General Business Civil Procedure Labor & Employment

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Fidelity Prevails In ERISA Float Litigation

The First Circuit joined the Eighth Circuit in finding that Fidelity’s practice of earning overnight “float” interest on the cash paid out to 401(k) participants redeeming shares in mutual funds did not violate ERISA’s duty...more

District Court Finds Forum Selection Clause Unenforceable in ERISA Action

A federal district court in Illinois ruled that a plan’s forum selection was unenforceable because it conflicts with ERISA’s public policy of providing plaintiffs “ready access to the Federal courts.” Darlene Harris...more

Pokémon No! A Strategy Guide on Handling the Latest Smartphone Craze in the Workplace

Although Pokémon Go is only 21 days young, over 30 million users have downloaded and played the augmented reality game on their smartphones. In the latest release of the pocket monster franchise, your mission is to capture...more

Government Involvement in Noncompetes… Against a Sandwich Maker?! Jimmy John’s Slapped With Another Lawsuit, This Time Brought by...

Jimmy John’s can’t seem to escape the limelight. Last year, the company made headlines when employees hit it with a putative class action lawsuit seeking to invalidate their non-compete agreements. The District Court...more

Nevada Confirms Its Restrictive Covenant Law, But Rejects Blue Penciling

In the first decision to reach the Nevada Supreme Court on whether state district courts may modify or “blue pencil” non-competition agreements, the high court has concluded that doing so would violate Nevada law. Golden Road...more

Illinois Restrictive Covenants: July 2016 Update

Heads up, Illinois employers with post-employment restrictive covenants: three new cases may impact your enforcement efforts. One continues the split between state and federal courts as to whether continued employment is...more

Judge McMahon Dismisses Case Because Agreement that Inventor “will assign” Doesn’t Mean “did assign”

On June 14, 2016, S.D.N.Y. District Judge Colleen McMahon granted defendants HTC Corporation, HTC America, Inc., Blackberry Limited, Blackberry Corporation, and Motorola Mobility LLC’s (collectively “Defendants”) motion to...more

Nevada Supreme Court Refuses To “Blue Pencil” Unreasonable Non-Compete

Nevada, unlike California, applies a reasonableness test to non-compete agreements. Although the Nevada courts haven’t identified a specific heuristic to be followed, a covenant not to compete will be found to be...more

Court Reverses Judgment Dismissing Breach Of Fiduciary Duty Claim Because No-Evidence Summary Judgment Motion Was Not Sufficiently...

In Tex v. Iom, a former employer sued a former employee based on a covenant not to compete and breach of fiduciary duty and sued the new employer for tortious interference. No. 12-14-00254-CV, 2016 Tex. App. LEXIS 7317 (Tex....more

InterConnect FLASH! No. 55 - Disruptors Continue to Create Challenges for the Independent Contractor Business Model

Disruptors Continue to Create Challenges for the Independent Contractor Business Model - Our increasingly on-demand, technology-driven economy has been a petri dish for disruptive business models that are responsible...more

Defend Trade Secrets Act of 2016: What Does It Mean for Employers?

On May 11, 2016, President Obama signed the Defend Trade Secrets Act (DTSA) into law, creating a federal claim for misappropriation of trade secrets. Concerns with the difficulty of protecting trade secrets have grown as...more

Pension Fund Health-Check Required

The recent furore over the collapse of high street retailer BHS has caused fierce debate over whether companies, or their ultimate owners, are responsible for the upkeep of a pension plan. For private equity, the debate has...more

Life and Annuity Series: Class Certified in an ERISA “Unreasonable Compensation” Case

The Colorado federal court concluded last summer, in Teets v. Great-West Life & Ann. Ins. Co., that an insurer could be subject to ERISA liability for receiving unreasonable compensation in connection with a stable value...more

Update on Lawsuits Challenging the U.S. Department of Labor’s Fiduciary Rule

As we previously reported, there have been five lawsuits challenging the U.S. Department of Labor’s new fiduciary rule. On July 8, 2016, the U.S. Department of Labor (DOL) filed its first formal response to these...more

New York Appellate Division Strongly Supports In-House Law Firm Privilege Claim

In Stock v. Schnader Harrison Segal & Lewis, 2016 WL 3556655 (N.Y. App. Div. 2016), the First Judicial Department of the New York Appellate Division upheld, in a case involving a former law firm client seeking to sue the...more

Attack on waivers of class action claims

Some companies ask their employees to sign arbitration agreements requiring them to arbitrate any disputes about their employment, rather than filing a lawsuit against the employer in a state or federal court. A few years...more

Eighth Circuit Finds Non-Competition Agreements Assignable to Successor Employer in Asset Purchase Without Employees' Consent

The United States Court of Appeals for the Eighth Circuit recently held that a successor employer, who was assigned non-competition agreements as part of an asset purchase, could seek to enforce the non-competition agreements...more

Sale of a Business is Not Constructive Dismissal

In the decision 2108805 Ontario Inc. v. Boulad rendered on January 25, 2016, the Quebec Court of Appeal overruled the trial judge who had considered that the change of employer resulting from a change of ownership constituted...more

Fact That Small 401(k) Lawsuit Was Dropped Is Irrelevant

While many of us in the retirement plan world were publicizing a class action lawsuit against a $9 million, apparently the plaintiffs had a change of heart. The case was Damberg et al v. LaMettry’s Collision Inc. and the...more

June 2016 Independent Contractor Misclassification and Compliance News Update

The poster children of IC misclassification cases dominated the news in June: Uber, Lyft, GrubHub, FedEx, an exotic dance club, and a trucking transport company. It was not a good month for any of them, yet as we have...more

Workplace Policy Institute Insider Report — July 2016

Littler's Workplace Policy Institute Insider Report details key labor, employment, and benefits news and events at the federal, state, local, and global levels. The July edition of the Insider Report includes a discussion of...more

Can Employers Discipline Employees for “Self-Help Discovery”? Massachusetts Decision Raises More Questions Than Answers

Employers know all too well that employees sometimes help themselves to documents the employer would like to keep confidential. This is precisely why many employers require employees to sign confidentiality agreements and...more

Eighth Circuit Rules That NLRB Erred By Invalidating Employment Agreements Requiring Individual Arbitration

We previously reported on a federal circuit split that has developed over the enforceability of arbitration provisions waiving class actions in employment agreements. Compare December 19, 2013 (D. R. Horton) and November 9,...more

Highly Compensated Employee Cannot Claim FLSA Violation Based on Employer's Wage Withholding

In order to claim most exemptions from overtime and minimum wage requirements under the Fair Labor Standards Act, employers must pay a guaranteed salary. Employers can only deduct from such salaries in very limited...more

Cooperate or Terminate: Second Circuit Protects Companies that Terminate Employees for Failure to Cooperate with Investigations

On June 16, the U.S. Court of Appeals for the Second Circuit upheld the right of a company to terminate for cause executives who refuse to cooperate with an internal investigation and remain “silent” even with the specter of...more

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