Labor/Employment
Jul. 14, 2011
In defense of the common law duty of loyalty
When non-fiduciary employees are disloyal, the common law duty of loyalty may no longer protect employers. By Bradford K. Newman and Kyle Reykalin of Paul, Hastings, Janofsky & Walker LLP
For good reason, employers have long considered axiomatic the fact that every one of their employees owe them an undivided duty of loyalty. Until recently, California state courts have done the same. However, a disturbing trend in the federal courts, which in turn is spawning a slew of demurrer practice in state court, makes clear that employers can no longer take for granted its non-fiduciary employees' common law obli...
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