The United States District Court for the Eastern District of Missouri, in Durrell v. Tech Electronics, Inc., 4:16-CV-01367 (E.D. Mo. Nov. 15, 2016), held that an at-will employee’s non-compete agreement may not be enforceable where the only form of consideration is the employee’s at-will employment status since an at-will employment relationship cannot constitute consideration.
Articles About Missouri Labor and Employment Law.
Parent Company not ‘Employer’ under Missouri Law, Court Rules, Reverses $1.5 Million Award
An employer’s parent corporation that did not “directly act[] in the interest” of the employer was not a covered employer under the Missouri Human Rights Act liable for harassment and retaliation, a Missouri Court of Appeals has ruled. Diaz v. AutoZoners, LLC, d/b/a AutoZone, et al., No. WD77861 (Mo. Ct. App. Nov. 10, 2015). The Court applied a modified “economic realities” test and reversed the jury verdict and judgment of $1,500,000 in punitive damages against the parent corporation.
Missouri Appeals Court Holds Sexual Orientation Discrimination is not Prohibited by Missouri Human Rights Act
In a case of first impression at the appellate level, the Missouri Court of Appeals for the Western District of Missouri has held that the Missouri Human Rights Act (“MHRA”) does not prohibit discrimination based on sexual orientation.
City of St. Louis Raises Minimum Wage, Imposes Notice Requirement
Effective October 15, 2015, the minimum wage for employees working in St. Louis will increase to $8.25 per hour from the state minimum of $7.65 per hour pursuant to St. Louis City Ordinance 70078, which was passed on August 28, 2015.
Missouri Courts Scrutinize Employment Arbitration Agreements
Two recent Missouri Supreme Court decisions demonstrate Missouri courts will carefully scrutinize employment arbitration agreements in determining their validity. The Missouri Supreme Court in Baker v. Bristol Care, Inc., et al.1 invalidated an employment arbitration agreement that was agreed to by the parties at the time the employee was given a promotion and raise. The court held that continued employment for an at-will employee and mutual promises to arbitrate where the employer had the ability to modify the terms of the arbitration agreement did not constitute valid consideration to support the agreement. In State ex rel Hewitt v. The Honorable Kristine Kerr,2 the Missouri Supreme Court upheld an arbitration agreement, but held the arbitrator section provision unconscionable.
Missouri Federal Court Reminds Employers that Non-Compete Agreements are not Automatically Assignable
The United States District Court for the Western District of Missouri has declined to enforce two employment agreements containing non-competition covenants because the employees who signed them had not contemporaneously assented to their assignment when their employer sold its assets to another company. Symphony Diagnostic Services No. 1, Inc. d/b/a MobileXUSA v. Greenbaum, No. 13-4196 (W.D. Mo. March 16, 2015). This case involved application of Missouri law pertaining to the assignability of non-competition agreements.
Missouri Court of Appeals Rules Non-Compete Lacking Geographic Limitation, Not Tied to Confidential Information, Is Unenforceable
A Missouri employer failed in its attempt to enjoin a former employee from working for a competitor after a Missouri appeals court ruled his employment agreement was unenforceable as a matter of law. In Sigma-Aldrich Corp. v. Vikin, No. ED-100575, (Mo. Ct. App. Oct. 14, 2014), the Missouri Court of Appeals (Eastern District) upheld a St. Louis County trial judge’s ruling that a non-compete without a geographic restriction, that sought to protect information widely known to the public, was unenforceable.
Refusal to Sign Non-Compete Warrants Unemployment Benefits, Says Missouri Court
The Missouri Court of Appeals recently ruled that an employee who resigns rather than sign a non-compete agreement is entitled to unemployment benefits. Darr v. Roberts Marketing Group, LLC, , No. 13-07274R-A, (Mo. Ct. App. Apr. 22, 2014) In this case, David Darr appealed a finding by the Missouri Labor and Industrial Relations Commission denying him unemployment benefits.
Increased 2014 Minimum Wage for Missouri
he Missouri Department of Labor & Industrial Relations has announced that, effective January 1, 2014, the state minimum wage will increase from $7.35 to $7.50 per hour for non-exempt employees.
Missouri Supreme Court Allows Employees to Proceed with Discrimination Lawsuits Based on Untimely Filed Charges of Discrimination
On August 27, 2013, the Missouri Supreme Court issued an opinion that significantly changes the way employers will have to approach raising objections to improperly filed charges of discrimination under the Missouri Human Rights Act (MHRA).1 In a stunning change of MHRA jurisprudence, the opinion allows an employee to proceed with an MHRA lawsuit based on an untimely or other improperly filed charge of discrimination if the employer fails to object to the charge before the Missouri Commission on Human Rights (MCHR) and fails to seek judicial review of the MCHR’s improperly issued right-to-sue notice.
Missouri Cases Illustrate Enforceability of Well-Drafted Non-Competition Agreements
Shawn Kee and Jessica Liss write on the Jackson Lewis website about two recent cases interpreting Missouri law on non-competes, Whelan Security v. Kennebrew, 379 S.W.3d 835 (Mo. 2012) and TLC Vision (USA) Corp. v. Freeman, 2012 WL 5398671 (E.D. Mo. Nov. 2, 2012).
Missouri: True Non-Competition Agreements Are Still Enforceable, but Solicitation Restrictions Must Be Limited to Existing Customers with Whom the Employee Dealt During Employment
The Missouri Supreme Court rarely entertains non-competition cases. In Health Care Services of the Ozarks, Inc. v. Copeland, 198 S.W.3d 604 (Mo. 2006), the court enforced a non-solicitation of customers and a true non-competition agreement.
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