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Semprini v. Wedbush Securities., Inc., 57 Cal. App. 5th 246 (2020) Summary: A compensation plan based solely on commissions, with recoverable advances on future commissions, does not qualify as “salary” for purposes of administrative exemption under California law. Read our in-depth analysis HERE. Brown v. TGS Management Co., 57 Cal. App. 5th 303 (2020) Summary: Broad confidentiality provisions in an employment agreement that effectively prevent an employee from practicing his profession in perpetuity constitute a de facto noncompete agreement in violation of California Business and Professions Code section 16600. Facts: Plaintiff Richard Hale Brown, a former employee of Defendant TGS Management Company, a securities trading firm, challenged in arbitration the validity of numerous provisions in his employment agreement restricting his right to compete with Defendant. These provisions included a two-year ban on “Directly Competitive Activity” and requirements that Plaintiff “keep all Confidential Information in strictest confidence and trust” during and after employment, which prohibited him from disclosing or using “Confidential Information” for his own benefit or the benefit of any party other than Defendant or Defendant’s clients. The agreement broadly defined “Confidential Information” as “information used or usable in, or originated, developed or acquired for use in, or about or relating to, the Business,” and defined “Business” to include “without limitation analyzing, executing, trading and/or hedging in securities and financial instruments and derivatives thereon, securities-related research, and trade processing[.]” The parties also had a bonus agreement providing that any earned, but “unpaid,” bonus would be forfeited if Plaintiff breached the confidentiality provisions. Plaintiff sought declaratory relief, and Defendant asserted counterclaims for breach of contract and declaratory relief. The arbitrator entered an award in Defendant’s favor, finding that Plaintiff had breached the employment agreement by copying “Confidential Information” regarding Defendant’s historical earnings to his phone and retaining that information post-termination. The trial court subsequently confirmed the arbitration award upon petition by Defendant. Plaintiff appealed.