News & Analysis as of

Employer Liability Issues Unenforceable Contract Terms

Mandelbaum Barrett PC

New Jersey Supreme Court Invalidates Non-Disparagement Provision Against Alleged Victim of Discrimination and Harassment

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In Savage v. Township of Neptune, et al., (A-2-23, decided May 7, 2024), the New Jersey Supreme Court analyzed and invalidated a non-disparagement provision included in a settlement agreement against a plaintiff alleging...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

New Louisiana Laws on Tort Actions, Meal Breaks, Arbitration Agreements, and Nondisclosure Agreements Take Effect in July and...

Four new and notable laws affecting Louisiana employers are taking effect in summer 2024, including an expanded statute of limitations for employment torts, meal breaks for minors, a ban on predispute arbitration agreements...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

California Appellate Decision Raises New Considerations for Arbitration Agreements

A California appellate court recently denied a motion to compel arbitration, finding the agreement unconscionable in part because it (1) applied to all claims rather than just those arising from employment, (2) was unlimited...more

Littler

Louisiana Becomes Latest State to Prohibit Nondisclosure Clauses Related to #MeToo Claims

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Under a new Louisiana law enacted on June 25, 2024, nondisclosure clauses required by an employer and agreed to prior to a hostile work environment dispute or sexual harassment dispute will be unenforceable. Louisiana joins...more

Saiber LLC

New Jersey Supreme Court Holds That Non-Disparagement Provisions Seeking to Preclude Discussion About Claims of Discrimination,...

Saiber LLC on

In a recent unanimous decision, the New Jersey Supreme Court held that non-disparagement provisions in settlement agreements or employment agreements are against public policy and unenforceable if they seek to bar speech...more

Epstein Becker & Green

Red Pencil, Blue Pencil, or Something In Between? Ohio Court of Appeals Declines to Modify Overbroad Non-Competition Agreement

Epstein Becker & Green on

Ohio has long recognized the enforceability of non-compete agreements. Broadly speaking, a court can do one of three things with an unenforceable non-compete agreement: (1) the court can apply the “red pencil” doctrine and...more

Littler

Ontario, Canada Court Finds Termination Clauses in Fixed-Term Employment Agreement Unenforceable

Littler on

In Dufault v. The Corporation of the Township of Ignace, 2024 ONSC 1029, the Ontario Superior Court of Justice held that the termination provisions of a fixed-term employment contract were illegal and unenforceable because...more

Parker Poe Adams & Bernstein LLP

New California Law Requires Notice to Employees About Void Noncompetes

Most employers know that California has for decades prevented enforcement of employee non-competition and customer non-solicitation agreements. Some companies with California operations modify their agreements with employees...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

California Court of Appeal Rules Arbitration Agreement Is Unenforceable

A California appellate court recently denied enforcement of an arbitration agreement because (1) it contained provisions the court found problematic, and (2) the employer presented the agreement to the employee for electronic...more

Paul Hastings LLP

Developments in Employee Mobility: California’s SB 699, New York’s 203-f and FTC/DOL Collaboration

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Employers take note: a series of recent developments could impact employment agreements across the country. SB 699: A New Addition to California Non-Compete Law- Under California Business and Professions Code Section...more

Lathrop GPM

California Federal Court Declares Arbitration Clause Unenforceable

Lathrop GPM on

In Munoz, v. Earthgrains Distribution, LLC, 2023 WL 5986129 (S.D. Cal. Sept. 13, 2023), the plaintiffs, members of a class of independent distributors of baked goods for Earthgrains and other bakeries, alleged that they were...more

Holland & Knight LLP

California's New Nationwide Focus on Noncompetition Agreements

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For decades, California has taken arguably the most pro-employee-mobility position on noncompetition and non-solicitation agreements in the country – generally, post-employment noncompetition and non-solicitation agreements...more

Stikeman Elliott LLP

Fixed in Stone - Fixed Term Remains Secure Despite Invalid Termination Clause

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The Ontario Superior Court of Justice recently released its decision in Kopyl v Losani Homes (not yet cited) (the “Decision”), providing insight into the enforceability of fixed terms in employment agreements in circumstances...more

