Are You Violating a Non-Compete by Starting Your Own Business?

Starting your own business can be exciting – you’re going to be your own boss. But, before you make that business idea official, have you looked at your non-compete agreement with your past or current employer? The last thing you want as a small business startup is a lawsuit from a former boss. Therefore, you need to cover your ground and review your contracts before making your business a real deal.

Review Your Non-Compete

If your existing or past employer didn’t want you as a competitor, they may have required you to sign a non-compete agreement. This agreement may prohibit you from starting a similar business to theirs in the same city or county and may prevent you from doing so for a specific period.

If you had or have an employment contract, it likely has a non-compete. Therefore, you may want to consult a non-compete lawyer and have that agreement reviewed before starting your own business. If your business doesn’t violate the non-compete, then you should be fine to start. But if it does, you will need to explore other legal options before actually starting the business.

Are You Violating a Non-Disclosure?

When you worked for your former employer, did you learn certain trade secrets that you plan to use in your new business? Even if there is no non-compete, you may have agreed to not use that confidential information; therefore, if your new business products or services use proprietary information from a past job, you are violating your contract – and could be sued for breach of contract.

Was Your Idea Created While Employed?

Some employers have contracts that claim all rights to products or inventions you create while working for their company. Even if the product you created has nothing to do with your employer, they may have rights to that invention because of their contract.

It is best to hire a non-compete lawyer to review all employment contracts with past employers – even those that are over a decade old. While some may have expired, there are instances you may not be able to start up your own business, regardless of how long it has been.