Is it legal to...

[knifely]

Is it legal to work for a future competitor in order to scope out the way they run their business, and use this to improve the business I am thinking of starting up?
Im not talking, going through documents, just becoming a regular employee?
Just wondering, Thanks/.

[jonathanfigaro]

Of course its OK. There nothing wrong with lets say me wanted to work inside dun kin donuts in order for me to see there faults, so i can serve the customer better with my franchise. " this is just an example" ....You can scope out any competition you want, just dont tell them that on the application. Also, You may want to not worry about the competition an just focus on creating.... When you create, You have no competition!

[knifely]

alright thanks for the quick reply...
And this wouldn't be a direct competitor, it's like the closest competitor because they only offer one of the services we would offer. So I just want to see how this works since I have no real experience with it.

[noob]

It really depends on the application, contract, and documents in which you receive under the employment. In most cases, it probably won't matter and nothing will probably come about it, but in the rare few instances it does happen, you'll wish you didn't do it. I would highly recommend reviewing over the documents they give you at hiring and thoroughly review and double to make sure there isn't a clause in there.

Some businesses strictly forbid employees to go work for their competitors or start up their own competing business EVEN if its only an aspect of it for a certain amount of time after employment regardless if they quit, got laid off, or got fired.

In a famous news story earlier this year, an IBM employee quit to join Apple, even they only overlap on ONE business portion that was of concern, a huge lawsuit ensue and the employee was in a legal battle for months. It was no joke. You can google it up. Stories like this happen all the time. For smaller businesses, you probably have nothing to worry about but I would again highly advise you look into what your agreeing to during employment to avoid such a downfall. Nothing is absolute, everything is possible. Just be sure to read the fine print.

[2gould]

The answer to your question depends on a lot of factors and your conduct during and after your employment. If the first company requires you to sign a non-competition agreement then you might have a problem. However, even if the company does not require a non-compete you can still be liable for misappropriating trade secrets in certain circumstances. Additionally, some states have unfair and deceptive business practices statutes and laws which may be implicated in your situation depending on your conduct. I would especially be concerned given the fact that you are announcing your intentions prior to employment. In sum, I would err on the side of caution. Depending on the company you work for, it seems like you may be inviting an expensive lawsuit - even if you win. Just my two cents.


*disclaimer - nothing contained herein is to be considered legal advice or counsel.

[Mr Money Maker]

Sure is legal that's the american way....unless you sign a contract giving away your right to sell furniture for so many years. If you didn't you're fine.
I worked in the furniture business a few years ago. It's not illegal.