Can an employer threaten me with legal action if I choose to go with a competitor?

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Can an employer threaten me with legal action if I choose to go with a competitor?

I was recently approached by a company that offered me much more income and research resources; they even offered to pay my resignation notice so that I can leave the current company ASAP. My current employer threatened me with legal action if I choose to go with a competitor. I’m sure I never signed anything related to such a clause. Is such a thing, on the employer’s behalf, possible?

Asked on July 12, 2011 under Employment Labor Law, Maryland

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Usually, the only ground that an employer would have for proceeding against an employee who is hired by a competitor would be if there was a non-competition agreement of some sort signed by that employee. Other than that, generally speaking, an employee is free to leave work whenever (s)he wants and to work for whomever (s)he pleases.

There might be grounds for some action by the current employer IF they believe--and believe they can establish or prove--that you got the job by misappropriating and providing to the new employer confidential or proprietary business information of some sort, such as customer lists, intellectual property, business strategy, business process, etc. The misappropriation--especially if there is a non-disclosure or confidentiality or non-solicitation agreement--would be the basis for legal action.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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