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Employment Contracts

Arbitration agreement silent on class actions? Then, court says, they’re not allowed

05/18/2012
A California appeals court has ruled that if an arbitration agreement doesn’t say whether class-action arbitration is allowed, then it isn’t.

Cover USERRA, New York law by drafting unequivocal severance releases

04/03/2012
Don’t worry that releases you ask employees to sign in exchange for severance pay aren’t broad enough to cover claims under USERRA or the New York Military Law. As long as the release is clear and unequivocal about what’s being waived, it doesn’t have to specifically reference the laws.

When employee is at-will, you’re free to change compensation going forward

04/03/2012
Here’s an important note in this rocky economy: Employers are free to change many of the terms and conditions of employment for at-will employees, including changing their compensation.

Beware offer letters that seem to imply that they are employment contracts

03/30/2012
If you want to retain the ability to fire at will, make sure any memos, letters or emails detailing a job offer don’t create an employment contract. That means never promising that termination will be for cause or for any list of reasons.

Is it risky to indemnify a candidate against violating a noncompete agreement?

03/29/2012
Q. We want to hire someone who signed a noncompete agreement with his current employer. He asked us to indemnify him in the event his employer sues him. What are the legal risks associated with agreeing to indemnify him?

NLRB limits arbitration agreement class-action waivers

03/29/2012
Recently, the National Labor Relations Board held that class-action waivers violate em­­ployees’ rights to engage in concerted activity. In D.R. Horton, the NLRB said that employers may not compel employees to waive their NLRA rights to collectively pursue litigation of employment claims in all forums, arbitral and judicial. What does that mean for employers?

NLRB adds another wrinkle to arbitration agreement law

03/14/2012

In January, the National Labor Relations Board held that employers may not require employees to sign arbitration agreements that waive their rights to bring class or collective actions. The D.R. Horton decision will probably be appealed. In the meantime, however, the ruling holds important implications for employers.

One-sided arbitration agreement won’t fly in Texas

03/08/2012
Arbitration agreements have to meet basic contract rules, including one that says both parties must be bound by its terms. Otherwise, the agreement is “illusory” and won’t be considered a binding contract.

State Supreme Court affirms business-interest test for noncompetes

02/15/2012
On Dec. 1, 2011, a unanimous Illinois Supreme Court issued its decision in Reliable Fire Equipment Co. v. Arredondo et al., reaffirming that an enforceable noncompete agreement must be supported by a legitimate business interest.

Arbitration agreement buried in job application? Have your attorney review it ASAP

01/20/2012
Do you include an arbitration agreement in your employment applications? If so, it may not be enforceable, according to a recent decision by the Court of Appeal of California.