Can someone start a cake company, while workinging for a major company that does cakes?

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Can someone start a cake company, while workinging for a major company that does cakes?

Asked on June 27, 2012 under Employment Labor Law, South Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If that person has not signed some sort of non-competition agreement, he or she may legally start a competing business, though he or she may not use proprietary information of his or her employer (e.g. a recipe; customer lists) to do so, and may also not use the employer's equipment or do it on the employer's time.

The employer however would be free to terminate the employee for doing this, unless the employee had an employment contract preventing termination in this situation; so the employer can't legally stop the employee from competiting, but doesn't have to employ him or her while he or she is doing this.


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