Restrictive covenants and non-compete agreements are increasingly under attack, this time by the Federal Trade Commission (FTC). Companies rely on these restrictions to protect investment in intellectual property, technology and employees. On January 9, the FTC suggested that employee freedom of mobility trumps all of these legitimate business reasons companies use restrictive covenants and non-compete agreements.
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On December 6, 2019, a coalition of both national and state business organizations and trade associations filed a Complaint in the U.S. District Court for the Eastern District of California. The lawsuit seeks both a preliminary and permanent injunction against implementation and enforcement of the recently enacted California law that makes it unlawful for California employers to require employees to sign arbitration agreements, under certain circumstances.
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Earlier this year, we wrote about a proposed bill in California, AB 51, which would prevent employers from requiring their employees to bring all employment-related claims, including discrimination, harassment, retaliation, and wage and hour claims, in arbitration instead of state or federal court. Earlier this month, Governor Newsom signed AB 51 into law.
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In recent years, federal and state law enforcement authorities have subjected “no-poach” agreements to increased scrutiny. Recent enforcement actions demonstrate the risk of criminal penalties and civil damages for using such agreements. In this video, Hunton Andrews Kurth partners Emily Burkhardt Vicente and Torsten Kracht discuss recent developments concerning the use of “no-poach” agreements, and
Originally published in The Business Journals, Jayde Brown discusses proactive steps small businesses can take to avoid common employment-related legal problems.
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California has long been considered one of the most – if not the most – protective states of employee rights. This continues to ring true, as the legislature has proposed another law aimed at prohibiting employers from requiring employees to sign mandatory arbitration agreements as a condition of employment. In essence, Assembly Bill 51 (AB 51), would prevent employers from requiring their employees to bring all employment related claims, including discrimination, harassment, retaliation, and wage and hour claims, in arbitration instead of state or federal court.
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We have reported on several Board decisions issued by a new Republican majority in the final days of 2017, but questions remain as to what issues the Board will address next to scale back on Obama-era precedent. In recent weeks, Republican Board Members have provided some hints in a pair of footnotes in two unpublished decisions.
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Employers should be aware of a recent ruling by the U.S. Court of Appeals for the District of Columbia Circuit that overly broad confidentiality and nondisparagement policies violate the National Labor Relations Act (“NLRA”).
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The newly-enacted Defend Trade Secrets Act (DTSA) represents a significant new weapon for companies to prosecute trade secret violations. Among other features, the DTSA creates a federal cause of action for theft of trade secrets and a provision for judicial ex parte seizure of stolen property, double damages, and attorneys’ fees. Please join Hunton & Williams LLP for a complimentary webinar on August 3, 2016, 1:00 p.m. – 2:00 p.m. (EDT) that will cover the important aspects of the law, including the language that needs to be inserted into employment and confidentiality/non-disclosure agreements to ensure your company can take full advantage of the law.
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Yesterday, John Smith, the president of ABC Bank, announced to the board of directors that he intended to resign to go work for XYZ Bank, a local competitor. Smith also intends to take some of the bank’s most important customers, and several top officers with him to XYZ Bank. Upset and panicked, the chair of the board contacted the bank’s employment attorney to determine what could be done to stop the president from leaving and taking customers and employees with him. “Send me a copy of John’s employment agreement,” the lawyer said. “Employment agreement? The board did not think John needed one. We never imagined he would quit.”
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