Archive for Employment Agreements

NLRB Rules Proprietary Information and Non-Disparagement Clauses in Non-Union Employment Agreement are Overbroad and Illegal

The National Labor Relations Board (NLRB) has issued another decision striking down a private, non-union employment agreement. The Quicken Loans, Inc. Decision In this most recent case, Quicken Loans, Inc. (Case No. 28-CA-75857), the administrative law judge ruled that Quicken violated the National Labor Relations Act (the “Act”)…

California Courts Remain Hostile to Non-Compete Agreements

A California Court of Appeal recently ruled that a non-compete given in connection with the sale of a business was unenforceable.  Fillpoint, LLC v. Maas, 2012 Cal. App. LEXIS 904.  Specifically, the Court held that because the non-compete period began on the date of the employee’s termination from…

Arbitration Clause in Employee Handbook Does Not Create an Enforceable Contract

In Sparks v. Vista Del Mar Child Services, the California Court of Appeal held that the mere existence of an arbitration clause in a lengthy employee handbook — without more — does not create a binding, enforceable arbitration agreement between employer and employee. In Sparks, the employer utilized…

Court Allows Chargebacks Against Advanced Commissions

In Deleon v. Verizon Wireless, LLC, the California Court of Appeal clarified when a commission advance may be “clawed back” by an employer.  The answer depends on whether the advance payment was fully earned when advanced (which made the payment a wage which could not be clawed back)…

U.S. Supreme Court Reverses and Remands California Supreme Court Decision in Sonic Calabasas v. Moreno

As a result of its decision in AT&T Mobility (which I blogged about here), on October 31, 2011 the U.S. Supreme Court reversed and remanded the California Supreme Court’s ruling in Sonic Calabasas v. Moreno (which I blogged about here).  Now, as a result, the Sonic Calabasas decision is no longer…

NLRB Clarifies its Position on Employers’ Social Media Policies

On August 18, 2011, in response to a growing number of disputes between employers and employees concerning employees’ use of Facebook, Twitter, YouTube, and other social media, the NLRB clarified its rules for determining (1) when employees are engaging in protected activity, and (2) when employers are using…

U.S. Supreme Court Issues Landmark Pro-Business Arbitration Ruling

Yesterday, the U.S. Supreme Court ruled in a 5-4 decision in AT&T Mobility LLC. v. Concepcion that the Federal Arbitration Act (“FAA”) preempts state laws that condition the enforceability of an entire class of arbitration agreements on whether or not they allow for classwide arbitration. The issue in the…

Employment Arbitration Agreements After Sonic Calabasas v. Moreno

On February 24, 2011, a divided California Supreme Court ruled in Sonic Calabasas A, Inc. v. Moreno, S174475, that a worker who signs an otherwise valid pre-employment arbitration agreement does not give up his statutory right to seek administrative relief through Labor Commissioner hearings.  In other words, even…