We have a competitor that is hiring away our help and paying them under the table. How do we file a complaint about this.

The competitor has hired a truck driver away from us, and is telling our other employees, that they should come to work for them, they are working up to 40 hours overtime and being paid cash. We pay everyone legally and honestly, so of course we are not happy with what he is doing.

Napa, CA -

Attorney Answers (2)

Kristine S Karila

Kristine S Karila

Employment / Labor Attorney - Irvine, CA
Answered

You may report them to the EDD (unemployment compensation), IRS, Calif. Franchise Tax Board and the Labor Commissioner's office (DLSE). If they are investigated, they will be asked to produce records, names/phone numbers of employees, their workers' compensation insurance info, etc. And if they are found to have violated labor laws, etc., they will be fined.

T. Joshua Ritz

T. Joshua Ritz

Employment / Labor Attorney - Sherman Oaks, CA
Answered

You might have a claim under Business & Professions Code Section 17200. You have standing since you suffered direct loss. And the statute concerns unfair or unlawful business competition. It appears your competitor is using a violation of the law to compete with you and steal talent. Sounds like a potential claim. There might also be a claim for intentional interference with prospective economic advantage. You should consult with a business litigator. A letter might stop them or otherwise a legal complaint may be necessary if the facts warrant it and it is truly threatening your business.

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