Norris McLaughlin & Marcus, P.A.

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Employment Agreements

Nov 11, 2016

IN THE NEWS: J.P. Morgan Pursues Arbitration Case Against Advisors

I was recently interviewed by Fundfire, a financial services industry on-line publication, regarding J.P. Morgan obtaining a temporary restraining order as it pursues an arbitration case against seven advisors who left to launch an independent shop with LPL Financial. This is yet another case involving the protections of the industry’s agreement called the Protocol for Broker Recruiting.

On October 27, seven private bank advisors left and registered with LPL, launching Gulf Point Advisors, which focuses on working with family offices.… Read More

Mar 23, 2016

New Target Executive Sued By Amazon

The article,”Amazon Sues New Target Executive” caught my eye in today’s The Wall Street Journal. Amazon, the executive’s former employer, is concerned he will leak trade secrets to his new employer, Target. Watch my video blog below to learn more about the case and my thoughts on the matter. If you have any questions, please feel free to contact me at dtharmon@nmmlaw.com.… Read More

Jul 13, 2015

IN THE NEWS: J.P Morgan Sues Former Advisor Team

I was recently interviewed by Fundfire, a financial services industry on-line publication, regarding a Morgan Stanley financial advisor team that was sued by their former employer, J.P. Morgan, after they jumped ship to Morgan Stanley earlier this year. J.P. Morgan has alleged breach of contract, misappropriation of trade secrets and unfair competition among others.

Last year, J.P. Morgan became a signatory to the Protocol for Broker Recruiting, an industry agreement that typically supersedes the non compete and non solicit clauses contained in contracts advisors sign with firms, allowing them to retain basic client information and contact clients should they switch firms.… Read More

May 06, 2013

Don’t Alert Clients Before Defecting

When it comes to financial advisers switching firms, the old adage – loose lips sink ships – holds true.

When a financial adviser is plotting to jump ship, the temptation to tell clients is often strong.  Stifle it, and stay mum.

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New firms often don’t appreciate being drawn into lawsuits or arbitration over solicitation. Clients don’t like it, either.

“You’re also potentially subjecting your clients to be asked to testify as to the nature and scope of your communications,” said David Harmon, an employment attorney and partner at Norris McLaughlin & Marcus in New York.

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Jul 30, 2012

Part V: Negotiating the Employment Package That Is Best for You – The Fine Print Matters

Jul 20, 2012

Part IV: Negotiating the Employment Package That Is Best for You – The Fine Print Matters

The next critical step to take in the negotiation of an employment package is:
  1. The Termination Scenarios.  Defining the circumstances under which the employment relationship can be terminated is essential. Considerable attention should be paid to the definitions of “cause” and “good reason.” Not focusing on the details of the definitions can have costly ramifications. Employers seek a broad definition of “cause” to afford greater latitude in terminating an executive and avoiding an obligation to pay severance. 
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Jun 27, 2012

PART II: Negotiating the Employment Package That Is Best for You – The Fine Print Matters

As discussed in my last post, there are several critical steps to take in the negotiation of an employment package.   Let’s move on to steps #2 and 3.

  1. Show Me the Money.  In evaluating the salary component of a compensation package, it is essential that the executive be realistic not only about his or her financial requirements but also about the value he or she brings to the employer and what the market will bear. 
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Jun 20, 2012

PART I: Negotiating the Employment Package That Is Best for You – The Fine Print Matters

There are several critical steps to take in the negotiation of an employment package. Clients come to us at all stages during the employment process –  at the commencement of a job search,  upon receipt of a term sheet by a potential employer, when an offer letter or employment agreement is to be negotiated, or following termination. Regardless of when an individual chooses to engage counsel, attention must be paid to seven critical steps.  … Read More

May 17, 2012

One Tweet Too Many

Hard to believe that the CFO of a public company felt the need to use social media to vent his frustrations about his employer, a public company. Not only did the CFO of Francesca’s Holdings Corp. use his Twitter account to vent about the company’s Board but he maintained a blog and a publicly viewable profile on Facebook. There is one word for this type of activity reminiscent of a recurring segment of the Weekend Update skit on SNL: REALLY!?… Read More

Apr 18, 2012

Other Restrictions May Also Confine Post-Termination Activities

In addition to the potential violations of confidentiality and non-disparagement provisions contemplated by a “tell-all” book about Goldman Sachs, Greg Smith should also consider garden leave and/or non- competition/non-solicitation restrictions. If Smith had a new job lined up before resigning, did he make the new employer aware of the restrictions to which he was bound?   If these post-employment restrictions are  reasonable in scope and duration, and protect Goldman’s legitimate interests, Smith (and possibly his new employer)  will need to be mindful of not overstepping the boundaries of the restrictions.… Read More

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