Clearly Conflict of Interest opening up both parties to potential litigation. a) Have a policy in place before hiring someone; b) remind the employees to follo

Clearly Conflict of Interest opening up both parties to potential litigation. a) Have a policy in place before hiring someone; b) remind the employees to follow the policy. My previous company sold this type of training to corporations, who need to have concrete rules set up for the benefit of both parties (ok, mainly the corporation's benefit). I realize startups don't have time to focus on HR policies and legal protections, but get something basic in writing so both parties are on the same page prior to this issue coming up. Without it, the employee has the right to do whatever the heck they want and then sue for wrongful termination.