Definition[edit | edit source]

An employee's duty of loyalty to their employers arose in the common law. An employee has a duty to act solely for the benefit of the employer when engaging in any conduct that relates to his or her employment.

Overview[edit | edit source]

California Labor Code §2860 provides that:

Everything which an employee acquires by virtue of his employment, except the compensation which is due to him from his employer, belongs to the employer, whether acquired lawfully or unlawfully, or during or after the expiration of the term of his employment.

California Labor Code §2863 provides that:

An employee who has any business to transact on his own account, similar to that intrusted to him by his employer, shall always give the preference to the business of the employer.
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