Legal Question in Business Law in Pennsylvania
An employee undermining and taking away retail locations
Is it illegal for an existing employee collecting a pay check from a corporation, to deal with try to take away established retail locations. The retail locations were obatined by the business owner but the locations were not secured with written lease agreements. All rent is paid via cash to the property owners. Receipts are collected for the cash payments.
1 Answer from Attorneys
Re: An employee undermining and taking away retail locations
An employee owes a duty of loyalty to his employer. He cannot try to take a business opportunity that arises in his employment and convert it to his own use. While generally it is not "illegal" in the sense that a crime has been committed, he would be liable in a civil suit (meaning his employer would sue him for damages for his acts) and would be required to pay as damages any gains he made in misappropriating the opportunity for his own use, and any other damages suffered by the employer related to the wrongful acts of the employee.
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