Veeva files suit to fight 'unfair business practices that limit employee rights'
Veeva Systems (VEEV) announced it filed a lawsuit in the superior court of California to stop companies' widespread misuse of non-compete, confidentiality, and non-disparagement agreements that restrict employees' basic rights. Clauses in these agreements can materially impact an employee's ability to pursue new job opportunities. Veeva is taking legal action to address the increasing limitations companies are placing on employees. The case can set an important precedent in the enforcement of employment clauses that are illegal in states such as California. Veeva filed suit against three companies, Medidata (MDSO), QuintilesIMS (Q), and Sparta, for using illegal provisions in their employment agreements, including post-termination non-competes and overly broad confidentiality and non-disparagement clauses. All of these provisions make it harder, if not impossible, for employees to change jobs and provide services to California-based employers. The suit asserts that such agreements restrict fair competition and violate California law. Veeva has taken this legal action to protect employees from abusive employment clauses and enable them to freely pursue career opportunities at Veeva. The company competes for employees on the merits of its competitive wages and benefits, work environment, and innovative services and products. It does not require employees to sign non-compete agreements and it will not let a current or past non-compete prevent it from hiring a qualified candidate. VEEV MDSO Q