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New York Court of Appeals Advises Employers to Take Time to Present Restrictive Covenants to New Employees

It is not uncommon for employers to present restrictive covenants, such as non-competition, non-solicitation, or confidentiality agreements, to new employees in a stack of orientation paperwork. A recent case from New York’s...more

Corporate Communicator - Fall 2015: SEC Proposes Rules for the Clawback of Executive Compensation

In this issue of the Corporate Communicator, we bring you an article about the SEC’s recently released proposal to adopt rules for the clawback of executive compensation. The proposal is already controversial and it may prove...more

Court Of Chancery Confirms Limitations For Indemnification Claim

This decision confirms that the statute of limitations on a claim for indemnification does not begin to run until the underlying litigation is concluded. Indeed, equitable tolling may also extend the time when a suit may be...more

Effective Carve-Outs to Seek Injunctive Relief from the Court in Arbitration Provisions

Christopher Pike: “That’s a technicality.” Spock: “I am a [lawyer], sir. We embrace technicalities.” Star Trek Into Darkness - Arbitration is no longer the final frontier. Instead, arbitration is often the...more

Court Of Chancery Enforces Delaware Law On Restrictive Covenants

KAN-DI-KI, LLC v. Suer, C.A. No. 7937-VCP (July 22, 2015) - This is an interesting case just for the cast of characters involved. However, it also has 2 important legal points....more

Court Decries Ambiguity Of Terminology Used In Non-Compete Agreement And Injunction

A preliminary injunction was entered against a fired executive of a roofer who, immediately after he was discharged, went to work for an alleged competitor. The district court held, and the Seventh Circuit agreed, that his...more

Dual Ruling in FEHA Case Addresses Evidence Required to Establish Qualified Disability and Sets High Standard for Cost Recovery as...

Gabriel L. Roman, et al. v. BRE Properties, et al. - Court of Appeal, Second Appellate District (June 17, 2015) - The Fair Employment and Housing Act (“FEHA”) prohibits, as unlawful discrimination, a refusal to make...more

Collective Redundancy Consultation

In E Ivor Hughes Educational Foundation v Morris UKEAT/0023/15, the Employment Appeal Tribunal (EAT) considered the implications of an employer’s failure to consult with its employees in breach of U.K. collective redundancy...more

"Irreconcilable Clash" of Jurisdictions

James Petter was a U.K.-based senior employee of the U.K. subsidiary of a U.S. company. As part of his compensation package, he was awarded restricted stock units (RSU) under the U.S. parent’s plan. The plan contained an...more

LLP Agreements and Repudiatory Breach

This OnPoint reports on a recent important High Court decision ?limiting the remedies available for breach of a UK LLP agreement. Generally, in contract law, if a party to a contract commits a breach which is...more

Ten Questions To Ask Your Client When Defending Against Efforts To Enforce A Restrictive Covenant Or Confidentiality Agreement

There are few circumstances in the practice of law that require more quick thinking and improvisation than defending a client at a temporary restraining order (“TRO”) hearing mere hours after meeting them for the first time....more

Ten Questions To Ask Your Client Before Seeking To Enforce A Restrictive Covenant Or Confidentiality Agreement

The phone rings on a Wednesday afternoon. In a panic, your longtime client explains that a hotshot employee has unexpectedly fled to a competitor a few months before the launch of a top secret new product. The client is...more

Sales Of $8,000 Stemming From Trade Secret Misappropriation Results In Liability For $1.3 Million

At a time when an ex-employee’s newly created company was subject to an injunction prohibiting misappropriation of his former employer’s supposed trade secret, the new company allegedly used that confidential information on a...more

Tenth Circuit Addresses ERISA Limitations Provision in Class Action Decision

In Fulghum v. Embarq. Corp., 785 F.3d 395 (10th Cir. 2015), the Tenth Circuit Court of Appeals considered the claims of a class of telephone company retirees whose life and health insurance benefits were reduced or eliminated...more

Alabama Revises Non-Compete Statute In Effort to Provide Additional Clarity

On June 11, 2015, Alabama’s Governor signed into law legislation that revises the state’s non-compete statute, which is found in Section 8-1-1 of the Code of Alabama. The effective date for these changes is January 1, 2016. ...more

Non-Compete Injunction Denied, Ninth Circuit Remands For Reconsideration, But District Court Denies It Again, Declines Equitable...

As directed by the court of appeals, a district court judge reconsidered his denial of a non-compete covenant case injunction but reached the same result on reconsideration. He also stated why he would not have extended the...more

Issuers Apprehensive of OSC’s Proposed Whistleblower Program

The public comments on the Ontario Securities Commission (OSC)’s proposed whistleblower program (Program) evidence considerable concern that the Program could undermine issuers’ internal reporting and compliance programs,...more

Is An Offer Of At-Will Employment Adequate Consideration For A Non-Compete? Recent Court Rulings Split Three Ways

Three very recent decisions reflect the irreconcilable division of judicial authority regarding the adequacy of at-will employment as the sole consideration for an otherwise valid non-compete. Compare (a) Standard Register...more

Alabama Rewrites Its Noncompete Statute

The Alabama legislature recently passed a comprehensive revision of the state’s noncompete statute, and Governor Bentley has signed the act into law. The new statute will become effective January 1, 2016. The new statute does...more

So You Have a 10-Page Single-Spaced Alabama Noncompete Agreement, Now What?

Employees in Alabama, like in many other places, often are required to sign employment agreements, most of which contain future restrictions on certain activities. The menu items for these agreements usually include covenants...more

Employment Law - June 2015 #2

Joint Employers Can Be Liable for Employee Misclassification in California: Why it matters - Liability under the California Labor Code extends to joint employers that are aware of a willful misclassification of an...more

French Employment Law Reforms: Good and Bad News for Employers | Le droit du travail français à la une – bilan mitigé pour les...

Employment law has been in the news headlines for several months as various reforms on working time, employee representation and fixed-term contracts will soon have a significant impact on employers. In a nutshell, two...more

Enforcing Arbitration Agreements: The Choice of Procedural Law

The Federal Arbitration Act (FAA) applies generally to most arbitration agreements, but parties can choose to have the procedural law of the place of arbitration apply instead. On many issues, there is no material difference...more

Ninth Circuit Overturns Injunction Against Air Carrier’s Unilateral Work Rule Changes During Bargaining for First Contract

The Railway Labor Act (RLA) did not require Allegiant Air to maintain the status quo with respect to work rules negotiated with an uncertified employee advocacy group during bargaining for a first contract with the Teamsters,...more

Non-Compete That Grants An Employer The Right To Seek Injunctive Relief No Guarantee That Injunction Will Issue

A trial court declined to enter a preliminary injunction in a non-compete covenant case despite a provision in the covenant giving the employer the “right to seek injunctive relief in addition to any other remedy available to...more

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