In my last post I discussed the differences between the various types of employment agreements designed to restrict an employee's post-employment activities and identified the factors Tennessee courts analyze when determining whether to enforce a non-competition agreement (“non-compete”).
In Our Judgment
Providing insight on developments in labor and employment law affecting East Tennessee employers and employees.
This post is the first of a multi-part series discussing employee non-competition agreements ("non-competes"). This installment describes the different forms of contractual limitations employers often use in an effort to protect their business interests following a key employee's departure and the factors Tennessee courts analyze when asked to enforce non-competes. Future posts will discuss non-competition agreements from both the employer and employee's perspective and some of the unique aspects of physician non-competes.
I am often asked by employers if they can deduct from an employee's paycheck money owed the employer for payroll advances, personal loans or for lost or damaged company property issued to the employee. Another common question is whether an employer may deduct from an employee's final paycheck amounts previously advanced for vacation or sick leave that was not yet earned. Until recently, the answer to these questions was determined exclusively under federal wage and hour laws. In most instances, the very simple answer was as long as the amount of the wage payment after offset netted the employee an hourly wage in excess of the minimum hourly wage, the deduction was permissible.
I was recently asked by a client to explain federal wage and hour regulations addressing work travel by non-exempt employees (employees who are paid based on an hourly wage rate and entitled to overtime pay). In the course of this exercise, I quickly remembered how certain forms of travel can make the job of a payroll administrator very difficult.
Most employers and their legal counsel pay little attention to the actions of the National Labor Relation Board (NLRB). They assume that the NLRB only concerns itself with employers whose employees are members of a union. In many instances that is correct but in fact, the NLRB has jurisdiction over all private sector employers without regard to whether their workforce is unionized. From time to time, the NLRB steps away from resolving union election disputes and renders decisions that have very significant implications for all employers. That has been taking place for the past year regarding employer workplace rules and in particular, rules that seek to limit employee communications on social media.