Employers’ Obligation to Defend and Indemnify Rogue Employees In California?

On October 12, 2011, the California Court of Appeal in Nicholas Laboratories, LLC v. Christopher Chen, No. G044105, 2011 WL 4823329 (Cal. Ct. App. Oct. 12, 2011), held that Labor Code section 2802 does not require an employer to reimburse its employee for attorney fees incurred in the employee’s successful defense of the employer’s action against the employee.  While reaffirming the traditional American rule in non-wage related litigation between employees and employers, the decision serves as a reminder to California employers of the implications involved in providing a defense and indemnifying employees in suits brought by third parties, including suits brought by their former employers against employees for trade secret theft.

To read this blog post click here