Labor & Employment Blog

The Federal Trade Commission’s (FTC) final rule banning most non-compete agreements is set to go into effect on September 4, 2024. If the final rule goes into effect, it will invalidate most employee non-compete agreements and will require employers to provide notice to most workers (current and former) that existing non-compete agreements will not be enforced. Chamberlain Hrdlicka’s prior alert regarding the Final Rule can be found here.

On July 3, 2024, in the case of Ryan, LLC v. The Federal Trade Commission, a Texas federal court issued a preliminary injunction that blocks ...

Last week, the Federal Trade Commission approved its issuance of a rule that outlaws nearly all non-compete clauses because, its majority believes, they are unfair methods of competition. The Non-Compete Clause Rule is a product of a 2021 Executive Order that instructed the FTC to exercise its rulemaking authority to curtail unfair use of non-compete clauses and a January 2023 proposed rule that drew more than 26,000 public comments. The FTC estimates its Rule will cause employers to increase its pay to workers by more than $400 Billion over ten years, foster the creation of more than ...

In January of 2023, the Federal Trade Commission issued a notice of proposed rulemaking that planned to ban non-compete clauses for workers, as the majority of the Commissioners contended that non-compete clauses are unfair methods of competition. The FTC received more than 26,000 public comments to the proposed rule.

Today, in a 3-2 vote by the FTC’s Commissioners, the FTC authorized publication of the Non-Compete Clause Rule. The FTC’s fact sheet pertaining to the rule and the rule itself can be found here.

The final rule bans new non-competes with all workers after the ...

Last week, the United States Department of Labor (DOL) released the final version of the Employee or Independent Contractor Classification (the “Final Rule”). The Final Rule is published in the Federal Register and will take effect on March 11, 2024.

The Final Rule rescinds the broader rule issued during former President Donald Trump’s presidency, which focused heavily on the worker’s control over the work and opportunity for profit or loss in determining whether a worker is an employee or independent contractor under the Fair Labor Standards Act (FLSA). Under the Final ...

Last week, the Department of Labor (DOL) released a proposed rule that, if adopted, will raise the salary requirements for certain exempt employees. The DOL estimates its new rule could extend overtime protections to more than three million workers.

Most employers already know the Fair Labor Standards Act (FLSA) requires covered employers to pay most employees an overtime premium for all hours worked over forty in a workweek. This general rule, however, does not apply to employees in a bona fide executive, administrative, or professional capacity, as long as the employee earns a ...

On August 18, 2023, the Fifth Circuit Court of Appeals delivered a much-awaited decision that broadens the scope of potential liability for employers under Title VII of the Civil Rights Act. For about thirty years, the Fifth Circuit has applied a more restrictive standard for disparate-treatment liability under Title VII’s anti-discrimination provision—requiring an employee to prove alleged discrimination in connection with an “ultimate employment decision,” such as hiring, granting leave, discharging, promoting, or compensating. No more. The en banc Fifth ...

On August 2, 2023, the National Labor Relations Board (“NLRB”) changed the standard for deciding whether an employer’s workplace policy is lawful. In the recent Stericycle decision, the NLRB issued a split ruling reversing a Trump-era standard that made it easier for employers to defend workplace policies against claims that the policies deter employees from exercising their rights under Section 7 of the National Labor Relations Act (“NLRA”). Among other rights, Section 7 of the NLRA guarantees most non-managerial employees the right to engage in “concerted ...

The Pregnant Workers Fairness Act (PWFA) goes into effect on June 27, 2023, and will provide additional protection for pregnant job applicants and employees. If your business has fifteen (15) or more employees, the PWFA will require you to provide reasonable accommodations for job applicants and employees for “known limitations related to pregnancy, childbirth, or related medical conditions,” unless the accommodation would impose an undue hardship.

The PWFA requires a reasonable accommodation regardless of whether the pregnant applicant or employee has a ...

On April 28, 2023, new employee remedies will take effect under the Providing Urgent Maternal Protections for Nursing Mothers Act, a.k.a. the PUMP Act. The PUMP Act expands the rights of nursing employees under the Fair Labor Standards Act (FLSA) by making it unlawful for an employer to deny a covered employee a needed break to pump or a private place to pump.

The FLSA already requires employers to provide reasonable break time to employees to express breast milk in a place, other than a bathroom, that is shielded from public view and free from intrusion. For one year after a child’s ...

If you, like most employers, have included non-disparagement or confidentiality provisions in your severance and settlement agreements, you will be interested in a recent decision from the National Labor Relations Board (“NLRB”). On February 21, 2023, in a 4-1 decision the NLRB held an employer violates Section 8(a)(1) of the National Labor Relations Act (“NLRA”) when it offers a severance agreement with non-disparagement and confidentiality provisions that would restrict employees’ exercise of their NLRA rights. While some employers mistakenly believe the NLRA ...