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.

Related Topics:
1 Lawyer Answer
Joseph B. LaRocco
Joseph B. LaRocco
PREMIUM
Answered

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.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.