Stark & Stark’s Employment group was quoted in the January 13, 2009 Daily Report article, CEO may be rethinking BofA’s ‘crown jewel’. The article discusses Bank of America Chief Executive Officer Ken Lewis’ reputation for not appreciating the nuances of the client-broker relationship, and the other pitfalls Lewis has made over the past several weeks. You can read the full article here (PDF).
During recessionary times, most people are acutely aware of the general business relationship they have with their employer. Few, however, fully appreciate the legal duties they may owe their employer as a result of documents they signed when they joined the company. This lack of understanding can lead to problems when employees, frustrated by cut-backs in compensation, decreased wages and general job instability take actions that run “afoul” of the contractual and common law agreements they have with their employers.
Beginning on February 2, 2009, all employers will need to complete a revised I-9 form for all new employees, as well as for reverification of certain employees with temporary work authorization.
With the advent of the newest employee benefit in New Jersey, business owners ask what impact Family Leave Insurance will have on the employer’s discretion to terminate employment due to business conditions or other considerations. The Legislature has made it clear that the amendments to the Temporary Disability Benefits law, commonly known as the “Paid Family Leave Act”, confer a monetary benefit, but not a leave entitlement. In other words, this law does not further erode the “At-Will” concept of employment, that the employer is free to change the working conditions or terminate the employment of a worker with or without notice and with or without good cause for the termination.
Stark & Stark’s Employment group was quoted in the January 9, 2009 article, Brokers Disdain Toaster Salesmen in Bank America Deal. Controversy has followed Bank of America’s September 15, 2008 acquisition of Merrill Lynch since day one. Initially, disputes arose over whether or not Bank of America would honor Merrill Lynch’s employment contracts for the nearly 16,000 brokers affected by the acquisition. Now, two senior Merrill executives have left within days of the acquisition becoming final.
You can read the full article here.
In today’s uncertain economic climate, it has never been more vital to protect your company and your customer base. With that said, it is critical to the success of your company to have properly drafted and appropriate restrictive covenant agreements with your employees which will adequately protect your company’s customer relationships. Without having appropriate restrictive covenant agreements, your business risks the unfortunate consequence of losing customer relationships to departing employees. What follows is a brief explanation of the common types of restrictive covenants.
Stark & Stark’s Employment Litigation group authored the article The Eroding ‘At-Will’ Employment Doctrine for the December 8, 2008 edition of the New Jersey Law Journal.
The article discusses the history and basic principles of an "at-will" employee relationship. The article also stresses the need for employers to include a prominent, clear and conspicuous disclaimer at the beginning of their employee handbook, and any other relevant documents, stating that nothing in the handbook or other documents changes the “at-will” nature of the employment relationship, nor does it create a contract for employment.
You can read the full article here. (PDF)
Thomas B. Lewis, Shareholder and Chair of Stark & Stark’s Employment Litigation group, was quoted in the December 2, 2008 Reuters.com article, Financial advisory firms sign pact to ease poaching. Mr. Lewis comments on the recent independent advisory firms who are rushing to sign an agreement that bars lawsuits between signatories that hire away each other’s brokers.
To add to their other current woes, it is anticipated that New Jersey employers will soon be faced with higher employee costs due to proposed federal legislation known as “Card Check.” This legislation will make union organization far simpler in the Garden State (and everywhere else). In general, “card check” removes the “secret ballot” from the union organization process. Union organization will be largely accomplished by getting potential union members to simply sign a card indicating their desire to unionize.
Many of you may remember the Federal Warn Act – an Act which requires 60 days notice of a company’s intent to shut down a location with 100 or more employees (with various exceptions, of course). What is not largely known is that New Jersey passed a “baby” Warn Act earlier this year.
