Q: I've worked for a pest control company for over 25 years and will soon be starting my own pest control company.
I signed a non-compete agreement with my current employer at the time of hiring and I am wondering how or if this will affect my new company in the following areas:
(1) Can I obtain my operators license and immediately "take" my existing customer base with me to my new company?
(2) Can I use a DBA under another companies operators license if I decide not to immediately obtain and work under my own operators license?
(3) Is there a grace period I'd have to wait to bring my current customer base into contract with my new company to avoid legal issues with my current employer?
A: California does not view non-compete clauses favorably. However, the California Supreme Court will enforce non-competition where the former employee is using proprietary information of the employer to compete. Customer lists can be proprietary information. It is also possible that taking a customer list will take with it proprietary information beyond the identity of the customers. If you are investing money, you should consult counsel to be sure you protect your investment. Superficial measures like a new DBA or a grace period do not change whether or not the information is proprietary. The old employer can go after the other company with the operator's license.
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