A federal district court in Texas has set aside a recently passed rule issued by the Federal Trade Commission (FTC) which made it illegal for employers to make employees sign non-compete agreements. These agreements were prohibited to make it easier for employees to obtain alternative work or start their own businesses. As a result of this ruling, the FTC’s rule cannot be enforced, but it will remain on the books until the case is fully litigated.
Tag: employment agreements
California Anti-Arbitration Law Held Up by Federal Injunction
A recent California law that would have made it illegal to put mandatory arbitration clauses in employment contracts has been held up by an injunction from a federal court. The new anti-arbitration law faced a great deal of controversy, as employers have made arbitration agreements an increasingly common part of their employment contracts. The injunction was issued as part of a lawsuit by employers attempting to prevent the law from coming into effect, as it would have this year. Continue reading “California Anti-Arbitration Law Held Up by Federal Injunction”
What is an Independent Contractor?
When most people think of the relationship between an employer and a worker, they envision something like the archetypical employee. The worker goes into the place where they’re employed, works however long they’re scheduled to work, and goes home at the end of the day. However, some workers aren’t employees, but are instead independent contractors, and things work a little differently for them. Continue reading “What is an Independent Contractor?”
Beware of Signing Employment Contracts with Restrictive Covenants
Restrictive covenants are provisions in employment agreements that prohibit a person from working for a competitor after leaving his or her employer. The effect of such clauses varies greatly. In addition from limiting a former employee’s job opportunities, a restrictive covenant allows an employer to restrict the former employee from starting a business or forming a venture with others that competes against the former employer; contacting or soliciting former or current customers or employees of the former employer; and using confidential knowledge, trade secrets and other privileged information learned while working for the former employer. Many employers also place time and geographical restrictions in these covenants.
Continue reading “Beware of Signing Employment Contracts with Restrictive Covenants”
