With the enactment of the Healthy Workplaces, Healthy Families Act of 2014 (AB1522), California has become the second state in the nation, after Connecticut, to mandate employers provide their employees, including part-time and temporary workers, paid sick leave.
Franchisor Not Liable for Sexual Harassment Claims Asserted by Franchisee’s Employee, California High Court Rules
A franchisor could not be held vicariously liable under the California Fair Employment and Housing Act (“FEHA”) for alleged sexual harassment in the franchisee’s workplace in the absence of evidence establishing the franchisor “retained or assumed a general right of control” over employment decisions and the “day-to-day aspects of the workplace behavior of the franchisee’s employees,” the California Supreme Court has ruled, 4-3. Patterson v. Domino’s Pizza, LLC, No. S204543 (Cal. Aug. 28, 2014). Accordingly, the Supreme Court reversed the Court of Appeal’s decision and reinstated summary judgment in the franchisor’s favor.
Learning the Hard Way: Non-Competes and Subsequent Agreements
The Georgia Court of Appeals handed down a tough lesson for an employer in Mapei Corporation v. Prosser, A14A0368 (Ga. Ct. App. July 9, 2014). The Court of Appeals affirmed summary judgment for an employee on the claim he breached his non-compete with his prior employer. The Court found a subsequent confidentiality agreement signed by the former employee omitted the non-compete covenant that the prior confidentiality agreement contained. The Court found the subsequent agreement replaced the earlier-entered agreement containing the non-compete covenant because the subsequent confidentiality agreement covered the same subject matter and contained a superseding-agreement clause stating the agreement “totally replaces all prior contract agreements or understandings… about confidential information or any other subject matter contained herein.”
Kentucky High Court Nixes Non-Compete Supported Only By Continued Employment
The Kentucky Supreme Court has held that continued employment alone is not valid consideration for non-compete agreements. In Charles T. Creech, Inc. v. Brown, 2014 Ky. LEXIS 233 (Ky. 2014), Donald E. Brown was employed by Charles T. Creech, Inc. for over 18 years before he was asked to sign a non-compete agreement in 2006. When the company’s owner presented the agreement to Brown, the owner stated that Brown needed to sign it in order to “get [the owner’s] daughter off our backs,” but no one told Brown that his continued employment was contingent on signing the agreement, and he received no other consideration for signing. The employer argued that Brown’s continued employment was valid consideration for the non-compete agreement, and relied on two cases in which the Kentucky Supreme Court had held continued employment to be valid consideration. The Kentucky Supreme Court disagreed and distinguished both of those decisions, explaining that in both cases factors other than continued employment were present that constituted consideration.
Be Ready When OSHA Walks into Your Store
The federal Occupational Safety and Health Administration (OSHA) has stepped up its enforcement of safety and health regulations in retail stores. Retailers need to be alert to health and safety issues at their stores and warehouses, both to ensure their workplaces are safe and to be ready for possible OSHA inspections and investigations.
New Massachusetts Law Requires Employers Provide Leave for Victims of Domestic Violence
A new Massachusetts law gives employees who are victims of domestic violence a right to job-protected leave from work.
New Illinois Law Requires Employers to Provide Accommodations to Pregnant Employees and Applicants
Illinois Governor Pat Quinn has approved a law providing additional protections for pregnant women in the workplace. The law will go into effect on January 1, 2015.
Pennsylvania Court Enforces Forum Selection Clause in Franchise Non-Compete Against Florida-Based Defendant, and His Non-Signatory Wife
In yet another example of an increasing willingness to enforce properly-drafted forum selection clauses in non-compete disputes, a federal judge in the Eastern District of Pennsylvania recently denied a motion to dismiss and motion for transfer of venue brought by the former franchisee defendants, a husband and wife. AAMCO Transmissions, Inc. v. Romano, No. 13-5747 (E. D. Penn. Aug. 21, 2014).
The Pacific N.W. Employer Fall 2014.
The Pacific N.W. Employer Fall 2014.
New Hampshire Limits Employer Access to Social Media Accounts of Employees and Applicants
Effective September 30, 2014, employers in New Hampshire will be prohibited from requiring employees or job applicants to disclose their login information for accessing any “personal account” or service through an electronic communication device.
New Jersey Governor Christie Signs ‘Ban the Box’ Legislation
New Jersey Governor Chris Christie has signed into law The Opportunity to Compete Act, otherwise known as the “Ban the Box” bill. This legislation will restrict employers from inquiring about an applicant’s criminal background during the initial stages of the application process. The law will take effect on March 1, 2015, the first day of the seventh month following the signing date.
North Carolina Court of Appeals Directs Trial Court to Rewrite Non-Compete Agreement
Take everything you thought you knew about North Carolina’s “blue pencil” doctrine and scribble it out – well, at least as it pertains to non-compete agreements between parties to the sale of a business.
Federal Law Does Not Preempt State Unfair Competition Claim, California Supreme Court Rules
A lawsuit against a trucking company for allegedly misclassifying drivers as independent contractors under California’s Unfair Competition Law (“UCL”) was not preempted by the Federal Aviation Administration Authorization Act of 1994 (“FAAAA”), the California Supreme Court has ruled unanimously. P. ex rel. Harris v. Pac Anchor Transp., Inc., No. S194388 (Cal. July 28, 2014). The Court found the lawsuit did not relate to the company’s “price, route or service,” the concerns of the federal law. Therefore, the Court allowed the State of California’s lawsuit for unfair competition arising from the company’s alleged violations of California’s labor and insurance laws to proceed.
Texas Court Enforces Two-Year Non-Compete; Suggests Restrictions up to Five Years May be Reasonable
A U.S. District Judge in the Northern District of Texas has issued a preliminary injunction to enforce a non-compete agreement in Brink’s, Inc. v. Patrick, Case No. 3:14-cv-775-B (N.D. Tex., 6/26/14). The opinion adheres to well-established Texas law principles regarding the reasonableness of the limitations contained in non-compete agreements.
When Will D.C. Sick and Safe Leave Act Amendments Apply?
Recent updates to the official District of Columbia Code appear to relieve employers at this time from any obligation to comply with the District’s Sick and Safe Leave Act Amendments Act of 2013 — after many employers in the District of Columbia, particularly those in the hospitality industry, already have made changes to their paid leave policies to comply with the amendments, as a precaution against possible private civil litigation. The Act, which took effect on February 22, 2014, amended the D.C. Accrued Sick and Safe Leave Act of 2008 (“SSLA”) to expand the number of employees eligible for sick and safe leave and made other significant changes, described below.