business owner hiring client's employee

Is It Okay to Hire Your Client’s Employee?

It can be challenging to find the right candidate for a job. There could be a very small pool of qualified individuals in the area with the requirements and experience to handle the job. Some companies are tempted to hire employees who might be working for their clients or customers.

Before you hire one of your client’s best employees away from the company, you might want to discuss the matter with a South Carolina business attorney. Depending on the type of business you operate, hiring a client’s employee might cause several legal problems for your company. 

Benefits of Hiring a Client’s Employee

There could be some benefits of hiring your client’s employee. For example, the person is already familiar with the industry. They will require less training, which could result in quicker productivity. Because the person was on the other side of the business relationship, they could bring a unique insight into customer needs and desires that could improve your products and services. 

A client’s employee may already know the people on your team, which could ease the transition process. They also are familiar with your product or service. A client’s employee may even know or have relationships with other clients, which could benefit your company. 

Potential Issues When Hiring a Client’s Employees

Of course, there could be potential problems when hiring a client’s employee. In addition to the ethical dilemma of taking a client’s employee, there could be conflicts of interest that need to be explored. If you are not careful, you could find yourself a co-defendant in a lawsuit against the employee. 

The employee may have signed one or more employment contracts that could pose several legal problems. For example, they may have signed a noncompete agreement that could prevent them from taking a job with your company. Other employment contracts and agreements could prevent an individual from performing all tasks required for the job.

There is also the question about how your client or customer might react. The ethical choice would be to discuss the matter with your client before hiring the employee. If the employee approached you inquiring about a potential position with your company, they may be ready to leave your client and will do so when they find another job. If that is the case, your client may not view you hiring the employee as harshly as if you approached the employee about a job with your company. 

Whether you talk to your client beforehand or let the client find out after you hire their employee, the result could be disastrous. You could lose the client’s business. If the client is one of your best and most profitable clients, the potential loss for your company may outweigh any potential benefits of hiring the person.

Contact Our South Carolina Business Attorney for All Your Business Matters

Our South Carolina business attorney handles all types of business law matters, including issues related to employment law. If you have questions, contact our law firm today to speak with one of our attorneys. Prompt legal advice is the best way to head of a more significant legal issue.