Employee recruiting for another company in our office

[HRQuestions]

What is the name of your state (only U.S. law)? Maryland

We have an employee whom we discovered was recruiting our employees for another company (a competitor). Through our internal investigation we've discovered that he was hired by this company and told to keep working here for a week and distribute business cards for the hiring manager to our employees.

Is it legal for our competitor to instruct him to keep working here for a week and attempt to recruit our staff? If it does violate a law, what law does it violate?

We'd like to reach out to the CEO of the other company to find out if he condones these type of recruitment tactics, but we'd like to know if we have a valid cause of action in case they try to do something like this again.

Thanks in advance for your help.

 

[LeeHarveyBlotto]

Why don't you just tell him his employment is terminated effective immediately and walk him out the door?

 

[Antigone*]

What is the name of your state (only U.S. law)? Maryland

We have an employee whom we discovered was recruiting our employees for another company (a competitor). Through our internal investigation we've discovered that he was hired by this company and told to keep working here for a week and distribute business cards for the hiring manager to our employees.

Is it legal for our competitor to instruct him to keep working here for a week and attempt to recruit our staff? If it does violate a law, what law does it violate?

We'd like to reach out to the CEO of the other company to find out if he condones these type of recruitment tactics, but we'd like to know if we have a valid cause of action in case they try to do something like this again.

Thanks in advance for your help.

So, did the spy get fired?

 

[HRQuestions]

So, did the spy get fired?

Why don't you just tell him his employment is terminated effective immediately and walk him out the door?

Yes of course we locked him out of our telephone computer and building as soon as the misconduct was discovered; he was terminated in the lobby and provided his belongings.

The employee has been dealt with but we could lose talent because of it. We are a small company that doesn't have in-house counsel and just want to know what type of footing we'll be on when we reach out to the competitor about his actions. This is not typical conduct for our industry (sending a spy) although most in our industry do pay recruitment bonuses. So this is a hiring manager who (in our opinion - we don't know if our opinion lines up with the law, which is why I'm here) went way out of line sending in a spy to up his bonus.

 

[swalsh411]

You want to know if you have any action against your competitor?

No, not that I can see. It is not illegal to recruit employees of other companies or even send in "spies".

I wouldn't even "reach out" to the other company. What's the point? Anything you disclose might be used against you should they decide to send in another spy. You do not want to tell them how you discovered what this guy was doing.

 

[HRQuestions]

You want to know if you have any action against your competitor?

No, not that I can see. It is not illegal to recruit employees of other companies or even send in "spies".

I wouldn't even "reach out" to the other company. What's the point? Anything you disclose might be used against you should they decide to send in another spy. You do not want to tell them how you discovered what this guy was doing.

It couldn't be considered a theft of trade secrets, corporate espionage (don't laugh) or tortious interference with our business operations?

 

[Mass_Shyster]

We are a small company that doesn't have in-house counsel and just want to know what type of footing we'll be on when we reach out to the competitor about his actions.

You very likely have a claim of breach of fiduciary duty against the former employer, and a claim of tortious interference with prospective advantage against both the former employee and the company paying him.

I would not recommend contacting anyone besides an attorney in this matter.

 

[Ohiogal]

You very likely have a claim of breach of fiduciary duty against the former employer, and a claim of tortious interference with prospective advantage against both the former employee and the company paying him.

I would not recommend contacting anyone besides an attorney in this matter.

100% agreed. Sue the bad people in court with the help of an attorney.

 

[latigo]

What is the name of your state (only U.S. law)? Maryland

We have an employee whom we discovered was recruiting our employees for another company (a competitor). Through our internal investigation we've discovered that he was hired by this company and told to keep working here for a week and distribute business cards for the hiring manager to our employees.

Is it legal for our competitor to instruct him to keep working here for a week and attempt to recruit our staff? If it does violate a law, what law does it violate?

We'd like to reach out to the CEO of the other company to find out if he condones these type of recruitment tactics, but we'd like to know if we have a valid cause of action in case they try to do something like this again.

Thanks in advance for your help.

No big deal!

First we stab this Pied Piper proselyte, hang him, shoot him and then kill him. *

And if that doesn't work, and he dominos our "Harley Hogs" once more - we bury him alive!


[SUP][*] With apologies to Paul Ruebens and the children of Hamelin[/SUP].

 

[cbg]

Is it legal for our competitor to instruct him to keep working here for a week and attempt to recruit our staff?

In that there is no law prohibiting him from doing so, yes, it is.

However, that doesn't mean you have no recourse. What recourse you have, however, will be in the civil courts and you WILL need an attorney.

Consult one.

 

[eerelations]

Is it legal for our competitor to instruct him to keep working here for a week and attempt to recruit our staff?

In that there is no law prohibiting him from doing so, yes, it is.

However, that doesn't mean you have no recourse. What recourse you have, however, will be in the civil courts and you WILL need an attorney.

Consult one.

Agree wholeheartedly. Having a chit-chat with big bad competitor CEO is just going to make you look like even smaller fry. You need to act like the big boys and have an attorney handle this on your behalf.

 

[Zigner]

Has anybody actually been lured away by the other company?

 

[swalsh411]

I'm still not seeing what anybody thinks the OP has to sue over. It's not illegal to try and get people to quit their jobs and go work someplace else. The OP mentioned nothing about this "spy" stealing proprietary data or doing anything illegal to interfere with the operations of the business. If their employees are not happy with their jobs and are looking for new ones, that's their problem not their competitors. Maybe their need to look at the compensation, benefits, culture, work environment, etc. instead of suing their competitors because they are more attractive.

 

[ecmst12]

OP mentioned losing "talent" which usually refers to clients, not employees.

 

[cbg]

I have personally, though marginally, been involved in a case where my employer successfully sued to prevent a competitor from raiding our office for employees, not just clients. No one said it was illegal, but it can be interference with trade.