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Can I fire employees who may soon become competitors?

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in Human Resources

Q. I just learned from a reliable source that two employees are going to start a similar business. Apparently, they have submitted paperwork that is based on the forms I used to create my own business. Is this grounds for termination?

A. Yes. Employees have a duty of loyalty, and taking your business work for their own competing enterprise violates that duty. You should check any agreement you have with them, and your policies, to determine whether there are any limitations on your ability to terminate employment, or any procedures you need to follow.

You may also want to consider using a noncompete agreement in the future. Your attorney can help you draft one that complies with Colorado law.

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