Vineesha Sow

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In a significant and sweeping move, the Federal Trade Commission (FTC) adopted a rule in April 2024, the “Non-Compete Rule,” effectively banning the use of all non-compete clauses for many workers starting on September 4, 2024. The rule is embroiled in a battle between two U.S. District Courts. The Northern District Court of Texas granted a motion for preliminary injunction preventing the FTC from moving forward with the rule, but only for plaintiffs of that case while the Eastern District Court of Pennsylvania recently denied a plaintiff’s motion for preliminary injunctive relief.  The recent rulings guarantee continued uncertainty regarding the future of non-compete clauses. It is important that employers understand what to expect in anticipation of the rule becoming effective and are aware of the rationale articulated in each court.Continue Reading Federal Trade Commission’s Non-Compete Ban: A Battle of the Courts  

In April 2024, the Department of Labor (DOL) issued its final rule raising the threshold salary requirements under the Fair Labor Standards Act (FLSA) for employees classified as exempt from overtime pay when working in excess of forty (40) hours in a seven (7) day workweek, (the “2024 rule”). The 2024 rule, scheduled to take effect July 1, 2024, increases the salary thresholds for the executive, administrative, and professional (EAP) exemptions, and highly compensated exemption (HCE). Specifically, the 2024 rule increases the EAP exemptions from $684 per week ($35,568 per year) to $844 per week ($43,888 per year) effective July 1st, and a subsequent increase on January 1, 2025, to $1,128 per week ($58,656 per year). For the HCE, the salary threshold will increase from $107,432 per year to $132,964 per year on July 1st, and a subsequent increase on January 1, 2025, to $151,164 per year.Continue Reading Court Scrutiny Faced by The Department of Labor’s New Rule Increasing Exempt Employee Salary Thresholds

On February 27, 2023, the General Counsel of the National Labor Relations Board (“NLRB”) released an advice memorandum (“Memorandum”) on the topic of an employee discussing issues of racial discrimination in the workplace and on social media. The General Counsel determined that discussions of racial discrimination in the workplace are protected concerted activity under Section 7 of the National Labor Relations Act (“NLRA”), and therefore, the NLRA protects employees who engage in such discussions from employer retaliation. This determination is similar to a General Counsel advice memorandum from January 20, 2016, in which the General Counsel concluded that an employee’s “discussion of alleged racial discrimination in terms and conditions of employment was protected under the Board’s doctrine of ‘inherently concerted’ activity.” However, the Memorandum issued on February 27 seemingly expands that standard to employees who discuss racial discrimination regardless of whether the employee discussions are related to racial discrimination occurring in the workplace or made in connection to the terms and conditions of employment.Continue Reading NLRB Broadens Scope on Protected Concerted Activity for Workplace Discussions of Racism

In a recent decision, the National Labor Relations Board (“Board”) ruled that overly broad confidentiality and non-disparagement clauses in severance agreements are unlawful. In fact, even the mere offering of a severance agreement with these clauses is unlawful. Employers typically include these clauses in severance agreements either to restrict an employee from discussing the severance terms with coworkers or to restrict the employee from publishing false or defamatory comments about the employer following the employee’s departure from the company.  The Board reasoned that these two clauses, if drafted too broadly, might cast too wide a net and have a “chilling effect” on an employee’s exercise of their protected rights under the National Labor Relations Act (“Act”). This ruling applies to severance agreements offered in union and non-union private-sector workplaces.
Continue Reading NLRB Rules Overly Broad Confidentiality and Non-Disparagement Clauses are Unlawful