Can you sue an employee for stealing customers?

Can you sue an employee for stealing customers?

Can you sue an employee for stealing customers?

This is illegal and could be considered some form of misappropriation, conversion or theft, and an employer would have grounds to sue a former employee based on these actions.

What happens if an employee steals from a customer?

Consult an attorney because if the customer is in fact not being truthful, your employee can sue your business for defamation. Be careful and consult an attorney. If the customer does not want to press charges but instead terminate the cleaning services altogether, consult an attorney.

How do you stop a former employee from stealing clients?

Consider asking new hires and existing employees to sign a non-solicitation agreement as a requirement of accepting a position with your company. These agreements state that an employee is not to contact any clients of your company for a certain period after retirement, quitting or dismissal.

Can I contact clients from previous employer?

The short answer is, yes you can communicate or “announce” your new employment. However, if you are bound by an enforceable non-solicitation agreement, you may not solicit the client. But, you can call them, talk to them, talk about the weather, sports, etc. You just cannot “solicit” them.

What is it called when you steal customers?

It’s not unethical to try to attract customers away from your competitors – in the marketing world, it’s called “competitive advertising”, and has been around for thousands of years.

Are employees responsible for customer theft?

Federal Law Typically, this includes involuntary things like taxes, along with voluntary things like a retirement plan contribution or health insurance premiums. Federal law is silent on the issue of making an employee pay for breakage, a customer’s theft, or a shortage in the cash drawer.

What to do with an employee who steals?

What should you do if you suspect an employee of theft?

  • Ask the employee to explain.
  • Ask the employee to take a polygraph test.
  • Decide whether to: press criminal charges. seek restitution. discipline the employee. fire the employee.

How do you stop employees from poaching clients?

a non-poaching covenant, to stop employees poaching former colleagues. a non-solicitation covenant, which means they cannot take your customers. a non-compete covenant, preventing the employee from working for a competitor. a confidential information covenant, which restricts the use of confidential information.

Can ex employees poach staff?

The most common restrictive covenants that can be used to prevent or minimise the effects of a competitor poaching staff include: non-compete clauses – restricting a former employee from working for a competitor, usually within a certain geographical area.

What is it called when you steal clients?

What you call “poaching/stealing” is known as marketing. Even if it were legal, what you are thinking about doing is known as “whining”.