Unraveling Legal Complexities: When Employers Sue Employees (2023)

In the realm of employment litigation, the narrative typically centers around employees taking legal action against their employers. However, a less-explored facet exists—employers pursuing legal recourse against their employees. At the Miller Law Firm, we specialize in navigating this nuanced landscape, representing numerous employers in cases involving breaches of noncompete agreements, employee theft, and fiduciary duty violations.

Breach of Fiduciary Duty: Guarding Employer Interests

Certain employees function as agents of their employing company, owing a duty of loyalty and care. Breaching this fiduciary duty can take various forms, such as self-dealing, acting against the employer's interests, or disclosing confidential information. If an employee's actions harm your business, pursuing compensation becomes a rightful course of action.

Breach of Employment Agreement: Enforcing Commitments

While many employees operate under "at-will" arrangements, some are bound by employment contracts specifying duties, restrictions, or notice periods. If an employee violates a material term of such a contract, legal action can be taken to seek damages, compensating for the financial repercussions of their breach.

Defamation: Navigating False Narratives

The right to free speech doesn't extend to making knowingly false statements damaging a company's reputation. If an employee spreads false information about your business, pursuing legal action for defamation hinges on proving the falsehood, communication to a third party, negligence in truth evaluation, and resulting harm.

Nondisclosure or Nonsolicitation Agreement Violations: Safeguarding Confidentiality

Employees often possess sensitive information about a company. Nondisclosure agreements aim to ensure the confidentiality of this information. Violations of such agreements, along with nonsolicitation or noncompete clauses, can lead to legal consequences, including claims for damages.

Tortious Interference: Protecting Business Relationships

Tortious interference occurs when intentional actions sabotage contracts or business relationships. If an employee disrupts your business ties, meeting the elements of tortious interference may provide grounds for legal action, potentially entailing damages.

Destruction or Theft of Company Property: Pursuing Compensation

When an employee damages or steals company property, a civil cause of action for conversion may arise. Recovery can include damages for the value of the property and, under statutory conversion, additional damages. This legal recourse aims to address both the financial loss and the intentional harm caused by the employee.

Miller Law Firm: Your Legal Partner

Navigating the complexities of employer-employee legal disputes demands seasoned expertise. At the Miller Law Firm, we bring nearly 25 years of experience to the table, representing employers in Michigan and nationwide. Your business is our priority, and we are dedicated to working diligently to safeguard its interests. If you find yourself in need of legal assistance against an employee, contact the Miller Law Firm today.

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