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Loyalty and Covenants Not to Compete

Learn about economic competition between employers and employees, including employees’ duty of loyalty, trade secrets, and covenants not to compete.


An employer, a video game company, hired a programmer to help design a new game. All the company’s employees were at-will employees.

After a few months, the programmer decided to start her own video game business. Her coworkers at the employer’s business included several designers who were highly skilled and especially important to the employer’s business. Over a two-week period, while still working for the employer, the programmer asked each of these coworkers to join her new business. The...