Employee starting own company on our time

[jasonc]

I own a construction company, and we have an employee who we found out has started his own construction company without notifying us. Unfortunately, he has been performing this startup on our company time since November, using our company truck (including gas and insurance), as well as likely our tools and other company materials. He was in a small fender bender in our truck on his own time, which resulted in an insurance claim against our policy. He has turned in time logs stating he was on our jobs when he was not. We have all the proof we need, and are about ready to fire him.

My question is do we have any legal recourse against him or his new company? We are incorporated, his new company is a sole proprietorship. Additionally, can we withhold funds upon firing (accrued vacation, final check, etc.) to offset his fraudulent behavior? I would imagine we can charge him for time, as well as truck mileage, etc.
Thank you.
Jason

 

[cbg]

You can most certainly fire him.

You absolutely cannnot withhold his final paycheck or vacation pay. The DLSE would be all over you in a minute if you tried. But I would certainly speak with counsel about what other options may be available to you.

 

[Duranie]

You can fire him, you cannot withhold pay. Somebody in your HR or payroll should be versed in employee law and should know how to handle this.