Forum selection clauses in contracts are always a hot topic. The California Court of Appeals in the recent case of Verdugo v. Alliant Group, L.P. held forum selection clauses in employment agreements that choose forums in which to litigate that in any way diminish the substantive rights afforded employees under California law are invalid since California statutory employee rights cannot be waived.
The Court offered a work-around. If the foreign forum provides the same or greater rights than California, or the foreign forum will apply California law on the claims at issue, then the matter may be tried in a forum outside of California.
The substance of your employment agreements should not remain static. It is prudent to have your legal counsel review your employment agreements on, at least, an annual basis.
The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.
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