I've been working in sales for a small Technical Services company (7 employees) for three months. I work for commission only and sell blocks of time for services to be performed over the next year. When I hired on with this company, I brought along a client base who I have been doing business with for a few years. When they offered me the position, my new company did not warn me how desperate their financial condition was. They struggle to make payroll every month. Last week, the IRS froze their bank account. They were able to find money to pay me but it was a week late. They still owe me over $600 that I loaned them three months ago to cover operating expenses. I plan to quit next week and will start my own business.
My question is, can I tell my clients about the financial condition of my old company? Can I tell them the IRS froze their bank account. Can I tell my clients the company has no money in reserve, no credit, and not even a credit card? Can I at least advise my clients to check my former employers credit rating before they pre pay them for future services? I did not sign a non compete or non disclosure agreement with my employer. I feel that I owe it to my clients who still may be doing business with this company to warn them not to pre pay for services.
I'd like to warn my clients but I don't want to end up with a lawsuit.
My question is, can I tell my clients about the financial condition of my old company? Can I tell them the IRS froze their bank account. Can I tell my clients the company has no money in reserve, no credit, and not even a credit card? Can I at least advise my clients to check my former employers credit rating before they pre pay them for future services? I did not sign a non compete or non disclosure agreement with my employer. I feel that I owe it to my clients who still may be doing business with this company to warn them not to pre pay for services.
I'd like to warn my clients but I don't want to end up with a lawsuit.
