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Tag: Joel O’Malley

Newsroom image for the post “Freedom to Compete Act” Aims to Wipe Out Most Non-Compete Agreements

Posted January 18, 2019 with Tags , , , , , ,

“Freedom to Compete Act” Aims to Wipe Out Most Non-Compete Agreements

In reaction to the recent proliferation of non-compete agreements, courts and legislatures are increasingly trying to find ways to limit their use. The latest attempt is at the federal congressional level. This week, Florida Senator Marco Rubio introduced the “Freedom to Compete Act” aimed at prohibiting non-compete agreements for lower wage workers. The Act would amend the Fair Labor Standards Act to ban non-competes for most non-exempt workers.

Newsroom image for the post Employers Should Immediately Review Recruitment Ad Practices Due to Facebook Class Litigation

Posted January 17, 2019 with Tags , , ,

Employers Should Immediately Review Recruitment Ad Practices Due to Facebook Class Litigation

A little over a year ago, three major employers—T-Mobile, Amazon, and Cox Communications—were sued for allegedly discriminating on the basis of age in the way they recruited new employees via Facebook. The plaintiffs’ lawyers targeted not only these three employers but also asserted claims against a “defendant class” of every employer that used age restrictions in their recruiting advertisements on Facebook. They also sent demand letters to scores of employers and filed charges of discrimination against yet more. Though the lawsuit and charge investigations are ongoing, the plaintiffs’ lawyers are now sending a new wave of demands to more employers and filing more charges of discrimination with the EEOC and state enforcement agencies. Employers who have not yet been targeted should take steps now to prepare.

Posted January 10, 2019 with Tags , , , , ,

Avoid Getting SLAPPed on Your Next Non-Compete Case

Your employee quits without notice or explanation. You discover that she moved to a competitor in violation of her non-compete agreement, and what’s worse, days before her resignation, she downloaded your trade secrets onto a thumb drive. You file suit and request an immediate injunction from the court. The last thing you expect is a counter-suit and motion to dismiss claiming you have interfered with the employee’s free speech rights. But that aggressive defense to restrictive covenant and trade secret litigation is becoming far more prevalent. Employers should be prepared for this defense when considering how to enforce their rights against former employees.

Newsroom image for the post In California, Ignorance of Complex Wage Laws is No Excuse

Posted June 4, 2018 with Tags , , ,

In California, Ignorance of Complex Wage Laws is No Excuse

A California employer that does not pay its employees all required wages upon termination is liable for both the underpayment of wages and, if the failure to pay is “willful,” a “waiting time” penalty of up to 30 days’ wages. This is one of the ways a California wage-and-hour violation can become a very expensive mistake.

Newsroom image for the post DOJ Signals There Are Lawful “No-Poaching” Agreements

Posted April 16, 2018 with Tags , ,

DOJ Signals There Are Lawful “No-Poaching” Agreements

In January 2018, the Department of Justice (DOJ) communicated that it would ramp-up criminal enforcement actions against companies that have no-poaching agreements, which in past years have been seen by the DOJ as a hall-pass allowing employers to avoid competing for workers, stifle demand in a market, and keep wages lower. A recent settlement with three employers, however, has reinforced the notion that not all no-poaching agreements are the same and helped define which kinds of no-poaching agreements may or may not lead to civil or criminal liability.

Posted December 15, 2017 with Tags ,

Are Your Social Media Recruitment Practices Discriminatory? Employers Facing Age Discrimination Class Actions

Plaintiffs’ lawyers currently are threatening employers that recruit new employees via social platforms—Facebook, LinkedIn, etc.—with age discrimination class action lawsuits. The plaintiffs’ lawyers aggressively demand an immediate response to their letter, production of information related to the online recruitment efforts, and a quick resolution of their alleged claims (i.e., pay a substantial settlement). Class-wide liability, were the claims to be successful, could be substantial, so this issue warrants immediate attention even if you have not yet been threatened with litigation. We have analyzed the possible legal claims and have developed a method to assess an employer’s potential liability.

Posted November 20, 2017 with Tags , ,

Minnesota Restaurateurs: Get Compliant with Tip Statutes Before Super Bowl LII

Super Bowl LII at U.S. Bank Stadium presents a great opportunity for Minneapolis restaurateurs to generate significant income from parties hosted before and during the big game. With that opportunity, though, comes the challenge of complying with Minnesota’s unique tip-pooling statute—unlike federal laws and those of other states—and avoiding the potential for greater liability. Restaurants planning Super Bowl parties should prepare now to meet the law’s requirements and avoid litigation after the Super Bowl LII victor is crowned.

Posted August 15, 2017 with Tags , , ,

The Questionable Non-Compete: How to Hire Someone but Avoid a Tortious Interference Claim

The Scenario: Your company has a great applicant for a job opening, Jane, but you learn during the interview process that Jane signed a non-compete agreement with her current employer. You can quickly spot some reasons why the non-compete is unenforceable. You acknowledge there is some risk in hiring Jane, though, including that her current employer may sue Jane for breaching the contract and your company for interfering with her contract—a tortious interference claim. So, now what? Setting aside Jane and her own legal risks, what specific steps should you take to set up your best defense to a claim that your company interfered with Jane’s contract?

Posted July 19, 2017 with Tags , , ,

How Employers Can Avoid California Labor Code Section 925

Many non-California employers view the enactment of California Labor Code Section 925 as destroying any possibility of avoiding the state’s restrictive covenants laws for California-based employees. But there is hope! With creative legal counsel, employers can draft agreements that do not implicate the statute and avoid its application in litigation.

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