Prepared by: Brian Confino Most businesses possess confidential information or trade secrets that need to be safe-guarded, or intellectual property, equipment, or processes that set them apart from their competition. Many companies choose to protect this information using “restrictive covenants” – agreements in which employees promise not to compete with the business in the future,… Continue Reading
Government Contractors regularly set up alternate dispute resolution (ADR) programs and, for good reasons, require their employees and independent contractors to agree to participate in such programs when hired or retained. Despite the predictability and uniformity that such ADR programs might promote when enforced, the enforceability of such mandatory programs is less predictable. As these… Continue Reading
The National Labor Relations Board (“NLRB”) continued its recent trend of reviewing employment provisions often contained in employee handbooks or employment agreements. On December 3, 2012, the NLRB’s Division of Advice released an Advice Memorandum dated May 16, 2012 in which it reviewed a “moonlighting” provision and a non-compete provision in an employment agreement. The… Continue Reading
In 2011, the California Legislature passed AB 1396 to amend Labor Code section 2751, and require that employers provide employees with a contract detailing the method by which commission, when applicable, would be computed and paid to employees. The contract requirement is set to go into effect on January 1, 2013, and applies to in-state… Continue Reading
In California, it is well established that non-compete provisions are unenforceable, subject to certain statutory exceptions. But what about non-compete provisions that are ambiguous as to their protection of confidential information or trade secrets? Recently, when faced with such a provision, one California federal court narrowly construed the provision to find it enforceable.
Does an employee have the right to proceed before the California Labor Commission after signing an agreement to arbitrate all claims? That is a question the California Supreme Court will have to decide after the U.S. Supreme Court vacated its decision in Sonic-Calabasas A, Inc. v. Moreno and remanded the case for further consideration in light of AT&T Mobility v…. Continue Reading
The Virginia Supreme Court issued an opinion on Friday making clear that non-compete provisions that are overbroad as to the function to be performed by the employee are not enforceable in Virginia.
The UK’s Employment Appeals Tribunal has confirmed that employers may dismiss employees who refuse to accept detrimental changes to terms and conditions without that dismissal being deemed "unfair" – so long as they have acted reasonably. It went on to say that an employer doesn’t necessarily have to show that the business would otherwise go… Continue Reading
On November 2, Georgia voters approved an amendment to the state constitution that will have a substantial impact on the drafting, negotiation, and enforcement of non-competition, non-solicitation and non-disclosure covenants in Georgia.