Breach Of Duty Of Loyalty

Duty of loyalty is one of the main categories of fiduciary duties. Most of these fiduciary relationships exist in a variety of legal contexts, e.g., attorney-clients, agent-principals, trusts, wills, and contracts. If your employee did not adhere to their contract and breach their duty of loyalty, you may file a claim against them. In such cases, it is important that you work with experienced employment law attorneys.

Understanding Breach of Duty of Loyalty

Under employment law, aspects of the duty of loyalty include an employee’s duty to avoid competing with their employer, as well as soliciting the latter’s other employees and clients prior to leaving the company. Additionally, employees may not pursue their personal interests during normal working hours.

It is important to note that all employees owe a certain degree of loyalty to their employers. It typically depends on the level of trust and responsibility that an employer grants an employee. In some cases, employees have access to confidential information or extensive independent responsibility. This means that their duties have risen to a fiduciary level. After taking hold of this fiduciary responsibility, employees must handle their employer’s matters with the highest degree of fidelity and integrity. Simply put, their actions and decisions at work must benefit the employer.


Why Should You Hire Attorneys for Breach of Duty of Loyalty Claims?

Certain actions constitute active steps to compete against one’s employer. Fiduciary duties, however, vary from state to state and this topic is constantly evolving. That’s why you should contact an experienced attorney to accurately determine if an employee has taken active steps.

Common FAQs about Breach of Duty of Loyalty

Fiduciaries must always act in the best interests of the beneficiary. For example, an employee should make decisions that do not put the beneficiary at a disadvantage.

You can file a claim if an employee takes active steps to compete with you prior to their resignation. For example, an employee may divert clients to a competing business; take a current employer’s customer lists for their own use; solicit fellow co-workers to join new employer; or utilize trade secrets for the benefit of their new employer and themselves.

Depending on applicable laws and an employer’s unique circumstances, they may recover paid bonuses, collect profits received by an employee via a constructive trust, get employee to forfeit wrongful gains, seek injunctive relief (employee stops a specified act via a court order), withhold employee’s unpaid commissions, and more.

Choose Carcich O'Shea, LLC for Experienced Employment Law Attorneys

At Carcich O’Shea, LLC, we understand that most clients come to us during difficult times. That’s why our attorneys provide the level of care and discretion that our clients need. Enjoy complete peace of mind that we can resolve your breach of duty of loyalty claim in the most efficient manner.

If you have more questions about our legal expertise in breach of duty of loyalty, feel free to contact us today. Alternatively, you may call us at 201-988-1308 or send an email to