Gather Your Belongings Before You Resign

 If you are going to quit, get ready.  Clear your office of embarrassing computer files, personal papers and anything else you want to keep.  As the ABA Bar Journal advises lawyers, once you resign, your employer may very likely escort you out of the office immediately with nothing more than a promise to send your belongings later.  See Bar Journal report.  The advise is for lawyers, but it applies to any white collar employee.  Many employers now escort departing employees out the front door.  

Do not solicit clients, says the Journal, before departure.  Just as it would be wise for everyone else to not solicit customers before departure.  Beware of any non-compete agreements.  

If the employer has an exit interview, do not nitpick.  Try to address systemic issues.  Try to treat your departure as a business decision, despite the many events that may have lead up to it.  

Accept offers to meet for lunch or coffee from co-workers.  Do not turn these social sessions into gripe sessions.  Whatever the circumstances of your departure, turn it into a positive event. 

Remember former colleagues' birthdays.  Send them thank you notes for their help with your career. 

The Bar Journal does not mention this, but also, see a lawyer of you think you may have grounds for a lawsuit.  Even a lawsuit, in the end, is a business decision, too. 

Hewlett-Packard Sues Former CEO

Hewlett-Packard  sues Mark Hurd claiming that his new job as CEO for Oracle will require him to disclose trade secrets.  Apparently, HP never required Hurd to sign a non-disclosure or non-compete agreement. So, HP is suing under the theory of inevitable disclosure of trade secrets.  HP filed suit in California, which according to one observer, has not embraced the doctrine of inevitable disclosure. See Workplace Prof post.  

Mark Hurd, of course, was the CEO for HP until he was charged with sexual harassment.  See post. Not a bad gig.  Cost your employer big bucks and bad publicity and become the CEO for Oracle.....

San Antonio Court Upholds Non-Compete Agreement

 You work for a company.  Things are going well.  But, the company still has not paid you everything you are entitled to under your compensation agreement.  You become unhappy.  A start-up lures you away.  The start-up competes directly with your old company.  You had signed a non-compete agreement with the old company.  But, you think why should you honor the non-compete when the company did not honor your compensation agreement.  In caselaw, we call that the "doctrine of unclean hands."  One cannot seek equity without first being equitable itself.  One cannot come to court seeking equitable relief if that person does not himself have clean hands.  So, you think, the employer cannot come to court seeking equity when the employer itself has not been equitable.  

Well, you, the employee, lose this argument.  You lose at least before the San Antonio Court of Appeals in Central Texas Orthopedic Products, Inc. v. Espinoza.  The Court found that since the breach did not grow out of the agreement which is the subject of the suit, the doctrine of unclean hands does not apply.  They are separate transactions, found the court.  That is, the failure to pay under the terms of the compensation agreement was a separate transaction from the non-compete agreement.  One agreement was signed in 2003, while the other was signed in 2007.  As Russ Cawyer says, this decision continues Texas' trend toward supporting non-compete agreements.    

See Workplace Fairness for a nice summary of non-compete agreements.  

Signing Non-Compete Agreement in Wrong Place

You are asked to sign a non-compete agreement by your employer.  But, you are not sure you want to sign.  What do you do?  One IBM management employee deliberately signed in the wrong place.  He wanted more time to think about signing it.  He signed in the space where the employer would sign.  Then, he went to work for Dell.   The Second Circuit Court of Appeals finds for the employee in this recent decision, IBM v. Johnson.  See post.  

 

Two Year Limit Reasonable for a Non-Compete

 An interesting decision on non-compete agreements.  The Court of Appeals in Houston found a non-compete reasonable. See:  Gallagher Healthcare Ins Services v. Volgesang.  The former employee was an insurance broker for Gallagher Healthcare.  After twelve years, she resigned to work for a competitor.  The non-compete provided that the employee could not have contact with 80 customers she had done business with in the prior two years for another two years working for the competitor.  The court found this provision a reasonable substitute for the customary geographical limitation.  So, instead of the typical geographical limit, this non-compete provided the employee could not contact for two years her prior customers.  See more at Russ Cawyer's post about this case.