Blogs

Posts Categorized: Labor and Employment Law

Posted: October 21, 2020

Provision in Contract Awarding Double Attorneys’ Fees to Prevailing Party is Enforceable

On September 30, 2020, the Second Department issued a decision in Loughlin v. Meghji, 2020 NY Slip Op. 05196, addressing whether a provision in a contract granting a prevailing party in litigation double its attorneys’ fees was valid.  In overturning the trial court’s ruling that such a provision was an unenforceable penalty, the Court confirmed... Read more »

Posted: August 5, 2020

Typically, At Will Employees Do Not Have a Fiduciary Duty to Their Employer

On July 22, 2020, Justice Borrok of the New York County Commercial Division issued a decision in United Staffing Solutions, Inc. v. Humanedge, Inc., 2020 NY Slip Op. 32404(U), holding that at-will employees do not have a fiduciary duty to their employer, explaining: A fiduciary relationship arises between two persons when one of them is... Read more »

Posted: July 29, 2020

Employers Should Scrutinize Non-Competes in Employment Contracts on a Case-By-Case Basis

To employers, having key employees sign non-competition agreements can be crucial to their business needs.  In today’s business environment, competition is fierce and in the information age, brain power and professional knowledge are indispensable business assets.  As such, the enforceability of non-competition agreements is one of the most common questions clients ask about.  In general,... Read more »

Posted: June 23, 2020

Economic Duress Not a Defense for At-Will Employees Who Sign Contracts Under Threat of Termination

A recent Commercial Division ruling analyzed whether an at-will employee can raise the affirmative defense of economic duress when his or her employer threatens to terminate the employee for refusal to sign a contract. In concurrence with existing New York precedent, the court concluded that because an employer may terminate an at-will employee at any... Read more »

Posted: June 1, 2020

Non-Recruitment Provision Reasonable, and Thus Enforceable

On April 19, 2020, Justice Masley of the New York County Commercial Division issued a decision in First Am. Fin. Corp. v. Verisk Analytics, Inc., 2020 NY Slip Op. 31288(U), holding that a non-recruitment provision in an agreement to sell a business was reasonable, and thus enforceable, explaining: Plaintiffs also argue that they are entitled... Read more »

Posted: April 29, 2020

Non-Compete Clause Covering All of United States and Canada Unenforceable

On April 13, 2020, Justice Borrok of the New York County Commercial Division issued a decision in Stone Source, LLC v. Hubbard, 2020 NY Slip Op. 30941(U), holding that a non-compete provision covering all of the United States and Canada was unenforceably over-broad, explaining: A restrictive covenant will only be upheld to the extent that... Read more »

Posted: April 24, 2020

FAQs for a Brave New World: Employers Grapple with the Legal Implications of Telecommuting

FAQs for a Brave New World: Employers Grapple with the Legal Implications of Telecommuting By Hillary S. Zilz and Christopher R. Dyess The COVID-19 pandemic has upended the way that we all live and work. With mandatory shelter in place orders across the country, employers have been forced to allow their employees to work from... Read more »

Posted: March 20, 2020

Answers to Common Questions for Employers Regarding the COVID-19 Global Pandemic

COVID-19 Is Forcing Employers to Navigate in Unchartered Waters By Christopher R. Dyess and Hillary S. Zilz Background The rapid onset of the COVID-19 global pandemic has shaken the world to its very core. Our fellow citizens are falling ill. Our neighbors are anxious to know what will happen next. Financial markets are in disarray.... Read more »

Posted: March 17, 2020

Labor Law 193 Does Not Apply to Wholesale Withholding of Pay

On February 21, 2020, Justice Scarpulla of the New York County Commercial Division issued a decision in H. Roske & Assoc., LLP v. Burghart, 2020 NY Slip Op. 30497(U), holding that Labor Law Section 193 does not apply to wholesale withholding of pay, explaining: In his second counterclaim Burghart alleges that Counterclaim Defendants refused to... Read more »

Posted: February 12, 2020

Court Reinstates Claim for Tortious Interference with an At-Will Employment Contract

On February 7, 2020, the Fourth Department issued a decision in Conklin v. Laxen, 2020 NY Slip Op. 00958, reinstating a claim for tortious interference with an at-will employment contract, explaining: We agree with plaintiff that Supreme Court erred in granting the motion with respect to the tortious interference with employment cause of action against... Read more »