When someone in New York starts a business, they put a lot of effort into making sure it is successful. Often businesses rely on employees like sales personnel, product developers or even chefs, to build up a business. Such employees, however, usually have access to proprietary business information. Proprietary business information can include customer lists, trade secrets like recipes or product formulas, or other intellectual property. If an employee with such information leaves the business, there is always the possibility that that business's proprietary information could fall into the hands of a competitor.
Many New Yorkers have been hearing good news from employers recently: "You're hired!" Although this is often a cause for celebration, both employees and employers usually have some things to sort out before the big first day of work. Often one of these things is negotiating a severance agreement. A severance agreement provides employees with money or other benefits under certain circumstances when they leave the company. This blog post will provide some essential information about severance agreements.
Depending on the type of business they are in, companies in New York and elsewhere have certain priorities. For some, this means taking extra precautions to protect business secrets. These business secrets are often the core of the company's identity, making it what it is and causing it to stand out in the market and keep up with other competitors. If this information is revealed, it could be detrimental to the company. Thus, employers and business owners take steps to ensure their employees keep these secrets as well.
Whenever there is a dispute between an employer and employee about the terms of an employment contract, those terms may not only govern the result of the dispute resolution method used, they may also control what dispute resolution method is used. An arbitration clause in an employment agreement may compel the parties to resolve the dispute using binding arbitration.
As the employment market begins to heat up, many New Yorkers are taking advantage by entering into employment relationships with different employers. A common requirement from employers is a non-compete agreement. Many employers require new employees to sign a non-compete agreement before being hired. But what is a non-compete agreement? How do courts enforce them?
In today's job market, employees making frequent job changes, as well as changing companies, has become commonplace. Non compete agreement are typically used to protect employers from having trade secrets exposed when an employee leaves the company. But how enforceable are these agreements? An employer can have a better chance of protecting themselves and their business by creating non compete agreements that are more specific and reasonable.
Many employees in Manhattan, and even some employers, may assume that most employment arrangements are governed by employment contracts in addition to employment law. The reality is that most employment relationships can be categorized as employment "at will," meaning that the employee can be terminated for any reason not expressly prohibited by employment law or civil rights law. However, some employment relationships are governed by an employment contract, and it is common for these contracts to limit the power of the employer to fire the employee.
Many contracts in the modern business world contain clauses requiring that disputes about the contract must be submitted to binding arbitration. When the parties to the arbitration proceeding are both large, well-funded corporations, the arrangement is usually deemed to be fair to both parties. When, however, the clause appears in an employment contract, the parties may be manifestly unequal, a large corporation versus one or more employees. Recently, lawyers who engage in employee representation have begun to push back against such provisions.
With your business up and running, you were likely ecstatic about its success and the capital you invested in it. However, you have reached your goals, and your business is becoming profitable. In fact, you and your partner may be discussing expanding your staff. This introduces new cause for anxiety.
Non-compete agreements have become increasingly common in almost all types of business. They are used to protect the employer's intellectual property and also to prevent former employees from sharing customer lists and similar information with competitors. Occasionally, the former employee will attempt to have a non-compete agreement declared unenforceable. One such case is unfolding in the Federal District Court in New York.