What to Do: Employee Leaves With Trade Secrets
Losing an employee, especially a key employee, is difficult for any business. You’ve invested time, know-how, and resources in your employees and they in turn are the lifeblood of your business. Unfortunately, people leave and when they leave, it is usually to work for a competitor or even to start a competing business. If that employee had access to your company’s confidential information such as customer lists, customer preferences, pricing formulas, and any other information that gives you a competitive edge, you want to make sure that the employee can’t take that valuable information to a competitor. How do you protect trade secrets from a competitor when an employee leaves? I have good news and bad news for you. The bad news: If the first time you think about protecting your company’s confidential information is after a key employee leaves, it may be too late. One of the fundamental requirements under California and Federal laws that protect trade secrets is the requirement that you made reasonable efforts to keep that information a secret. Thus, if you haven’t thought about how … Continue reading
What to do Before You Sign a Contract
Congratulations! You made a deal, reached an agreement, or resolved a dispute and now you’re ready to sign a contract to make it all official. If this contract is important enough to you, pause for a minute, read it carefully, and ask an attorney to review it. Why? There are 2 reasons: Whoever drafts the contract will include terms and provisions that are in their favor. They have no obligation, duty, or interest (generally) in watching out for your interest. But your lawyer does. Every time I review a contract and explain the various clauses to my clients, there are a few clauses that my clients did not understand or was against their interest and invariably had to be negotiated and revised. You may have an engineering degree from MIT and be the smartest person in the room but unless you’ve seen the same clauses day in and day out and have seen their implications in the litigation context, you may not have an accurate understanding of the contract. Contract pitfalls to look out for. This is by no means an all-inclusive list. … Continue reading
Trial Preparation – Anatomy of a Lawsuit Part VIII
This series applies to California lawsuits only. For rules regarding your state’s civil litigation procedure, visit the website for your specific state’s judicial branch. This is a very broad overview. Multiple considerations must take place and detailed analysis goes into each step. To recap, we’ve discussed some considerations before filing a lawsuit such as What is the Deadline to File a Lawsuit and Where to File a Lawsuit. We’ve also discussed How to File a Lawsuit, Responding to a Lawsuit, Discovery, and Mediation. Here’s a visual representation of what a lawsuit looks like. This article focuses on the phase within the blue circle. Although the above flow chart depicts trial preparation as a distinctive step before trial, in reality, your attorney is preparing for the trial from the minute s/he meets with you for a consultation. Trial considerations such as jury appeal, your credibility and the credibility of other witnesses, and the evidence available will influence whether an attorney accepts the case and what theories to pursue. Once a lawsuit is filed, each stage in the litigation is meant to prepare for trial: i.e., pleadings, motions, … Continue reading
Tip Pooling Distribution Restrictions Upheld by Ninth Circuit
Tip pooling is a common practice in the restaurant industry but the legal back and forth of how much and to whom the pooled tips could be distributed has lead to much confusion within the food services industry. Restaurants May Not Require Wait Staff to Share Pooled Tips With Back of House Staff Last month, in the case of Oregon Restaurant and Lodging Association et al. v. Perez et al., the Ninth Circuit upheld the Department of Labor’s rule barring employers from collecting tips given to waiters or other service employees and distributing to back of house staff not in the chain of service (i.e. cooks and dishwashers). Since California is within the Ninth Circuit’s jurisdiction, the Court’s decision in this case will lead to increased litigation against restaurants for unpaid wages. Highly successful restaurants have closed their doors as a result of these wage and hour claims. PRACTICAL TIP: Enterprises with tip pooling practices should have a written tip pooling policy that specifically outlines how tips are pooled and shared. Such written policies should clearly state that pooled tips will not be … Continue reading
Mediation – Anatomy of a Lawsuit Part VII
This series applies to California lawsuits only. For rules regarding your state’s civil litigation procedure, visit the website for your specific state’s judicial branch. This is a very broad overview. Multiple considerations must take place and detailed analysis goes into each step. To recap, we’ve discussed some considerations before filing a lawsuit such as What is the Deadline to File a Lawsuit and Where to File a Lawsuit. We’ve also discussed How to File a Lawsuit, Responding to a Lawsuit, and Discovery. Here’s a visual representation of what a lawsuit looks like. This article focuses on the phase within the blue circle. Although represented in the above flowchart as happening after the discovery phase, a case may go to mediation before a lawsuit is even filed or litigated (early or pre-litigation), at any other time, or may not go to mediation at all. It is an entirely an optional process aimed at settling the dispute before the parties spend the time and money to prepare for trial. However, if the parties are serious about settling a dispute, discovery gives each side a better sense of … Continue reading
Have a Legal Issue? 3 Reasons Why You Shouldn’t Wait Until the Last Minute
This is an ostrich with its head up, looking out into the horizon, rather than burying its head in the sand (although that’s just an optical illusion and they don’t really do that but you get the point). If you are served with a lawsuit or receive a letter from a lawyer or government entity, you want to be this ostrich and deal with issue head-on. I can understand the appeal of waiting as long as possible, whether it’s economics, time, or the philosophy that “ignorance is bliss.” But a legal issue is like cancer, the longer you wait to see a doctor, the worse the problem gets. Here are 3 reasons why you should consult with an attorney sooner rather than later: Litigation deadlines are important. This is one of the areas in life where deadlines are taken seriously. Most judges aren’t like that professor you had in college who deducts half a grade or so if you turn in a late paper. Judges have no problem saying #SorryNotSorry when you miss a big deadline. This means that missing a … Continue reading