In three separate actions and with a recent proposed rulemaking, the Federal Trade Commission (FTC) challenged the use and enforceability of non-compete agreements (NCAs). First, the FTC took action against three separate companies with regard to their use of NCAs. Generally, the FTC complained that the NCAs used were overly broad, applied to lower wage and unskilled workers, and were used in concentrated markets.
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Federal Trade Commission Cracks Down on Non-Compete Agreements Posted on: January 06, 2023 In: Labor & Employment
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California Employers: Four Things to Consider When Providing an Employee with an Arbitration Agreement for Review and Signature Posted on: September 13, 2022 In: Labor & Employment
Despite a California employer having an arbitration agreement that satisfies all the requisite factors set forth by the state’s Supreme Court in Armendariz v. Foundation Health Psychcare Services, Inc., often times an employee will attempt to challenge the method in which the arbitration agreement was presented to them in order to invalidate the agreement and ensure the case remains in court. Here are some tips for California employers to consider when presenting an employee with an arbitration agreement.
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Three Tips for Updating, Enforcing Arbitration Agreements to Minimize PAGA Exposure in California Following Supreme Court’s Viking River Decision Posted on: July 01, 2022 In: Labor & Employment
For almost two decades, the California Private Attorneys General Act of 2004 (PAGA) has vexed employers and resulted in significant increased exposure to wage and hour claims. To limit exposure, many employers have implemented arbitration agreements that include class and PAGA representative action waivers, which appeared unenforceable. However, in Viking River Cruises, Inc. v. Moriana, the U.S. Supreme Court recently breathed new life into this strategy.
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Effective Non-Competition Agreements for Expanding Businesses Posted on: April 20, 2022 In: Labor & Employment
Expansions in your workforce and market territory can increase the likelihood that your business will encounter jurisdictional issues that can affect your non-competition agreements. A growing business should carefully scrutinize overly broad non-competition provisions in order to draft an agreement that is durable enough to survive such changes. This article will discuss some issues that can affect your non-competition agreements plus suggestions to consider in navigating the growth of your company.
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Federal Law Ends Mandatory Arbitration of Sexual Harassment and Sexual Assault Claims Posted on: April 15, 2022 In: Labor & Employment
On March 3, 2022, President Biden signed into law the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021, which took effect immediately. The Act effectively bans employers from requiring mandatory arbitration of sexual harassment and sexual assault claims, whether arising under federal, state, or tribunal law. Consequently, employees across the U.S. now have the right to choose between pursuing such claims in court or through private arbitration.
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Top 6 Legal Issues for Influencer Agreements Posted on: July 09, 2021 In: Labor & Employment
In a world where content is king, the year of COVID-19, which began with massive layoffs and unemployment, spawned a new wave of influencers and brand ambassadors in a generation already filled with these intrepid entrepreneurs. But companies engaging these micro-marketers are learning that projects for influencers are hugely varied depending on the details of the project. In this post, we discuss the top six legal issues to be concerned with in an influencer agreement.
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Non-Compete Enforcement and “Hot Job Markets”: A Tale of Ten Cities Posted on: February 27, 2020 In: Labor & Employment
The Wall Street Journal recently published a list of the top ten “Hottest U.S. Job Markets” in 2019. Regions were evaluated based on unemployment, labor force, jobs and wages. What is compelling about this list (at least for your average trade secrets and non-compete attorney) is that it throws into doubt the popular argument that non-competes suppress wages and deter employee mobility.
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Non-Competition Agreements – Bracing Yourself Against the Winds of Change Posted on: May 23, 2019 In: Labor & Employment
As noted in our May 10 client alert, Washington has now joined several other states (Idaho, Utah, Massachusetts, Nevada, Oregon, New Mexico, and Illinois) that have recently amended their non-compete statutes to provide more protections for employees. The Washington statute is instructive for employers because, in addition to a new wage threshold, it contains several of the restrictions or limitations that are trending in proposed legislation across the country.
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Non-Competition Agreements, Part 2: Making It Hard to Say Goodbye Posted on: May 14, 2019 In: Labor & Employment
Like any relationship, a separation between an employer and employee can be difficult. It can be even worse if one party is surprised by the separation. Non-competition agreements are an important tool for employers to help mitigate the difficulties of employment separation, especially when it is the employee doing the leaving. Here are three tips for employers using or thinking about using non-competition agreements/
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