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Employment Law/Salesperson Leaving to Work for Competition

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Question
We have a salesman who just quit to work for our competition.  He just passed his salesperson license under our builder license.  Is there anything we can do to prevent him from using this new license under another builder?  Also, can he legally use sales leads from our company for this new company?

Answer
At this point in time I would say unlees you have taken steps to protect your company there is nothing you can do in this instance.

Here is what you should be doing and should do in the future:

1) Write up a confidentiality policy that all new employees sign. It needs to say

CONFIDENTIALITY AGREEMENT

The undersigned employee of xxxxxxxx hereby acknowledges that during the course of employment by said company(ies),  he/she will have access to certain confidential information and trade secrets which may include, but are not necessarily limited to, names/addresses of Members, Employees, Vendors, and product formulations or ingredients.

Said employee agrees that such information is a confidential trade secret of xxxxx, Inc. under the Trade Secrets Act, and shall not be disclosed to any other person or company, either during the term of his/her employment or at any time after the termination of such employment.  The worker shall pay any attorney fees incurred by xxx, Inc. to enforce the terms of this agreement.

_______________________________________________   ____________________________
Worker Signature          Date

You can change the wording to fit your company.

2) When training or licensing workers have them sign a non compete agreement that as a condition of the training and the licensing they will not work for a competing company for 2 years after completing the training and receiving the license.  (You can specify months or years)

Here is a sample non compete  and confidentiality agreement all in one

CONFIDENTIALITY, NON-COMPETITION,
AND NON-SOLICITATION AGREEMENT
This Confidentiality, Non-Competition, and Non-Solicitation Agreement (“Agreement”) is made between _____________________ (the “Employee” or “you”)___________________ and______________________________, a Georgia Corporation, (“___________”), along with its subsidiaries, parents, joint ventures, affiliated entities, and includes its successors and assigns or any such related entities (the “Company”). In consideration defined in Section 1 below, both parties agree as follows:
1. Consideration. In consideration of the Employee’s execution of this Agreement, you shall hold the position of “_____________________________” as an at-will employee of __________________________________ and shall receive future wages and employment benefits, payment of which during the period of your employment is a condition of this Agreement. You acknowledge the receipt and sufficiency of this consideration.
2. Restrictive Covenants.
a. Definitions:
(1) “Business of the Company” means the highly competitive business of developing, manufacturing, marketing, distributing, and/or selling ________________________ _______________________________________________________________________.
(2) “Competitive Business(es)” include any firm, partnership, joint venture, corporation and/or any other entity and/or person,___________________________________
________ and/or any licensee of such entity, that develops, manufactures, markets, distributes, and/or sells any of the products described in Section 2.a.(1).
(3) Your “Job Duties” are those duties described in Exhibit A, attached hereto, as well as those duties as may from time-to-time reasonably be prescribed by the Company during the period of your employment with the Company.
(4) “Customers” means any firm, partnership, corporation and/or any other entity and/or person that purchased or purchases from the Company any of the products described in Section 2.a.(1).
(5) “Customer Prospects” means any firm, partnership, corporation and/or any other entity and/or person reasonably expected by the Company to purchase from the Company any of the products described in Section 2.a.(1).
(6) “Vendors” means any individual and/or entity that provides goods and services to the Company.
___________     ___________
Initials        Initials
(Employee)      (Company

Of course you can change the wording to match your needs.

If you do not have these protections you have no legal ground to stand on to keep the employee from leaving and from solicitating business.

You can also have an attorney prepare the above documents if you do not feel confident in preparing them yourself than you can use the non compete over and over again.

Shirley

Employment Law

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Shirley McAllister, CPP, PHR

Expertise

I can answer questions about payroll laws and payroll tax laws and Human Resource laws and agencies. I can answer federal payroll and human resource law questions and most states; I do not have a knowledge of the local taxes for cities and counties within the state. If and when I can I will try and send you the website where you can reference the answer and where you can obtain more information as well as a contact number if needed for that particular agency. Some agencies I have worked with are IRS, Department of Labor (federal and state), Revenue Canada (and provincial governments), Inland Revenue, OSHA (0ccupational Safety and Health Administration); Social Security Administration and National Child Support as well as other agencies in Payroll and Human Resources. Some Laws I am particularly familiar with are FLSA (Fair Labor Standards Act), ADA (Americans With Disabilities Act), FMLA (Family Medical Leave Act) COBRA (Consolidated Omnibus Reconciliation Act ) , QDRO's, QMCSO's, and other support orders and garnishments, USERRA (Uniformed Services Employment and Remployment Rights Act,PPA Act (Pension Protection Act of 2006, As well as most other employment type acts. I am also well versed in the Title V Civil Rights Act and the HIPAA (Health Insurance Portability and Accountability Act).

Experience

30 years in Payroll and Human Resources

Organizations
SHRM (Society of Human Resources) APA (American Payroll Association) DOLEA (Department of Labor Employers Association) CPA (Canadian Payroll Association) NAPW (National Association of Professional Women) The Mentoring Network

Education/Credentials
PHR Certification in Human Resources CPP Certification in Payroll in U.S. Payroll Administrator and Payroll Supervisor certification in Canada

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