Pub. 6 2011-2012 Issue 2

July/August 2011 13 Extraordinary Service for Extraordinary Members. we’re Always CLOSE BY NetWorks is the Electronic Funds Transfer (EFT) service provider that Nebraskans have used and learned to trust like family for over 30 years. Since our offices are right here in Nebraska, you can count on us to provide quick and personalized service for all of your EFT needs. Give us a call and let’s talk about how we can simplify EFT for you. You will talk with a fellow Nebraskan and not some automated system. www.netseft.com Toll Free 800-735-6833 Local 402-434-8202 Q Employee Loyalty — continued on page 14 issue in a lawsuit), (4) proof that the interference caused harm, and (5) damage. Many times, employ- ers who sue former employees also sue the hiring employer for tortious interference. This issue can become especially problematic for employ- ers trying to hire more than one employee from the same competitor at the same time—especially entire teams—for at least two reasons. First, it becomes almost impossible well-written employment agree- ment, broaden the scope of what information can and cannot be used or taken by the employee. 3. Duties of Loyalty and Fidu- ciary Duties. With or without an agreement, every employee has some duty of loyalty and should not actively work against his or her employer’s interests by diverting the employer’s customers to a competi- tor (such as the one he plans to work for next) or using the employer’s resources to directly compete with the employer. Not all employees understand this, and a well-written policy or agreement can help ex- plain and expand this duty. Second and often more important, corpo- rate “officers,” which may extend well down into the management ranks depending on facts, have a fiduciary duty to their employer, whichmeans that so long as they are employed, they must affirmatively act in the employer’s best interest. Many corporate managers do not understand this concept, which can lead to serious mistakes during the process of seeking new employ- ment—mistakes such as working on competitive business plans with the new employer, or talking to other employees about joining them. Written agreements can help, but manager training can sometimes do more. As a hiring employer, training of your recruiters and hiringmanag- ers is critical if they are to avoid a tortious interference lawsuit. 4. Tortious Interference With Business Relationships. Ne- braska law recognizes a cause of action for tortious interference with a business relationship where the plaintiff can show (1) the existence of a valid business relationship or expectancy (such as an existing employment relationship or cus- tomer relationship), (2) knowledge by the interferer of the relation- ship or expectancy (which most competing employers would have), (3) an unjustified intentional act of interference (this is often the key to know what the co-recruited em- ployees are saying to each other or what information they are sending to each other during the recruiting and transition process. Second, the very act of hiring an entire team will give the appearance of trying to “steal” the book of business the team was handling.