Thief With Black Gloves Holding Invoice FolderCache Bux was riding high as the president of Nodding Donkey Oil Field Services which recently opened new offices in Peru. Nodding Donkey’s earnings were beyond its wildest projections. Cache would easily hit his annual employment agreement performance incentives – entitling him to a substantial year-end bonus. But Cache’s elation plummeted when he overheard two directors on Nodding Donkey’s board discussing a plan to fire him for “cause” to avoid paying his almost-certain bonus. Knowing there were no grounds for termination, Cache persuaded an IT consultant to scour the directors’ emails, which revealed multiple communications planning their scheme. Fearing the directors’ emails would be deleted, Cache gathered and saved them on a flash drive, along with the company’s financial reports, demonstrating that he satisfied all performance metrics. Cache hid the flash drive at home. Sure enough, the directors fired Cache for “cause” days before the annual bonus numbers were revealed. Cache hired a lawyer and turned over the emails and financial reports, thinking that he was well on the path to victory. He had saved key evidence, right? Or, did he?
Continue Reading Should You Take Your Company’s Business Records to Support Your Lawsuit When You Leave?

Youre fired with exclamation written on blackboard, businessman holding sign, stock footage

Ernest “Big Daddy” Bux’s daughter Kathy “Kitten” was working for Approval Literary Agency in Blessing, Texas – that is until last month. Kitten, an associate literary agent with Approval Literary was sacked after her boss learned that she owned accounts on the politically charged social media sites Lobby and Blabber. The agency’s owner I.B. Cheef publicly announced on Twitter that the firm had dropped Kitten after making the “distressing” discovery. Kitten tweeted that she was fired because of her political views. Does Kitten have a case for wrongful termination?
Continue Reading Falling Off the Fence: Can You Fire Those with Different Viewpoints?

When restaurants were ordered to shutter – and before PPP – Ernest Bux’s sister Cookie Bux who owns Beef O’Bux Restaurants was in a bind. Should she lay off or furlough employees who were showing up for work to her empty restaurant chain? What’s the difference between laying off employees and furloughing them? What are her options?
Continue Reading What Does a Furlough Mean to My Employees?

Days ago, engineer Anthony Levandowski was indicted on criminal charges accusing him of stealing information from Google-owned Waymo and taking it to Uber. While the indictment alleges he downloaded 14,000 documents containing trade secrets before he left Google, Levandowski insists the downloads were his. An arbitration panel ordered Levandowski to pay Google $127 million. After firing Levandowski – who repeatedly asserted his constitutional right against self-incrimination before the trial – his new employer, Uber, paid $245 million to settle its own civil lawsuit with Google.  The sitting federal judge recommended a criminal probe into a possible theft – now an indictment. Everybody does it, right? Who pays the $372 million? Does Uber have to protect Levandowski? Can Levandowski claim ownership of his ideas? Can Levandowski go to jail?
Continue Reading Who Pays When Your New Employee Brings Your Competitor’s Trade Secrets?

Grant Bux, Big Daddy Bux’s nephew, owns Sparkle-Plenty Electrical Manufacturing in Dallas, and has a branch office in San Antonio. The Dallas office employs 13 family members and four non-family employees. San Antonio has 16 non-family employees. Grant learned that both the Cities of Dallas and San Antonio have mandatory sick leave ordinances becoming effective on August 1st. As a family business, will they impact Grant and Sparkle-Plenty?
Continue Reading Do the Mandatory Sick Leave Ordinances in Dallas and San Antonio Affect Your Family Business?

Mark Eting is one of Duncey’s Caps top outside sales agents. Because the company is based in Texas, but Mark lives in Cleveland and sells for the company in the northeast, Mark purchased a personal computer and a laptop to use for work purposes, but did not get reimbursed by the company. He did, however, provide the computer to Duncey’s IT department to install the company’s sales tracking program. Unbeknownst to Mark, the IT department also installed software that allowed the company to determine when Mark accessed the sales tracking program and what information he accessed. Duncey’s employee handbook – which Mark acknowledged – stated the company could monitor his use and access of company data on personal devices. For the laptop, Mark purchased software called “LogMeIn” which allowed him to remotely access the home personal computer while he was on the road. Thus, Mark could use his laptop while traveling, access the home computer, and enter the sales data. At a team sales retreat, Mark casually mentioned to his boss, Tom Prior, how he logged his sales data on the road by using LogMeIn.    

