In a significant legal development, a former employee has filed a lawsuit against a major technology corporation, alleging violations of labor laws concerning employee rights and confidentiality agreements. The complaint was lodged by Eric Koontz in the Superior Court of California, County of Santa Clara, on August 29, 2025, targeting Cisco Systems, Inc., among other unnamed defendants.
The plaintiff, Eric Koontz, who served Cisco from 2005 until September 2024, is pursuing this case under the California Labor Code Private Attorney General Act (PAGA). Acting in a representative capacity for the California Labor & Workforce Development Agency and all aggrieved employees, Koontz alleges that Cisco enforced illegal employment conditions through its Proprietary Information and Inventions Assignment Agreement. This agreement allegedly restricts employees from discussing their compensation and imposes non-solicitation clauses extending beyond their tenure at the company. According to the complaint, such restrictions violate Labor Code sections 923 and 232 by infringing upon employees’ rights to discuss wages freely. Furthermore, it accuses Cisco of contravening Business and Professions Code section 16600.1(a) by enforcing non-compete clauses deemed unlawful under California law.
Koontz claims that these practices have been systematically applied to all current and former employees in California since June 17, 2024. The plaintiff contends that despite notifying both Cisco and the California Labor & Workforce Development Agency (LWDA) about these alleged violations on June 17, 2025, no corrective action or investigation has been initiated by the LWDA within the statutory waiting period. Consequently, Koontz asserts his right to pursue civil penalties on behalf of himself and other affected employees.
The lawsuit seeks various forms of relief from the court. Primarily, it demands civil penalties for each violation of the Labor Code as stipulated under PAGA. Additionally, Koontz requests reasonable attorneys’ fees and costs incurred during litigation where applicable by law. The complaint also asks for any other remedies deemed appropriate by the court to address these alleged infractions.
Representing Eric Koontz in this legal battle are attorneys Matthew B. Hayes and Kye D. Pawlenko from Hayes Pawlenko LLP. The case is being overseen by Judge M. Arechiga under Case No. 25CV474024 in Santa Clara County’s Superior Court.
Source: 25CV474024_Eric_Koontz_v_Cisco_Systems_Complaint_County_of_Santa_Clary.pdf
Source: 25CV474024_Eric_Koontz_v_Cisco_Systems_Complaint_County_of_Santa_Clary.pdf
Source: 25CV474024_Eric_Koontz_v_Cisco_Systems_Complaint_County_of_Santa_Clary.pdf
