Employment Litigation - Page 13 of 16

With Pennsylvania Non-Competes, As in Life, Timing is Everything

In Pennsylvania, it has long been known that waiting until after the start of employment to have an employee sign a non-competition agreement comes with the real risk that the agreement will be unenforceable for lack of consideration. Last week, the Pennsylvania Supreme Court provided definitive guidance on the issue in Rullex Co., LLC v. Tel-Stream, Inc., et al., holding that a non-competition agreement entered into after an employee commences employment fails for lack of consideration unless the essential provisions of those restrictions were agreed to before the employee started work.

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Supreme Court Decides Bostock v. Clayton County, Altitude Express, Inc. v. Zarda, and R.G. & G.R. Harris Funeral Homes, Inc. v. EEOC

On June 15, 2020, the U.S. Supreme Court decided three cases, holding that Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e-2, bars discrimination on the basis of sexual orientation and transgender identity.

In each of the three cases, an employee was fired shortly after revealing that he or she was homosexual or transgender. Each plaintiff brought suit under Title VII, alleging unlawful discrimination on the basis of sex. The Eleventh Circuit held that Title VII does not protect against discrimination in employment on the basis of sexual orientation, while the Second Circuit held that it did. The Sixth Circuit held that Title VII protects against discrimination on the basis of transgender identity.

For the full alert, visit the Faegre Drinker website.

Minnesota Supreme Court: Standard for Workplace Sexual Harassment Should Reflect Today’s ‘Societal Attitudes’

On Wednesday, June 3, the Minnesota Supreme Court upheld the “severe or pervasive” standard used in workplace sexual harassment cases. But in doing so, it held that lower courts interpreting the standard must consider today’s definition of appropriate workplace conduct.

For the full alert, visit the Faegre Drinker website.

Coronavirus Lawsuits on the Horizon: Termination and Discrimination

As the COVID-19 pandemic spread throughout the country, many employers responded to this unprecedented and uncertain situation by furloughing and laying off some or all of their workforce. These actions already have spurred labor and employment lawsuits. And more are likely on the horizon, including as employees start returning to work.

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Seventh Circuit: BIPA Claims Can Be Heard in Federal Court

Class action litigation under the Illinois Biometric Information Privacy Act (BIPA) has exploded over the last several years. An ongoing issue has been the proper forum for such cases, namely whether there is constitutional, Article III “standing” for BIPA claims to proceed in federal court. A May 5 ruling out of the Seventh Circuit Court of Appeals brought much-needed clarity to the issue by holding that a federal court could hear certain BIPA claims.

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Delaware Chancery Court Declines to Blue-Pencil Overly Broad Noncompete Agreement; Casts Doubt on Choice of Law Provisions

A recent Delaware Chancery Court opinion has elucidated Delaware’s approach to judicially modifying, or “blue-penciling,” overly broad noncompete agreements and deferring to parties’ choice of law provisions. The case, FP UC Holdings, LLC, et al. v. James W. Hamilton, Jr., et al., C.A. No. 2019-1029-JRS (Del Ch. Mar. 27, 2020), highlights the importance of drafting well-tailored restrictive covenants, and shows that even in Delaware – where employers often have been reassured by the safe harbor of courts’ relative willingness to blue-pencil problematic agreements and apply Delaware law to fact patterns that have developed in other states – employers must make careful drafting and choice of law decisions. It also emphasizes that if an employer’s intent is to litigate in Delaware, the employer should do so from the beginning, without acquiescing to another court’s jurisdiction.

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