How do you stop an employee from stealing?
Employee Theft Prevention
- Promote a Positive Work Environment.
- Know the Reasons for Theft.
- Segregate Financial Tasks.
- Implement Security Measures.
- Don’t Forget About Data Theft.
- Write Strong Policies.
- Screen Out Potential Thieves.
Can a former employee try to steal your customers?
If, for example, a vengeful former employee is trying to steal your customers to harm you and you can prove that, you may have a case. But this is a long reach; absent a nonsolicitation agreement, your ex-employee probably has a legal right to solicit your customers.
Can a former employee take a trade secret?
If an employee has no agreement not to compete and they are not taking a trade secret (such as a customer list), once they have quit they would most likely be free to approach and solicit former employer’s customers. Second, they also must make sure they do not violate their Duty of Loyalty.
Can a former employer sue a former employee?
In New York, an employer cannot take legal action against former employees who solicit its customers unless the employer’s customer list “could be considered a trade secret or there was wrongful conduct by the employee, such as physically taking or copying the employer’s files or using confidential information.”.
What happens when a former employee approaches a customer?
When a former employee approaches your customers to try to win their business, it generates bad feelings at a minimum and can also affect you financially. Whether you can do anything about this — and what you can do — depends on several things, including the existence of a nonsolicitation clause in the former employee’s contract.
What happens when an ex-employee steals your clients?
Did an Ex-Employee Steal Your Clients, Data, IP or Trade Secrets? Under Minnesota law, employers have rights when a former employee takes client lists, customer info, computer data, intellectual property, and trade secrets.
Can a former employee seek business from a former customer?
A non-solicitation clause restricts the employee from seeking business from a customer or client or potential customer or client with whom they have directly dealt with or had personal dealings during their former employment.
What can I do if an employee has stolen my client list?
For example, you may be able to prove that the employee has used the stolen client list to poach your clients. As an employer, you should be prepared to deal with the theft of client lists or other important information. Having a clearly drafted confidentiality clause in your employment agreement will help you to enforce the clause.
What to do when an employee steals confidential information?
There are two types of remedy an employer can seek when employees steal confidential information such as client lists. If the employer has recovered the information and the employee is a current employee, then terminating their employment contract may suffice.