Stikeman Elliott LLP

“Fixing” the Term of Employment: Fixed-Term Agreement defends against Wrongful Dismissal Claim

Stikeman Elliott LLP on

In the recent Steele v. The Corporation of the City of Barrie, 2022 ONSC 7245 decision (“Steele”), the Ontario Superior Court of Justice provided some insight into when longer term fixed-term contracts can be enforceable....more

Lathrop GPM

New #MeToo Law Targets NDAs

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Employers should be aware of recent updates regarding two #MeToo-related federal laws: the Speak Out Act and the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act....more

Holland & Knight LLP

FTC Moves to Ban Non-Competes: What Employers Need to Know Now

Holland & Knight LLP on

The Federal Trade Commission (FTC) proposed a rule on Jan. 5, 2023, prohibiting non-competition clauses ("non-competes") in employment agreements. For purposes of the rule, non-compete provisions include explicit and de facto...more

Morgan, Brown & Joy, LLP

President Biden Signs the “Speak Out Act” – Prohibiting Employers from Enforcing Pre-dispute Nondisclosure and Nondisparagement...

Morgan, Brown & Joy, LLP on

On December 7, 2022, just nine months after signing the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, President Biden signed the Speak Out Act (the “Act”). President Biden’s signature on the Speak Out...more

Akerman LLP - HR Defense

Silenced No More: The Speak Out Act Set To Curb Nondisclosure Agreements For Victims Of Sexual Misconduct

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Employers who have made use of pre-dispute nondisclosure and nondisparagement agreements will now have to change those practices and reevaluate their existing agreements thanks to the “Speak Out Act” (the “Act”) – a...more

Littler

President Biden Enacts Speak Out Act Curtailing the Use of Pre-Dispute Non-Disclosure and Non-Disparagement Clauses Involving...

Littler on

Amidst the flurry of activity taking place before the end of the 117th U.S. Congress, the House of Representatives quietly passed the Speak Out Act on November 16, 2022, by an overwhelming majority.  The bill previously...more

Littler

Ontario, Canada Court Decides Employment Contract’s Unenforceable Confidentiality and Conflict-of-Interest Clauses Invalidated All...

Littler on

Two years ago in Waksdale v. Swegon North America Inc., 2020 ONCA 391,  the Ontario Court of Appeal established the proper method for determining whether a termination clause in an employment agreement is enforceable. ...more

FordHarrison

Non-Compete News: Georgia Court Holds Non-compete and Non-solicit of Employee Provisions With Missing Territory Unenforceable and...

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Earlier this year, in Steuer v. Tomaras, et al., Georgia’s Statewide Business Court again refused to modify certain restrictive covenants that were missing a territory. Dr. Steuer, a former partner of the defendant doctors,...more

Burr & Forman

More Than Meets the Eye: TN Court Finds Arbitration Agreement in Employee Handbook Non-Binding

Burr & Forman on

In Mankin Media Systems, Inv. v. Timothy Crowder, No. 19CV-48300W (Jun. 30, 2022), the Court of Appeals of Tennessee reversed the confirmation of an arbitration award because the so-called arbitration clause appeared in the...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

A Lesson from the Fifth Circuit About Louisiana Noncompete Agreements: Establish the Employment Relationship First

A recent opinion from the United States Court of Appeals for the Fifth Circuit applying Louisiana’s restrictive law governing noncompetition agreements, reminds employers of the importance of establishing an employee-employer...more

Littler

Ontario, Canada Appeal Court Decides Non-competition Clause in Employment Agreement Governed by Common Law is Unenforceable

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In M & P Drug Mart Inc. v. Norton, 2022 ONCA 398, the Court of Appeal for Ontario (OCA) dismissed an employer’s appeal of an application judge’s decision that a non-competition clause in an employment agreement governed by...more

Kohrman Jackson & Krantz LLP

Suing A Former Employee Under An NDA Has Substantial Risks… Even If You’re Donald Trump

In what appears to be the largest attorney fee award against a political campaign or president, an arbitrator ordered Donald J. Trump for President, Inc. to pay $1.3 million in legal fees and $17,300 in costs to former White...more

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