Questions to Ask When Hiring a Recruit from a Competitor
When an employer hires an employee from a competitor, it must perform a risk assessment regarding the likelihood of litigation.
Dallas non-compete lawyer Keith Clouse believes that when an employer hires an employee from a competitor, it must perform a risk assessment regarding the likelihood of litigation. When performing this assessment, the hiring entity should consider the answers to the following questions:
• Why is the employee leaving? What are the circumstances surrounding his departure?
• How similar are the new and old job positions and the new and old job duties?
• How competitive are the two businesses? Will the employee be directly competing against the former employer in his new role?
• How likely is it that customers will follow the employee?
• How likely is it that the employee’s former coworkers will follow the employee?
• Did the employee have access to valuable trade secrets or proprietary information? Would the employee be expected to use or rely upon similar information in his new role?
• Would other circumstances propel the employer towards litigation? For example, does the employer need to send a message to another employee who is contemplating a move?
• Is the employee bound by a non-compete agreement? If so, has legal counsel reviewed the non-compete agreement and opined on its enforceability and applicability?
• Historically, how aggressively does the former employer pursue enforcement of its non-compete agreements?
This article is presented by the Dallas employment attorneys at Clouse Dunn LLP. To speak to an employment lawyer about a non-compete issue, send an email to firstname.lastname@example.org or call (214) 239-2705.