In the matter of Empire Dealer Services, Inc., et. al. v. Kimberly A. Guerin, et. al, a Massachusetts Court recently granted a preliminary injunction to a corporation enjoining a minority shareholder/former employee from directly competing. Kimberly Guerin (“Guerin”) was vice president and a minority shareholder of Empire Dealer Services, Inc. (“Empire”). In March of 2022, […]
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In a stunning proposal, the Federal Trade Commission (FTC) has proffered a universal ban on noncompete agreements. This proposal, albeit a considerable step away from the norm, was not necessarily unpredictable. Most recently, the FTC made a preliminary finding that noncompete agreements constitute an unfair method of competition and therefore violate Section 5 of the […]
Creating incentives for employees to perform better can take many forms, such as merit bonuses or grants of equity through restricted stock or stock options. Each strategy should have the effect of aligning the employee’s interests with the long-term success of the company, and hopefully creating an economic incentive for the employee to increase their […]
Adam Shafran and Jon Friedmann were co-lead class counsel in three federal class action lawsuits against Pepperidge Farm alleging that the company misclassified its distributors as independent contractors. Adam, Jon and their co-counsel represented all Pepperidge Farm distributors in Massachusetts, Illinois and California and a Federal Court in California recently approved the settlement of all […]
The “at-will” employment relationship is extremely common, offering both the employer and the employee the ability to terminate the relationship on short notice and with no conditions. Despite the flexibility this arrangement offers, there are exceptions to the rule. For example, an employee cannot be fired for reasons that violate public policy (such as discrimination). […]
The Federal Arbitration Act (“FAA”), long a thorn in the side of employees who desire litigation, has now been limited by the expansion of its prominent exception. Before considering the expansion of the FAA’s exception, it is important to understand the FAA. Scope of the Federal Arbitration Act The FAA requires enforcement of arbitration agreements […]
To protect their business interests, many employers include noncompetition clauses in their employment agreements, which place prohibitions on employees working for competitors or within the same industry after parting with their current employer. However, in October 2018 Massachusetts passed G.L. c. 149, § 24L, which governs noncompetition agreements. The failure to meet the requirements of […]
Federal and Massachusetts laws guarantee that no person shall be denied the right to work based on characteristics such as race, color, religion, sex (including pregnancy, sexual orientation, or gender identity), national origin, age (40 or older), disability/handicap, criminal record and genetic information (including family medical history). In order to comply with the law, employers […]
The Computer Fraud and Abuse Act (CFAA) was enacted by Congress in 1986 as a response to the emergence of computer crimes. Oftentimes in the employment situation when an employee leaves there is a claim that the employee took computerized materials with them and violated the CFAA. The United States Supreme Court recently narrowed the […]
The departure of key employees can be quite damaging to a business’ bottom line. It is not surprising that businesses go to great lengths and spend significant sums of money to keep those employees. Sometimes, those lengths take the form of additional pay and benefits to the key employee. In other instances, the measures take […]
