006

    Default 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.

  3. #3
    Join Date
    Jun 2006
    Location
    Massachusetts
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    24,521

    Default 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?

  4. #4
    Join Date
    Jan 2006
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    38,867

    Default 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.

  5. #5
    Join Date
    Feb 2008
    Posts
    1,179

    Default 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.

  6. #6
    Join Date
    Jun 2015
    Posts
    9

    Default 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

  7. #7
    Join Date
    Jan 2006
    Posts
    38,867

    Default 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.

  8. #8
    Join Date
    Jun 2015
    Posts
    9

    Default Re: Promoting While Working for Other Company

    OK I got it so he can be sue then

  9. #9
    Join Date
    Jan 2006
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    38,867

    Default 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.

  10. #10
    Join Date
    Dec 2009
    Location
    Lake Chapala
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    3,043

    Default 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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