Employee running his own business on my time

[zarembisty]

What is the name of your state? MA.
I have the following problem with an employee: he is a manager of one of the divisions in my business. He's been with the company for many years, but recently I found out that he started his own business doing exactly what he is in charge of in the division. I also have evidence that he submitted proposals to clients with my company's name on them, but he'd do the work himself and bill the customers himself for the work done (fortunately no theft of inventory took place). I've lost a significant amount of revenue because of his actions. He is terminated as of today, but are there any legal actions I can take against him forcing him to compensate my company for the work done on my time, with my tools and in many cases with the help of my employees (who unknowingly helped him because they thought it was work contracted to my company).
Please let me know if I do have any options regarding this matter. It really hurts to see an employee of 30+ years do this. I feel that he should suffer the consequences of his actions.

 

[pattytx]

I know this sounds really stupid, but did you have any written policy that this employee knew or should have known about prohibiting use of company time and materials to conduct a personal business? Even if you protest his UI claim, for example, because of his actions, he might still get UI because he could say that he did not know of the policy, or violating it was not malicious.

Relative to some type of civil suit, you would have to prove damages. It probably would not be a bad idea, however, to consult with a local attorney specializing in this area to discuss any options you might have.

 

[Beth3]

None of the attorneys who post here seem to be around today. If you don't get a response by Monday, I suggest you consult a local attorney. You're going to have to do that anyway to discuss the specifics of your situation anyway. Frankly, I do hope you have a claim against this guy. In exchange for the thirty years of employment you provided, he really stuck it to you. You may be able to sue for the economic damages he caused your company. Good luck.

 

[boonehead]

If he used your letterheads, making the client believe your company was doing the work, yes he used your company name illegally. So any problems or lawsuits would have came back on your company. The employees that did the work, how were they paid? If they were paid on your payroll, that would be embezzelment. he stold funds from your company which would be a criminal offense, should you chose to press charges.