Non-solicitation agreements are not a license to steal an employee's already existing customers

Hall v. Edgewood Partners Ins. Center (6th Cir. 12/14/18) [pdf] asks a question that we see arise often in litigation with former employees over restrictive covenants—can an employer limit an employee's access to customers, clients, or other contacts that the employee had prior to the employment.

Or, to put it another way, who owns an employee's pre-existing book of business, the employee or the employer?

WIRTW #535 (the “live from Cleveland” edition)

According to a recent survey, social media is the No. 1 challenge for small business owners. Allow me to offer a solution. 

Last month I had the pleasure of presenting, Think Before You Click! Managing Workplace Social Media. It's an hour-long run-through of myriad reputational and legal issues that employers face when the employees engage on social media.

(I wish YouTube picked a more flattering cover frame.)

Enjoy.


Here's what I read this week:

Why the Cleveland Clinic's $15 minimum wage matters to you

Earlier this week, the Cleveland Clinic committed, by January 2020, to raise the minimum wage for its employees to $15 an hour.

According to its CEO, Dr. Tom Mihaljevic, its all about making sure employees feel respected and valued … and attracting and retaining the best employees.

As the largest employer in Northeast Ohio and the second largest employer in the state of Ohio, Cleveland Clinic has a responsibility to lead the way and help shape the future of health care and the health care workforce.…

Every caregiver's role is important. Increasing our minimum wage demonstrates our commitment to our employees and their families, as well as the community and our patients. It is a reflection of who we want to be as an organization.…

Ultimately, we want to continue attracting the best and brightest caregivers in all roles. We want to remain an employer of choice and give back to the caregivers who do so much for the patients we serve at Cleveland Clinic. Our goal at Cleveland Clinic is to be the best place for health care and the best place to work in health care. To reach that goal, we will continue to align caregiver pay with other top employers in the markets where Cleveland Clinic operates.…

The Clinic joins other large employers—Amazon, Walmart, Target, Disney Parks, McDonald's—in adopting a $15 minimum wage.

Which is great for them and their employees, but why should this matter to you and your business?

Because by raising their minimum wage, you will have to do the same. Or you will if you want to attract and retain quality employees. These employers have moved the needle on the issue of the minimum wage. To compete in the job market against those offering a $15 minimum wage, other companies will have to match, or risk losing quality employees to higher paying employers. Thus, over time, the $15 minimum wage will organically spread.

This is not to say that this increased minimum wage is not without problems of its own. For example, if you raise your minimum wage to $15 an hour, what happens to all of those employees already earning $15 an hour? To the employee, hired 10 years ago at $8 an hour, who worked his butt off for the past decade, and, through a series of promotion and raises, earned his way up to $15 an hour? Will you provide a proportional raise to keep pace? And, if not, a $15 minimum wage will convert those millions of workers into minimum-wage employees. And, for better or for worse, there is a certain stigma with being classified as minimum wage—especially if you've worked hard for years not to be minimum wage.


These are not easy issues with easy solutions. However, the $15 minimum wage train has most definitely left the station, and there is no going back. The question is not if you will adopt it, but when, and how.

* Photo by Verne Ho on Unsplash

Alex, I'll take leave of absence policies for $5.25 million.

A: An employer must have one of these to avoid running afoul of discrimination laws when an employee is out on a medical leave of absence.

Q: What is an open-ended leave of absence policy?

Two employers recently learned this lesson the hard way, care of the Equal Employment Opportunity Commission.

The 1st nominee for the “worst employer of 2019” is … the philandering pharmacist

While I continue to tally votes to name the Worst Employer of 2018, I have an employer too awful not to kick off the nominees for 2019.

Meet Joyce Fogleman, the president, pharmacist, and sole owner of J&S Professional Pharmacy, who is, along with her pharmacy, the defendant in Blades v. J&S Professional Pharmacy.

With tongue planted firmly in cheek, Judge J. Philip Gilbert of The United States District Court for the Southern District of Illinois describes the employer as "your typical pharmacy."

A quick review on the rules for docking pay for exempt employees

"Can I dock part of an employee's paycheck?"

It's one of the questions I get most often from clients.

So, let's take a quick run through the rules of docking employee's pay for exempt employees.

WIRTW #534 (the “rock the vote” edition)

Have you cast your ballot for the Worst Employer of 2018? Time is ticking down for this year's final vote.

