Asked in Employment Law and Business Law

Q: can a company file a case against me after quitting and then starting my own company in the same field or domain.

Respected Lawyers, My query is that can a company file a case against me after quitting and then starting my own company in the same field or domain and then contacting a person inside that company and giving them some freelancing work to do. The Board of Directors were threatening us stating that they will file an FIR against us.

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1 Lawyer Answer

A: This all depends on the terms and conditions of the employment agreement or independent contractor agreement you signed with the company. Many employment agreements or independent contractor agreements contain "non-solicitation clauses" that would restrict you from soliciting employees of the company to work for you. Depending on your state's particular laws, that may or may not be enforceable by the company since many state's do not enforce "non-compete clauses" and this may come under that law, although the particular language of any agreement you signed with the company needs to be carefully examined. Even if it is technically considered a breach of contract, based on what you signed, this is simply a civil breach of contract action. If the contract is silent on damages, then the company would have to prove what their damages are, and courts hate to guess at damages. The company could possibly sue you to get an injunction or restraining order directing you to not use that employee for freelance services in the future.

If you did not sign a contract specifically restricting you from soliciting the company's employees to do work, then the board of directors is just bluffing and has no grounds for what they are claiming.

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