Didn't sign a non-compete, what now?

I had hired a sales rep but I did not have a non-compete agreement signed. Now he has left my company, with my contacts in his computer. Is there anything I can do or I am completely out of luck in this situation. I know he plans to go to another company in the area and use his contact list to get himself a job.

1 answer  |  asked Aug 19, 2007 01:56 AM [EST]  |  applies to California

Answers (1)

Neil Klingshirn
Protect your trade secrets

A signed non-compete might not helped you even if you had one. California generally does not enforce non-competition agreements between an employer and employee. However, you may be able to prevent your former employee from competing against you by using California's trade secrets act.

Disclaimer: I am licensed to practice law only in Ohio and am not proficient at California law.

That said, most states, including Ohio and, I believe, California, adopted a uniform trade secrets act. Under Ohio's act, customer lists and contact information may be trade secrets, as long as there were, in fact, kept secret by the employer. In that case, you may be able to apply for an injunction in court to prevent the former employee from using the trade secrets, and recover damages if he does.

Bottom line, consult with a California attorney about trade secrets. Check MEL's lawyer directory and MEL's Answers to see who can write well. Check also the attorney directory at the National and California Employment Lawyer's Associations.

Best regards,

Neil.

posted by Neil Klingshirn  |  Aug 20, 2007 08:57 AM [EST]

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