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Contract Requiring Ex-Employee To Compensate Former Employer For Competing Ruled Enforceable In British Columbia

A recent decision of the B.C. Court of Appeal has endorsed a novel approach to post-employment competition by upholding an employment contract whereby the employee was required to compensate the employer if she competed soon...more

What to Do When Your Client’s COO Becomes Your Competitor’s BFF

One of your most important clients just called. She reports that one of her senior sales people quit a few months ago, and she just learned that the sales person has joined a large competitor. Panicking, your client wants to...more

Fairfax Circuit Court Strikes Down Noncompete as Overbroad, Offering Yet Another Lesson for Employers

On March 6, 2014, a Fairfax Circuit judge denied a preliminary injunction in a suit brought by Wings LLC to enforce a noncompete against two defector employees. In a letter opinion, Judge Bruce D. White said the noncompete...more

California Court of Appeal Holds Employer Cannot Shorten Statute of Limitation on California Discrimination and Retaliation Claims

Can employers enter into binding agreements with employees to shorten the statute of limitations on discrimination and other employment claims? A California Court of Appeal decision answered that question with a resounding...more

Would Texas Law Support Disgorgement of Payments When Plaintiff’s Daughter Makes Comments On Facebook?

In a case that received national attention, on February 26, 2014, a Florida District Court of Appeal held that a plaintiff’s comments to his daughter regarding a settlement with his former employer and his daughter’s...more

Proxy Season Litigation Primer: Defending Shareholder Suits to Enjoin Annual Meetings for Allegedly Inadequate Disclosures...

Over the past few years, as plaintiffs have found it increasingly harder to succeed in “say-on-pay” litigation, another type of litigation over proxy disclosures has been on the rise. These cases are generally brought as...more

Can You Keep a Secret? Confidentiality Clauses in Settlement Agreements Are For Real

If a party to a confidential settlement agreement blabs about the settlement, could the party lose some of the benefits of the settlement? A recent Florida appellate decision is a good reminder to think carefully about the...more

Did You Know...An $80,000 Facebook Post Costs $80,000

When does a confidentiality provision in a settlement agreement mean what it says? What if you tell your children about your confidential settlement and they post about it on Facebook? Well, here is what just might happen...more

“Entirely Comfortable” With a “Monster”: A Striking Decision From an Unlikely Source About Excessive Fines Under the FCA

As we have discussed before, whistleblower and retaliation decisions—including from the Supreme Court of the United States—have created an increasingly whistleblower-friendly body of law that unifies courts across the...more

Announcing a Job Move on LinkedIn or Facebook - Breach of Contract or Fair Game?

It is always worthwhile to talk about current developments in the area of social media and employment law, and to look back at their contextual import. Much of the fun, however, lies in playing the forecasting game, and...more

Not Settling for Less: The EEOC’s Latest Challenge to Employee Releases

The Equal Employment Opportunity Commission (“EEOC”) recently filed a “pattern or practice” lawsuit against CVS Pharmacy, Inc., alleging that CVS uses an “overbroad, misleading and unenforceable Separation Agreement” that...more

With Tax Season Looming, Appellate Division Refuses to Find Duty to Defend Against IRS Action

In William B. Kessler Memorial Hosp., Inc. v. North River Ins. Co., 2013 WL 6036678 (N.J. Super. Nov. 15, 2013), the Superior Court of New Jersey, Appellate Division, rejected the notion that an insurer’s promise to “defend...more

The Devil Is In Those Details: Supreme Court Holds That the Clock for the Appeal of an ERISA Decision Began Running Sooner Than...

The U.S. Supreme Court has ruled that the plaintiffs, a group of union-affiliated employee benefit funds (the Funds), waited too late to give notice of their appeal from the trial court’s judgment on the merits of their case...more

Validity And Enforceability Of Seaman’s Release

The recent ruling in Double J. Marine, LLC v. Matthew Nuber, No. 13-5825 (E.D. La. Dec. 11, 2013) serves as a key reminder that employers need to be mindful that courts scrutinize release agreements as seamen are the wards of...more

Send a non-compete demand letter – buy yourself a lawsuit?

When employers seek injunctive relief to enforce a restrictive covenant, nearly every judge begins the injunctive hearing with the same question: What efforts did you make to resolve this matter? Judges encourage settlement;...more

New Mass Termination Claim Certified in Ontario

On January 2, 2014, Justice Perell certified a class action alleging that, among other things, a group of over 500 putative class members had been wrongfully dismissed by their former (now insolvent ) employer. Justice...more

The GPMemorandum, Issue 176

In This Issue: - Missouri District Court Upholds Termination Of Franchise Based On Fraud: The United States District Court for the Eastern District of Missouri recently upheld a franchisor’s decision to...more

Are Pension Benefits Deductible From Severance Pay?

The Supreme Court recently decided this issue in Waterman v. IBM, 2013 SCC 70, finding that pension benefits received during the notice period (notice of termination in civil law) were not deductible from damages paid to an...more

Thinking of Imposing a Nationwide Non-Compete on Individuals Who Never Had Any Personal Contact With Your Clients? One Indiana...

In today’s increasingly competitive world, employers understandably have a need to protect their business interests by requiring employees to enter into non-competition agreements that restrict their employees’ ability to...more

"Solicitation" In the Era of Social Media Remains Unsettled

Last month, in KNF&T v. Muller (October 2013), the Massachusetts Superior Court found that a LinkedIn update regarding an employee's new job was not a solicitation of business in violation of her non-competition agreement,...more

Declaratory Judgments In Non-Compete Cases – Electing Offense Over Defense

After a weekend of gorging on football as well as turkey, I’ve got offense and defense on my mind, and a recent Georgia appellate decision got me to thinking about how those basic gridiron principles apply to non-compete...more

Issues of Agency in Garnishment Procedures

It is well established that after a judgment of default, a creditor may serve a writ of garnishment upon the debtor’s employer to collect the unpaid principal and interest of the underlying loan from the employee’s monthly...more

In Harnett, First Circuit Rejects Bright Line "First Contact" Rule for Non-Solicitation Agreement

In a decision involving the “first contact” rule with respect to non-solicitation agreements, the First Circuit, in Corporate Technologies v. Harnett, rejected a bright line application and upheld a ruling of tortious...more

How the New California Laws Will Impact Your Business in 2014 and Beyond, Part 1: Wage and Hour Legislation

In 2013, Governor Jerry Brown signed into law approximately 9 out of 10 bills presented to him. This three-part blog series summarizes the new legislation and captures the key employment law related bills that are likely to...more

Illinois Appellate Court Won’t Enforce Noncompetes Against At-Will Employees Unless the Employee Stays At Least Two Years:...

You’re a Connecticut employer with a restrictive covenant program to protect your customer relationships and confidential business information. You require anyone you hire who to develop customer relationships or use your...more

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