Legal Question in Employment Law in California
Confidential information/Trade Secrets
I recently quit my job at a public accounting firm. I never signed a non-compete contract/agreement of any kind. During my exit interview on my last day, my employer offered me two weeks pay if I would sign an agreement, part of which stated I would not contact any of the firm's clients for a period of 2 years. I didn't sign the agreement and didn't receive the compensation. A few days after my last day they sent me a threatening letter stating that I am prohibited from sending any accouncement to the firm's clients regarding my departure and/or my new employment. They also stated they take the misappropriation of their trade secrets and confidential information very seriously and will fully prosecute any attempt to improperly solicit clients and/or utilize firm proprietary information.
The question I have is am I acting unlawfully if I announce to a few select former clients of my new contact information and announce my new position with another firm? Are they just trying to intimidate/scare me, or am I not allowed to contact any former clients pursuant to California law?
Thanks in advance and much appreciation for your response.
3 Answers from Attorneys
Re: Confidential information/Trade Secrets
Generally speaking, there is nothing unlawful about announcing that you are now employed with another firm. An announcement is not the same thing as a solicitation and it is left completely up to the client to decide who they want to do business with.
Having said that, you must be very careful what you say to the clients and cannot use information that is proprietary to your former employer to obtain business away from that employer.
While non-compete agreements are not enforceable in California, with limited exceptions, trade secrets laws are.
Re: Confidential information/Trade Secrets
The Trade Secrets Act does include customers lists. You may subject yourself to a civil suit.
Re: Confidential information/Trade Secrets
As a professional, you may advertise your services, or announce your new position with a firm, if you do so within reasonable guidelines, and without improperly targeting the old firm's customers. There are rules about 'unfair competition' and employer's private information. You need to sit down with counsel and get educated on what you can and can't do without risk of suit. That would be the last thing you need at a new job. Feel free to contact me if interested in doing so.
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