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Employees are deemed agents even if they are employed in a wholly nonrepresentative capacity. (Rest.3d Agency, § 1.01, com. c, pp. 19-20 [“The common law of agency encompasses the employment relation, even as to employees whom an employer has not designated to contract on its behalf or otherwise to interact with parties external to the employer's organization”].) Thus an employee, while employed, owes undivided loyalty to his employer. (Fowler v. Varian Associates, Inc. (1987) 196 Cal.App.3d 34, 41 [241 Cal. Rptr. 539].) “While California law does permit an employee to seek other employment and even to make some ‘preparations to compete’ before resigning [citation], California law does not authorize an employee to transfer his loyalty to a competitor.” (Ibid.) The duty of loyalty is breached, and the breach “may give rise to a cause of action in the employer, when the employee takes action which is inimical to the best interests of the employer.” (Stokes v. Dole Nut Co. (1995) 41 Cal.App.4th 285, 295 [48 Cal. Rptr. 2d 673].) Indeed, by statute, “[a]n employee who has any business to transact on his own account, similar to that intrusted to him by his employer, shall ...
