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LawTalk, Attorney
Category: California Employment Law
Satisfied Customers: 37818
Experience:  I have 30 years of experience in the practice of law, including employment law and discrimination law.
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Hello- I am a sales rep for a company in CA with three owners,

Resolved Question:


I am a sales rep for a company in CA with three owners, and three seperate companies. I have been a sales rp for 10 years, and I have always received compensation for selling jobs to my clients in my territory.

Recently one of the three owners bought out one of the three divisions. He is now taking the accounts away from myself and other reps, plus the commision.

When an employee leaves, they are not allowed to take cleint list etc. This former owenr has access to our cleint database and is now calling to undercut my bids. He has knowledge of my cost, and is technically the vendor, as the cleint contacted me for the project.
Submitted: 5 years ago.
Category: California Employment Law
Expert:  LawTalk replied 5 years ago.
Good morning,

I'm sorry to hear of your dilemma.

While I do understand your facts, I don't see a specific question that I can answer for you.

As a point of clarification---this owner that took control over one company by himself---am I to presume that he cashed out essentially, and is no longer the owner of the remaining 2 companies----he is no longer a partner with the other 2 owners?

Customer: replied 5 years ago.

Three Owners / Three Companies F, R, D for now


Owner 1 sold his share of company F and company R. He took sole ownership of comany D.


A series of emails and sales meetings followed. Many times the owners of all comapnies promised no business would be lost. Company D would become a vendor, and not persue our cleints.


My cleint come to Company F & Company R to have parts made. However due to a disagreement between the owners, I no longer am getting compensation for the projects sold. Furthermore Comapny D is now activly persuing all my contact and taking contracts aways by underbidding.


As an employee my owner has compensated me, but not forever. We have 7 reps, and all are commision based except for me. Is it lawfull for a former employeer to leave, and take the projects I sent to him from me perminatly?


I will see long term effects from this, so do I have a personal case agiainst the owner who left the company and is now activly presuing my accounts, without the owner of my comapnies consent. Also he is using our cleint list to do this, not cold calling the account, and going through proper methods. That would be fine, but he is using my work to gennerate buisness, and not compensating me

Expert:  LawTalk replied 5 years ago.
Good morning,

You asked: Is it lawfull for a former employeer to leave, and take the projects I sent to him from me perminatly? The problem is that you are merely an employee, with no legal right to enforce any rights held by your employers. I suspect that there may be a contract prohibiting the renegade owner from not chasing the customers of your employer---however, if they did not negotiate that in the transfer---they were simply inept negotiators.

Unless you can get your employers to stick up for you as against the renegade---then the future seems problematic for you.

Either way, as an employee, you have no personal rights as against the owner who cashed out, and took the one company---essentially going into competition with you. Your best bet is to get your now-employers to allow you to go head to head with the guy and play the same game he is playing on you. These are your customers and presuming that you have some established rapport with them, there is no reason that you can not win this battle, as long as your employer's allow you to undercut the renegade.

I wish you the best in 2011.

I understand that you may be disappointed by the Answer you received, as it was not particularly favorable to your situation, nor was it what I sense you were hoping to hear. Had I been able to provide an Answer which might have given you a successful legal outcome, it would have been my pleasure to do so.

Because I help people here, like you, for a living---this is not a hobby for me, and I sincerely XXXXX XXXXX abiding by the honor system as regards XXXXX XXXXX I wish you and your family the best in your respective futures.

Would you be so kind as to Accept my Answer so that I may be compensated for assisting you? Bonuses for greatly informative and helpful answers are very much appreciated. Thanks Again,


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