Technology companies make up a significant portion of California’s economy. Workers in the tech industry have the same rights and protections as all employees, however, tech workers may face unique employment issues as companies scale and expand without establishing the safeguards and processes required to ensure compliance with the law. Rudy Exelrod Zieff & Lowe has vast experience representing tech employees with issues ranging from discrimination and sexual harassment, to misclassification of independent contractors, and unpaid commissions, bonuses, or equity. We represent tech workers at all levels, guiding our clients to successful resolution of their cases against tech companies of all sizes and stages of growth.

Can I recover my unvested equity?

Depending on the type of legal claim you have, you may be able to recover unvested equity. For example, if you were terminated in retaliation for complaining about unlawful conduct, you may be able to recover equity that would have vested over time, had you remained employed and not been illegally terminated. Issues that often arise where lost or unvested equity is at stake include accelerated vesting, forfeiture, and valuation of equity grants.

Is my non-compete agreement valid?

An agreement not to compete generally provides that, for a period after your employment, you will not to join a company or go into a business that is competitive with your former employer. It is often included in employment agreements, offer letters, non-disclosure agreements, equity plans, or other employment documents. Employers generally cannot enforce a non-compete agreement in California against former employees, although there is an exception when an employee sells back equity.

Your non-compete agreement may state that any dispute about the agreement must be brought in another state or must be decided using the law of a different state other than California. If you primarily work in California, regardless of where your employer is located, you are subject to the protections of California Labor Code 925.

That law provides that your employer cannot require you to agree to a provision that would require you to litigate a dispute outside of California or apply the law of another state, unless you were represented by a lawyer in negotiating the agreement. This is important because many other states do enforce non-compete agreements. However, Labor Code 925 only applies to agreements entered into, modified, or extended on or after January 1, 2017. Agreements entered into before January 1, 2017, that select the law or venue of a different state are subject to different rules and may or may not be enforceable, depending on the circumstances.

Is my non-disclosure agreement valid?

Companies have broad authority to protect confidential and trade secret information, include requiring employees to enter into agreements to safeguard intellectual property and other confidential information. Many companies require employees, and in some cases even interviewees, to sign non-disclosure agreements as part of the hiring and on-boarding process.

Generally, courts will enforce non-disclosure agreements, so it is important to follow the company’s rules and procedures regarding data security. It would likely be a breach of your confidentiality and non-disclosure agreement to retain any copies of company information after your departure from the company. This includes documents stored in your personal email, cloud storage accounts or backups, and on electronic storage devices such as computers, phones, and drives, as well as hard-copy documents. How these rules apply in a particular situation can be complex.

Current and Former Clients Include:

• Currently representing a large group of current and former female Oracle employees in a class action lawsuit which alleges unequal pay for women.
• Represented several software salespeople against major tech company, recovering substantial unpaid commissions for software sales employees.
• Represented a co-founder in her lawsuit against Tinder, which alleged sexual harassment, retaliation, and discrimination, resulting in a substantial settlement prior to trial.
• Represented a senior tech executive who was terminated in retaliation for reporting violations of Security and Exchange Commission regulations.
• Represented a tech executive who was terminated in bad faith immediately before a corporate change in control event, recovering significant lost wages and lost equity.
• Represented engineer who was terminated by large tech company after pushing back against racist and sexist encounters within the company.

If you have questions about your employment at a tech company, please contact one of our attorneys.