Can an employee steal clients?

What If You Haven’t Signed a Non-Solicitation Agreement? This statute states that a former employee is prohibited from stealing his employer’s “trade secrets”, even in a case when the employee has not signed a non-solicitation agreement. A client list is considered such a trade secret.

How do you stop a former employee from stealing clients?

A non-compete agreement prevents your contractors and employees from going to work for a competitor prior to leaving your business. You can simply insert a non-solicitation clause to prevent contractors from stealing your clients.

Can you steal customers?

Originally Answered: Is it illegal to steal customers off your competitor? It depends on how you do it. If you’re using a customer mailing list or database or information that you have obtained directly from the company then yes it’s a violation of law.

Can my boss sue me for taking clients?

Under the California Fair Employment and Housing Act, Government Code 12940 GC, employees may sue their employers for workplace harassment committed by a client of the employer.

Is taking clients illegal?

First of all, no business “owns” its clients or customers. People are free to use whichever service providers they like, and agreements that prevent them from doing so are often viewed as illegal “restraints of trade” and are generally struck down by the courts.

What to do if an employee steals from a customer?

What to Do

1. Make sure your evidence is strong.
2. You will probably want to terminate the employee immediately.
3. Notify the police.
4. Don’t deduct anything from the employee’s final paycheck.
5. Don’t discuss the situation with other employees or outsiders.

Can you sue someone for taking customers?

The major legal limitation on your actions is that you may not use your former employer’s customer list, or other trade secrets, to steal his customers. If you do not use any trade secrets, you still may be sued, but you may have a reasonable defense.

Is it illegal to take a client list?

Can a former employee seek business from a former customer?

A non-solicitation clause restricts the employee from seeking business from a customer or client or potential customer or client with whom they have directly dealt with or had personal dealings during their former employment.

Can a former employee steal my customers and is targeting?

However where you have a situation in which a former employee is targeting your customers, and you are able to show reasonable evidence that they have stolen a customer list, there is a common law protection available which can be exerted to protect your business.

What can I do if my former employee stole my customers?

The clause gives the employer a contractual right to enforce the clause against the offending employee which may include obtaining an injunction which prevents the employee from breaking the terms of the restraint of trade such as stealing customers or poaching staff members. This is known as injunctive relief.

What happens when a former employee approaches your customers?

Typical clauses include; “non-solicitation”, where the former employee is prevented from poaching existing or prospective customers; “non-dealing”, which prevents the former employee from dealing with former customers, and “confidentiality”.