Q: Can you be asked to sever ties with a personal startup?
My friend's employer is asking him to show proof that he has terminated ties with a startup he founded or be terminated by 1st May. His reason is because one of his clients is working on a similar app (not true as their app is completely different from the app that the startup has been working on since 2014) and there would be a conflict as "suggested by the client".
So my questions are:
- If prior to employment the information about the startup was provided, does the employer have the right to force the employee to exit his startup?
- Is there a legal way to get him to prove that the client has made this request?
- Are there any legal options to ensure that he is still not discriminated or terminated if he gives up his partnership with his startup?
A:
Have you friend talk to an attorney and bring his offer of employment and other paperwork.. Giving you advice to give to your friend is like playing telephone. I have no idea what is in the contract, what was done at the time of employment or what the demand letter says.
Normally an at will employee can be fired for any reason as long as it isn't against public policy.
A:
Employment at will is employment at will. If an employee has no written, fixed term, contract of employment and does not belong to a union or work for the government their employer needs absolutely no reason to fire them. None. That's right, the employer can say good-bye without a reason.
Why would it matter to prove the request was made unless some written contract is potentially being breached because the request was made? A written contract should state how a notice of breach is to be delivered.
A signed, written, fixed term contract drafted or reviewed by a lawyer. Discrimination? On what basis? Your facts reflect no hint of discrimination and the discriminated party must prove discrimination. Is the employee a member of a protected class of employee? No one would give up any partnership unless a written, signed fixed term contract assured them of protection for giving up valuable interests in property or other employment.
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