QUESTION

Is competing with my Boss Legal?

Asked on Jul 29th, 2021 on Labor and Employment - Louisiana
More details to this question:
I've been working for the same company for over 4 years doing inspections in a plant. The company under pays insanely, nearly $20 under average. I'm a Project Manager making $20 an hour, no benefits. So I'm wanting to get my contactors license and place a bid myself on the same job. I have not signed a no compete clause, or any clause for that matter since I hired on, however, I do have to hold meetings with the client once a week to discuss business. I was wondering if I can legally leave the company, start my own, and compete with my former employer. If not, are there any loop holes? I already own another business with a business partner. So maybe he can start a new business and hire me to do my same job and I just run things as usual but make all the executive decisions and just pay him a percentage.
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1 ANSWER

Appellate Practice Attorney serving New York, NY
If, as you say, you are not bound by any non-comepte agreement, and did not sell any part of this business to your current employer (in which case a non-compete can be imposed by law) you have every right to compete with your former employer.  HOWEVER, you can't use any trade secrrets or proprietary information you learned in your employment.  For example, if you know how much your current employer is bidding on a proposal and use that knowledge to undercut the bid and get the job, that would probably be considered unfair competition.  Things like customer lists, costing and markup information, etc can be considered trade secrets depending on whether you learned it in the course of your employment, how much time and money was spent by your employer to acquire that knowledge, the extent to which that knowledge is not publicly available, and the extent to which your employer takes care to keep the information secredt.   As for trying to circumvent your obligaqtions through the subterfuge of using somebody else's name, you can't do indirectly what you are prohibited from doing directly, and if you're caught you will look worse.
Answered on Jul 29th, 2021 at 2:28 PM

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