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Hello:
Part A
If a full-time [W-2] employee has signed a non-compete employee contract
with his employer (the "first" company) but decides anyway to moonlight for
another technology company, is that other technology company (the "second"
company) exposed to a law suit? Or is only the employee exposed for breach
of contract and possible damages? If the second company can be sued by the
first, then how do employers protect themselves from hiring employees who
might have signed an agreement with a first company?
Part B
If the same employee above works for free for the second company but hopes
to derive a royalty on the finished product, is the employee or the second
company still in violation of a non-compete if the employee were to quit the
first company before the first royalty money is paid out? Can payments from
the second company to the employee be made earlier if strictly with cash?
Thank you.
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