Tag: litigation

FTC Says Noncompetes Are Over, Mostly, and Now Courts Will Decide

The general rule on noncompete clauses in many states has been unchanged for some time. Unless there’s a public policy reason to declare them void, noncompetes are generally enforceable as long as they are reasonable in time and scope and narrowly tailored to protect the employer’s legitimate business interest without imposing an undue hardship on […]

EU Passes Artificial Intelligence Act

Congress and the Biden administration continue to focus on regulating artificial intelligence (AI). Despite that attention, however, no comprehensive legislation or regulations applying to AI have been implemented at the federal level. In contrast, the European Parliament passed the Artificial Intelligence Act on March 13. The legislation was three years in the making and will […]

New EEOC General Counsel Calls Bias Damages Caps ‘Unacceptable’

In a recent interview, Equal Employment Opportunity Commission (EEOC) General Counsel Karla Gilbride argued the damage limitations on employees’ recovery under federal employment discrimination laws are “morally unacceptable.” Currently, total compensatory and punitive damages are capped for the largest companies at $300,000. Congress established the limits when it passed the 1991 revision to Title VII […]

California’s Estrada Decision and Impact on Employers and PAGA Claims

Following Estrada v. Royalty Carpet Mills, Inc., the California Supreme Court’s employee-friendly Private Attorneys General Act (PAGA) ruling earlier this year, employers must remain more diligent than ever to prevent and mitigate costly wage and hour litigation. Estrada eliminated one of employers’ central tools to curb sprawling PAGA claims: requesting dismissal based on the court’s […]

From $366 Million to $249,000: Takeaways for Employers from Appellate Ruling on Damages Caps

Among the many perils of litigation, one of the biggest concerns employers express is the risk of an astronomical jury verdict. On Feb. 1, 2024, the Fifth Circuit Court of Appeals addressed this issue when it cut an eye-popping $366 million jury verdict against FedEx to just $249,000. The decision in Harris v. FedEx Corporate […]

What to Expect from the EEOC in 2024

In 2023, the Equal Employment Opportunity Commission (EEOC) finally received its full slate of commissioners with three Democrats (Chair Charlotte Burrows, Vice Chair Jocelyn Samuels, and Commissioner Kalpana Kotagal) and two Republicans (Commissioners Andrea Lucas and Keith Sonderling). In addition, the EEOC now has a confirmed general counsel for the first time since 2021. Employers […]

When Is Arbitration the Best Option?

If you run a business, you’ve probably encountered arbitration clauses. These contractual provisions require parties to resolve disputes in private proceedings instead of court and are celebrated as a cost-effective alternative to in-court litigation. But arbitration might not always be a beneficial proposition for business disputes. Those who have arbitrated cases know the process features […]

Lessons From the Defamation Lawsuit Against Rudy Guiliani

Readers may have noticed news reports that on August 30, a federal judge declared Rudy Giuliani was on the losing end of a defamation lawsuit filed by two Georgia election workers. He had claimed they were involved in election shenanigans but ultimately, the accusation was baseless. But that isn’t why he lost. Rather, the judge […]

Recent Home Depot Case Hammers Home Rules of Procedure

Home Depot was recently entangled in a personal injury lawsuit filed against it by an employee who hurt his back loading a lawn mower onto a customer’s trailer. Discovery [pretrial fact finding] ensued, which is where important lessons—for all Texas employers, not just those that opt out of workers’ compensation—were dealt out by the Beaumont […]

Recent SCOTUS Decision Suggests You Can Be Sued in Any State

A recent (and surprising) ruling from the U.S. Supreme Court may allow businesses to be sued in states where they have little connection. The Court ruled 5-4 to uphold a Pennsylvania law that requires a corporation to consent to the jurisdiction of Pennsylvania courts over them as a condition of registering to do business there. […]