Dallas Employment Lawyer - Keith Clouse

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Can an Executive “Take” Employees With Him When He Leaves?

A former employer may intervene if an executive attempts to recruit the entire sales department.

August 09, 2015

(press release: cdklawyers) // Dallas, Texas, United States // Keith Clouse - Dallas employment attorneys at Clouse Dunn LLP

When an executive decides to change companies, he should know that he cannot take tangible company assets with him. But, what if an executive wishes to “take” personnel with him to his new company? Dallas employment law attorney Keith Clouse discusses.

The executive must first review any agreements he has with the company. His employment agreement or separation agreement may expressly prohibit him from recruiting employees. Or, a clause may prevent him from using the company’s confidential information for his own purposes, such as using an employee list to contact recruits. An executive must also respect his fiduciary duty to the company; while employed by the company, he should not actively recruit employees to work for a competitor.

If no direct impediments prevent the executive from recruiting employees once he moves to his new company, he should still tread carefully. A former employer will not likely balk if the executive asks his long-time personal secretary to move with him. But, a former employer may intervene if an executive attempts to recruit the entire sales department or solicit employees the executive knows are subject to non-compete agreements.

This article is presented by the Dallas employment attorneys at Clouse Dunn LLP. To speak to an employment law attorney about a workplace issue, send an email to debra@clousedunn.com or call (214) 239-2705.