California’s strong public policy disfavors noncompete agreements. Under California Business & Professions Code Section 16600 “every contract by which any one is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.” Recent California law significantly increases the stakes for employers who utilize such improper covenants in their employee contracts. (more…)
2023 Employment Law
New Bill Signals Widening Gulf Between California and the United States Supreme Court on Arbitration Policy
On July 17, 2023, the California Supreme Court issued its ruling in Adolph v. Uber Technologies, Inc. (2023) 14 Cal. 5th 1104. In that opinion, the Court departed from the United States Supreme Court’s guidance in Viking River Cruises, Inc. v. Moriana (2022) 142 S.Ct. 1906 and, contrary to the reasoning of Viking River, found that a plaintiff suing under the Private Attorneys General Act of 2004 (“PAGA”) retains standing to pursue his or her representative PAGA claims in court, even when his or her individual PAGA claims are compelled to arbitration. (See our prior discussion on this issue here.)(more…)
Showdown in the California Supreme Court: California Appellate Courts Depart from SCOTUS Guidance on the Arbitrability of PAGA Claim
Last term, the United States Supreme Court issued its decision in Viking River Cruises, holding that the Federal Arbitration Act preempts California law prohibiting the arbitration of claims brought under the Private Attorneys General Act of 2004 (“PAGA”). In Viking River, the Supreme Court reasoned that while a plaintiff employee’s representative PAGA claims (that is, claims based on alleged Labor Code violations suffered by other employees) may not be compelled to arbitration, his or her individual PAGA claims (i.e., claims based on alleged Labor Code violations actually suffered by the plaintiff) may be so compelled. (more…)
NLRB Prohibits Certain Confidentiality and Non-Disparagement Provisions in Severance Agreements
The National Labor Relations Board (“NLRB” or “Board”) issued a Decision and Order in McLaren Macomb and Local 49 RN Staff Council, Office and Professional Employees, International Union (OPEIU), AFL-CIO, Case 07-CA-263041 (“McLaren”), on February 21, 2023, reversing its position by reinstating prior NLRB precedent finding the use of certain confidentiality and non-disparagement provisions in severance agreements violates the National Labor Relations Act (the “Act”).(more…)
2023 Employment Law Update – New California Statutes to Consider
2023 will bring a variety of new California labor and employment laws that employers will need to stay abreast of as they review and update their policies and practices. This blog spotlights key pieces of legislation that will come into effect in the new year. Unless otherwise stated, the following new laws will take effect January 1, 2023.(more…)