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Claims against employees #10
by Ross Runkel at LawMemo
Lawsuits by an employer against an employee or ex-employee typically (but not always) come up when the employee is in a sales position or is high up in the employer's organization. However, the same general rules can apply to all employees.
Duty not to compete.
For a current employee, there is a duty not to compete against the employer. The employee has a duty of loyalty to the employer, is hired to advance the employer's interests, and should not "moonlight" for a competitor and should not drain away the employer's business by going into direct competition.
Non-competition agreements.
Many employees sign an agreement ("non-compete," "non-competition," "restrictive covenant") in which the employee agrees not to compete against the employer after the employee quits, retires, or is fired. Courts usually will enforce these agreements if they are properly drafted and comply with certain rules the courts have laid down. I'll discuss non-competition agreements in more detail next time.
Duty regarding trade secrets and confidential information.
A trade secret is a plan, process, tool, or customer list of some unique nature. It does not include the ordinary knowledge and skills an employee learns while working for the employer. I'll discuss trade secrets in more detail later.
Coming next: Non-competition agreements #11: Employment Law 101
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