Ethics Question about starting a small business

[Sagan]

My wife is a travel agent in a small independent agency. She is very good at what she does, but she's just not happy working there. Since we're about to have another child, we thought it would be a good idea for her to try to open her own travel agency/consultancy.

She has a long list of clients from her current job, she has signed no NDA's or non-compete documents, etc. She's free and clear, from what I can tell.

My question is, before she leaves, should she tell her current boss/agency owner what she is intending to do? Give fair warning, so to speak?

[trof]

1. Yep. NEVER burn bridges.

Try and leave on a cordial basis, if at all possible.

[Exultant Democracy]

2. After she gets in touch with her clients and makes sure that

they are going to stay with her then yes, but not before.

[RWPTRBL]

3. Do unto others...

I give my employer the same respect that they give me and am able to sleep pretty well at night. If they have been good to her and treated her well then maybe tell them. If they are schmucks then to hell with them!!!

[wysimdnwyg]

4. I think a lot depends on her standing at her present company

If she is friendly with her coworkers and boss, I don't see a lot of harm in telling them. If, however, there is some tension or she thinks they may try to retaliate (by attempting to ruin her buisiness in some way), then I would advise she not tell them of her plans.

Either way, I don't see any ethical issues if she does not tell them. The big issue will be with clients. She should NOT tell any clients about her plans while working at her present job. That would be seen as trying to steal their business, and would be highly unethical.

[SlavesandBulldozers]

5. No

I don't believe you should treat your employer like your friend. I'd just give them my two-weeks notice and say my goodbyes. I wouldn't say a thing about what I intend to do in the future, because it's just bound to piss them off.

[leftofthedial]

6. definitely be forthcoming with the current employer

it is never ethical to steal customers from your employer.

If the clients choose to move with her, it needs to be their decision, without your wife soliciting them.

[kcwayne]

7. There are pros and cons of disclosure

THE PRO

If the company thinks she does have a non-compete, they will tell her and give you a heads up as to whether you may be facing legal fees or an injunction to cease operations. It would be wise to determine whether there is a possibility of facing legal action before you have to hire a lawyer to defend yourself. They probably consider their client list to be company property, and your wife will not be able to take that property without legal ramifications in all likelyhood, irregardless of NDA or non-compete documents. Consult a lawyer.

THE CON

They certainly do not want additional competition, especially from someone who's primary customer base comes straight off their bottom line. They will most likely try to poison the well and will be very focused on doing things to retain the customers they are most likely to lose. Giving them a heads up lets them start the process quickly, whereas they may not see the impact and make the connection on their own until months down the road, giving you time to get up and running.

[NashVegas]

8. Your Wife is Under No Obligation

to tell her current employers what her future plans are.

First thing to do is use the maternity time off to get with a good labor/contract lawyer. No-compete clauses have been successfully fought all over the place, especially if they are not part of a broader contract, and if they don't provide adequate compensation while you're on the beach.

IOW, if the no-compete clause contract is entirely one-sided, it's most likely unenforceable.