Orange County, CA – What is the duty of loyalty? Does it apply to a employee? Employer? What is California’s rule regarding the duty of loyalty?
These are all extremely valuable questions for both the employer and the employee to have answers to. First, the employee duty of loyalty basically means this: An employer has the right to the undivided loyalty of its employees. The duty of loyalty is breached and may give rise to a tort cause of action on behalf of the employer when the employee takes action hostile to the employer’s best interests. Stokes v. Dole Nut Co. (1995) 41 CA4th 285, 295.
What on earth does that mean? It means that an employee isn’t supposed to compete with his or her employer while he or she is employed.
Well, what does “compete” mean? Easy answers after the jump….