Thursday, August 16, 2018

Avoiding Restrictive Covenant Problems – Simple Steps That Can Save You Heartache and Expense

In the past week, I have been involved in two situations in which an employer received a “cease and desist” letter from a potential competitor. The employers had hired employees away from the potential competitors and were then notified by the potential competitors that the employees were subject to various restrictive covenant obligations. The potential competitors’ letters made various demands regarding the restrictive covenants and restrictions to be placed on the employees’ activities.

As many of you know, restrictive covenants prevent employees from engaging in various types of actions both before and after they leave employment. Restrictive covenants include such things as:
  • Non-competition restrictions which prevent an employee from working for a competitor;
  • Non-solicitation of employee restrictions;
  • Non-solicitation of customer restrictions;
  • Confidentiality protections;
  • Trade-secret protections; and
  • Assignments of inventions.

Friday, August 3, 2018

Pay Equity: A Growing Priority in the #MeToo Era

In the #MeToo Era, employers who are focused on proactive sexual harassment prevention and response measures should also be mindful of other aspects of gender equity, such as pay equity. The Wall Street Journal recently reported that the U.S. Equal Employment Opportunity Commission (EEOC) is investigating Uber for potential gender discrimination in hiring and in its pay practices. The investigation is in line with the EEOC’s 2017-2021 Strategic Enforcement Plan, which included a focus on equal pay protections as a strategic priority.

Uber is just one of a number of companies facing public scrutiny over their pay practices. For example, Netflix was the subject of reports earlier this year that it had paid its female lead less for her Queen Elizabeth role in The Crown than her male co-star. Netflix subsequently announced that, going forward, “no one gets paid more than the Queen.”