Ten Most Recent State Law Articles
New U.S. Supreme Court Opinion May Signal End of California Courts' Arbitration Jurisprudence
In West Virginia, the state Supreme Court held that, as a matter of "public policy," pre-dispute arbitration agreements covering claims for personal injury arising from nursing home patronage are void. In a terse, unsigned opinion, the U.S. Supreme Court reversed the state high court.
Ninth Circuit Invalidates Contractual Choice of Law Provision; Holds that California Law Applies to Independent Contractor Determination
In a recent case, Ruiz v. Affinity Logistics, the Ninth Circuit refused to enforce a choice of law provision that designated Georgia law, rather than California law, to govern an agreement entered into and performed in California.
Data Security Update: Massachusetts Vendor Contract Deadline Approaches
Thirty-nine percent of data breaches in the U.S. happened to businesses while the data was in the hands of third-party vendors, according to the 2010 Annual Study of the Ponemon Institute.
Protecting Trade Secrets In Delaware
Employers frequently confront the problem of theft or misappropriation of trade secrets and confidential, proprietary information by departing employees. While employers have an arsenal of legal weapons at their disposal to protect their most valuable business assets, it is critical that they take proactive steps to protect against the disclosure of important business information and prevent unfair competition. From a practical standpoint, failure to implement basic security measures makes it easier for an unethical employee or competitor to misappropriate confidential business information. From a legal perspective, absent efforts to preserve the secrecy of such information and avoid unfair competition, a court is unlikely to respond favorably to an employer request for relief.
Recruiter Qualified under California Commissioned Salesperson Exemption, Not Entitled to Overtime
Ruling a recruiter was a commissioned salesperson because his job involved sales and his compensation was based on those sales, the California Court of Appeal, Fourth Appellate District, has rejected an employee’s claims for unpaid overtime against his employer on behalf of himself and a class of current and former employees. Muldrow v. Surrex Solutions Corp., Nos. D057995 & D058958 (Cal. Ct. App. Jan. 24, 2012). The Court found the employee was exempt from overtime pay under California Industrial Welfare Commission Wage Order No. 7-2001 and affirmed judgment in favor of the employer.
California Implements Significant Changes to the Agricultural Labor Relations Act
Effective January 1, 2012, California's Agricultural Labor Relations Act (ALRA) was amended in ways that will likely help unions to organize agricultural employees in California and obtain favorable labor contracts with agricultural employers.
Due Process Concerns Sinks Overtime Class Action against Employer, California Court Rules
Reversing a $15 million judgment against an employer in a class action for alleged unpaid overtime, the California Court of Appeal, First Appellate District, has held that the trial court’s trial management plan, which used sampling evidence to prove class liability, denied the employer due process by preventing it from defending against over 90% of class claims. Duran v. U.S. Bank Nat’l Ass’n, Nos. A125557 & A126827 (Cal. Ct. App. Feb. 6, 2012). The Court found the plan “was fatally flawed” and concluded the lower court’s adherence to it denied the employer due process because the court based its evidentiary rulings on the plan, rather than trial testimony. The Court reversed the judgment and ordered the class to be decertified.
Indiana Enacts Right-To-Work Legislation -- The Pendulum Swings Back
Indiana just enacted a new law, making it the nation’s 23rd “right-to-work” state, meaning it bans collective bargaining agreements that require union membership or paying fees as a condition of employment. Will other states follow?
Illinois Appellate Court Applies Reliable Fire Retroactively to Reverse and Remand Hair Salon Restrictive Covenant Case
In Reliable Fire Equipment Company v. Arrendondo [pdf], discussed here, the Supreme Court of Illinois dramatically altered how protectable legitimate business interests in noncompetition agreements were to be reviewed under Illinois law, clarifying what it felt were decades of misapplication. On February 3, 2012, the first decision was issued applying Reliable Fire in a retroactive fashion, resulting in an Illinois appellate court reversing and remanding a lower court decision denying enforcement of a noncompetition agreement.
Georgia Governor Signs Law Allowing Employers To Directly Answer Garnishment
On February 8, 2012, Governor Nathan Deal signed HB 683 into law, overturning the Georgia Supreme Court’s recent decision requiring Georgia employers to use a Georgia-licensed attorney when filing answers to garnishments in state courts of record. Under the new law, effective immediately, employers may use human resources, payroll and other non-attorney employees, third-party vendors or outside counsel to respond to Georgia garnishment actions.
Affiliate Member News