Can You Compete with a Previous Employer?
You or your co-founders could run into problems if your new venture is in the same space as any founder’s prior employer.
Each founder must review the agreements with his or her prior employer (e.g. offer letter/employment agreement, nondisclosure and inventions assignment agreement, stock options agreement, etc.) to determine if there are any provisions that may inhibit the new venture. Employee handbooks and any other relevant documents should also be reviewed.
Provisions to look into include:
Non-compete provisions (which are not always enforceable)
Provisions regarding the non-solicitation of customers, vendors, or employees
Provisions regarding the assignment of inventions
If you would like to speak with a lawyer, schedule an initial consultation at Emerge Law. To speak with an employment lawyer in confidence, contact us to book an appointment.
The content of this article is written for general information purposes only, and does not constitute specific legal advice. This article should not be used as a substitute for competent legal advice from a licensed lawyer.