By:       James Kachmar

Readers of this blog will note that we frequently remind them that California law generally prohibits non-compete agreements. There are very limited exceptions to this general rule, one being that the seller of goodwill in a business can be bound by a valid non-compete agreement to protect the goodwill that is being purchased. Sometimes, the buyer of a company will want to continue to employ certain key employees, who can also be the sellers of the goodwill of the former company.   We have seen instances where the purchasing company gets creative and subjects the seller/key employee to two covenants not to compete, one in the purchase agreement and the other in an employment agreement.   Last week, a California appellate court shut the door on this approach in the case Fillpoint, LLC v. Maas.Continue Reading Another Door Closes on Non-Compete Agreements

By:James Kachmar

As this blog frequently reminds its readers, California state courts take a hard look at arbitration agreements in the employment context. The recent case: Sparks v. Vista Del Mar Child & Family Services, from the Second Appellate District of California provides additional support for why employers need to be extra careful in establishing enforceable arbitration provisions.Continue Reading Employers: Relying on an Arbitration Provision In Your Employee Handbook May Not Protect You

By: James Kachmar

As you know, documentation is essential to performing even routine HR functions. You have potential employees fill out numerous pre-hire documents. You have employees sign employment agreements and other documents when hired. During the course of employment, you have employees sign additional documents, such as acknowledgments regarding your employee handbook, change in employment status documents, etc. But have you sat down recently to review whether all of the documents you are having employees sign are consistent? The recent case of Grey v. American Management Services demonstrates why you should.Continue Reading Employers – Have You Checked Your Documents Lately?

By:     Chelcey E. Lieber

On March 2, 2012, United States District Court Judge Amy Berman Jackson invalidated portions of the National Labor Relations Board’s recent “Notification of Employee Rights” rule, which, as previously discussed in our posts, requires private employers to post a notice to employees explaining their rights under the National Labor Relations Act (the “NLRA”) by April 30, 2012.Continue Reading Court Invalidates Portions of Recent NLRB Posting Rule

By:     Chelcey E. Lieber

Including arbitration provisions in employment agreements or employee handbooks is not a guaranteed way to avoid the courtroom. On January 3, 2012, the California Court of Appeal upheld a decision from the Sacramento County Superior Court holding that an arbitration provision contained in a pre-employment agreement was unconscionable, and, therefore, unenforceable.Continue Reading California Pre-Employment Arbitration Agreement Ruled Unconscionable