Recently, I had the opportunity to participate in a discussion with my fellow IR Global members to discuss the use and enforceability of restrictive covenants in employment contracts, and how different countries across the Globe view such covenants.
Every company has information, customer goodwill, and other valuable assets that are considered both integral and invaluable to its success. Limiting the use of this information by employees and protecting goodwill after the term of their employment contract can be vital to the protection of a market position. An accepted method of providing this protection is to include restrictive covenants in employment contracts, which are designed to prevent certain information being used by competitors, while providing for damages should those agreements be breached.
For companies with operations in multiple locations, understanding this is of critical importance. It is also important to acknowledge that restrictive covenants will only be enforceable if they are deemed to be reasonable in terms of their scope and the fairness of the restrictions they place upon an employee.
In this feature article, we discuss valuable insight into how these protections are applied across a range of jurisdictions, and assess the enforceability of contracts containing restrictive covenants, options in the event of a breach of covenant and best practices to avoid any potential problems before they occur.
Conn Maciel Carey LLP is a proud member of IR Global in the Employment Law Group. IR Global is a multi-disciplinary professional services network that provides advice to companies and individuals across 155+ jurisdictions. Their Virtual Series publications bring together a number of their network’s members to discuss a different practice area-related topic. The participants share their expertise and offer a unique perspective from the jurisdiction they operate in.
By: Bryan Carey
Over the past six months, we have observed a significant uptick in inquiries about data breach and other cyberthreats from area businesses. We are asked about pursuing claims for recovery of funds lost due to fraud by hacking, state notification procedures in the event of a data breach affecting employees, and general questions about how to prepare or respond to other IT security problems. The whole subject area is a complex mix of technical and legal issues and it touches nearly every aspect of the current business environment. Moreover, the costs to companies that are the victims of cybercrime and data breach are significant and, unfortunately, it is no longer uncommon for the costs to bankrupt small and medium-sized businesses within a short time after the breach is discovered.
Types of cybercrime incidents
Data breach and other cyberthreats come from all quarters and they affect individuals and organizations of all sizes. Given the recent news about the Central Intelligence Agency and the National Security Agency being the subject of now infamous data thefts, including the CIA losing control of its own toolbox of hacking tricks, many employers are likely to think that there is little that can be done when the government agencies tasked to defend our country’s cybersecurity and armed with a government-sized budget have proven vulnerable. But the size and scope of cyberthreats are not exaggerated and require vigilance and defenses regardless of your organization’s size. Continue reading
By Kara M. Maciel and Eric J. Conn
The Trump Administration submitted a blueprint budget for 2018 to Congress proposing $2.5 Billion in cuts to the U.S. Department of Labor’s (“DOL”) operating budget. The President’s proposed budget expressly calls for reduced funding for grant programs, job training programs for seniors and disadvantaged youth, and support for international labor efforts. It also proposes to entirely defund and eliminate the U.S. Chemical Safety and Hazard Investigation Board (“CSB”) – an independent, federal, non-enforcement agency that investigates chemical accidents at fixed facilities. The budget plan also purports to shift more funding responsibility to the states with labor related programs. Finally, although less explicit, the budget blueprint appears to deliver on promises from Trump’s campaign trail that rulemaking and regulatory enforcement efforts under the myriad laws and regulations enforced by the sub-agencies, such as the Wage and Hour Division and OSHA would be slashed.
These proposed budget cuts at DOL and other agencies are all part of a plan to offset the White House’s intent to increase defense and security spending by $54 billion. Overall, Trump requested $1.065 Trillion in total discretionary spending, with $603 billion going to Defense.
The proposal would shrink DOL’s budget to $9.6 Billion – down 21% from the $12.2 Billion budget for 2017. Trump’s planned reductions announced on March 16, 2017 – while not really surprising in the context of his view toward federal spending on non-defense agencies – would have a seismic impact Continue reading
The annual HR in Hospitality Conference, which is a leading conference that has content tailored to meet HR professionals’ needs to stay up to day on the latest legal issues facing the hospitality industry, will be held in Las Vegas on March 27 – 29, 2017.
Kara Maciel, Chair of the Labor & Employment Practice, is pleased to be speaking on a panel with other industry experts to discuss the top “50 Legal Tips in 50 Minutes.” The panel will occur on March 28, 2017 from 4-5 pm, and will discuss the new Trump Administration, and what legislative and regulatory policies will change, what policies cannot change, what policies may change, and what to expect at the state law level.
All HR professionals in the hospitality industry will benefit from this conference, and as a friend of Conn Maciel Carey, you can register with a $100.00 discount off registration by clicking here.
We hope to see you in Vegas!
Andrew J. Sommer, Partner in Conn Maciel Carey LLP’s San Francisco office, will be presenting on March 9, 2017 in Los Angeles at the annual conference of the International Health, Racquet & Sportsclub Association (IHRSA), a trade association serving the global health club and fitness industry. Mr. Sommer will speak on hot topics in employment law and practical compliance strategies for clubs. For more information about IHRSA 2017, please click here.
On Wednesday, February 15, 2017, Kara Maciel, Chair of the Labor & Employment Practice at Conn Maciel Carey, will be presenting a free webinar on issues facing small business.
While large companies typically have human resources departments or in-house counsel to advise on myriad and complex employment laws, start-ups and small businesses are often operating in the dark regarding these key issues. However, as these companies grow and begin to hire more employees, compliance with local, state, and federal employment laws are paramount for survival.
This webinar will provide an overview of the most important employment laws, policies and practices that are of particular concern for small businesses and start-ups so that they can comply with proper pay practices and wage and hour law, become aware of applicable anti-discrimination laws, and learn proper procedures for hiring and firing, including offer letters, employment agreements and separation agreements.
The webinar begins at 1:00 pm ET, and is sponsored by Smith College. You can register for the webinar here. If you are unable to attend the February webinar, Conn Maciel Carey will present another opportunity on April 19, 2017 as part of its 2017 Labor & Employment Webinar Series, and you can register here.
Newly elected President Trump will have a significant impact on shaping the executive agencies that impact employers, unions and the workplace in general, not to mention the fact that he may hand pick up to four new Supreme Court Justices. There is no doubt that legislation, regulation, and court cases during the Trump Administration will have lasting effects on employers in 2017 and beyond.
On February 20, 2017, Conn Maciel Carey’s Labor & Employment and OSHA attorneys will host an in-person briefing in its Washington, DC office to discuss the practical impact of the Trump Administration on the legal landscape in key areas for the workplace, including:
- The effort to repeal the Affordable Care Act;
- The rollback of regulation and former President Obama’s Executive Orders, including the Department of Labor’s overtime rule, the persuader rule, and OSHA’s anti-retaliation rule;
- The National Labor Relations Board under Philip Miscimarra’s Chairmanship;
- Anticipated court decisions from the Supreme Court, including whether employers can include class action waivers in arbitration agreements;
- OSHA enforcement, regulatory and policy developments to expect during the Trump Administration’s inaugural year.
Networking will start at 8:30 am, and the briefing will last from 9:00 am – 10:30 at 5335 Wisconsin Avenue, NW, Suite 660. To register for this complimentary briefing, please contact firstname.lastname@example.org.
We hope to see you there!