Under New Jersey law, employees have an implied duty of loyalty to their employer. A breach of that duty can lead to the employer bringing a lawsuit to recover money damages for resulting harm. The knowledgeable employment attorneys at Deutsch Atkins & Kleinfeldt, P.C. in Hackensack advise New Jersey workers about this important duty and how to avoid the potential repercussions of violating it.
In general, employees may not act contrary to the lawful interests of their employers. Violating this duty of loyalty is grounds for termination, even if you are employed with a contract that requires good cause to fire you. A firing on this ground may leave a black mark on your employment record that can damage your future career. In addition, your employer may sue you to recover any damages it suffers as a result of your breach of this duty, as well as the salary it paid you.
Employees are required to:
There may be other types of conduct that could affect performance of your duty of loyalty. We can advise you on compliance and can defend you in employment litigation if your employer or former employer accuses you of a violation.
It is a breach of the duty of loyalty to work for any of your employer’s competitors, especially if doing so might injure your employer’s business. This doesn’t mean you can’t look for jobs with competitors while you are still with your current employer, as long as you don’t actually do work for them until you leave. However, the company might require you to sign a non-compete agreement that prohibits you — after you leave the job — from working for other companies in the same type of business in the same geographical area for a set period of time. Your employer might also require you to sign a non-solicitation agreement that prohibits you from encouraging clients or customers to switch their business to your new employer. We can advise you on the extent to which such agreements are legally binding.
Even if you are not subject to a non-compete agreement, you have a continuing duty not to reveal your former employer’s trade secrets and other proprietary information, and especially not to use them to benefit its competitors. We can advise you about your continuing duty and what actions it covers, with a view to avoiding legal entanglements with your prior employer.
The experienced attorneys of Deutsch Atkins & Kleinfeldt, P.C. in Hackensack can advise about the duty of loyalty you owe your company in New Jersey and the scope of its coverage. To schedule a consultation, call 551-245-8894 or contact us online.