Business law Research Paper Example | Topics and Well Written Essays - 750 words

Business law - Research Paper Example California State, the major employment legal tussles the business organizations are facing is the definition of workers and validity of non-competition agreement. The labor law of California has two definitions of workers as either independent contractor or employee under labor code 2750.5 (Californi Law, 2013). Similarly, labor laws define the circumstances under which a business organization can draw a non-competition agreement under labor code 16601 of the California labor law. Cases One of the cases filed by involves how workers are classified as independent contractors or employees (Narayan v. EGL, Inc., 2007). EGL which is a transportation company has been sued by three of it truck drivers for failing to offer employees benefits as required by the California labor code. The truck drivers had signed an agreement with the company to indicate that they are independent contractors. Despite this agreement, they sued EGL for failing to offer them benefits enjoyed by employees under l abor code 2802(a) (California Law, 2013). The appeal court of California held that there were facts to show the truck drivers were employees rather than independent contractors as EGL firm claimed. Consequently, the drivers were entitled to employees benefits provided under the California labor code. ... Creteguard, Inc, 2010). Silguero as a sales representative of Floor Seal Technology (FST) agreed to undertake a non-compete agreement for fear of been sacked by the employer. However, FST terminated his work after two months that forced him to seek employment in Creteguard firm. Consequently, Creteguard terminated his job after it was informed by FST of the existence of non-compete agreement with Silguero. Accordingly, the California court of appeal dismissed the validity of non-compete agreement under the California labor law. Rationale The findings of the two courts are informed by various critical reasons on the liberties of the employees as provided under the labor laws of California. In Narayan vs. EGL Company, the judges evaluated the supervision level the truck drivers were receiving from the company in undertaking their duties. To the extent that the drivers were distributing the firm’s products under the direction and supervision of the firm’s management, it wa s a clear indication they were under the employment supervision like other ordinary employees of the firm. The denial by the firm to grant them full autonomy in scheduling their distribution routes and strategies negated the very requirement of an independent agreement. Consequently, the truck drivers are entitled to receive with full employment benefits provided under labor code 2802(a) of the California labor laws. Similarly, the judgment the judges of appeal court of California made on Silguero vs. Creteguard firm is informed by legal observation. Even though the California business and profession code under section 16601 provides for non-compete agreements, it can only apply in owners of a partnership, limited companies and corporations. Indeed, the