As we reported in an alert last week, on April 23, 2024, the United States Federal Trade Commission (“FTC”) voted in favor of a Final Rule banning nearly all non-compete agreements, with limited exceptions related to the sale of a business and certain pre-existing agreements with senior executives. The Final Rule provides that it is an unfair method of competition, and therefore a violation of the Federal Trade Commission Act (the “Act”) to enter into, attempt to enter into, enforce, or attempt to enforce non-compete clauses with a worker or represent that the worker is subject to a non-compete clause. “Worker” is defined broadly under the Final Rule to include current or former employees, independent contractors, externs, interns, volunteers, apprentices, or sole proprietors who provide a service to a person.
Read MoreThe FTC has just issued its final rule broadly banning non-competes with limited exceptions.
Read MoreOn April 17, 2024, the Supreme Court of the United States issued its opinion in Muldrow v. City of St. Louis, holding that an employee need not show that their transfer to a different role caused a “significant” employment disadvantage to sustain a claim under Title VII.
Read MoreYesterday, the New York City Council passed a bill which would make any provision in an employment agreement which shortens the statute of limitations for filing a complaint or claim with the New York City Commission on Human Rights or bringing a civil action under the New York City Human Rights Law unenforceable and void as against public policy.
Read MoreThe United States Department of Labor (“DOL”) issued a Final Rule regarding the classification of workers as employees or independent contractors under the Fair Labor Standards Act (“FLSA” or the “Act”). The Final Rule went into effect on March 11, 2024. As employers are aware, the Act’s minimum wage and overtime protections only apply to employees, not independent contractors. The Final Rule rescinds the DOL’s 2021 Independent Contractor Rule and its use of two “core factors” to determine whether a worker is an employee or an independent contractor and reflects a return to the pre-2021 “totality-of-the-circumstances” analysis to determine if a worker is economically dependent on the employer.
Read MoreAs employers may recall, on October 27, 2023, the National Labor Relations Board (“NLRB” or “Board”) published the long-awaited Final Rule (“New Rule”) concerning the joint-employer standard. The New Rule was supposed to take effect on December 26, 2023, but it was delayed more than once due to legal challenges. Most recently, the New Rule’s effective date was delayed to March 11, 2024; however, on March 8, 2024, a federal court judge in Texas vacated the New Rule. This means that for now, employers must continue to follow the joint employer rule issued in 2020. As a reminder, under that rule, a joint-employer relationship exists where a company exercises substantial direct and immediate control over the essential terms and conditions of another company’s employees.
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