Category Archives: Employment Agreements

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Illinois Limits Non-Compete Agreements Yet Again

On August 19, 2016, Governor Bruce Rauner officially signed into law the Illinois Freedom to Work Act (the “Act”), with an effective date of January 1, 2017.  The Act, while short and to the point, will have a significant impact on private sector employers who routinely require all employees, regardless of job level or wage, … Continue Reading

Seventh Circuit Holds Class Action Waivers are Unlawful and Unenforceable Creating a Circuit Split

On May 26, 2016, in the matter of Lewis v. Epic Systems Corporation, the U.S. Court of Appeals for the Seventh Circuit held that an arbitration agreement, which required employees to submit to individual arbitration for any wage and hour claims against the company, violates the National Labor Relations Act (“NLRA”) and is unenforceable under … Continue Reading

California Supreme Court: Arbitration Agreement Restating Existing Law Is Not Unconscionable

On March 28, 2016, the California Supreme Court handed down a long-awaited opinion in Baltazar v. Forever 21. Baltazar’s most important holding is that an arbitration agreement is not unconscionable merely because it restates existing law.  This ruling resolves a disagreement between state appellate courts that probably should never have arisen in the first place.… Continue Reading

California Employers Exhale Relief, Governor Vetoes Ban on Employment Arbitration Agreement

On October 11, 2015, Governor Brown vetoed Assembly Bill No. 465. AB 465 was one of the most closely watched, controversial employment related bills passed by the California Legislature in recent memory. Understandably, employers were nervous by the bill’s potential implications.… Continue Reading

DOL Says Most Independent Contractors Actually Employees

In furtherance of its agenda to extend minimum wage and other wage-hour protections as broadly as possible, on July 15, 2015, the Department of Labor issued a far-reaching interpretive memorandum expressing the DOL’s belief that “most workers [classified as independent contractors] are employees under the FLSA’s broad definitions.”… Continue Reading

California Court of Appeal Refuses to Enforce Forum Selection Clause Because Employer Would Not Stipulate to Apply California Law and Did Not Show that the Foreign State’s Legal Protections Were Equal to California’s

In Verdugo v. Alliantgroup, L.P., the California Court of Appeal held that a forum selection clause in an employment agreement was unenforceable because the employer could not prove that the employee’s rights under the California wage and hour law “would not be diminished in any way” if the lawsuit proceeded in a non-California court.… Continue Reading

New York Court Finds That Plaintiff Who Never Worked a Day For Company Is Not Entitled To A $350,000 Performance Bonus

On January 20, 2015, the United States District Court for the Southern District of New York issued a decision plainly reminding employers of the importance of precisely drafting employment documents.  In the case of In re Lehman Brothers Holdings Inc., 2015 WL 247403 (S.D.N.Y. Jan. 20, 2015), the Court held that a prospective employee, who … Continue Reading

The EEOC’s Assault on Separation Agreements – A Bump in the Road, But It’s Far From Over

Most employers have separation agreement forms that have served them well over the years.  The terms have become fairly standardized and, aside from the occasional tweak, they don’t change much and are rarely challenged.  Enter the EEOC, upsetting the apple cart with its new strategic enforcement initiative.  In recent litigation, it has staked out an … Continue Reading

California Court Of Appeal Refuses To Enforce Non-Compete Against Selling Shareholder

The California Court of Appeal for the Fourth District recently refused to enforce a covenant not to compete against the former employee and selling shareholder of a video game company. In Fillpoint, LLC, v. Maas et al., Case No. G045057, 2012 Cal. App. LEXIS 914 (Cal. Ct. App. Aug. 24, 2012), the Court of Appeal … Continue Reading

California Court of Appeal Provides Clarification of Labor Code Section 206.5’s Restrictions on Releases of Wage Claims

In the recent California Court of Appeal decision of Pulli v. Pony International, LLC, the court clarified that Labor Code section 206.5 prohibits an employer from requiring an employee to execute a release of a claim for wages only and does not prohibit the employer from requesting that the employee waive his right to a … Continue Reading

New California Commission Contract Rules – It is Not Too Early To Get Ready!

Employers with sales teams in California need to get ready. California has a new commission contract law, AB 1396, which takes effect January 1, 2013. Under AB 1396, which amends California Labor Code section 2751, employers who pay commissions to their employees are required to enter into written commission contracts with employees. The contract must … Continue Reading

Silicon Valley Firms Settle DOJ Hiring Practices Charges, But Are No-Solicitation Agreements Per Se Illegal?

Ending an investigation launched more than a year ago, on September 24, 2010, the Antitrust Division of the Department of Justice entered into an agreement with Google Inc., Apple Inc., Intel Corp., Adobe Systems Inc., Intuit Inc. and Pixar Animation settling charges that the companies’ bilateral agreements prohibiting cold-calling of their employees violated Section 1 … Continue Reading

Ninth Circuit Finds Employment Agreement Ambiguous As To Whether An Employee’s “Ideas” Were Assigned To Employer

In Mattel, Inc. v. MGA Entertainment, Inc., the Ninth Circuit Court of Appeals vacated the trial court’s judgment awarding Mattel ownership rights to the Bratz brand of dolls. This decision was reached, in part, on a finding that the trial court erred in ruling that the employment agreement between Mattel and former employee Carter Bryant, … Continue Reading
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