To remind you of the four truly awful employers vying for this year's honor, the finalists are:

• The Murdering Manager — company owner hires two men to rough-up a handyman who was not doing his job, and they accidentally kill him.

• The Sexist, Racist, Xenophobic, Oh My! — plant manager calls foreign-born employees "terrorists" and women "bitches," and tells the only black employee that her husband should work in a cotton field with a rope around his neck.

• The Supervisor Supremacist — supervisor begins morning staff meetings by saying "White Power" and giving the Nazi salute; when African-American employee complains, he finds himself hanged in effigy.

• The Tasering Torturer — company owner disciplines employee by threatening to kill him, lighting fires near him, and repeatedly shocking him with a taser.

Vote here.

Here's what I read this week:

Does Title VII protect an employee's self-help discovery?

Suppose one of your employees believes that she was discriminated against because of her protected class. She files a charge of discrimination with the EEOC, and, in support of the charge, provides the agency information from your confidential personnel files that she had copied. In response, you fire the employee for violating your confidentiality policy? She then files a new charge, alleging that her termination was in retaliation for her protected activity of gathering evidence in support of her discrimination claim.

Does her retaliation claim succeed?

Is your business rethinking its holiday party this year?

During the #MeToo portion yesterday's Best-Ever Year-End Employment Law Review that Five Employment Law Bloggers Have Ever Presented, Robin Shea suggested that the #MeToo Movement has altered employers' holiday-party plans this year.

Indeed, according to the 2018 Holiday Party Survey (conducted by the appropriately named outplace firm of Challenger, Gray & Christmas), 35% of employers do not plan to throw a holiday party this year, the lowest number since 2009. Given the current strength of our economy, one would expect an opposite trend, suggesting that something else is causing this uptick in grinchy employers.

The likely culprit? #MeToo.

Forced hugs at work sound like a REALLY bad idea

Ray Kelvin, CEO of UK fashion retailer Ted Baker, is a hugger. According to an online petition seeking to end his practice, "he greets many people he meets with a hug, be it a shareholder, investor, supplier, partner, customer or colleague." And, it doesn't stop with hugs. He asks young female employees "to sit on his knee, cuddle him, or let him massage their ears." He strokes employees' ears. He takes off his shirt in the workplace and talks about his sex life. Even worse, when employees go to HR to complain, they are told, "That's just what Ray's like."

Well, they've had enough "of what Ray's like." More than 2,600 people, including over 300 current or former employees, have signed the online petition calling on Ted Baker to "scrap the forced 'hugs' and end harassment."

What can "Elf" teach us about the ADA?

Friday night, the Hyman clan carried out our annual holiday tradition of watching "Elf." Since much of the story took place in and around various workplaces, this year I decided to watch with an eye towards shareable employment law lessons.


Early in the story, Buddy learns the harsh reality that he is not actually an elf, but a human. He learns this lesson after falling 985 Etch A Sketches short of his production expectations, and being transferred to Jack-in-the-Box testing (the job reserved for "special" elves).

Assuming that Buddy's height is a disability in the North Pole (and if the ADA protects dwarfs down south, it's safe to assume the North Pole's disability discrimination laws would similarly protect Buddy's heightened height up north), what ADA lessons does this parable teach us?

WIRTW #533 (the “Stella's” edition)

If you ever wanted to know how hard a group of pre-teens and teens can rock, you'll have your chance on December 21, when Fake ID invades Stella's Music Club. They play from 7:30 – 9:30, and word has it they are working up a few Christmas tunes for the season.

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Also, you still have time to register for The Best-Ever Year-End Employment Law Review That 5 Employment Law Bloggers Ever Presented—Tuesday, 12/4, from noon to 1 p.m. 

Join me, along with employment law bloggers extraordinaire Eric Meyer, Jeff Nowak, Dan Schwartz, Robin Shea, and our fearless (fearful?) moderator, Kate Bischoff.  

Register here

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Here's what I read this week.

I can name that lawsuit in one note

Demetria Kalodimos, age 58, worked as an anchor for Nashville's WSMV for 33 years. After the station failed to renew her contract, she sued for age and gender discrimination.

The Worst Employer of 2018: The Finalists

The votes have been cast, and counted. And we have four awful employers that have qualified for the finals of the Worst Employer of 2018.

I started this journey all the way back on January 2, 2018, in a post discussing a company president who tried to solicit sex from his employee by telling her God wanted her to be his sexual plaything.

