Arnstein & Lehr Partner E. Jason Tremblay authored the article, “7 ways to protect your company when hiring from a competitor,” which appeared in the January 9 edition of Inside Counsel. The article discusses litigation by HR professionals and the problems companies face when HR is involved in litigation. In the article, Mr. Tremblay offers tips for the hiring process and how to behave once they start working.
Mr. Tremblay’s article appearing in Inside Counsel:
7 ways to protect your company when hiring from a competitor
Tips for the hiring process and how to behave once they start working for you
- Investigate the employee’s employment background
At the outset, it is advisable to determine whether there is any restrictive covenant limiting the employee’s employment rights. If so, it is prudent to discuss this fact with the prospective employee, obtain a copy of the covenant, determine whether the covenant is enforceable and evaluate whether the company should still hire the prospective employee.
- Ensure that interviews are carefully conducted
The company should make clear to the prospective employee that it is not interested in the competitor’s trade secrets and will honor valid restrictive covenants. An employer also should not review or accept any of the competitor’s documents that could be considered confidential and that the prospective employee may want to share with the company. Consider such documents “Exhibit A” in any lawsuit filed against the company by the competitor.
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