QUESTION
I want to apply for a grant to start a business. I have a day job & my startup will compete with my current employer's customers.
Asked on Nov 03rd, 2014 on Business Law - Ohio
More details to this question:
I am applying for a federal grant to develop an innovative technology for residential air conditioning. It is a disruptive technology very different from current technology. I am employed by a compressor manufacturer used in current technology. Hence, my idea competes with my current employer's customers. I need the federal grant to start my company. I want to know if there is conflict of interest in applying for the grant while continuing my day job. I have to register an LLC to apply for the grant. I plan to quit my job and work full time on my startup if the grant is approved. I want to know if this is a conflict of interest in registering an LLC and applying for the grant? I plan to tell my employer if the grant is approved.
1 ANSWER
Assuming that Ohio law is similar to New York's in this area, an employee is allowed to begin preparations for competing with his/her current employer as long as the employee does so on his/her own time, without using the employer's resources, and continues to use his/her best efforts on his current employer's behalf until and unless he/she leaves its employ. You didn't ask this, but if you have any written agreement with your employer, you should check to make sure that it doesn't provide that any inventions that you come up with while in its employ belong to it.
Answered on Nov 03rd, 2014 at 1:07 PM