conflict of interest?

gab

This is a strange situation. We have an employee who had just received a promotion to a manager position which gives him access to many things like salaries, etc... However, it was discussed with him that there is a conflict of interest because he also recently got married to someone who works for the competitor. The employee and new wife decided she would quit her job, but now the competitor is after her to stay. So now the question is posed, can we take away his promotion if he wife stays at the competition. The employee has sign a confidentiality agreement, but many people are concerned that there still will be some talk between the two of them.

Are there any legal issues that I need to be concern with, if we take the promotion away?

Gillian3

To understand the legal piece you need to find out what state law that you might have that would deal with this type of action. Looking down the road as to what might happen if you take the action that is proposed - taking away a promotion might result in your employee being upset enough to leave - maybe for the competitor. Further, he probably already knows the salaries etc., so you don't gain anything there by taking away the promotion. If the spouse does return to work, perhaps you should have a conversation about confidentiality then act if there are breaches, but my opinion is based upon how I think courts in California would view the taking away of a promotion for the reason that you have described.

Crout

You either trust your EE or you don't, and if you don't then why did you promote him in the first place?

Don D

I have a nine member sales force and have recently given them all access to several databases containing quite a bit of confidential company and client information, the release of which could be harmful to our company. I've just learned that the entire sales force plays golf regularly with sales people who work for several competitors and three of them have children playing on the same soccer team as well as softball team, therefore they travel to other cities regularly on weekends and are thrown together in all sorts of settings.

Should I consider busting up our sales team and populating it only with people who don't associate with others? And could my decision to do that be challenged in court?

Of course I made that up, but do you see your situation in mine? Short of stating the policy and having signed confidentiality agreements in place, there's not much you can do, sensibly.

deniseE

Mary Matilin and James Carvelle manage to be married in careers that couldn't be in greater competition.

I agree with Don and the others. Put your confidentiality agreements in place and go from there. You might be surprised at how little work details creep into their personal lives.

Don D

Ain't it the truth! Carville grew up next door to a plutonium plant and Matlin has to roll over and look at him every morning. I really think life is a joke to them and they enjoy rolling the dough in.

rad

Did you know about his wife's position before or after you promoted him? If you knew before, why promote him at all? Integrity is, or should be, one of the reasons a good employee is promoted. Unless you have a policy against it, as does my company, let him keep it until he gives you a reason to take it away.

neveradull

Make the wife a better offer then the competition.