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Delaware Chancery Court Declines to Enforce Noncompete in California Despite Choice of Law Provision

In a recent Delaware Chancery Court case, the court declined to grant a preliminary injunction to enforce a noncompetition covenant against a California resident and former employee, finding the covenant would be unenforceable under California law, despite an explicit choice of law provision in the relevant contract designating Delaware law as the governing law of … Continue Reading

NLRB Continues to Limit Employers’ Actions Governing Employees’ Use of Social Media

We previously noted that the National Labor Relations Board (“NLRB”) takes the position that the National Labor Relations Act (“NLRA”) protects employees’ use of social media for certain purposes, and these protections apply regardless of whether the employees are covered by a collective bargaining agreement.  Our colleagues at InsidePrivacy recently posted a blog post discussing … Continue Reading

EEOC Issues New Guidance on Pregnancy Benefits

The Equal Employment Opportunity Commission has issued new enforcement guidance explaining when an employer’s policies affecting pregnant employees might violate federal law.  The new guidance appears in an updated chapter of the EEOC’s enforcement manual, and in a related set of questions and answers.  Among other topics, the new guidance addresses the rights of pregnant … Continue Reading

Permanent Labor Market Shift Signals Job Insecurity and Diminished Wages and Benefits, Economists Warn

Reflecting on the labor market on this Labor Day, we note that many economists are predicting that, unlike prior recessions, employment and wages will not bounce back after the current economic downturn that began in 2008.  Employers will retain significant bargaining power in US and overseas labor markets, likely leading to diminishing job security and … Continue Reading

Individual Arbitration Agreements Held to Preclude Class Actions under FLSA

In two closely watched cases, the Second Circuit has ruled that the Fair Labor Standards Act (“FLSA”) does not preclude the waiver of class action claims (known technically as “collective actions” under the FLSA). In decisions issued on August 9th and 12th, the Second Circuit reversed lower court rulings that had refused to enforce individual … Continue Reading

DOL Moves Forward with Disability Hiring Rules for Government Contractors

On July 31st, the Office of Federal Contract Compliance Programs (“OFCCP”) of the Department of Labor submitted to the Office of Management and Budget (“OMB”) a final rule revising federal regulations regarding affirmative action for individuals with disabilities by covered federal contractors and subcontractors. If adopted, the regulations would mark the first time the federal … Continue Reading

Social Media and Other Policies Struck Down By NLRB Even for Non-Union Employees

Many employers have been surprised by recent rulings that two common employment policies run afoul of the National Labor Relations Act (“NLRA”).  These rulings apply to policies covering all non-management employees, including employees who are not covered by a collective bargaining agreement.  Based on a legitimate interest in preserving proprietary business information, confidentiality, and privacy, … Continue Reading
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