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As we have previously written, on August 20, 2024, a Texas federal district court issued an order setting aside the Federal Trade Commission’s (FTC) sweeping proposed rule that would ban and render unenforceable most non-compete clauses in employment agreements.  The FTC is now appealing that district court order.  Specifically, on October 18, 2024, the FTC…

The IRS recently issued a new fact sheet to answer certain FAQs about the rules in SECURE 2.0 Act of 2022 (the “Act”) that give special rights under certain qualified retirement plans and IRAs to individuals impacted by major disasters that occur or occurred on or after January 26, 2021. The Act was enacted in December 2022 and amended certain sections of the Internal Revenue Code (the “Code”).

These FAQs provide guidance on what the relief consists of, who may claim such relief, and when such relief may be claimed. Relief of this nature has previously been provided on a disaster-by-disaster basis. These amendments make such relief permanent. The FAQs may be found here.

Continue Reading IRS Releases Guidance on Disaster Relief Under Qualified Plans and IRAs

Last week brought a major development in litigation surrounding the FTC’s sweeping rule that would ban and render unenforceable most non-compete clauses in employment contracts. Specifically, on August 20, 2024, the U.S. District Court for the Northern District of Texas in Ryan LLC, et al. v. FTC issued an order setting aside the FTC’s rule nationwide, meaning that the rule will no longer become effective on September 4, 2024 as scheduled.  

Continue Reading Texas Federal Court Sets Aside the FTC’s Rule Banning Non-Competes, With the Court’s Order Having Nationwide Effect

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 April 23, 2024,  the U.S. Federal Trade Commission (the “FTC”) published a new rule banning most non-compete clauses in employment contracts. The new rule was issued by a narrow margin of 3:2, and comes as an effort by the FTC to promote competition, protect the freedom of workers to change jobs, and increase innovation. FTC Chair Lina M. Khan has explained that the rule will “ensure that Americans have the freedom to pursue a new job, start a new business, or bring a new idea to market.”

Continue Reading FTC Bans Non-Competes

On June 29, 2023, the United States Supreme Court issued a decision, Students for Fair Admissions, Inc. v. President & Fellows of Harvard College, striking down decades of precedent that had previously permitted affirmative action programs in connection with admission practices at colleges and universities.  While the Harvard decision does not directly impact employers, the rationale supporting it has the potential to impact employment practices moving forward, as discussed below.

Continue Reading FORECASTING THE IMPACT OF THE SUPREME COURT’S LATEST AFFIRMATIVE ACTION DECISION ON EMPLOYERS

Andrea Hellrigel, Suffolk Law Student and Summer Associate

The option for remote work has become a new normal for many companies. With employees working throughout the country, sometimes thousands of miles away from a company’s human resources department, employers face new challenges complying with in-person requirements during the onboarding process. This is especially so, since the Immigration and Customs Enforcement (ICE) recently announced that as of July 31, 2023, temporary COVID-19 accommodations for Form I-9, which had excused employers from conducting inspections of I-9 documents in person, will expire.

Continue Reading Employers Take Note:  In-Person Document Inspection for I-9 Forms Resumes

While employers in industries like construction and manufacturing are likely well-versed in specific Occupational Safety and Health Act (OSHA) regulations, an often overlooked regulation called the General Duty Clause applies to every employer.

Section 5(a)(1) of the Occupational Safety and Health Act (the “General Duty Clause”) requires an employer to provide a place of employment free from recognized hazards that may result in death or serious physical harm to its employees.  Violations include fines, legal liability, and reputational damage.

Continue Reading Understanding the OSHA General Duty Clause

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