CHAPTER 4 - PROTECTING THE COMPANY FROM DISHONEST EMPLOYEES

Once the decision to hire a particular applicant has been made and the job is accepted and confirmed in writing, companies should take a number of important steps to avoid wrongful discharge, breach of contract, invasions of privacy, discrimination and other causes of litigation stemming from alleged violations of rights during the employment relationship.

All companies must establish policies dealing with trade secrets, confidential information and other rules of conduct to protect their assets. This chapter will cover applicable areas including code of ethics, avoiding anti-trust violations while working, training your staff to avoid violations of their fiduciary rights of loyalty and good faith, concerns regarding outside employment, the legality of competing with the company after discharge or resignation, and the enforcement of restrictive covenants and how to use such covenants to maximum advantage. Additionally, information in this chapter will recommend practical ways to avoid problems with disloyal or dishonest employees.

A. Confidential Information and Trade Secrets


B. Duty of Loyalty and Good Faith


C. Restrictive Covenants and Covenants Not to Compete


D. Stealing Away Employees


E. Code of Ethics


F. Common Anti-Trust Violations