And he didn't even come close to qualifying for the finals!

After nearly 600 votes, you've cut the 15 nominees down to these 4 finalists (in alphabetical order):

• The Murdering Manager — company owner hires two men to rough-up a handyman who was not doing his job, and they accidentally kill him.

• The Sexist, Racist, Xenophobic, Oh My! — plant manager calls foreign-born employees "terrorists" and women "bitches," and tells the only black employee that her husband should work in a cotton field with a rope around his neck.

• The Supervisor Supremacist — supervisor begins morning staff meetings by saying "White Power" and giving the Nazi salute; when African-American employee complains, he finds himself hanged in effigy.

• The Tasering Torturer — company owner disciplines employee by threatening to kill him, lighting fires near him, and repeatedly shocking him with a taser.

Now for the fun part. Instead of asking that you pick just one of these gems, I'm asking you to rank them, from 1 (the worst employer) to 4 (the least worse employer). This will then give me a weighted score to name, finally, the WORST EMPLOYER OF 2018.

The polls will remain open until Tuesday, December 18, at 11 pm.

You can vote below, or at https://www.surveymonkey.com/r/SG9Z8CX.

UPDATE: Does an employer have a duty to protect the personal information of its employees?

In July, I asked whether an employer owes its employees a legal duty to protect their personal information. I discussed cases that answered that question in both the affirmative and the negative. I also suggested that regardless of whether employers have a legal duty to protect the personal information and data of your employees, they still have a significant financial and reputational incentive to take reasonable steps to maintain the privacy and security of all of their information.

The dominoes, however, are starting to fall on the existence of a legal duty.

On the 12th day of Christmas, my employer gave to me … a handgun?

'Tis the season for giving. What's the oddest holiday gift an employer has ever given you? For the employees of one Wisconsin company, the answer might just be a handgun.

WIRTW #532 (the “❤️ the holidays” edition)

On December 25, I will turn 18 in Christmas years. My wife and I starting dating in October 2001, and we celebrated our first Christmas together two months later. I LOVE Christmas. I joke with my wife that I married her for Christmas. I love the lights, the tree, the family togetherness, the snow, and the overall peaceful spirit of the holiday.

And the music. I love Christmas music. Which is why this year, I'm thrilled that I get to combine my favorite holiday with my favorite band.

Today, Old 97's released "Love the Holidays," a collection of twangy Christmas tunes to fill your ears and your soul with yuletide joy.

Take a listen to the exquisitely beautiful "Snow Angels," a song that seeks togetherness in these troubled times, and calls for us to find that which binds us instead of that which us divides us.

Look to your left, look to your right
Everyone of us is a beam of light.
Together, we’re strong. There’s no need to fight.
Everyone of us is a beam of light.

I also dare you not to imagine snow falling outside you window as you listen to the imagery this tune invokes.




The blog is off next week, as I'll be home getting ready for, and then celebrating, my other favorite holiday, Thanksgiving. But, come back the week after when I'll announce the finalists for the Worst Employer of 2018 (have you voted yet?), and take us through the year's home stretch.

Here's what I read this week:

Do you know? Pre-employment medical examinations

A local mayor has gotten himself in some hot water for his selective use of pre-employment medical examinations for hirees. How selective? According to WKYC, one woman claims that the mayor required her and other women, but not men, to be examined by his personal doctor. For his part, the mayor denies the allegations as an act of a "fertile imagination," and claims that he sends all city workers, male and female, to the same doctor for pre-employment exams.

Why would her allegations rise to the level of unlawful activity?

What can you learn from the law firm partner suspended for watching porn at work?

According to The American Lawyer (sub. req.), Hogan Lovells has suspended one of its partners in its London office for watching porn at work. How did it catch the offense?

In IT employee read his internet logs? No.

He forgot to close his browser when he went to the loo and his assistant walked into his office? No.

He visited an unsafe site that spammed his entire office with malware? No.

Do you know? English-only workplace policies

White Americans, what?
Nothing better to do?
Why don't you kick yourself out?
You're an immigrant too!

– White Stripes, Icky Thump (2007).

Estefany Martinez-Gonzalez and Imelda Lucio Lopez, both crew members at a McDonald's restaurant, and both Hispanic, claimed that their employer discriminated against them by requiring them to speak English at work (as opposed to their native Spanish).