How do non-compete clauses work when an employees&#39; two companies do not initially compete?
<p>Person X works in startup A. Because reasons he also gets employed in a more established company B. He contributes to A only sporadically and is a full time employee in B. Both are software companies.</p>

<p>X and B have a run of the mill non-compete clause in their contract. The clause prohibits direct or indirect competition. A and X have no such clauses. </p>

<p>Initially A and B are doing completely separate things, but after X has started working in B, B starts switching it's focus into something that is somewhat similar to A, but that aims for a completely different market.</p>

<p>Would the contract prohibit X working in A?</p>

<p>What if later on A also starts moving closer to A and targeting similar markets? </p>

<p>If your contract says you will not work for a competitor, you cannot work for a competitor. While they were not competitors this was fine, once they became competitors then the person must resign from A in order to comply with their contract to B.</p>

contract-law non-compete