What is Faithless Servant Doctrine and how does it affect me being OE?
I've heard about this, but I'm not sure if this matters or not.
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Faithless Servant Doctrine: A Speculative Case Study
Overview from a Lawyer's Perspective...
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optimistic-gold•12mo ago
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Faithless Servant Doctrine: A Speculative Case Study
Overview from a Lawyer's Perspective
- Worst-case scenario (in NY): Being sued for disgorgement of 100% of the wages paid under the "Faithless Servant" doctrine. This is a civil liability.
- Potential criminal charges: Could be reported for criminal activities such as fraud.
Recommendations from Legal Professionals
- Contractor status: If overlapping jobs, choose 1099 independent contractor status when possible to avoid liability under this doctrine.
- Disloyalty Definition: Handbooks don't determine disloyalty. In states with this doctrine, it's about being a disloyal employee. This raises the question of being an employee vs. an independent contractor. - Additional Advice: 1. Get consent if possible. 2. If consent is unattainable, aim for independent contractor status. 3. If that's also unfeasible, attempt to secure a favorable written employment contract. 4. If that too isn't possible, obtain a written employment contract with a choice of law provision indicating a state without the "faithless servant" doctrine. Feedback from Consultations - After consultations with three employment lawyers, caution is advised regarding this doctrine. - If a breach in the employment contract can be proven, employers might ask for all paid wages from the moment of unfaithfulness. Applicable States The doctrine is implemented in: - New York - California - Maryland - Georgia - Missouri - New Jersey - Oregon >Note: California's implementation might be conflicting due to its other laws. Case Studies and References - General Case Study - Massachusetts Case Study Reassurances & Observations 1. Nature of Violations: Most on-record cases involve extreme violations, such as sabotaging the company or moonlighting for a direct competitor. 2. Disloyalty Aspect: Holding two unrelated jobs isn't inherently "disloyal," especially with proper documentation of satisfactory performance. 3. Enforcement Scenarios: Enforcements were often in situations where company assets (equipment, staff, etc.) were misused. 4. Possible Retaliation: Governments might be more inclined to sue for legal OE to avoid appearing inefficient. Most large companies would just terminate employment. 5. Geographical Confusion: Uncertainty exists whether the doctrine applies based on employee's state of residence, employer's headquarters, or where disputes are arbitrated as per contracts.
- Disloyalty Definition: Handbooks don't determine disloyalty. In states with this doctrine, it's about being a disloyal employee. This raises the question of being an employee vs. an independent contractor. - Additional Advice: 1. Get consent if possible. 2. If consent is unattainable, aim for independent contractor status. 3. If that's also unfeasible, attempt to secure a favorable written employment contract. 4. If that too isn't possible, obtain a written employment contract with a choice of law provision indicating a state without the "faithless servant" doctrine. Feedback from Consultations - After consultations with three employment lawyers, caution is advised regarding this doctrine. - If a breach in the employment contract can be proven, employers might ask for all paid wages from the moment of unfaithfulness. Applicable States The doctrine is implemented in: - New York - California - Maryland - Georgia - Missouri - New Jersey - Oregon >Note: California's implementation might be conflicting due to its other laws. Case Studies and References - General Case Study - Massachusetts Case Study Reassurances & Observations 1. Nature of Violations: Most on-record cases involve extreme violations, such as sabotaging the company or moonlighting for a direct competitor. 2. Disloyalty Aspect: Holding two unrelated jobs isn't inherently "disloyal," especially with proper documentation of satisfactory performance. 3. Enforcement Scenarios: Enforcements were often in situations where company assets (equipment, staff, etc.) were misused. 4. Possible Retaliation: Governments might be more inclined to sue for legal OE to avoid appearing inefficient. Most large companies would just terminate employment. 5. Geographical Confusion: Uncertainty exists whether the doctrine applies based on employee's state of residence, employer's headquarters, or where disputes are arbitrated as per contracts.
rare-sapphire•7mo ago
wait wait wait wait
can I get hit with this Faithless Servant Doctrine bullshit?
is OE considered "disloyalty"?
optimistic-goldOP•7mo ago
i mean if you did you'd be the first ever case for OE
rare-sapphire•7mo ago
way to jinx me TD :KEKW:
(but good to know thank you)
the criteria seems very specific ala corporate subterfuge