Avoid Legal Battles With Your Ex-Boss
Burning bridges also isn't a good idea since you never know when you might run into your previous employer. Coenen, for instance, occasionally finds herself in court as, say, a witness for the defendant -- and on the other side is her former employer as a witness for the prosecution. The first time that happened, "it was weird," she says. "But I think we've worked well together since I left because we really respect each other. Besides, he got me started in this business and taught me everything I needed to know to begin my business."
If things with your former employer don't go as well as they did for Coenen, the laws in some states are on your side. In New York City, where Trillium is fighting its legal battles, the courts tend to side with new entrepreneurs, even those who have signed restrictive covenants. "The courts don't like to enforce agreements against competition," says Prizzi. "They're pro-enterprise and capitalism, which are the basic values of America." He also says that on the other side of the country, California doesn't enforce restrictive covenants at all. He says -- and stresses this is not necessarily his opinion -- that some people feel California's way of dealing with employees leaving to become entrepreneurs, or to take their knowledge to work for someone else, gives the community greater access to innovation. "That's served Silicon Valley very well, some would say. Employees can cross-pollinate and bring skills that they learned at Yahoo! to Google." There's also another positive to starting your own business using the knowledge you gained while working for someone else, says Prizzi. If you don't have a carbon copy, you might be able to start a company that "can ultimately enhance both sides. The employee may leave and just do something a little different. They may consider taking their business in a slightly different tilt that the current employer isn't interested in." But what if you quit, do everything right and are still sued? Sure, you may have to worry about losing your shirt amid legal fees. But knowing that you've done everything you can to leave ethically and on good terms may at least help you sleep better at night.- Loading Comments...
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