NopeNah Posted July 26, 2018 Share Posted July 26, 2018 So..One of my employees informed me that he's going to a different company that operates in the same field. His wife(I knew this was going to be a mistake) also works for me and wants to continue with my company. I'm assuming she wasn't offered a position at the new place or she'd have 100% went. My concern is that she'll 'stear' my clients to her husbands new establishment. I'm torn on whether to keep her on or let her go. Link to post Share on other sites
Mr. Lucky Posted July 26, 2018 Share Posted July 26, 2018 Not sure where you're located but it's usually not that easy, you can't just terminate someone without repercussions. Does your company have a HR department? Might be worth discussing your concerns with them. I've found most industries are like small towns, everyone knows someone else who works somewhere else. You might be better served by ensuring your company's culture and actions engender employee loyalty... Mr. Lucky Link to post Share on other sites
d0nnivain Posted July 26, 2018 Share Posted July 26, 2018 Go see a lawyer. Have that person draft Covenants Not to Compete & non-disclosure agreements for all of your employees to sign. It's probably too late for the guy who is already leaving but these documents will help you guard against the wife sabotaging your business. 2 Link to post Share on other sites
Rockdad Posted July 27, 2018 Share Posted July 27, 2018 Your right she probably didn't get offered a position as very often one leaves they all make a move at once or in short order. This real concern of yours is yet another reason for not hiring related employees beyond losing multiple employees on the same days for family urgency or functions. If your in the States I don't think that you could simply end someone's employment in this situation without legal repercussions. You might as said previously explore a no-compete agreement. On what is considered small scale business or loss here in my area they have no real teeth if your not willing to spend a lot for Atty fees plus no-competes have been known to be thrown out by the court. You may have to weather this one out for the moment but certainly consult your business atty right away. If your in the States you are already aware of the sue happy mentality. Link to post Share on other sites
Author NopeNah Posted August 12, 2018 Author Share Posted August 12, 2018 (edited) Just getting back on here.. I'm in the US, in a "right to work" state and these are 1099 employees, I could literally terminate employment if I didn't like someone's sock choice, not that I would ever do that..just saying.. However..as it sits now, the husband's "new job", that he turned in his notice(only 7days ) for, didn't work out..SOOO..I'm keeping them both on until I get the new people trained and then they will both be 'let go'. I'm not risking my family's and the other employee's income on some "branch swingers". I'm all for making as much money as you can and whatever life circumstances easier on one's self,but not at my expense. Thanks for the replies. Edited August 12, 2018 by Praying4Daylight Link to post Share on other sites
Mr. Lucky Posted August 13, 2018 Share Posted August 13, 2018 .SOOO..I'm keeping them both on until I get the new people trained and then they will both be 'let go'. I'm not risking my family's and the other employee's income on some "branch swingers". You've never looked for one job while you've held another? Not sure why you're surprised loyalty woks both ways with 1099 employees... Mr. Lucky Link to post Share on other sites
d0nnivain Posted August 13, 2018 Share Posted August 13, 2018 I'm in the US, in a "right to work" state and these are 1099 employees, I could literally terminate employment if I didn't like someone's sock choice, not that I would ever do that..just saying.. However..as it sits now, the husband's "new job", that he turned in his notice(only 7days ) for, didn't work out..SOOO..I'm keeping them both on until I get the new people trained and then they will both be 'let go'. I'm not risking my family's and the other employee's income on some "branch swingers". I'm all for making as much money as you can and whatever life circumstances easier on one's self,but not at my expense. Thanks for the replies. Independent contractors get 1099s with no taxes taken out. Employees get W-2s. You really need to see a lawyer ASAP. First you need an education about your relationship with the people who perform services for you; 2nd you need to figure out the tax consequences of their compensation (FWIW screwing up other people's taxes will land you in jail way faster then not paying your own) & 3rd you really need these covenant's not to compete & confidentiality agreements. Those better be signed before you let these "branch swingers" go or you will lose your shirt when they open up their own business in direct competition with you & bad mouth you to all your customers. Link to post Share on other sites
bathtub-row Posted August 13, 2018 Share Posted August 13, 2018 I don’t think it’s relevant that he went looking for another job. That’s not necessarily a sign of disloyalty. But what is relevant is that he put you in a position of distrust by going to a competitor while his wife was still at your company. Not smart because it caused you to question both their loyalties. I’d fire both of them, too, for those reasons. Link to post Share on other sites
guest569 Posted August 15, 2018 Share Posted August 15, 2018 Hmm why is he leaving? Link to post Share on other sites
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