Employment Contracts

EEOC loses case based on ‘illegal’ claims releases

04/27/2015

The EEOC has lost an important test of a novel theory that could have changed how some severance agreements are structured. It wanted to forbid requiring workers to waive the right to sue if they were converted from employees to independent contractors.

Can we require owner-employees of a business we’re buying to sign noncompete agreements?

02/10/2015

Q. My company is in the process of purchasing a small printing business, and we plan to retain several of the owner-employees of the acquired business. As a part of the purchase-and-sale agreement, we would like to take steps to protect our customer base by restricting the competitive activities of the owner-employees for five years. Additionally, we are interested in restricting the activities of an employee who is not a party to the transaction, but is married to one of the owners of the business. May we do so? What are some basics about noncompete agreements?

Arbitration agreement leads to … arbitration!

12/24/2014

Good news for employers that use arbitration agreements: California will send such cases to arbitration even if they start as collective actions—if the arbitration agreement is clear, separate from other handbook provisions and not unconscionable.

Warn your supervisors: Oral promises can be binding

11/17/2014

Make sure managers know that promises don’t necessarily have to be in writing to be binding. The more specific the promise, the more likely a court could hold you to it.

Watch out for rivalry that could spawn lawsuit

11/13/2014

In highly competitive fields, it’s not unusual for bosses and subordinates to distrust one another. But when that distrust leads to one party badmouthing the other, that can spawn a lawsuit.

Words matter! Boss’s oral promise can become binding if it’s definite enough

10/08/2014

Here’s a warning for supervisors and managers. When transferring an employee to another position, make sure you don’t make promises that create an employment contract. Such promises, under New York state contract law, don’t necessarily have to be in writing. Fortunately, they do have to be specific.

Don’t limit your legal options! Beware vague arbitration agreements

09/19/2014

The Court of Appeal of California has held that an employer cannot compel arbitration of a wage claim when the language in the parties’ arbitration agreement excluded wage-and-hour claims.

Draft arbitration agreement to limit litigation

07/23/2014

Using arbitration agreements can save time and money by keeping cases out of the court system. But if the agreement isn’t drafted well, the end result may be more litigation rather than less.

California Supreme Court issues key arbitration decision

07/23/2014

The California Supreme Court has issued a long-awaited decision in an important arbitration case. The decision is generally good news for employers seeking to use class-action arbitration waivers to deter wage-and-hour class actions. It’s less helpful to those attempting to fight off wage-and-hour “representative” actions.

Separation agreements: Use arbitration agreements instead of claims releases?

07/15/2014

Q. We have seen that some companies are requiring their employees to agree to arbitration rather than a release of claims in their separation agreements. Is this an alternative worth exploring?