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Employers Should Carefully Consider Whether To Sue Former Employees For Threatened Trade Secret Misappropriation Based On Recent California Court of Appeal Decision Awarding Over 1.6 Million To
From: Labor Employment Law Blog
A recent decision by a California Court of Appeal should give employers pause before they use Californias trade secret laws to try to stifle competition in violation of California law.ampnbsp In the case of FLIR Systems, Inc. v. Parrish, the Court of Appeal affirmed a decision by the trial court awarding 1,641,216.78 in attorneysamprsquo fees and costs to two former employees who successfully defended a trade secret action brought by their former employer.ampnbspThe Court agreed with the trial court that the action was filed and maintained in bad faith within the meaning of the California Uniform Trade Secrets Act. ampnbsp In this case, two former employees of Indigo Systems Corporation ampquotIndigoampquot left Indigo and decided to start a new company based on a business...
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California Court of Appeal Extends Wrongful Termination Cause of Action
A California Court of Appeal has recently held that a subsequent employer can be liable for wrongful termination in violation of public policy for firing a new employee when her prior employer attempted to enforce an unenforceable non-compete agreement. The case, Silguero v. Creteguard, Inc., Case No. B215179, represents an expansion of an employee's right to sue for wrongful termination in violation of public policy. In this case, a sales employee signed a non-compete agreement with her previous employer which purportedly prohibited her from working for a competitor for 18 months post- termination. The employee ultimately was fired, and a few months later, found employment with Creteguard, Inc., a competitor of her former employer. After her hire, her previous employer co...
More | n Labor Employment Law Blogn
California Court of Appeal Extends Wrongful Termination Cause of Action
A California Court of Appeal has recently held that a subsequent employer can be liable for wrongful termination in violation of public policy for firing a new employee when her prior employer attempted to enforce an unenforceable non-compete agreement. The case, Silguero v. Creteguard, Inc., Case No. B215179, represents an expansion of an employee's right to sue for wrongful termination in violation of public policy. In this case, a sales employee signed a non-compete agreement with her previous employer which purportedly prohibited her from working for a competitor for 18 months post- termination. The employee ultimately was fired, and a few months later, found employment with Creteguard, Inc., a competitor of her former employer. After her hire, her previous employer co...
More | n Labor Employment Law Blogn
California Court of Appeal Extends Wrongful Termination Cause of Action
A California Court of Appeal has recently held that a subsequent employer can be liable for wrongful termination in violation of public policy for firing a new employee when her prior employer attempted to enforce an unenforceable non-compete agreement. The case, Silguero v. Creteguard, Inc., Case No. B215179, represents an expansion of an employee's right to sue for wrongful termination in violation of public policy. In this case, a sales employee signed a non-compete agreement with her previous employer which purportedly prohibited her from working for a competitor for 18 months post- termination. The employee ultimately was fired, and a few months later, found employment with Creteguard, Inc., a competitor of her former employer. After her hire, her previous employer co...
More | Labor Employment Law Blog
Employees Cannot Sue Under Labor Code 351 for Alleged Tip Pooling Violations
By Robin E. Weideman Today the California Supreme Court issued its decision in Lu v. Hawaiian Gardens Casino, holding that Labor Code section 351 does not provide private litigants a direct right to sue for an alleged taking of their gratuities by their employer. The Lu case is a tip pooling case, in which the plaintiff alleged that his casino employer unlawfully required the plaintiff to contribute 15-20% of his tips to a tip pool that was then distributed among various employees.  The plaintiff alleged that the tip pooling arrangement violated Labor Code section 351, which mandates that tips are the property of the employee for whom they are left.  The trial court and the appellate court both held that the plaintiff’s Labor Code section 351 claim was not a viable cl...
More | California Labor & Employment Law Blog
Employees Cannot Sue Under Labor Code 351 for Alleged Tip Pooling Violations
By Robin E. Weideman Today the California Supreme Court issued its decision in Lu v. Hawaiian Gardens Casino, holding that Labor Code section 351 does not provide private litigants a direct right to sue for an alleged taking of their gratuities by their employer. The Lu case is a tip pooling case, in which the plaintiff alleged that his casino employer unlawfully required the plaintiff to contribute 15-20% of his tips to a tip pool that was then distributed among various employees.  The plaintiff alleged that the tip pooling arrangement violated Labor Code section 351, which mandates that tips are the property of the employee for whom they are left.  The trial court and the appellate court both held that the plaintiff’s Labor Code section 351 claim was not a viable cl...
More | California Labor & Employment Law Blog
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