News & Analysis as of

Former Employee Employment Litigation Employer Liability Issues

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

Connecticut Appellate Court Finds No Associational Claims Under State’s Discrimination Law

A Connecticut appellate court recently held that the Connecticut Fair Employment Practices Act (CFEPA) does not recognize a cause of action for associational disability discrimination....more

Proskauer - Trade Secrets

More Information Needed: Former Employee Dodges Trade Secrets Suit Brought by Interior Design Company

On May 1, 2024, in Design Gaps, Inc. v. Hall, 23CV040664-590, North Carolina’s business court dismissed an interior design company’s trade secret claim for failure to sufficiently plead the existence of trade secrets. The...more

DRI

Non-Compete Clauses and Professional Liability

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Non-compete provisions have long been viewed by employers as reasonable and appropriate velvet handcuffs on departing employees and as an unfair burden on competition by the departing employees. The purpose of non-compete...more

Foley & Lardner LLP

Utah Enacts H.B. 55, Impacting the Use of Confidentiality Clauses in Employment Settlement Agreements

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On March 13, 2024, Governor Spencer Cox signed House Bill (H.B.) 55 into law, making Utah the latest state to restrict the use of certain nondisclosure and non-disparagement agreements relating to sexual assault or sexual...more

Wiley Rein LLP

Breach of Contract Exclusion Bars Coverage for Judgment Rendered in Employment Dispute

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The United States District Court for the Eastern District of Louisiana, applying Louisiana law, has held that an insurer does not need to cover a monetary judgment rendered in favor of two former employees of the insured...more

Kilpatrick

California High Court Rejects Manageability as a PAGA Consideration

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On January 18, 2024, the California Supreme Court issued a long-awaited decision looking to resolve a conflict between California’s Private Attorneys General Act (PAGA) and a concept called “manageability” which refers to the...more

Littler

Dutch Employer Paid Dearly for an Offer to Buy Out a Non-Compete Clause

Littler on

In a recent matter before the Arnhem-Leeuwarden Appellate Court, an employer in the Netherlands attempted to hold a former employee to his non-compete clause. After the employee had terminated his employment contract, the...more

Ius Laboris

Hong Kong employer required to reimburse expenses that benefit the business

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A Hong Kong court decision holding an employer liable for various payments and benefits owed to a former employee highlights the importance of making prompt payment of all amounts due upon termination of employment....more

Seward & Kissel LLP

Employment Litigation Roundup: December 2023

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Delaware court declines to enforce restrictive covenants in LLC agreement but grants interlocutory appeal. In Sunder Energy v. Jackson, et al., a company, Sunder, sued a former employee, Jackson, for breaching a...more

Perkins Coie

Arizona Court of Appeals Reinstates Retaliatory Discharge Claim Under Fair Wages and Healthy Family Act

Perkins Coie on

The Arizona Court of Appeals recently held in Papias v. Parker Fasteners LLC, No. 1 CA-CV 22-0775 (Ariz. Ct. App. Oct. 17, 2023), that a discharged employee could proceed with his retaliation claim against his former...more

Troutman Pepper

Seventh Circuit Revives McDonald's Employee No-Poach Litigation

Troutman Pepper on

In June of 2022, McDonald’s obtained a judgment on the pleadings, ending antitrust litigation challenging the legality of the no-hire restraints it previously included in its franchise agreements. More than a year later, the...more

Sands Anderson PC

NLRB’s McLaren Macomb Decision and the Future of Employee Severance Agreements

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Severance agreements have long been utilized as a valuable tool for providing employers with protections from the post-employment conduct or claims of former employees. Severance agreements often include a wide range of...more

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

Claim Employer Exaggerated Scope of Noncompete Survives Motion to Dismiss in Illinois Federal Court

In a recent decision, a federal trial court in Illinois allowed an employee’s tortious interference claim to continue against his former employer alleging it had exaggerated the reach of a noncompete agreement that he had...more

Poyner Spruill LLP

Another Reason to Revisit Non-Competes: New Risk of NLRA Charges

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Following the recent declaration that certain confidentiality and non-disparagement clauses in severance agreements are unlawful, the National Labor Relations Board (NLRB) General Counsel released a memo on May 30, 2023 (GC...more

Stoel Rives - World of Employment

NLRB Returns to Longstanding Position Limiting Use of Confidentiality, Non-Disclosure, and Non-Disparagement Clauses in Employee...

The General Counsel of the National Labor Relations Board (NLRB), Jennifer A. Abruzzo, issued guidance on March 22, 2023, about the NLRB’s McLaren Macomb, 372 NLRB No. 58, decision from February 21, 2023, which reinstated a...more

Bradley Arant Boult Cummings LLP

Collision at the Intersection of Construction and Intellectual Property Law: Are You Protecting Your Firm's Trade Secrets?

The construction industry is full of valuable business information including customer lists, pricing information, project budgets, and more. The value of such information may be lost if it becomes known to a competitor or the...more

Bradley Arant Boult Cummings LLP

Are You Protecting Your Construction Firm’s Trade Secrets?

The construction industry is full of valuable business information including customer lists, pricing information, project budgets, and more. The value of such information may be lost if it becomes known to a competitor or the...more

Spilman Thomas & Battle, PLLC

Severance: Labor Board Prohibits Employers from Restricting Employee Speech in Severance Agreements

In the Apple TV+ show Severance, employees of Lumon Industries may agree to a "severance" program in which non-work memories are separated from work memories. Outside of work, these Lumon Industries employees cannot discuss...more

Spilman Thomas & Battle, PLLC

SuperVision - Labor and Employment Law Insights, Issue 1, April 2023

Severance: Labor Board Prohibits Employers from Restricting Employee Speech in Severance Agreements - In the Apple TV+ show Severance, employees of Lumon Industries may agree to a "severance" program in which non-work...more

Parker Poe Adams & Bernstein LLP

North Carolina Business Court Dismisses Overbroad Non-Compete

When we are asked by a client to review their form employee non-competition agreement, we often see companies using documents found on the internet that were clearly written for use in states other than North Carolina. Last...more

Adler Pollock & Sheehan P.C.

The End Of An Era, Separation Agreements In The Wake Of Mclaren Macomb: What Employers Need To Know

The National Labor Relations Board’s (the “Board”) decision in McLaren Macomb, significantly changes what employers are allowed to include in a departing employees’ severance/separation agreements or packages.  The Board’s...more

Burns & Levinson LLP

The Impact of McLaren Macomb Continues to Grow—Next Steps for In-House Counsel.

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As a follow up to my post a few weeks ago on McLaren Macomb, the NLRB has issued new Guidance of which in-house counsel should take note....more

Brooks Pierce

NLRB Releases Guidance Restricting Confidentiality and Non-Disparagement Provisions in Severance Agreements

Brooks Pierce on

On March 22, 2023, the General Counsel for the National Labor Relations Board (NLRB) issued a memorandum attempting to clarify the NLRB’s recent decision in McLaren Macomb that employers violate the National Labor Relations...more

Dentons

Severance Agreements – Federal Implications

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In the last article, we covered an Iowa Court of Appeals case relating to severance/separation agreements and whistleblower claims. Other issues have cropped up regarding severance agreements and their enforceability but on...more

Katten Muchin Rosenman LLP

Recent NLRB Decision Impacts Employer Use of Non-Disparagement and Confidentiality Clauses

The National Labor Relations Board (NLRB) issued a recent decision that impacts the use of non-disparagement and confidentiality clauses in employee agreements. In the McLaren Macomb decision, the NLRB concluded that...more

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