When Mark quit, Duncey’s IT department investigated his use of the sales program, and found he had been logged in more than usual. Suspicious of this activity, Tom went into LogMeIn and successfully guessed his username and password. While perusing Mark’s personal computer, Tom found Mark had set up a Google Mail account and was emailing Duncey’s customer information to one of its competitors. Duncey filed suit against Mark for various claims. When Mark read the lawsuit’s allegations, he realized the only way Duncey’s learned that information would have been by accessing his personal computer or laptop. Mark fired off a counterclaim for computer hacking. Does Mark’s claim stand a chance?  

Continue Reading An Employer’s Spooky Interpretation of its Bring Your Own Device (BYOD) Policy

Last month, Jim Duncey, the majority owner and face of Duncey’s Caps, Inc., was involved in a car accident and arrested for DWI.   Facing a PR crisis Duncey’s board of directors called an emergency meeting.  The board implemented its crisis plan, issued a statement condemning driving while intoxicated, suspended Duncey, ordered him to attend rehabilitation, and made a $100,000 donation to MADD. 

While the company survived the initial PR crisis, its bottom line did not.  Retail sales during the following quarter were down 20%.  One of the company’s major commercial customers also terminated its contract that produced $3 million in revenue annually.  To make matters worse, the board’s private investigator discovered that Duncey had previously been arrested for DWI three years earlier while on vacation in another state, but had managed to keep it quiet.  Does the company have any legal remedies against Duncey on top of terminating him?  Should the company seek those remedies?
Continue Reading The Calm After the PR Storm: Recovering Damages from the Offender

Jim Duncey is more than just the majority owner of Duncey’s Caps, Inc. – he’s the face of the company, appearing on billboards, in television and radio ads, and on the home page of the company’s website.  He is one of the most influential and recognizable business leaders in the city.  On Saturday night Jim and his wife Diane attend a charity event at the toniest country club in town.  With a little “liquid courage” Jim was the high bidder at the night’s live auction, which earned him respect (and envy) from those in attendance.  On the way home Jim ran a stop sign and t-boned another vehicle.  The driver of the other vehicle suffered serious injuries that would force her to spend several weeks in the hospital.  Police investigating the accident gave Jim a field sobriety test, which he failed.  Jim ended blowing a .12 BAC and was charged with DWI.  The accident, along with Jim’s arrest, was the lead story on the Sunday news.        

With the face of the company in legal and public relations trouble, Duncey’s board of directors called an emergency meeting to discuss the situation and consider options.  What can they do?Continue Reading Jekyl and Hyde: When the Face of Your Company Becomes a PR Liability

Before Duncey’s Caps, Inc. hired Bud Dunop as its new human resources manager in 2018, all of Duncey’s human resources issues were handled by Dot Uris. One of Dot’s responsibilities was to have all new employees complete their new hire paperwork, which included an agreement for the employee and Duncey’s to arbitrate any employment-related disputes.  The arbitration agreement included a signature block for Dot to sign on behalf of Duncey’s.  Instead of signing each employee’s agreement, Dot just placed it in the employee’s file.   

One day Don “Crash” Gordon broke his foot when he walked around the corner of the warehouse and stepped into a bucket that another Duncey’s employee placed on the floor.  Crash filed a lawsuit against Duncey’s when it failed to cover his medical bills.  Duncey’s attorney filed a motion to compel arbitration, attaching a copy of the arbitration agreement that Crash signed but Dot did not.  Will Duncey’s be able to get this lawsuit sent to arbitration?
Continue Reading Are Employers Required to Sign Employees’ Arbitration Agreements?

Duncey’s Caps, Inc. hired Bud Dunop as its new human resources manager for 2018.  Bud quickly determined that Duncey’s needed a formal employee policy handbook.  Included within the handbook was an arbitration agreement requiring employees to arbitrate all claims against Duncey’s relating to the employee’s employment.

Bud then held training and review sessions with all Duncey’s employees.  At the end of each session, each Duncey’s employee was required to log into a computer with their own self-created password.  Once logged in, the employee was given the opportunity to fully review the handbook and the arbitration agreement.  The employee was then required to click a box stating that he or she “acknowledges” receiving and reviewing the handbook, and that by clicking the box they “agreed” to abide by the handbook and the arbitration agreement. The employee was then required to enter their initials and click “submit.”

A few weeks later, one of Duncey’s employees who electronically acknowledged the handbook was injured on the job.  The employee filed a lawsuit.  Will Duncey’s be able to get this lawsuit sent to arbitration?
Continue Reading Are Your Employees’ Electronically-Signed Agreements Enforceable?