Am I legally obligated to tella business owner that the other business owner is doing something that I feel wrong?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Home » Ask a Lawyer » Am I legally obligated to tella business owner that the other business owner is doing something that I feel wrong?

Am I legally obligated to tella business owner that the other business owner is doing something that I feel wrong?

I’m a bookkeeper for a small company that has 2 owners. If I see something that that one owner is doing that the other doesn’t know about and I believe it to be wrong. Am I legally obligated to tell the other owner even though I am told never to talk to him by the owner in question?

Asked on February 13, 2012 under Employment Labor Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

It depends on whether the wrong doing implicates you in some way, even if only in not bringing to light something which a bookkeeper should. The law does not generally impose an obligation on a person to report another's wrongdoing; so, say that owner 1 is sexually harassing another employee, is passing client/customer information to a family member who competes with the business, or is driving drunk in the company car--you would not need to report these wrong doings. They do not implicate your role as bookkeeper.However, say that owner 1 is embezzling money, is charging his personal, non-business expenses to the company or otherwise falsifying expenses, or is falsifying time sheets so a friend of his is paid for not working; in those cases, it is your obligation as a bookkeeper to report these issues. If you fail to do so, it's far from impossible that you could face liability, either based on a negligent failure to do your job, or based on a belief that you were involved in the wrong doing. While you may still not be affirmatively obligated to report, the fact that you could face personal liability means it would be potentially very unwise to not bring owner 1's actions to owner 2's attention.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Related Articles

Is it legal if my manager is trying to get me fired for a status post I made online?
What to do if my son was hit by another student in the school parking lot and the father of boy said he would pay cash?
What age must 2 people be to legally date?
Am I responsible for my deceased husbands bills in SC

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption