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Can a company sue us if we hire one of their employees?

After hiring a sales person we found out that he had a non-compete with his previous employer. Now his lawyer wants us to turn over our records. This employee only worked for us for 3 weeks.

Update:

This employee had no contract with us. We fired him when we found out that he was in violation of his noncompete.

8 Answers

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  • 1 decade ago
    Favorite Answer

    Can they sue you? Yes. Unfortunately it is far too easy to sue anyone for anything.

    Can they sue you successfully? Not in my opinion but you haven't provided very much information so it's difficult to say.

    The contract the other company had was was the employee NOT with you. If the employee had a valid and enforceable non-compete clause, the company can take legal action against that employee. You apparently no longer employ this person, so it does not appear that you were complicit in helping him violate that clause.

    Did your company fire the employee or did he quit? Did your company fire the employee after learning of the non-compete clause? If so, did you have an employment contract with this employee before you fired him? And did you have an attorney verify that the non-compete clause was valid and enforceable before he was fired?

    If there is a lawsuit filed by any party, your company can be required to turn over the records (regardless of whether your company is a defendant in the lawsuit or a witness). If you don't turn over the records voluntarily, I'd predict that you will either be served with Interrogatories and Requests for Production of Documents (if you are a defendant) or a subpoena (if you are a witness).

  • 1 decade ago

    They can't sue you. The only cause of action they have is against the employee for breaching his non-compete contract. However, if they are suing him, then they can subpoena your records in order to show that he was, indeed, employed with a competitor.

  • Mutt
    Lv 7
    1 decade ago

    The first thing you do is take their request to your lawyer to have him review it and advise you on what you should do. Can the other company sue you? Too many variables. In some states, a non-compete is not binding. In others, part can be binding. And in the rest, they are binding. Youw lawyer can also help you with this, too.

  • 5 years ago

    The government should be the one throwing fines Steep fines. Make them an example of what happens when you break the law and hire illegals. There companies are the reasons that illegals come!

  • Anonymous
    1 decade ago

    You can't be sued because you weren't aware of the non-compete. You'd be wise to turn over any records that are subpoenaed though.

  • ?
    Lv 4
    1 decade ago

    He signed the non-compete, he should be sued not your company.

  • HD
    Lv 7
    1 decade ago

    they can't sue you, they can sue the guy you hired.

  • 1 decade ago

    i think they can

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