Background Checks: The New Burden of Proof
August 31, 2006
Negligent hiring cases typically turn on whether a background check that was forgone would have helped to reveal an employee's propensity to erupt in violence or commit fraud. But a new burden of proof may be on the horizon.
Beware the 'Cat's Paw'
August 31, 2006
Corporate officials, including CEOs, general counsel and human resource personnel, are often asked to determine whether to terminate the employment of an individual who is working for a company. In making that determination, the official frequently relies on information and/or recommendations provided by subordinates without conducting an independent investigation regarding the merits of the decision. A recent decision from the United States Court of Appeals for the Tenth Circuit highlights the risks that may accompany such a course of conduct.
The Immigration Maze
August 31, 2006
The headlines are difficult to miss. The immigration debate is an issue to be contemplated and addressed by businesses, as politicians gear up for elections and Americans take sides in the deliberation. While immigration agents are arresting executives and employees for not complying with immigration law, and as the President of the United States is declaring that employers must be held accountable for their employees, even more restrictive and complex immigration regulations loom in the future. Under this flurry of activity, employers are left to decipher overly complicated, and often vague, laws and regulations in their efforts to find workers, fill open positions and keep operations running.
Retaliation Under Title VII
August 31, 2006
What types of employer conduct can constitute retaliation under Title VII? The answer to that question has changed significantly with a recent U.S. Supreme Court decision. On June 22, 2006, the Court issued its decision in Burlington Northern & Santa Fe Railway Co v. White, expanding protections for employees who allege that they have suffered retaliation after making a complaint of discrimination or harassment under Title VII of the Civil Rights Act of 1964.
The Stock Option Grant Issue
August 31, 2006
Just as everyone involved with executive compensation matters was settling in to address the impact of the new accounting rules under FAS 123R, the requirements of the stock exchanges, the deferred compensation rules under Internal Revenue Code (IRC) section 409A, the new Securities Exchange Commission's (SEC) proxy rules and the proper balance between adequate executive compensation and good governance, a new jolt came into play in the executive compensation arena.
Patent Injunctions After eBay: The Bidding Is Open on Who Really Benefits
July 27, 2006
When faced with the threat of a crippling injunction, many businesses would rather pay for a patent license than spend millions litigating an uncertain result. This simple principle lies at the heart of what has been called the 'licensing-by-litigation' model, and has led to numerous battles over patent rights.
Lies, Damn Lies And M&A Fraud
July 27, 2006
In <i>ABRY Partners V, L.P. v. F&W Acquisition LLC, et al.</i>, Vice Chancellor Strine of the Delaware Court of Chancery addressed the circumstances in which a seller may contractually insulate itself in a purchase agreement from claims by the buyer for rescission and post-closing damages due to intentional misrepresentations concerning the business or assets being sold. The court held that 'when a seller intentionally misrepresents a fact embodied in a contract ' that is, when a seller lies,' Delaware public policy compels Delaware courts to disregard provisions of a contract that purport to eliminate certain remedies, including the remedy of rescission. <br>This article examines Vice Chancellor Strine's decision in ABRY and highlights some of its implications for buyers and sellers in M&A transactions.
Risks of Hiring Employees from Another Firm
July 27, 2006
The scenario is a familiar one: An individual decides to leave his current employment and accept employment with a new employer. As it turns out, the employee has signed an agreement with the former employer restricting his or her right to compete with the former employer (non-compete agreement), prohibiting him or her from soliciting employees or customers of the former employer (non-solicitation agreement) and/or requiring him or her to maintain the confidentiality of the former employer's trade secret and/or proprietary information (confidentiality agreement). This article focuses on the risks faced by the new employer in hiring such an individual.
E-discovery As a Litigation Weapon?
July 27, 2006
The proposed amendments to the Federal Rules of Civil Procedure (FRCP) make clear what most companies engaged in complex litigation are already keenly aware of: that 'electronically stored information' is not only discoverable but is essential to the discovery process.<br>The new rules set forth a series of actions related to e-discovery that both parties must abide by or risk the imposition of sanctions. While the exact impact of these new rules, set to become effective on Dec. 1, is unclear, it is safe to say that the millions of dollars spent on e-discovery last year are sure to increase as companies and their counsel struggle to adapt their practices.
Blogging and the Workplace
July 27, 2006
You may not know about it, but it is happening: At least one, and probably more, of your business' employees has entered the 'blogosphere.' The world of blogs, or interactive diaries posted on the Internet, has expanded exponentially over the past 3 years, and 'bloggers' cannot seem to resist the urge to talk about their jobs. These sometimes quasi-journalistic postings raise a host of concerns for employers, such as protecting a hard-won public image, safeguarding confidential information, and preventing defamation of managers and co-workers. Such concerns arise because blogs can reach millions of readers long before the employer even learns about the posting.
