Does a former employee have a right to enter into competition with the business of his former employer?

California, United States of America


The following excerpt is from Dent Mart Int'l, Inc. v. Iden Dental Supply, Inc., B253743 (Cal. App. 2015):

"[I]t has long been the public policy of our state that '[a] former employee has the right . . . to enter into competition with his former employer, even for the business of . . . his former employer, provided such competition is fairly and legally conducted.' [Citations.]" (Reeves v. Hanlon (2004) 33 Cal.4th 1140, 1149.) Moreover, " 'it is not ordinarily a tort to hire the employees of another for use in the hirer's business.' [Citation.]" (Ibid.) On the other hand, "this general rule is subject to one significant limitation: 'This immunity against liability is not retained . . . if unfair methods are used in interfering in such advantageous relations.' [Citation.]" (Ibid.)

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