Employment Contracts

Court upholds validity of employment agreement that required binding arbitration

11/01/2010

A state appeals court has dismissed an employment discrimination case because the parties had signed an agreement that required disputes go to binding arbitration rather than court.

No contract with employees? Feel free to change terms of employment

11/01/2010

Employers that don’t require employees to sign employment contracts are free to change the terms of employment anytime they want. By staying on the job, employees legally accept the new terms and become bound by them. That’s true even if they continue working under protest. Their only remedy would be to quit and sue over the change.

Good-faith treatment for all is good policy, and good protection against lawsuits, too

10/12/2010

Employees who claim they have been discriminated against typically have to show that their employers singled them out for poor treatment because of a protected characteristic. It’s easy for employers to counter that if they can show they always act in good faith. The best way to do that is to apply the rules equally to every employee.

Take 17 steps to protect your trade secrets

09/14/2010

Confidentiality agreements and covenants against disclosing trade secrets aren’t just concerns for high-tech companies like H-P and Oracle. Chances are, your organization has proprietary information and intellectual capital that it wants to keep away from competitors. Here are tips on how to do it the right way.

Can we make this hire? Confidentiality agreement doesn’t include a noncompete

09/08/2010

Q. We want to hire an applicant, but received a letter from his employer stating that working for us would violate a confidentiality agreement he signed with that employer. Since he doesn’t have a noncompete agreement, can we hire him?

Don’t write overly broad restrictions into noncompetes

09/08/2010

Noncompete covenants in Texas must be limited to a reasonable geographic area or they aren’t enforceable. Unfortunately for employers, that geographic area is usually fairly small.

Upside of unions: No suing for wrongful termination

08/27/2010

In North Carolina, union employees have to use their contracts to pursue claims they were unfairly fired. They can’t do what at-will employees can do—sue for wrongful termination.

If you discover wrongdoing after the fact, you can use it in court to justify termination

08/27/2010

Sometimes, you don’t know how lousy an employee was until he or she is gone. That may be when you find out about missing work, or even missing money. Or you may discover that the employee was essentially dishonest. If that’s the fact, promptly document what you discovered—just in case there is a later lawsuit.

Call lawyer before considering anything like a noncompete–even a gentlemen’s agreement

08/23/2010

California lawmakers—and courts—don’t like noncompete agreements because they limit employee mobility and career growth. Most employers understand that they can’t enforce such agreements if an employee leaves. But what about an informal “gentlemen’s agreement” between competitors to refrain from hiring employees who signed agreements?

What elements need to be included in a claims waiver associated with a severance agreement?