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Expert Explains New York's Faithless Servant Doctrine

Published in What to Do About Personnel Problems in New York
Article | June 2010
New York’s “faithless servant doctrine” gives employers the power to deny compensation covering periods when an employee acted disloyally. While the doctrine is often applied to fiduciary breaches, recent cases, such as Astra USA
v. Bildman
(Supreme Judicial Court of MA, No. SJC-10361 (2009)), which applied New York law to misconduct including sexual harassment, interfering with an investigation, and intimidating witnesses, have expanded its scope. In this article, Business & Legal Reports talks to Sharon Parella, a partner in the firm's Litigation and Dispute Resolution Practice, about the doctrine and what it means for New York employers.
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