We’re monitoring a few new twists in the story of remote work, including:
Employment Agreements
Focus on Trade Secrets (Video Chat Series)
Baker McKenzie’s North America Trade Secrets Practice is a true cross-disciplinary team of industry ranked and recognized intellectual property, employment, tech transaction, litigation and trial attorneys exclusively dedicated to helping clients identify, protect, prosecute and defend their most valuable, complex and market-differentiating trade secrets throughout the US, Canada, Mexico and globally.
Our Focus on Trade…
Catch-Up Cupid: Late Employee Noncompete Notices May Still Hit the Mark in California (Video Chat)
California’s regulators have made employment noncompetes (and knowing which employees are bound by them and how!) a key compliance item.
Effective January 1, 2024, AB 1076 amends Section 16600 of the state’s Business and Professions Code to “void the application of any noncompete agreement in an employment context, or any noncompete clause in an employment…
The Year Ahead: Global Disputes Forecast 2024 (Webinar Recording)
Special thanks to Celeste Ang and Stephen Ratcliffe.
We launched the seventh annual edition of The Year Ahead: Global Disputes Forecast, a research-based thought leadership surveying 600 senior legal and risk leaders from large organizations around the world and highlights key issues we anticipate to be crucial for disputes for this year.
Spring into Compliance: Our 2024 Planning Checklists for Employers in California, Illinois and New York
Earlier this year, many of you tuned into our 2023 – 2024 Employer Update webinars to plant seeds for success for the year ahead.
Now, to ensure your compliance efforts are blooming, we’re sharing detailed checklists to help you ensure you’re ticking all the boxes!
…End of the AB 51 Saga: California Employers Can and Should Continue Using Arbitration Agreements
The new year brought some good news for California employers. On January 1, 2024, U.S. District Court Judge Kimberly Mueller issued a decision permanently enjoining California state officials from enforcing AB 51, the contested law that sought to prohibit employers from “forcing” job applicants or employees to enter into pre-dispute employment arbitration agreements covering certain discrimination and retaliation claims. The permanent injunction reaffirmed the ability of employers to mandate arbitration for most employment disputes.
This decision comes less than a year after the Ninth Circuit found that the Federal Arbitration Act (FAA) preempts AB 51 in Chamber of Commerce of the United States v. Bonta. As noted in our blog post on the Bonta decision, the Ninth Circuit ultimately upheld a temporary injunction against AB 51, allowing California employers to continue to use employment arbitration agreements while the matter was litigated, and which—given Judge Mueller’s permanent injunction—now can continue indefinitely.
The Lead Up: Recap of the AB 51 Litigation Battle
Here is a quick summary of the AB 51 litigation leading up to the January 1, 2024 permanent injunction:
- In December 2019, Judge Mueller issued a temporary restraining order, prohibiting California from enforcing AB 51.
- In September 2021, the Ninth Circuit struck down Judge Mueller’s decision to temporarily restrain California from enforcing AB 51, holding that AB 51 was not largely preempted by the FAA.
- In August 2022, the Ninth Circuit withdrew its September 2021 decision and voted to take another look at the case through a panel rehearing.
- In February 2023, the Ninth Circuit, backtracking on their September 2021 decision, held that AB 51 is preempted by the FAA because the deterring penalties that AB 51 imposes on employers is antithetical to the FAA’s policy of favoring arbitration agreements.
New York Employers Can Breathe Easier On Non-Competes . . . For Now
In late breaking news out of New York, Governor Kathy Hochul has vetoed legislation that would have imposed the most restrictive state-level ban on employee non-competes in the United States. Last June, the New York State Assembly passed S3100, which if signed by Governor Hochul, would have voided any contract restraining anyone from engaging in a…
Mexican Employer Update: Learning from 2023 and Planning for 2024 (Video Chat)
Special thanks to co-presenters Ricardo Castro-Garza, Alfonso García-Lozano and Javiera Medina-Reza.
This year our team helped Mexican employers overcome a range of challenges across the employment law landscape — from keeping up with evolving health & safety obligations, defending contentious employment disputes, supporting the legitimization of collective bargaining agreements, and much more.
In…
Why US Employers Should Review Noncompetes in Equity Award Agreements
We are pleased to share a recent LegalDive article, “Why companies should review noncompetes in equity award agreements,” with quotes from Barbara Klementz.
Given increased government scrutiny, employers need to be mindful of the time periods noncompetes cover and review state-specific requirements.
In the light of the sharp focus the federal government and a growing…
Creating IP in New York? Watch out! Your employee may soon own more than you think
Special thanks to co-authors Cynthia Cole, Heiko Burow, Inez Asante and Alysha Preston.
In June, New York Senate Bill S5640 unanimously passed both houses of the NY legislature. It seeks to enact restrictions on invention assignment agreements used in the employment. S5640 now moves to the desk of Governor Kathy Hochul and if signed into law, it will amend the New York Labor Law effective immediately.Continue Reading Creating IP in New York? Watch out! Your employee may soon own more than you think