Seyfarth Synopsis: California’s rules on rest breaks are still developing. Recent cases have addressed the timing of rest breaks, and whether employees (particularly those who remain “on call”) must be relieved of all duty during breaks.
Our readers will be happy to see the end of 2014, from an employment law point of view. With the exception of the Iskanian case, in which the California Supremes finally agreed that most workplace disputes can be subject to mandatory arbitration, employers had little to cheer about. This past year the Golden State brought us a new crop of employee entitlements—also known as employer mandates—requiring significant changes in how companies hire, schedule labor, monitor hours of work, and give employees time off.
Clothed in the language of worker rights and positive societal goals (e.g., the “Healthy Workplaces/Healthy Families Act”), the new laws increasingly cover areas that traditionally have been the subject of collective bargaining (e.g., mandatory paid time off and rates of pay). There is also a trend toward preventing job loss that might result from personal life circumstances, such as requiring paid time off for an employee to seek help for domestic violence, and forbidding questions about an applicant’s criminal or credit history. In short, government protectionism is alive and well in California.
What were the biggest headlines of the year? Let’s focus on three:…
Continue Reading Happy New Year! And a Look Back at 2014
October 13, 2013, marked the last day for California Governor Jerry Brown to sign or veto bills the Legislature sent to him for approval in the first half of the 2013-14 Regular Session. Of the bills we tracked as most relevant to our clients that made it to the Governor’s desk, the …
Prudent employers are often looking for areas in their business where valuable company data may not be adequately protected.
Enter the growing prevalence of third party online data storage for professional and personal use in the workplace, coupled with the increasing accessibility provided by employers to access company data remotely.
While the benefits of cloud computing are well documented, the growth of third party online data storage has facilitated the ability for rogue employees to take valuable trade secrets and other proprietary company files, in the matter of minutes, if not seconds.
There are have been several high profile cases in California recently addressing the alleged theft of company data by employees through the use of third party online data storage.
To address this technology and threat to companies, employers must be vigilant to ensure that they have robust agreements and policies with their employees as well as other sound trade secret protections, including employee training and IT security, to protect their valuable trade secrets and company data before they are compromised and stolen. This is particularly important in California because California law can provide limited protection for employers—compared to other jurisdictions—because of its general prohibition of non-compete agreements and growing trade secret preemption or supersession doctrine.
As we have previously discussed, one of the notorious employment laws separating California from other states is its long-standing and draconian prohibition of employee non-compete agreements. Additionally, some recent California decisions have significantly limited an employer’s ability to pursue certain claims and remedies based upon the theft of mere confidential or proprietary information by rogue employees. Employers may have limited recourse under California law if the stolen data does not rise to the level of a trade secret at least under a tort theory of recovery.
Further, a recent article in The Recorder entitled “Trade Secrets Spat Center on Cloud,” observed that the existence of cloud computing services within the workplace makes it “harder for companies to distinguish true data breaches from false alarms.”
Given these challenges, employers should implement policies and agreements to restrict or clarify the use of cloud computing services for storing and sharing company data by employees. Some employers may prefer to simply block all access to such cloud computing services and document the same in their policies and agreements. Also employers should provide education and training regarding the company’s policy regarding employee use of cloud storage services.
Additionally, certain key steps should also be taken to protect against the theft of trade secrets and confidential information by departing employees with this new threat in mind:…
Continue Reading Cloudy With A Chance of Trade Secret Theft