You Owe Your Current Employer Duties of Loyalty, Good Faith and Diligence
You may not be happy at your job for whatever reason. It happens. However, if you are in fear of being fired or thinking of moving on, you must at all times continue to act in your current employer's best interest. If you need any more incentive, bear in mind that, after your departure, your employer will be checking all of the computer-related activities that you undertook during the last 30 days or so of your employment.
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It Belongs to Your Employer...
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An Employee Can Get in Trouble for Taking an Employer's Confidential Information or Helping a Competitor While Still Employed
Under Pennsylvania's common law (i.e. the law developed over hundreds of years through court decisions) an employee owes
a duty to act with the utmost good faith, loyalty and diligence in the
furtherance and advancement of the employer’s interests. Sylvester v. Beck, 406 Pa.
607, 178 A.2d 755 (1962). The duty of loyalty includes an employee’s duty not
to do anything while employed that is intended to further the interest of another company that competes with his/her current employer. This duty exists whether or not you have a non-compete agreement. Pennsylvania's Supreme Court cited to Matthew 6:24 for the proposition that “no man can serve two masters,” and certainly not
where the interests of those masters conflict. Onorato v. Wissahickon Park, Inc., 430 Pa. 416, 244 A.2d 22 (1968).
An employee is an
agent of his/her employer, and an agent is a fiduciary with respect to matters
within the scope of the agency, and is required to act solely for the benefit
of his/her principal in all matters implicating same. SHV Coal, Inc. v. ContinentalGrain Co., 376 Pa. Super. 241, 545 A.2d 917 (1988).
An employee may
not use his/her employer’s confidential information collected surreptitiously
during the employment without the knowledge or consent of the employer, and
doing so violates an employee’s fiduciary duties to his/her employer. Morgan’s Home Equipment Corp. v.Martucci, 390 Pa. 618, 136 A.2d 838 (1958).
Employees who covertly intend to terminate their employment may not solicit
customers for a rival business before doing so, nor may they do other similar
acts in direct competition with the employer’s business. Colonell v. Goodman, 78
F.Supp. 845 (1948).
A Cardinal Sin - Seeking to Divert Business Away From Your Current Employer or Trying to Take Customers/Clients From Your Former Employer
Soliciting Clients to Join You With Your New Employer While You Are Still Employed With Your Current Employer is Strictly Forbidden
From these and many other case flow a number of principles.
For example:
·
An individual who seeks employment with a
competitor of his/her employer despite having agreed not to so violates his/her
duty of loyalty;
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Resist the Temptation...
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· an individual employed to acquire business
opportunities for one company who seeks to divert business to a competing
company with whom the employee has agreed to accept employment will be held
liable for breach of the duty of loyalty;
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it is a violation of the duty of loyalty to use
an employer’s time or resources in order to locate or procure replacement
employment; and,
· using
confidential information misappropriated from one’s employer to increase one’s
employability with another constitutes a breach of the duty of loyalty, as does
using such information for the benefit of a competitor of a former employer.
You Deserve a Bonus for Reading This Far!
Pennsylvania Employment
Lawyers: How to Respond to Cease and Desist Letters Concerning Non-Compete
Agreements
I
am Being Offered Severance But Asked to Sign a Non-Compete in Pennsylvania -
What Should I Do? Pennsylvania Employment Attorneys Explain
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