Question : Justin Kaiser and Germania became friends while
Justin Kaiser and Germania became friends while working together at a Ralph Lauren Polo store. When Germania left the store, Kaiser allowed Germania to buy clothing using merchandise credits made out to fake people, and he also allowed her to use his employee discount. Both of these activities were against store policy. Polo sued Kaiser alleging that he had violated his duty of loyalty. Kaiser filed a motion to dismiss on the grounds that he was such a low-level employee, he had no duty to the company. Issue: Do all employees owe a duty of loyalty to their employer? Holding: Yes, all employees owe a duty of loyalty to their employer, Kaiser’s motion to dismiss is denied. According to the court, Polo argues that there is a duty of loyalty akin to a fiduciary duty that all employees owe to their employer. While the cases cited by Polo address fiduciary duty with respect to higher-ranking employees, according to the Third Restatement, all employees are agents, and that “[a]s agents, all employees owe a duty of loyalty to their employers.” This is true regardless of how ministerial or routinized a work assignment may be. Required: Does it make sense to hold low-level employees to the same standard as high-ranking employees?