I had an employee that was a really good worker, but she connected with my admin person to try and obtain the customers I turned away to make money for herself. I felt like that was such a 
. the employee was a really hard worker and I could use her to help me with my business now, but I wasn't sure if I should speak with her again about the situation and hire her again in a postion that removes her from having any dealings with administrative folks or just let her be and I move on.
...hire her again in a postion that removes her from having any dealings with administrative folks or just let her be and I move on.
Sounds like you need a no-compete agreement. Whatever position she's hired for, you won't necessarily be able to prevent her from talking to the admin. folks, but having her sign the agreement would allow you to prevent her from doing anything with the information that she'll have access to.
Why would you hire her again? Did she also call seeking a position? 
I wouldn't hire her back or give the list that is just not good business practice for either of you and shows poor judgement on her part.
She probably thought that since you weren't doing orders from these people it would be no big deal, but it is. If you wish to refer people to her, that is your perogative but she shouldn't be calling your place of business asking for customer lists; that's called poaching. If she is willing to try to gain your potential client list (they may try again in the future) it is small step to poaching from your current client list.
RED FLAG!!
I work HR in my daytime job, and I will never, ever understand why my managers want to rehire a problem they've had before? They are out the door! Leave them there!
No competes are illegal in most states, and in the situations that are legal, requirements are usually a substantial amount of money received in exchange for the no compete or extensive training in a research environment. Every state has safeguards to protect the employee from a company "interferring with their right to work".
If you weren't going to do it anyway, what is the problem in letting her have them? How is that competition? If I were in that situation I would nip it in the bud while I was still on the phone with the rejected customer. I would say, "No, I'm sorry, I cannot take that order at this time (or I'm sorry, I don't do that kind of cake or whatever) but I do know someone who may that I can personally vouch for. Could you please hold for a moment? (Or can I take your name and number and have her contact you?)" Then I would let her have it and collect 10% right off the top for the referral.
Maybe you should also talk to your admin and let them know it is not company policy to pass on info to others about your customers cause they are in the wrong for passing that info to her in the first place.
Maybe you should also talk to your admin and let them know it is not company policy to pass on info to others about your customers cause they are in the wrong for passing that info to her in the first place.
That's a good point!
Annabakescakes, most employees are not licensed bakers, or they wouldn't be working for someone else. I don't think it is good business policy to refer to an unlicensed baker, and there could possibly be some liability in doing that. Example... licensed electrician doesn't have time to do a job so he refers the job to his unlicensed brother. Homeowner assumes the brother is licensed because he was referred by a licensed electrician, the house burns down. Unlicensed brother has no liability insurance (can't get liability insurance if you are not a licensed contractor), but licensed brother does.
Annabakescakes, most employees are not licensed bakers, or they wouldn't be working for someone else. I don't think it is good business policy to refer to an unlicensed baker, and there could possibly be some liability in doing that. Example... licensed electrician doesn't have time to do a job so he refers the job to his unlicensed brother. Homeowner assumes the brother is licensed because he was referred by a licensed electrician, the house burns down. Unlicensed brother has no liability insurance (can't get liability insurance if you are not a licensed contractor), but licensed brother does.
I understand that and it is a very valid point, and she certainly shouldn't be doing it in her home, but she could be "contracted" to make it on the premises. I just hate to see someone who needs money and is capable of working, willing to work, that is not connected with someone else who needs a service that is turned away from the person they seek it from, when that person knows the the other is capable! If that made sense! Also, they need cake, and they are likely to get it some where, so why not help someone in your circle of acquaintances? If the cake wasn't done because there just wasn't enough people to do it, then maybe she could be brought in to do it. If it wasn't done because the bakery doesn't do that kind of cake (naughty or whatever) then I understand. Or if the person wanted a 3D carved cake with fondant for Walmart prices!
Really, I do understand the point of view of both parties involved. I do think it is a shame though!
A business contact belongs to the business. Successful businesses know exactly what it costs to to bring one person in the door and the cost of the of the closed sale based on closing percentage. Usually that number is substantial and is based on the collected marketing efforts, right down to location, decor, logo, portfolio presentation, reputation, etc. A business person is running a business, not worrying that all the world deserves a cake. First, most businesses are not going to train an employee to become competition and second, I cannot believe that in this economy that all licensed businesses are booked and cannot accept another cake order.
To address "contracted" opens up a can of worms. There are employees and there are independent contractors. Contracting an employee to do extra work looks like an effort to avoid overtime. Also, rules for independent contractors are strict and monitored closely by the IRS. I only use independent contractors, but my business is structured completely different from any I have seen on CC.
To address "contracted" opens up a can of worms. There are employees and there are independent contractors. Contracting an employee to do extra work looks like an effort to avoid overtime. Also, rules for independent contractors are strict and monitored closely by the IRS. I only use independent contractors, but my business is structured completely different from any I have seen on CC.
I agree with all that, on a certain level, but I understand that she is not an employee. The OP was wanting an opinion as to whether or not to hire her back. Could a non-employee be contracted to come in and do a cake? Could you say, "Here is the order, here is the stuff, it's due tomorrow at 3, and when you are done, come to my office and pick up your check." How is your business different? I would be interested in knowing how I can legally hire contracted labor. I will not need someone every day, and I know a SAHM that can follow directions, who can use some additional cash every know and then. Also, I have an unlicensed friend that does cakes on the side here and there. She is terrified to get caught. Would it be more straight forward to have someone rent your space, or hire them as contracted labor?
Quote by @%username% on %date%
%body%