• 23
  • May
    2011

Many employment relationships begin with contracts and agreements. California employers agree to pay their employees fairly, and employees agree to be honest and hard working. However, many executives are also asked to sign additional contracts.

Employees may be asked to sign non-compete agreements. Although the exact details of employment contracts vary from one employer to the next, the premise is usually the same. When a working relationship ends, employees are forbidden to work for a competitor for a certain amount of time. Non-compete agreements are designed to protect employers from losing trade secrets to their competitors, but they can also make it challenging for employees to find meaningful work after leaving a position.

Currently, the next CEO of Bath & Body Works is facing allegations from his former employer. His former employer, Sears, claims that working for Bath & Body Works would break the non-compete agreement he had with the company.

Bath & Body Works is a subsidiary company of Limited Brands Inc., and Sears claims that the contract they signed with their former brand president specifically lists Limited as a direct competitor.

The former brand president is asking the court to throw out that clause of his agreement. He claims that Bath & Body Works and Sears are not direct competitors. If he is successful in having the non-compete agreement tossed, he'll move into the CEO role shortly.

Employment contracts are designed to keep both the employer and the employee safe. However, in situations when the contracts are out-of-date, it is important that they be updated to help ensure employees have the opportunity to receive the compensation they deserve.

Source: Business First, "New Bath & Body Works chief faces fight from former employer," 18 May 2011