On January 5, 2016, Justice Demarest of the Kings County Commercial Division issued a decision in Aqualife Inc. v. Leibzon, 2016 NY Slip Op. 50002(U), refusing to enforce non-compete agreements. In Aqualife, the plaintiff sought “damages for breach of contract, tortious interference with contract, and unjust enrichment, and to impose a constructive trust” relating to... Read more »
Blogs
Posts Categorized: Labor and Employment Law
Whistleblower Claims Fail Because Complaints Unrelated to Actual Violations of Law or Regulation
On November 25, 2015, the Second Department issued a decision in Kamdem-Ouaffo v. Pepsico, Inc., 2015 NY Slip Op. 08712, holding that a whistleblower claim must involve complaints of actual, not suspected, violations of law or regulation. In Kamdem-Ouaffo, the plaintiff brought “an action, inter alia, to recover damages for alleged violations of Labor Law... Read more »
Court Refuses to Order Specific Performance of Restrictive Covenant
On October 19, 2015, Justice Ramos of the New York County Commercial Division issued a decision in Marsh USA, Inc. v. Alliant Insurance Services, Inc., 2015 NY Slip Op. 51555(U), refusing to order specific performance of a restrictive covenant. In Marsh USA, the plaintiff sought specific performance of a restrictive covenant “enjoin[ing] the defendants from... Read more »
Second Circuit Recognizes Retaliation Claims Under Section 1983
On September 2, 2015, the Second Circuit issued a decision in Vega v. Hempstead Union Free School District, 14‐2265‐CV, recognizing the existence of a retaliation claim under Section 1983. In Vega, the plaintiff school teacher brought an action in the EDNY against his school district and two administrators alleging claims for “discrimination and retaliation claims... Read more »
Plaintiff States Claim for Fraudulent Inducement Despite Being At-Will Employee
On August 25, 2015, the First Department issued a decision in Laduzinski v. Alvarez & Marsal Taxand LLC, 2015 NY Slip Op. 06646, holding that an at-will employee can bring a claim for fraudulent inducement to enter into an employment contract. In Laduzinski, the plaintiff brought an action against his former employer for fraudulently inducing... Read more »
Reimbursement of Expert Fees Not Awardable Under FLSA
On July 29, 2015, the Second Circuit issued a decision in Gortat v. Capala Bros., 14‐CV-3304, reversing a decision by the EDNY and holding that expert fees may not be awarded to a prevailing plaintiff under the Fair Labor Standards Act. In Gortat, the EDNY awarded the plaintiffs, who had prevailed on their FLSA claims... Read more »
Employment Agreement With a Fixed Term Can Only Be Terminated for Just Cause
On July 22, 2015, Justice Singh of the New York County Commercial Division issued a decision in Stoler v. Herald National Bank, 2015 NY Slip Op. 31361(U), holding that an employer breached an employment agreement by dismissing an employee with a fixed-term employment contract without just cause before the end of the term, explaining that... Read more »
Restrictive Covenant Made in Connection With Sale of Business Enforced by Stricter Standard
On July 10, 2015, the Fourth Department issued a decision in Genesee Valley Trust Co. v. Waterford Group, LLC, 2015 NY Slip Op. 06071, holding that a restrictive covenant limiting the employment of a business’s seller is enforced more strictly, explaining: Because [the defendant] sold his GVT shares to CNC, and CNC acquired GVT’s goodwill... Read more »
Client Q&A: Should I sign a non-compete agreement? How will it be enforced?
Should I sign a non-compete agreement? How will it be enforced? By Niall D. O’Murchadha Non-compete agreements are a recurring issue faced by both employers and employees. These contractual provisions are often an issue of concern both when contracts are being negotiated and when such a provision may need to be enforced. So how do... Read more »
At-Will Employee Can Assert Breach of Contract Claim for Wages Owed
On December 31, 2014, the Second Department issued a decision in Webb v. Greater N.Y. Auto. Dealers Assn., Inc., 2014 NY Slip Op. 09121, holding that an at-will employee could bring a breach of contract claim relating to her employment when the claim was for wages already earned. In Webb, the Second Department reversed the... Read more »