Is My Employee Non-Compete Legal?

Employee non-compete agreements have long been a contentious issue in many states, with some arguing that they protect businesses’ intellectual property and prevent employees from sharing trade secrets, while others argue that they limit an employee’s ability to work in their chosen field and stifle competition. In California, however, the enforceability of employee non-compete agreements is heavily restricted.

Confidentiality and Non-disparagement Provisions: NLRB Limits Severance Agreements

The National Labor Relations Board (“NLRB”) issued a decision in McLaren Macomb (“McLaren”), returning to a longstanding precedent holding that employers may not offer employees severance agreements with certain confidentiality and non-disparagement clauses that require employees to broadly waive their Section 7 rights under the National Labor Relations Act (“the Act”).

The Frequently Misconstrued Inside Sales Exemption to Overtime Laws

Employers are frequently confronted with allegations that employees have been misclassified as exempt from overtime pay. The inside sales exemption is one of the most misconstrued exemptions to overtime pay under both California and Federal law, which unfortunately may result in substantial liability to employers.

Federal Appeals Court Strikes Down California’s Ban on Employer/Employee Mandatory Arbitration Agreements

Yesterday, February 15, 2023, the Ninth Circuit Court of Appeals struck down a California law, AB 51, that prohibited employers from requiring employees to sign an arbitration agreement as a condition of employment or continued employment. The Court ruled that a federal law—known as the Federal Arbitration Act (“FAA”) —preempts AB 51 because AB 51 “stands as an obstacle” to Congress’s “policy of encouraging arbitration.”