More and more, Texas employers rely on non-compete agreements. More and more, those agreements are permeating down below to blue collar jobs. In Elite Auto Body v. Autocraft, No. 03-15-00064 (Tex.App. Austin 5/5/2017), Autocraft sued Elite Auto Body and three former employees of Autocraft. Autocraft claimed the three employees took trade secrets with them
Claw Back Provision Unreasonable
Among the provisions employed increasingly by employers is the “claw back” provision. Under the typical claw back provision, the employee agrees to a certain salary or wage. The employer then requires the employee to agree that if the employee fails to provide a notice of resignation within a certain amount of time, or if the
Coach Leach Keeps up the Pressure
Arbitration Cannot Be Appealed
Arbitration is becoming more and more a significant feature of the legal landscape. Arbitration is a creature of contract. Whatever the parties agree to becomes the arbitration. What if the parties agree to arbitration, but then allow some form of appeal? In a recent decision, the Fourth Court of Appeals wrestled with that question. In
Discussing a New Job is Not Soliciting Employment
Every employee owes his employer a duty of loyalty. An employee generally may not carry on a business that competes with his employer’s business. To do so is grounds for termination. But, what about an employee who is contemplating leaving his employer? Can he discuss his possible departure with co-workers? The court in In Re
Wells Fargo Avoids Liability with Arbitration Clauses
You have to love capitalism. I still believe the capitalistic system is the best around. But, the crazy things it can lead to. Everyone has heard about the Wells Fargo scandal. Bank tellers at Wells Fargo were required to open a certain amount of new accounts every month. The pressure was on to meet a
Buc-ees Sues Worker for Retention Pay
Yes, some employers will take advantage of employees. My friend, Chris McKinney, discusses one such case of a worker for Buc-ees. You know the place with the friendly, smiling beaver? Kelly Rieves was hired by Buc-ees as an assistant store manger in Cypress, Texas. They had her sign a contract which included a clause for
Jimmy John’s Discards Non-Compete Agreements
The sandwich chain, Jimmy John’s, has agreed to stop including non-compete agreements in its hiring documents. I wrote about the chain’s requirement for non-compete agreements here. As I mentioned then, they were requiring the low wage earners to sign these agreements. As part of a settlement, Jimmy John’s is now dropping that non-compete agreement.
Arbitration Favors the Repeat Player
Arbitration in employment cases is still new. It is also private. So, researchers have not had access to arbitration decisions or awards. But, a statute passed in California requires the arbitrators to make public their decisions. One Cornell researcher obtained those public awards and found some remarkable trends. The largest provider of arbitration services is
Armstrong Case back in Arbitration
Large employers and corporations have been pushing arbitration as the panacea for a host of consumer issues, from purchasing phone plans and automobiles to applying for jobs. But, there are some things arbitration just cannot do. In 2012, Lance Armstrong admitted he had used drugs as part of his training regimen. But, for years before