Can a Competitor Legally Come to Your Place of Business to Solicit Your Customers
Employee Poaching: Know Your Legal Rights
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Contest among rival businesses is hardly anything new, just there are some tactics that but aren't in the realm of legal practice. Competitors may vie for the same superstar salesperson, or they might bid for like investors, clients, or partners, but some competitive tactics aren't supportable, and they tin can result in serious repercussions. Employee poaching, or employee raiding, is one such example.
Employee poaching occurs when one competitor hires multiple employees from a competitor's company. Assuming the company acquired these new workers intentionally, the term is called "poaching," or "employee raiding." Although employee poaching isn't illegal equally a direct offense, there are several ways in which the do is considered unlawful. As a result, individuals or companies found guilty of employee raiding may face legal consequences.
What Is Employee Poaching?
If a competing company wishes to strengthen their squad, they might endeavor to do so past stealing abroad employees from other companies. Or, if an employee moves to a competing company, they may endeavour to movement their team over with them, creating a mass exodus that tin be detrimental to the company losing employees. This process, employee poaching, isn't outright illegal, but it is frowned upon and, more than importantly, it tin violate certain business laws.
Is Employee Poaching Illegal?
Employee poaching isn't outright illegal in the state of Texas, simply information technology often violates employment contracts, such as non-compete and non-solicitation agreements. A non-compete agreement can include provisions that include scope of activity, location, and rival visitor employment, amid other things. If, however, an employee bankrupt their understanding while moving to a new place of employment, they could face legal ramifications from their previous employer such every bit injunctions and damages.
Not-solicitation agreements, on the other hand, tin can prevent employees from working for competitors or bringing clients or other employees with them if they leave their current employer. Substantially, this type of employment contract prevents employees from using their current chore position to assistance them in future business prospects. Employee poaching, past nature, can directly violate a non-solicit provision.
A breach of an employment contract is a mutual enough offense, merely information technology is no less meaning or damaging for its regularity. The consequences can include expensive legal fees, business organisation-related restrictions, and other legal consequences, depending on the severity of the violation.
Additionally, employee poaching could be considered unlawful if it is related to the misappropriation of confidential information, theft of trade secrets, unfair competition, or breach of duty of loyalty. In any of these cases, the wronged employer may endeavour to sue the employee or the competing business for wrongdoing.
Notice Your Options if a Competitor Is Poaching Your Employees
While employee raiding isn't illegal in and of itself, the offense is often associated with other illegal business concern practices, such as violation of non-compete agreements, misappropriation, and theft of trade secrets. If you were involved in an employment law issue where you were the victim of employee poaching, or if you were accused of poaching, our business firm is here to aid. We can appraise your state of affairs and propose a feasible legal plan to protect your short- and long-term interests.
We value our relationships with our clients, and we know the type of stress and confusion that comes manus in hand with cases like this. However difficult your case may seem, our team tin can use our aplenty resources to create a stiff case on your behalf.
Contact Hendershot Cowart P.C. to schedule a consultation with our firm today.
Source: https://www.hchlawyers.com/blog/2019/october/employee-poaching-know-your-legal-rights/
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