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Business, Employment & Corporate Law Corporate law refers to laws establishing legal entities known as the company or corporation and governs firms, for instance limited companies, publicly limited companies or incorporated businesses.

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Old 04-17-2006
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Default Competing with current/former employer

I have been working for a small business for a few years. The business employs the owner, his wife, a part time administrative staff, and myself. We used to have our own manufacturing employees, but have recently outsourced this responsibility to local businesses. Now our primary role is engineering and sales. I perform most of the engineering with little outside input. I have accounted for 75% of the quoted sales for the last two years. I have been highly involved in developing procedures, accounting practices, marketing, advertising, etc... I am often in the office alone for 15 to 20% of the standard working time.

We have a standard product line and do a lot of custom work. We do not engineer/sell anything that is patented or so unique that it could be patented. Most of our concepts are developed with a customers' or dealers' input. We are not consultants, but take the customers' thoughts and engineer the product and deliver it.

We have almost no exclusive dealers or customers. There is one catalog company that sells our products, but I don't believe we have a contract with them. We are always checking to see if they are still representing us.

I have never signed a non-compete agreement with this company.

I am at the point where I think I should be doing this on my own. I have not agreed with my employer's strategies or methods for growing the business. Frankly they have usually caused greater strain on the human resources and have prevented growth and compromised sales opportunities. I have also felt that my business owner will vent his frustrations on myself and has become personally offended by me outperforming him in sales.

I have no intention of taking any confidential or proprietary information with me. However, I would probably contact the dealers and customers that I am familiar with to let them know that I offer similar products and services.

My previous employer has big company excecutive experience. He often seems to be in a CYA mode. I have also seen him reacting to situations based on angered emotions. He does not always approach things logically. He has deep pockets and that concerns me in regards to taking me to court just because he can.

Are there legal issues that I should be aware of in attempting to go into business on my own and competing with my current employer? Obviously, if I went into business on my own I would leave my current employer and they would become my former employer.
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