What if the employee was laying the groundwork while he was still working here?
Even if an employee hasn’t signed a noncompete or nondisclosure agreement, the employer can sue for breach of the duty of loyalty. Employees have a common-law duty to act solely for their employer’s benefit regarding all matters within their employment. The parameters of this duty are not clearly defined. Courts have made it clear that at will employees may properly plan to go into competition with their employer and may take active steps to do so while still employed. But there are limits. Current employees may not use their employer’s funds, or other employees, either for personal gain or in a way designed to harm the employer. Moreover, senior employees have a higher duty of loyalty. They cannot, for example, solicit employees or actively compete while still employed. In short, employers can’t force their employees to remain loyal. But if the employer finds out that it has been expensing trips for the employee to visit his new office space, it does have recourse. The employer may su
