QUESTION

Can my previous employer limit or regulate who I go to work for including a competitor?

Asked on Sep 30th, 2014 on Employment Contracts - Michigan
More details to this question:
I live in Michigan and worked for 7 years as the National Sales Manager for a Lansing based company. After a continuing time of unpleasantness with the president of the company, I resigned. Recently, I have agreed to be a sub-contractor and acting sales manager for a competitor based in Washington State. I have never signed a non-compete, but recently received from my previous employer's attorney a warning letter on all the things I can be in trouble for if I share any information gained from my previous employment. How serious is this concern or threat? Or is it probably just intimidation?
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1 ANSWER

Appellate Practice Attorney serving New York, NY
You can't use any trade secrets belonging to your former employer in your new job.  Whether or not particular information constitutes a trade secret, however, is always debatable.  It depends on such factors as the degree to which the information is secret (information which is publicly available or can be readily ascertained is not a trade secret), the amount of time and/or money which the employer expended to develop the information, the effort expended to keep the information secret, the degree to which the employer derives a competitive advantage from the confidentiality of the information, etc.  Thus, for example, a customer list which anyone can derive just from looking in the yellow pages or buying a list of subscribers to a trade publication is not a trade secret, while one which a business has compiled over a period of many years, at great expenditure of time and money, which the business goes to great lengths to keep secret by limiting access to only high level employees, and which is not readily ascertainable by others, probably will be considered a trade secret.
Answered on Sep 30th, 2014 at 1:12 PM

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