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California Law Voids Most NonCompete Clauses in Contracts

7/30/2015

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               Many employers prefer that their employees do not compete with their business during or after leaving employment with the employer.   However, California law is clear in that it is unlawful to prevent an individual from working in the same industry, pursing their profession, career, etc.  

              California Business and Professions Code Section 16600 states:  "Except as provided in this chapter, every contract by which anyone is restricted from engaging in  a lawful profession, trade or business of any kind is to that extent void."

              There are very few exceptions to the rule that noncompete clauses or contracts are void in California.   They are contract between equity business owners in which they agree to not compete if one owner sells his/her equity to the other.   The other exception is if a business is sold to a new owner(s).   In that situation, the buyer can require the seller to refrain from competing.  

             Noncompete clauses or contracts should not be confused with nondisclosure or nonsolicitation agreements.    It is not unlawful, and therefore, contracts or terms of contracts are upheld in California if they require an employee to refrain from disclosing trade secrets, including customer lists, etc. and/or from soliciting the services of current employees of the employer. 

             Although California law is crystal clear in that noncompete agreements of employees (unless an equity shareholder or seller of a business) are void, many employers still use them.   If you have questions about noncompete terms or agreements or have one and want to know if it is unlawful and therefore void, call Law Office of Kristine S. Karila to discuss.   Ms. Karila has been practicing employment and labor law in California for 23 years.    (949) 481-6909.

              Copyright 2015 - Law Office of Kristine S. Karila.   
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An Employer's Retaliation Against an Employee May be A Violation of the Employee's Rights.   When is Retaliation unlawful?  

7/18/2015

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             It is unlawful for an employer with employees who work primarily in California to retaliate against an employee BECAUSE she/he asserted a legal right, was a whistleblower or BECAUSE of characteristics he/she has which are protected by the law. 


              If an employee asserts his/her right(s) in good faith, and the employer retaliates against the employee because of her/his complaint, the employee may have a case based on wrongful retaliation and wrongful termination, if applicable.

             If an employee is retaliated against (fired, demoted, lowered wages, harassed, etc.) for asserting right(s) such as those listed below, the employee may have a case for unlawful retaliation, wrongful termination (if applicable.)

 Overtime
Failure to pay at least every two weeks
Request for leave under FMLA/CFRA
Request for reasonable accommodation of medical condition/disability
Opportunity to take duty free meal periods
Opportunity to take breaks
Workplace free of sexual harassment
Leave for Pregnancy Related complications or to give birth or bond with the baby
Earned and unused Vacation to be paid at time of termination
Paid Sick Leave of up to 3 days per year
Payment of work related expenses
Workplace free of harassment or discrimination based on race
Workplace free of harassment or discrimination based on gender
Workplace free of harassment or discrimination because of pregnancy
Workplace free of harassment or discrimination based on age, if over 40
Workplace free of harassment or discrimination based on marital status
Workplace free of harassment or discrimination based on religion
Workplace free of harassment or discrimination based on serious medical condition/disability
Retaliation because a worker filed a workers' compensation claim or was injured on the job


             It is also unlawful to retaliate against an employee because he/she reported an employer's illegal activity to a governmental agency or to a supervisor who had the authority to investigate the claim and do something about it.

             If you are an employee who has been retaliated against because you asserted your legal rights, in good faith, or if you were a whistleblower or because of your race, gender, pregnancy, disability, medical condition, marital status, religion, call Law Office of Kristine Karila to discuss.  Ms.  Karila provides a free initial phone consultation.   (949) 481-6909

             If you are an employer, make sure you know your duties regarding retaliation against an employee.   Ms. Karila offers phone or office consultations to help guide you to prevent a costly lawsuit, represents employers in wrongful termination, unlawful discrimination, retaliation or harassment lawsuits and provides mandatory sexual harassment avoidance training to managers.   Ms. Karila can be reached at (949) 481-6909. 


            Law Office of Kristine S. Karila - copyright 2015. 





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Employers are Required by Law to Have Workers' Compensation Insurance.  Failure to have WC Insurance Can Lead to a VERY Costly Personal Injury Lawsuit Against the Employer.

7/16/2015

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               California employers are required to carry workers’ compensation insurance or file with the state as being self-insured with proof of financial eligibility to be self-insured.   The proper name for the insurance is workers; comp, not “workman’s comp” since it is equally available to female workers.  

 

            It is a misdemeanor to fail to carry workers’ compensation insurance and California can audit, fine, etc. any employer it believes may or may not be carrying it.

