Delaware Employer Liability for Employee's Breach of Non-Compete Agreement
If you’re a Delaware employer and you’re considering hiring a new employee who has a non-compete agreement with his previous employer, it’s advisable to consult with a Delaware business attorney before you offer him the job. Why? Because in Delaware, you run the risk of being sued by the previous employer for tortious interference with the employee’s contractual relationship with his former employer.
The Delaware courts will view your conduct as a substantial factor in causing a breach of an employee’s non-compete agreement, and they will rule against you if:
(1) you know about a non-compete agreement that your prospective employee signed with his former employer,
(2) you know that he can’t perform work for you without violating the terms of his non-compete agreement, and
(3) you offer him employment so that you can engage in competition with his previous employer.
In my next article, I’ll discuss the remedy that the courts in Delaware can grant to the previous employer.
