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Under Delaware law, executives (and former executives) may be entitled to indemnification and advancement from their employer for claims arising in connection with their employment. These rights to indemnification/advancement...more
In California, although the prevailing rule is that each party in litigation must cover their own fees and costs, a litigant can be awarded reasonable attorney’s fees and costs if expressly permitted in a contract....more
Employers may be able to breathe a sigh of relief as a California Court of Appeal concluded that the Federal Arbitration Act (“FAA”) preempts state law that allowed employees to wriggle out of arbitration and win thousands of...more
In September, California created a cause of action whereby employees may challenge non-compete agreements and win damages and attorney’s fees (see our prior post on “New Golden State Law to Create Gold Rush Litigation Testing...more
A Florida Circuit Court judge sternly rebuked two former employees of a private South Florida provider of Autism treatment services who began competing illegally with a new employer – while still employed with their old...more
On June 7, 2023, the New York State Senate passed Bill No. S03100 (the “Bill”), which would impose a blanket ban on employee non-competition agreements in New York. The Bill defines a “non-compete agreement” as: any...more
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
Can an employee working for an Illinois company bust their non-compete by resigning after 1 year and 364 days of employment? The new year brought with it an attempt by the State of Illinois to resolve that question with a...more
An employer may request that an employee sign a non-solicitation agreement. When the employment ends, the trouble sometimes begins. If you are an Arizona employee and your former employer has sent a demand letter, threatened...more
Ninth Circuit Resurrects California’s Anti-Arbitration Statute - Chamber of Commerce of the U.S.A. v. Bonta, 13 F.4th 766 (9th Cir. 2021) - The Ninth Circuit Court of Appeals reversed in part a 2020 preliminary...more
Morals Clause Ruled Not Within Title VII Religious Exemptions Title VII of the Civil Rights Act of 1964 makes it unlawful "to fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any...more
On the heels of the bi-partisan introduction of the Workforce Mobility Act in Congress in February 2021, on May 31, 2021, the Illinois General Assembly passed amendments to the Illinois Freedom to Work Act (the “Amendments”)...more
As reported in prior blogs, the Illinois legislature for several months has been considering amendments to the Illinois Freedom to Work Act that apply to non-compete and non-solicitation restrictions. SmithAmundsen attorneys...more
As someone who represents employers, I’ve long been a proponent of arbitration as a way to limit exposure to employment claims. I have colleagues who disagree and I recognize that it’s a complicated issue. So starting about...more
Although popular with employers as a method to expedite the resolution of disputes and reduce costs, arbitration is unpopular with plaintiff’s lawyers and, apparently, the California Legislature. As we wrote about here,...more
On August 9, 2019, Illinois Governor Pritzker signed the Workplace Transparency Act (the “Act”) into law. The Act will apply to all contracts, agreements, clauses, or waivers entered into, modified, or extended on or after...more
Washington is the most recent state to adopt a law restricting the use of noncompetition agreements. The new law (HB 1450), which was signed by Governor Jay Inslee on May 8, 2019 and is scheduled to go into effect on January...more
New Jersey appears to be the next state to ban non-disclosure clauses in employment contracts or settlement agreements. On January 31, 2019, Senate Bill 121 passed the New Jersey Assembly by a 68-4-4 vote and the Senate in a...more
Challenges remain in enforcing covenants not to compete under Texas law, despite a trend since 2006 from Texas Supreme Court decisions that have approved covenants....more
This month’s key employment law cases address nonsolicitation provisions and arbitration agreements. AMN Healthcare, Inc. v. Aya Healthcare Servs., Inc., 28 Cal. App. 5th 923, 239 Cal. Rptr. 3d 577 (2018) Summary:...more
On November 1, 2018, the California Court of Appeal, Fourth Appellate District affirmed a trial court’s ruling in AMN Healthcare, Inc. v. Aya Healthcare Services, Inc. et al., Case No. D071924, Cal. App (2018) which (1)...more
Wrapping up a whirlwind weekend, California Governor Jerry Brown just signed several pieces of legislation that will create new employer obligations in the areas of sexual harassment and gender discrimination. Specifically,...more
In 2016 we wrote about a non-compete decision where special referee found that a seller of a business had breached a sales agreement by violating both a non-compete covenant and an exclusive sales provision contained in the...more
Sixth Circuit: Employer Violated ADA by Firing Diabetic Employee - Why it matters - An employer violated the Americans with Disabilities Act (ADA) for terminating a diabetic employee who drank orange juice at the cash...more
New Massachusetts laws govern the protection of trade secrets and the enforceability of noncompete agreements. Massachusetts Gov. Charlie Baker recently signed into law the state's version of the Uniform Trade Secrets Act...more