 

            Employers are required by law to post information about what to do if an employee is injured on the job in a conspicuous place.  The posting should include the name and contact information of the workers’ compensation insurance carrier. 

 

            Workers’ comp insurance applies to employees who are injured on the job or within the course and scope of their employment.     Workers’ compensation statutes/laws provide guidelines for payment to injured employees and sets limits of monetary payments. 

 

 If an employer does not have workers’ comp insurance and an employee is injured during the course and scope of his/her work, and the employer is also not self-insured, the employee may sue the employer for all damages he/she can get in a regular personal injury lawsuit, including but not limited to, back and front pay, medical expenses, loss of benefits, pain and suffering, etc.    Thus, a lawsuit against an uninsured employer can be very costly.  

 

            If you are an employee who has been injured or you are an employer whose employee was injured on the job and there is no workers’ comp policy in effect, call Law Office of Kristine S. Karila to discuss.  

           

 (949) 481-6909.

 

Copyright 2015 Law Office of Kristine S. Karila/Labor and Employment Attorney.

 

           

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California Labor Laws Regarding Lactation or Breast Milk Expression at Work.  

7/4/2015

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               California has laws which protect pregnant employees.   See my blog about this topic which includes how a pregnant employee can get up to 7 months of protected leave.

       

            California also has a law that allows an employee who is the mother of an infant child, the opportunity to express breast milk at work if she chooses to do so.   The law states that employers must provide a reasonable accommodation to an employee who wants to express breast milk for her infant child.   The time for this break shall, if possible, be concurrent with a break already provided to the employee.    The lactation break is a paid break unless it is not during the time of the employee’s regular break.  

 

            The employer must make a reasonable effort to provide a private location for lactation other than a toilet stall and it should be in close proximity to the employee’s work area. 

 

            An employer does not need to provide a lactation break if it would seriously disrupt the operations of the business, however, employers are cautioned to be careful when denying a lactation break so as not to get involved in a costly lawsuit.  Contact Law Office of Kristine S. Karila regarding this issue. 

 

            It is wise to have a lactation policy set forth in the employer’s Employment Manual, a copy of which should be given to all employees. 

 

            Kristine S. Karila is an employment law attorney who has been practicing law in California since 1992.   She represents employees and employers.    Call Ms. Karila for a phone consultation.   (949) 481-6909.

 

Copyright 2015 Law Office of Kristine S. Karila/Labor and Employment Attorney.

 

           

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Severance Pay and Severance Agreements in California.   When is it required and when is it wise to provide it even if not required by the law.

7/2/2015

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               Employers of workers within the State of California are not required to pay severance pay upon termination of employment unless there is a written contract requiring it or sometimes if the employer has a policy of paying severance pay to employees within the same job category of a worker whose employment will be or has been terminated by the employer.

 

            If a written contract exists and requires payment of severance pay, the employer will be bound by the terms of the contract.  

 

            Oftentimes, employers choose to pay severance pay even though they have no contractual duty to do so.   The reasons are (1) that they want to pay the employee some money to help the employee during a period of unemployment; (2) they want to thank the employer for her/his services and, importantly, (3) they want to have the employee sign a release of all claims whether known or unknown so that they don’t’ get sued by the employee.

 

            Not all claims can be released.   Examples are a claim for unemployment compensation through the EDD, a claim for age discrimination, unless the severance agreement states that the employee has 21 days to consider the offer and 7 days to revoke his/her signature/agreement after signing. 

 

            It is wise to have an employment law attorney read and consult with an employee BEFORE signing a severance agreement.   If the agreement is signed and it contains a properly worded release clause, it may be impossible for the employee to file a claim, sue, etc. for a variety of different claims against the employer.  Similarly, it is very wise to have an employment law attorney write the severance agreement to make sure that the employee does, in fact, release of his/her potential claims against the employer.  

 

Oftentimes, an employment law attorney can negotiate a higher severance pay if the employee has any valid potential claims against the employer, such as unlawful discrimination, harassment, unpaid wages, etc.  If you are an employee, call Attorney, Kristine S. Karila for a free initial phone consultation.   (949) 481-6909.   If you are an employer, Ms. Karila can draft a solid severance agreement for you and advise you regarding these matters.   Ms. Karila’s fees are $300.00 per hour and may be able to draft a severance agreement for a reasonable flat fee.   Call to discuss.   (949) 481-6909.

 

Copyright 2015 - Law Office of Kristine S. Karila

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    Kristine S. Karila, Employment Law Attorney has been practicing law in California since 1992.   She specializes in employment law.  Call for a free initial phone consultation  (949) 481-6909



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