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msn644 · May 22, 2013, 12:38 PM

I have employee that works for my cleaning service she is a team leader has has now started her own company and has gotten one of my clents. I want to term her but afraid she may fill for unemployment. If I understand that's she is now self employeed she can't collect correct.

ScottGem · May 22, 2013, 01:08 PM

To collect unemployment you have to be ready and able to work. If she is working for herself, she is not ready and able to work. In addition, she is required to report her income for each week. If it exceeds the max award she doesn't get anything.

Also, stealing your customer would seem to be grounds for termination. If you report her termination as such, that may make it more difficult for her to qualify.

So I would terminate her.

Also, in the future, I would get all employees to sign a non-compete agreement that prohibits them from contacting any of your customers during employment and for 6 months after terminating employment. You can't prevent them from working in the same field, but if you can prove they contacted your customer, you have grounds to sue them.

msn644 · May 22, 2013, 01:51 PM

Here is more information I own a cleaning company and my main worker who runs my team has gone and underbid a job that I bid on. The job is cleaning a bank. I was cleaning for the bank but another company underbid me in February. The bank was not happy with there work so asked me for a new bid. My employee dates the person that works at the bank who was my boss. I gave him my bid then he went and helped my employee get a business license and then she underbid me. She of course got the job and also has recruited my other workers to help her clean the bank. What can I do about this? Do I have grounds to fire her and the co-worker that is helping her

ScottGem · May 22, 2013, 01:55 PM

Yes, I think you do. Of course it would be a slam dunk if you had previously had your employees sign a non-compete as I suggested.

dontknownuthin · May 22, 2013, 01:59 PM

You can probably fire both of them as most states are no-fault. Certainly if they have become your competitor and are taking business away from you, that's a reasonable reason to fire them but you probably don't need to cite a reason at all.

As for whether you will have to cover unemployment benefits, etc. you would need to stipulate where you are located and perhaps someone can weigh in on that.