Military Reservist

CheryllH · August 2007

My question is in reference to military reservists and conflict of interest with one of our current competitors. We are a defense contractor and one of our employees wants to accept a postion in the reserves that is a very critical position working closely in a reserve capacity on base with a competitor. Our concern is that when the competitors contract comes up for bid and we bid on this contract again they may try to say that our employee in his reserve capacity sabotaged or in some way caused a negative impact for them. Can we ask him not to accept this position because it would be a direct conflict of interest for our company?

I'm reading USERRA but I was wondering if anyone has ever had a similar situation.

joannie · August 2007

Do you have any type of "working for a competitor" or "moonlighting" policy?

CheryllH · August 2007

We a conflict of interest agreement that everyone signs that states as an employee they will refrain from having a financial or other interest in or relationship with an organization that competes with or does business with our company but there has been argument among managers that this doesn't apply to someone serving in their military reserve capacity.

joannie · August 2007

I don't know why it wouldn't apply if the ee signed it before joining the reserves, but I would advise running this by an employment law attorney.

CheryllH · August 2007

Thank you, I appreciate the input.

Military Reservist

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