News and Articles

May 2015 NEWSLETTER

Yogi Patel - Friday, May 01, 2015

Dear valued clients and supporters: This month's newsletter will focus on (1) recent developments in the law with regards to the use of LinkedIn by ex-employees and violations of a pre-existing non-compete or non-solicitation agreements and (2) legal considerations for start-up ventures that are raising money.

LinkedIn and Violation of Separation Agreements

It is not uncommon for employers to require an employee to enter into a separation agreement upon termination or resignation of their employment in exchange for a severance payout. The benefit to the employer in entering such an agreement often includes clauses restricting who that employee works for (competitor, etc) and who they can take with them to the new employer (co-workers, clients, etc.), among other benefits. And the reality now is that many employees maintain social media accounts such as LinkedIn that includes professional connections made through their employment, whether it is co-workers or clients/vendors of the employer. The question that has arisen in several jurisdictions is whether an employee who signs such an agreement and then announces that they are leaving the employer on LinkedIn has breached the non-solicitation and non-competition clauses. Courts have found both ways on this issue in different jurisdictions. And the analysis Courts appear to be engaging in when presented with this question is focused on a few factors. First, what was the exact content of the message by the employer on the social media site. Did it encourage defection or competition? Second, what policies did the employer maintain regarding the use or restriction of social media during the course of employment and did the separation agreement specifically make reference to the use of social media with regards to non-solicition and non-compete clauses? Ex-employees subject to such clauses are advised to tailor the message about their departure or future plans on social media sites with this in mind. Employers that have concerns about how their businesses might be impacted as a result of the use of social media by an ex-employee are advised to implement policies restriction the use of social media, while keeping in mind federal labor law protections protecting employees' ability to engage in concerted activity, should they impose such restrictions.

Start-up ventures, raising money and legal obligations

The current state of the capital markets appears to have set the stage for entrepreneurs to start their own businesses. But entrepreneurs are cautioned to take steps to ensure that they are in compliance with all applicable federal and state laws, particularly those that govern the sale of securities. For any transaction in which a business is accepting money as an investment, there are registration requirements and other restrictions imposed by both the Securities Exchange Commission (SEC) and state law. There are even actions that a business owner must take before even offering securities or other equity in exchange for capital, and a failure to comply with federal and state requirements could leave the uninformed entrepreneur inadvertently facing charges as serious as security fraud. Over the course of the next several months, we intend to post a series of articles on our website intended to provide the start-up entrepreneur with some general guidance on issues related to business formation, accepting investment capital at various stages of growth, and ultimately selling the company and distributing the profits, if that should be the desired outcome of the venture. Please see our series of articles here: I, II, and III .


Recent Posts


Tags

entrepreneur NYC Salary History Law Federal Contractors workplace discrimination Executive Severance Newsletter Interns National Labor Relations Act Household Employees Fair Labor Standards Act Mandatory Class Action Waivers Workplace Requirements Landlord-Tenant Law Federal Overtime Law LinkedIn EEOC Filing Requirement Pregnancy Overtime Rules Trademark licensing New York Earned Sick Time Act graduate students Independent Contractor Trade Secrets Act marijuana usage sexual harassment training ACA Business Unionization Facebook Privacy and Litigation Human Rights Law Security Fair Pay and Safe Workplace Executive Order NYC Human Right's Law's Executive Negotiation NLRB stocks Glatt v. Fox Searchlight Pictures, Inc. Worker's Rights AirBnB Ban the Box Privacy Non-Qualified Stock Options Browning-Ferris Case Freelance Isn't Free Payroll Scams Divorce Fair Work Week Legislation Employee Salary Histories Employment Law Employment Contracts Right to Unionize U.S. Department of Labor Attracting Investment Credit Department of Labor Trademark Law Unions Glatt v. Fox Searchlight Pictures commuter benefits Arbitration Agreements Internet Law Postnup Interview Series Technology Business Law Prenup Fair Play to Pay Act Affordable Care Act Overtime Exemptions Web Domains Real Estate Law Intellectual Property Womens Rights NY payroll law NQSO Fair Workweek Law Tax-Deferred Savings Credit Checks Immigration Status employment discrimination lawsuits Paid Family Leave Health Care Apple vs. FBI Interns as Employees Sexual Harassment Alter-Ego Doctrine Trade Secrets New Address New York City Human Rights Law Domain Name Lactation Law Credit History Wage Theft Protection Act Corporate Law Westchester County implementing new leave laws Westchester Safe and Sick Time Laws I-9 Verification Transgender protections Employment Offer/Agreement Negotiating Housing Law Fair Labor Standards Act (FLSA) Illegal rentals Federal Acquisition Regulatory Council Selling Business Sexual Harassment policy Nanny Audit Hairstyle Discrimination NYC Sexual harrassment law federal Department of Labor Joint-Employer Relationship $15 Minimum Wage Criminal Record Firm Announcements Nobel Prize Public-Sector Union Fees Employer Mandate Fair Chance Act Start-up Ventures Minimum wage #meToo National Labor Relations Board drug testing

Archive

EDIT - blog-container - This controls the styles for the headings

EDIT - BlogTagCloud - Font style

description

  • EDIT  - post-body - Font style

EDIT - side-panel - This is the colour of the sidebar headings

Snap | BC Module - Blog - Blog Description

Snap | BC Module - Blog - Blog Title

EDIT - Snap | BC Module - Blog - Date - This is the date box style

EDIT - Snap | BC Module - Blog - Post Content - Font style

EDIT - Snap | BC Module - Blog - Post Title - Heading style

EDIT  - Snap | BC Module - Blog - Sidebar Content - Font style

EDIT - Snap | BC Module - Blog - Sidebar Title - Heading style

latest blog title snap text

 

Disclaimer: Nothing on this website is or should be construed as legal advice.
An attorney-client relationship does not exist with our firm unless a signed
retainer agreement is executed, and we do not offer legal advice through
this site or any of the content located on it. For legal advice for your
particular circumstances, please contact us directly.