Fire for personal use of equipment for profit & Competing?

[bisjoe]

What is the name of your state?WA
While away on vacation, I accidentally discovered that my employee (part time for 6 mo.) has been using my equipment to produce and sell items at "craft sales" that are items we sell wholesale and retail, designed by myself or her while I was paying her. In addition she has been purchasing materials from my vendor paying cash but not paying sales tax and getting my wholesale price without a resale license, misleading them to believe the purchases were for my business. It is unknown whether her personal work was while I was away and being paid or after hours. Am I justified in terminating her when she returns? I do have written evidence.

 

[cbg]

Yes, by all means.

 

[bisjoe]

How to go about it?

State of WA

While I am terminating her because she has cost me
money and I can no longer trust her, have you any
advice on how to do it appropriately? What I have
is a computer graphic file (company PC) with the design
for her sign with prices for items that could only be made
on my equipment, and a printout of e-mails which were
on her company e-mail which I had to check while she
was on vacation. The e-mails were with a craft show
and include photos of "her" work which is work she did
here while as assigned and being paid, and the e-mail
clearly states her being scheduled to exhibit "her" work
there for sale.

 

[SuzieWahoozie]

I don't understand your question...how do you go about it? You say, "Employee, you're fired." She whines and acts shocked and asks, "Why?" If you want to give her an answer (you don't have to, but I always think it's a nice thing to do), you say, "Because I know you have been making and selling MY products for your personal gain and fraudulently purchasing materials from my suppliers circumventing your tax obligation." Then you smile sweetly, wish her a pleasant day, retrieve your company property, let her collect her personal items, let her know when/if she has any final pay due and when she can expect to receive it (you cannot withhold her paycheck if she doesn't return items or owes some other debt to you or the company...you have to handle that issue separately), and then you escort her to the door!

You might want to ask your corporate attorney if there is anything you need to do to ensure that she does not/cannot continue to manufacture and sell your product for personal gain. That I cannot advise you about.

Sheesh...this is one dumb cookie! Running a competing business with the employer's resources on the employer's premises! Someone ought to just kill her...she appears to be wasting oxygen smart people could be using!

 

[tryingtoplease]

As an employer, I would suggest that you use the least amount of words possible when firing the employee. Read up on the specific unemployment laws for your state. If you offer any written communication with anyone, use your knowledge of the laws so cite sections of the code. Believe me, I know. Words can be distorted, written documentation cannot. Hard to find good workers sometimes, huh?

 

[cbg]

You are not required to defend your position. You are not required to show her proof. You are not even, at the time of termination, required to give her a reason. However, in your state, if she gives you a WRITTEN request for the reason for her termination, you must give it to her, also in writing, within 10 days of her request. Again, you are not required to give her a reason unless she requests it in writing. You may - you are not forbidden to do so. But you aren't required to by law except in that one instance.

Her final paycheck must be sent to her no later than the next regular payday. You are not required to pay her for any accrued but unused vacation unless it has been your policy to do so. You are not required to pay out any sick days, personal days, or holidays. If she is on your health insurance, you will probably have to offer her COBRA. (You don't have to offer COBRA in cases of gross misconduct, but the standard for that is VERY high and I'm not sure even this would reach it.)

A suggestion; terminate any computer passwords she may have BEFORE she gets back. If she has keys, you might consider changing the locks; if you are using a swipe card, definitely recode hers after she leaves. And do the termination the very first thing when she gets in her first day back.

 

[bisjoe]

Suzie,

That's about what I had in mind, but was more concerned with any problems that might result from the way I found out about it. Thanks to later comments from two other very helpful people I will tell her the reason but not go into
detail about how I know, and will change passwords/keys before she returns. Also, she was paid in full up-to-date her last day before vacation, which I did "off payroll cycle" as a favor to her so she would have money for her trip.

 

[SuzieWahoozie]

If I am reading your post correctly, you found out about it through information she had stored on the company computer. You are perfectly free to look at any and all information stored on the company computer. It is the COMPANY computer, after all. It's the company's property, and as such, any official of the company with the authority to do so may look at the contents. This is the very reason I don't store personal stuff on my work computer, and if I did, I'd make sure it was nothing that would get me in trouble with my employer if discovered! Nor would I ever store anything personal that I wouldn't want broadcast. Since it is compnay property, I would be fully cognizant of the fact that others may be privy to the information.

Again, this employee was less than smart.