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Employment Contracts

Ensure each worker receives your arbitration agreement

To bind workers to the terms of an arbitration agreement, employers must prove those workers actually received a copy.

Have attorney draft arbitration agreement

If you’re interested in using arbitration as an alternative to costly and drawn-out litigation, you may be tempted to use a general, restrictive arbitration agreement for all states in which you have operations. That can be a big mistake if you also have employees in California.

Make returning worker sign arbitration agreement again

If you use an arbitration agreement, and a worker quits only to be rehired later, make sure she signs and dates a fresh copy of the agreement. Otherwise, the earlier resignation will have ended the agreement.

Court: Unsigned arbitration agreement enforceable

A California appeals court has upheld an arbitration agreement presented to employees as a take-it-or-leave-it proposition that implied their acceptance even if they didn’t sign it.

Take proactive steps to assert at-will status

A former employee who contests a termination in court may overcome the at-will presumption by presenting some evidence that there was either a specific written agreement spelling out employment terms or an implied agreement that employment would continue for an indefinite period of time unless there was some good cause for termination.

Beware ‘back-door’ bias claims under Section 1981

A growing number of employees are taking a back-door approach to filing racial bias suits, one with the potential for a bigger windfall.

Court ruling places new restrictions on noncompete agreements

Texas courts frequently enforce geographic and other restrictions on a former employee’s ability to compete with his or her prior employer. A recent decision highlights the requirement that any such restrictions, including geographic restrictions, must be reasonable to be enforceable.

Arbitration agreements may not cover delivery drivers

A California court has concluded that the Federal Arbitration Act, which makes the agreements enforceable, may not apply to delivery drivers engaged in interstate commerce.

Ensure arbitration agreements apply equally to both employees and employer

Arbitration can provide an easier, quicker and less expensive avenue than litigation for handling employment-related claims. But unless your arbitration agreement has been carefully reviewed for adherence to California contract law, the agreement may be struck down.

Supreme Court throws cold water on group arbitration

The U.S. Supreme Court delivered good news to employers on April 24 with a 5-4 decision that said employees cannot demand class-wide arbitration unless the arbitration agreement they signed explicitly allows it.