Los Angeles partner Mark Terman recently authored an article for the Daily Journal titled, “Developing a Trade Secret Protection Program to Reduce Risk and Increase Court Enforcement.”
In his first year in office, California Governor Gavin Newsom signed several laws impacting California employers. A summary of some of the key new laws follows. The effective date of the particular new law is indicated in the heading of the Assembly Bill (AB) or Senate Bill (SB).1 The list below is in numerical order by AB or SB.
In most jurisdictions, it is standard practice to include a “no-rehire” clause when negotiating a settlement agreement in an employment dispute. “No-rehire” clauses bar the departing employee from seeking future employment with the employer or one of the employer’s related entities. If the former employee applies for a job with the employer or a related entity, the “no-rehire” clause allows the employer to reject the former employee’s application or require the former employee to withdraw the application for employment. In some instances, if the former employee is hired inadvertently, the “no-rehire” clause provides the employer a legitimate nondiscriminatory basis to rescind the offer. Although the use of “no-rehire” clauses is a common practice, California recently prohibited the practice and joined Vermont, which banned “no-rehire” provisions in 2018.
If so, you should be on alert about California Assembly Bill 5 (AB5), a bill based on the California Supreme Court’s decision in Dynamex v. Superior Court.* If it becomes law, AB5 will have wide-ranging repercussions for companies that rely on independent contractors in California.
Mark Terman, Sujata Wiese and Shamar Toms-Anthony updated their article authored with Practical Law titled “Confidentiality and Nondisclosure Agreements (CA).” In their article, Mark, Sujata and Shamar discuss how companies can protect their information, including the use of confidentiality agreements and related practices, under California law.
*Originally published by CalCPA in the January/February 2019 issue of California CPA — the original article can be found here.
As the #MeToo movement gained momentum to right the wrongs of sexual harassment alleged against Hollywood, business and politicians, so too has the California Legislature responded by declaring, in essence, #TimesUp.
Of the nearly 600 bills introduced in 2018 that mention “employer,” compared to 304 bills in 2017) 455 mentioned “sexual harassment,” (compared to 347 the prior year). While most of those bills did not pass, and of the ones that did, Gov. Brown did not sign several into law, many of the new laws will have significant impact on our state.