The Texas Supreme Court issued an opinion this morning holding that advising an at-will employee that his employment will be terminated if he does not sign a mutual waiver to resolve disputes without a jury is not unlawful coercion sufficient to sset aside the agreement. If you read this blog frequently, you know I am a big proponent
Court Holds Forfeiture Provision in Executive Stock Incentive Program Unenforcable Noncompete
Covenant not to compete cases normally arise when an employer seeks to enforce a restrictive covenant by having a former employee enjoined from breaching the covenant and working for a competitor. They can also arise when the employee is not expressly prohibited from competing, but is subjected to severe economic penalty if he engages in
Dodd-Frank Act Effect on Employer Arbitration Programs
The Dodd-Frank Act created a "reward" (bounty) program for whistle blowers that voluntarily provide original information of fraud or unlawful activity in violation of the Sarbanes-Oxley Act, the Foreign Corrupt Practices Act and other securities law violations. The Dodd-Frank Act also provides whistle blowers protection from retaliation and renders pre-dispute arbitration agreements of whistle blower
Texas Supreme Court Holds Worker’s Compensation Exclusivity Provision Bars Claims by Deceased Employee’s Parents
Today the Texas Supreme Court held that when an employee is employed by two employers (a staff leasing company and client company in this case) and both employers have workers’ compensation insurance, the workers’ compensation exclusivity provisions apply to bar negligence claims asserted by the deceased employee’s parents. You can review a copy of the
Fifth Circuit Holds 24 Hour Fitness Arbitration Agreement Illusory and Unenforcable
24 Hour Fitness operates health clubs and fitness facilities across the country. As part of its operations, 24 Hour Fitness employs sales representatives. As a condition of employment, employees are required to enter into arbitration agreements to arbitrate their employment disputes with their employer. FLSA claims (i.e., overtime and minimum wage claims) are covered within the scope of the
Fifth Circuit Case Demonstrates Consequences of Failing to Make Prompt and Thorough Investigations of Employee Complaints
A new Fifth Circuit case reveals the consequence that can occur when an employer and its managers fail to take harassment complaints seriously; fail to promptly and thoroughly investigate the complaints; and reach conclusions following the investigation that just plain wrong. In Cherry v. Shaw Coastal Inc., a male employee (Cherry) complained that his immediate
Court Strikes Employer’s Arbitration Agreement With Employee For Lack of Consideration
There are a few pockets in the state where lawyers representing employees still vigorously fight the arbitration agreements their clients signed with employers agreeing to arbitrate all disputes. One of the pockets is in El Paso, Texas as evidenced by the number of opinions out of the court of appeals addressing the enforceability of an arbitration
Court Holds Ministerial Exception Bars Teacher’s Discrimination Suit
Yesterday, the U.S. Supreme Court unanimouslyy held that the ministerial exception bars a federal employment discrimination suit brought by a teacher challenging her church-employer’s decision to terminate her employment. While this holding is limited to religious affiliated employers, it firmly establishes the ministerial exception as a bar to certain employment discrimination claims against religious organizations.
Fifth Circuit Sets Two Year Statute of Limitations for False Claims Act Retaliation Cases
The federal False Claims Act (aka Qui Tam statute) provides a cause of action for an employee who is retaliated against for attempting to prevent its employer from making fraudulent claims for payment to the United States. An open issue in the Fifth Circuit (the federal court of appeals covering appeals from Texas, Louisiana and Mississippi)
Plaintiff-Employee’s Case Dismissed for Giving Differing Reasons for Leaving Employment
In reading a recent Fifth Circuit opinion affirming the dismissal of a employee’s claim of racial harassment involving the display of a noose, I am reminded of Mark Twain’s quote, "If you tell the truth, you don’t have to remember anything." Its good advice to live by and even better advice for deponents and witnesses.
Nickey