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If an under the table employee starts a competing business,

has the under the table...
If an under the table employee starts a competing business, has the under the table employee committed an infraction of tort law under the obligation to the employer?
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Answered in 6 minutes by:
2/27/2012
Allen M., Esq.
Allen M., Esq., Employment Lawyer
Category: Employment Law
Satisfied Customers: 20,460
Experience: Employment/Labor Law Litigation
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Thank you for using Just Answer. Between my law practice and other law related jobs, I have over 13 years experience. I look forward to assisting you.

A current employee can be found to be in violation of a breach of loyalty or for unfair business practices under the unfair business practices act in your state.

That being said, this is not a current employee. An under the table employee is most likely going to be considered a contractor and unless you have a written agreement stating that the contractor can not compete, you'll have a difficult time establishing a violation of law.

You'd have to establish this person is really an employee, but that cuts both ways because having an under the table employee is also a legal violation.
Allen M., Esq.
Allen M., Esq., Employment Lawyer
Category: Employment Law
Satisfied Customers: 20,460
Experience: Employment/Labor Law Litigation
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Allen M., Esq. and 87 other Employment Law Specialists are ready to help you
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Customer reply replied 6 years ago
I am the "employee." The company in question is based in California, while the store I "worked" at is in Washington state. Will that have any bearing on this, as the two states differ in law?
The store you worked in is the law that matters, because that is the state that you are paid in. By having a store there, they have submitted to that state's jurisdiction.

Regardless, the law does not differ on this issue in those two states.
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