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Employment Contracts

Supreme Court tackles arbitration agreements

10/09/2015
One of the first cases the U.S. Supreme Court heard in its 2015-2016 term could have important implications for employers that require arbitration to settle workplace disputes.

Confidential customer lists may be trade secrets even if the names are available elsewhere

10/05/2015
Good news if you need to protect your customer lists from competitors: You can require employees to sign confidentiality agreements to block taking customer lists to the next job even if it’s theoretically possible for the competitor or someone else to put together the same information from other, publicly available sources.

Craft noncompete agreements to protect your business interests

09/11/2015

Employers often require key employees to sign noncompete agreements ensuring that the employee will not use information or customer contacts gained during the course of employment to benefit a competitor. In return, the employer offers the employee “consideration”—maybe extra pay or, more commonly, access to the protected information, which enables the employee to succeed on the job. Each state has a unique set of laws governing noncompete agreements.

Texas court issues injunction preventing customer poaching

09/09/2015
A federal court in Texas has issued an injunction preventing a former salesperson for a plastics company from soliciting customers on behalf of his new employer. The competitor had hired the employee despite a nondisclosure and nonsolicitation agreement he had signed.

Federal court edits noncompete pact

08/19/2015
A federal court in Minnesota has invoked Texas law to rewrite a noncompete agreement that it decided was too broad.

Failure to renew contract can be basis for lawsuit

08/13/2015
Some employers mistakenly believe that if they offer annual contracts, they can’t be sued for not renewing a contract. That’s just not true if the former employee can prove she wasn’t rehired for a discriminatory reason.

Unspecified commission? Jury decides who to believe

07/29/2015
For jobs based on written employment contracts, what the agreement says typically governs all the terms and conditions of employment. If something is unclear or unstated, what the parties do later likely will influence eventual judicial interpretation.

Court: Employee who agrees to arbitration must stick to it

07/17/2015
The Court of Appeal of California has reversed a lower court order denying arbitration and ordered the case into arbitration instead.

Broad arb clause can cover bias, retaliation, too

07/17/2015
A federal court considering whether a broad arbitration clause included in an employment contract bars discrimination and retaliation claims has concluded it does. That’s good news if you use employment contracts and want to push any subsequent employment-related claims into arbitration.

How should we handle news that employee previously signed a noncompete agreement?

07/09/2015
Q. We received a letter from a competitor informing us that our new employee used to work for them and is now in violation of noncompetition agreement with the competitor. What should we do?