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Recent Litigation Developments: Arbitration, No-Poaching, and Post-Term Non-Competes
We noticed a few interesting cases this summer regarding the dismissal of no-poaching claims, the enforceability of arbitration agreements, and post-term covenants not to compete.
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E-Alert - Minnesota Enacts New Wage Theft Laws and Employee Notice Requirements
The Minnesota legislature passed sweeping new amendments to statutes which create criminal penalties for the failure to pay wages and impose requirements for employers to document the terms of employment with their employees.
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U.S. Supreme Court Resolves Split over “Wholly Groundless” Exception to Arbitration
Earlier this year, the U.S. Supreme Court in Henry Schein, Inc. v. Archer & White Sales, Inc., unanimously struck down the “wholly groundless” exception that had been invented by lower courts to defeat arbitration agreement clauses that delegate threshold questions of arbitrability to arbitrators. This is good news for franchisors who rely on arbitration as the franchise system’s chosen method of dispute resolution. The decision is the latest evidence of the law’s continued trend favoring the enforcement of arbitration agreements.
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Anti-Poaching Clauses Continue to Draw Focus of State Regulators and Plaintiffs’ Lawyers
On December 20th, the Washington State Attorney General announced that it had reached agreements with another 7 franchisers to eliminate anti-poaching clauses from their franchise agreements, joining 39 others who signed similar agreements with the state earlier in the year.
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E-Alert – City of Saint Paul Enacts Minimum Wage
Saint Paul has enacted a phased higher minimum wage ordinance which begins in 2020. The size and type of business determines when the $15 per hour minimum wage applies.
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What Does Dynamex Really Mean For Franchising in California?
The California Supreme Court’s decision in Dynamex Operations W., Inc. v. Superior Court, 416 P.3d 1 (Cal. 2018), sent shockwaves through California’s business community in May when the court adopted a new standard for classifying workers as independent contractors or employees.
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A Moving Target: The NLRB Overturned Browning-Ferris – What’s Next?
Franchisors got an early Christmas present last month when the National Labor Relations Board (NLRB) broke on political lines in a 3-2 decision overruling Browning-Ferris Industries, 362 NLRB No. 186 (2015).
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New European Union Data Protection Rules
Franchisors who process or hold personal data for individuals residing in the European Union (EU) will be subject to the EU’s General Data Protection Regulation (GDPR) beginning on May 25.
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New Guidance on FDA Menu Labeling Rules
After several postponements, the FDA will finally begin implementing its Menu Labeling Final Rule on May 7.
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Obligations to Perform in Good Faith Do Not Override Express Terms
Claims for breach of the obligation to perform in good faith, whether express or implied, continue to be popular among franchisees who choose to litigate their disputes. However, when the franchise agreements are drafted to address the key issues that are in dispute, these claims fail as courts continue to reject arguments that the obligation of good faith overrides the franchise agreement’s clearly defined, express terms. Two U.S. Court of Appeals cases from this summer illustrate how franchisors were able to overcome these claims, and how enterprising franchisors might even further improve their odds in the future.
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The Risk of Failing to Consider Disclosure Obligations in Confidential Settlements
Franchisors who enter into settlement agreements requiring that they keep their terms confidential put themselves in jeopardy if they fail to first consider their disclosure obligations.
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Is Your Website ADA Compliant?
As evidenced by recent court decisions and regulatory actions there is a trending interpretation of the Americans with Disabilities Act (ADA) that a website is a “place of public accommodation.”
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Court Watch: Franchise Alert - May 2016
In the May 2016 issue of the Law Journal Newsletter’s Franchising Business & Law Alert, Bryan Huntington and Henry Pfutzenreuter contributed two articles, "Third Circuit Affirms Denial of Injunctive Relief to Franchisor, Concluding Concessions of Counsel Disproved Irreparable Harm" and "Fifth Circuit Issues Cautionary Note to Franchisees That Plead Their Claims Haphazardly."
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Remote Employees, Remote Jurisdictions?
Henry Pfutzenreuter's article, "Remote Employees, Remote Jurisdictions," appeared in the Spring 2016 edition of Hearsay, from the Minnesota State Bar Association.
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Court Watch: Franchise Alert - February 2016
In the February 2016 issue of the Law Journal Newsletter’s Franchising Business & Law Alert, Bryan Huntington and Henry Pfutzenreuter contributed two articles, "Court Dismisses Franchise Act Claims" and "Court Grants Franchisor's Motion to Compel Arbitration."
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A New Year, a New Day: The Amendments to the California Franchise Relations Act Are Now in Effect
For franchisors with franchisees in California, ringing in the New Year means navigating a new regulatory landscape. All franchise agreements renewed or entered into after January 1, 2016, as well as existing indefinite ones that are terminable without cause, are now subject to the amendments to the California Franchise Relations Act (“CFRA”), which the California legislature passed in fall 2015.[1] The amendments to the CFRA make significant changes to the transfer, termination, and nonrenewal of franchises in California, as well as the resulting remedies available to franchisees. While there are some ambiguities that will need to be resolved by the courts, it is clear that franchisors will have a number of new issues to consider when deciding how to deal with franchisees in California.
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New Executive Order Mandates Paid Sick Leave for Employees
On Labor Day, President Obama issued a new executive order mandating paid sick leave for employees working under federal contracts. The rules outlined in the order, to be further defined by the secretary of labor and Federal Acquisition Regulatory Council over the next several months, will apply to new federal contracts entered into after January 1, 2017. The U.S. Department of Labor will issue regulations concerning the executive order by September 30, 2016. Within 60 days after the Department of Labor issues its regulations, the Federal Acquisition Council will issue regulations concerning the clauses to be included in federal procurement solicitations and contracts.
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