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Employment Contracts

Take-it-or-leave-it arbitration clause is fine if the underlying agreement is fair

12/16/2011

The Court of Appeal of California has handed a significant victory to employers that use arbitration agreements as a condition of employment. As long as the underlying terms of the agreement are fair and the arbitration process impartial, the court will send a case to arbitration even if the employee had no choice but to sign the agreement.

Use contract to compel return of documents

12/14/2011
Minnesota law doesn’t give employers a clear right to demand the return of copied documents when an employee leaves. It’s one reason that you may want an employment contract, noncompete agreement and confidentiality guarantee all wrapped up into one for employees who work with sensitive information.

How do I make a noncompete enforceable?

11/23/2011
Q. Can I ask employees who are already with the company to execute noncompete agreements?

Are any noncompetes enforceable in California?

11/18/2011
Q. I’m aware that California law generally does not allow employers to use noncompete agreements. Are there any noncompete agreements that California courts will enforce?

When crafting arbitration agreements, consider effect of PAGA on class actions

11/18/2011
It’s hard to create binding and en­­forceable arbitration agreements in California. Some courts considering California arbitration agreements have held that actions brought by em­­ployees under the California Private Attor­­ney General Act of 2004 (PAGA) can’t be blocked by arbitration agreements.

Don’t want class-action arbitration? Say so

11/18/2011
When claims involve unpaid overtime or misclassification, attorneys representing employees naturally want to handle the case as a class or collective action. Some employers think that if they include an arbitration agreement in their terms and conditions of em­­ploy­­ment, a wage-and-hour claim has to go to arbi­­tra­­tion as an individual claim. That’s not necessarily true.

Ensure that arbitration agreements are clear

10/12/2011

Employers may be sold on the advantages of arbitration over litigation and want to give the proc­ess a try. But if they don’t do it just right, chances are they’ll end up spending more time and money. That’s because employees may go to court to challenge an employer’s right to arbitration, adding what amounts to a second lawsuit to the underlying complaint.

Do all noncompetes have to be the same?

10/12/2011
Q. We have an employee who is returning to work for us after having worked for a competitor. Nor­mally, we require new employees to agree to a noncompete, with a 15-mile-radius restriction. In this case, we’d like to extend the area to a 30-mile zone around our facility. Can we have a different arrangement with her than the one we have with our other employees?

Get expert help drafting arbitration agreements

10/11/2011
Don’t give in to the temptation to save money by writing your own arbitration agreements or using a standard template available from many arbitration services. Instead, have your attorney review your organization’s unique needs and draft a custom agreement.

When executive wants to ease into retirement, can we insist on a ‘retirement contract’?

09/16/2011
Q. An executive wants to retire in one year and gradually reduce her schedule until then. Our business needs don’t allow us to have this executive role be part-time on a long-term basis. Can we approve this request on the condition that the executive sign an agreement binding her to retire within one year?