When Can An Employer Sue An Employee?

For the millions of articles that offer how to sue your employer, you might find one (this one) about how to sue an employee. Naturally when it comes to pursuing legal action, it’s imperative that an employer looks very carefully at what they have to gain from pursuing a lawsuit.

Check Your Company Policies

If you hope to sue an employee for a misdemeanor, analyze your company’s policies and rules. Hire a lawyer to check over your documents to be sure that there is no loophole that may cause you to lose a case against an employee. Employment law leans heavily for the employee. Therefore, you need to be sure that your case is solid before you move to pursue legal action.

What Can An Employer Sue An Employee For?

Employment law offers many opportunities for where employees can sue their employers. On the flip side, it is much more difficult for a business to find cause for a legal case against an employee. A couple areas where an company may have a case against an employee are listed below.

  • Negligence
  • Breach of Contract
  • Failure to provide reasonable notification of resignation
  • Defamation
  • Breach of Duty of Fidelity
  • Damages
  • Theft
  • Interference with contractual relations

Sue Your Employee For Negligence And Damages

In the event of indemnification, a third party group sues a company for damages caused by that company’s employee’s negligence. At this stage, the company might counter this suit with a claim for the employee to pay for the damages that he or she caused.

Sue Your Employee For Breach Of Contract

In some cases, employees are bound to a certain set of tasks or responsibilities by a contract. If the employee fails to comply to the contract, the company can sue. Two types of contracts that can be inappropriately breached are non-compete or non-solicit agreements.

Sue Your Employee For Failure To Provide Reasonable Notice of Resignation

Although most jobs are “at-will,” an employee’s quitting may leave the business in the lurch. It is mutually beneficial for the employee and company for the employee to provide reasonable notice. However, this situation largely deals with workers who hold senior positions at a particular company since replacement will be difficult.

Sue Your Employee For Defamation

Reputation is everything. And in this social media driven world, defamation may cause considerable damage to a company’s reputation. This type of lawsuit is complicated. The company must provide proof of the defamation and further offer evidence of reputation damage.

Sue Your Employee For Breach of Duty of Fidelity

Employees are required to work for the benefit of his or her business regarding all employment responsibilities. This duty of fidelity exists regardless of the existences of a contract or not. Therefore, if an employee partakes in an activity during employment that directly disregards the company’s interests, the employee may be liable to lawsuit.

Sue Your Employee For Theft

In the event that an employee wrongfully keeps company property, the company can sue the employee. The company’s demand can be for the return of the property or the monetary value of the property. Intentional destruction of property is also grounds for lawsuit.

Sue Your Employee For Intentional Interference With Business Relationships

Any action by a current or past employee that interferes with the relationships between the business and the employees can be cause for a lawsuit. The business must have evidence that an employee was maliciously causing relationship issues.


If you are an employer and you are seeking legal action against an employee, contact a lawyer who will know how to navigate your case and your rights under the law.

Don’t hesitate, talk to an attorney(412) 626-5626 or lawyer@lawkm.com.