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MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
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I want to become a consultant for some suppliers that I currently

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I want to become a consultant for some suppliers that I currently work with or have worked with in the past at my current position for a major defense contractor. I've noticed an area where a lot of my suppliers could use consultant help to reduce cost on their products through supply chain optimization. My current employer is not in this type of business but I would be using contacts I've gained from through my current employer. My current job is to manage subcontractors to provide products and services to our company. I've noticed that they are all not very efficient at what they do and I would like to consult with them in an effort to help them save money and in turn eventually work for myself. My question is about conflict of interest between being a consultant and working for my current employer, I think I'm treading in some gray areas to say the least and I would like to start consulting while having the security of my current position then once established quit my job. Will my current company be able to take legal action against me should they find out what I'm doing?
Submitted: 2 years ago.
Category: Business Law
Expert:  MShore Law replied 2 years ago.
Thank you for the post, I am happy to assist you by answering your questions. Do you have a non-compete clause in your current contract?
Customer: replied 2 years ago.
I do not have a non-compete clause with my current company but I'm also not hired on as a contract employee I'm what they consider full-time exempt
Expert:  MShore Law replied 2 years ago.
Thank you, XXXXX XXXXX non-compete you are free to engage in the consulting effort, however, bear in mind that you can be terminated at the will of the employer and as such, can be terminated at any time. Further, to the extent your consulting business utilizes trade secrets or proprietary information of your employer, your employer can enjoin the consulting business from doing so (i.e. no consulting with clients of the employer).
Customer: replied 2 years ago.

Hi,

 

Texas is a right to work state so I can be terminated anytime, I understand that. I would not be using any proprietary information or trade secrets from my current employer, I would only be using industry best practices. What may happen is that I would end up consulting with the suppliers to educate them on driving down their own internal cost on products that they design and deliver to my current employer, whether or not they would pass those savings on is up to them. For example, I have a supplier that would like my help on a product that I purchased from them in the past and may purchase from them in the future, my current employer is happy with the price but the supplier of course would like to make more margin on the product if possible. Would this be a reason for my current employer to take legal action against me? I understand they could fire me if they decided that was best but I am more concerned with them trying to prosecute me.

Expert:  MShore Law replied 2 years ago.
Thank you for the additional information, no they cannot prosecute you as you are not utilizing/misappropriating proprietary information or trade secrets.
Customer: replied 2 years ago.

OK, last question, sorry to be a pain.

 

If I found my contacts through the course of my everday job, is there any recourse to that, other than them firing me of course.

 

Thanks again,

 

James

Expert:  MShore Law replied 2 years ago.
Yes, because those contacts, if not known or made know to the general public represent proprietary information.As such the employer could sue you to enjoin you from having further contact with those contacts or the companies they represent.
Customer: replied 2 years ago.
Well I thought that was all, the companies are public companies that do business across the industry of defense and commercial business, these type of companies are the type I would be targeting regardless I just so happen to have contacts with them because of past business with them. My current company has over 200,000 suppliers listed in their system, if I were to go out and find one that I didn't know was doing business with them or haven't done business with in the past and they found out could they still enjoin me, how could they preclude me from pursuing work? Essentially they could just cripple and consulting I do because they might have that supplier in their system, could this be accurate?
Expert:  MShore Law replied 2 years ago.
No, they could not enjoin you in that situation.
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience: Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
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