When employers offer new hires a sign-on bonus or existing employees a retention bonus, they typically structure the bonuses as an upfront payment subject to a conditional repayment obligation if the employee’s employment ends prior to a specified retention date.
However, effective Jan. 1, 2026, California Assembly Bill 692 (codified at Business & Professions Code
In September 2023, the Securities and Exchange Commission (SEC) announced three separate enforcement orders reflecting a renewed interest in and scrutiny of provisions in employment agreements and separation agreements. These three settled cases resulted in cease-and-desist orders, fines, and other sanctions against a registered investment adviser, a public company, and a privately held company in
On Aug. 7, 2023, Colorado employers’ workplace obligations will change due to the passage of the Protecting Opportunities and Workers’ Rights Act (the POWR Act). The POWR Act, which Governor Polis signed after its passage during the most recent legislative session, changes key legal standards related to workplace harassment and non-disclosure agreements with employees, among
On the other side of the pandemic, after record numbers of employee resignations, protecting trade secrets is both challenging and being challenged. This article discusses protecting trade secrets and confidential information in 2022; types of restrictive covenants that are enforceable; and types of restrictive covenants that should be avoided.
In Morgan v. Sundance, Inc., the U.S. Supreme Court resolved a circuit split regarding whether a party has waived its right to arbitrate. Under the test reviewed by the Court, a party waived its right to arbitration if it knew of the right to arbitrate, acted inconsistently with that right, and prejudiced the other
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On 1 August 2022, the Act implementing the EU Directive on Transparent and Predictable Working Conditions (the Act) likely will enter into force, as EU Member States have until that date to implement the directive into their own national laws. As a result, employers will have to revise standard employment agreements and employee handbooks.
The Illinois General Assembly has unanimously passed a bill that will significantly affect the legality of post-employment non-competition and non-solicitation agreements between employers and their Illinois employees entered into after Jan. 1, 2022. Illinois Gov. J.B. Pritzker is expected to sign the bill into law. The bill, Amendment 1 to SB 672, amends the
Employers – in light of recent action by the Biden administration, it is time to review and evaluate restrictive covenants being used with your workforce. Courts, state legislatures, and the president are increasingly scrutinizing such covenants, including noncompete agreements.
President Joe Biden campaigned on a platform to eliminate and reduce barriers for employees seeking higher
Although California generally prohibits non-competition agreements, employers have commonly understood that they could prevent an employee and his or her new employer from using former employers’ confidential information. A recent California appellate case, however, has called into question the enforceability of overbroad confidentiality provisions commonly found in employment contracts. Brown v TGS Management Company, LLC,
