Uncategorized

Recent Changes in Leadership at FTC and NLRB Impact Federal Regulation of Non-Compete Agreements

by

The change in presidential administrations has resulted in changes in leadership at the Federal Trade Commission (FTC) and National Labor Relations Board (NLRB). These changes have potential implications with respect to enforcement of non-compete agreements at the federal level. At the FTC, Andrew Ferguson has replaced the prior FTC Chair, Lina Khan. Under Ms. Khan’s leadership, the FTC had issued a Noncompete Rule that effectively banned most noncompete agreements with employees. In August 2024, that Rule was blocked by a court in the Northern District of Texas before it went into effect. The FTC filed an appeal of that decision, …

Learn more

Massachusetts’ New Pay Transparency Law Goes Into Effect In 2025

by

A new law, An Act Relative to Salary Range Transparency (the “Act”), which includes requirements designed to enhance pay transparency in Massachusetts goes into effect soon. The Act includes two primary components: (1) a pay range disclosure requirement; and (2) a pay data reporting requirement. Massachusetts employers should be prepared to comply with the requirements of this law, as the requirements will become effective in 2025, including certain reporting requirements as early as February 1, 2025. Pay Range Disclosure Requirement The Act will require private and public employers with 25 or more employees to include the “Pay Range” in all …

Learn more

DOL’s 2024 Rule Increasing Salary Thresholds for Overtime Exemptions Struck Down.

by

On November 15, 2024, a Texas federal district court vacated an April 2024 final rule issued by the U.S. Department of Labor (DOL), which had increased the salary thresholds for exemptions from federal overtime requirements under the Fair Labor Standards Act (FLSA). Significantly, the court’s ruling struck down the DOL’s rule on a nationwide basis. On November 26, 2024, the DOL filed a notice of appeal of the court’s decision. For now, however, the DOL’s April 2024 rule does not apply. Notably, it is uncertain whether the incoming administration will even continue moving forward with the DOL’s appeal. As a …

Learn more

Checking In On The FTC’s Non-Compete “Ban”

by

On October 18, 2024, the Federal Trade Commission (FTC) initiated an appeal with the U.S. Court of Appeals for the Fifth Circuit, contesting the ruling issued by a Texas district court on August 20 in Ryan, LLC v. FTC, which blocked the FTC’s rule banning non-competes. As it stands, however, the Texas district court’s decision blocking the FTC’s rule from going into effect remains operative. A timeline for that appeal process has not yet been set. In the meantime, the result of the recent Presidential election may mean a change in leadership at the FTC. It is possible (even likely) …

Learn more

FTC Rule Banning Non-Competes Vacated By Texas Court

by

The Federal Trade Commission (FTC) Rule banning nearly all post-employment non-compete agreements has been vacated, so will not be going into effect on September 4, 2024. On August 20, 2024, the U.S District Court for the Northern District of Texas in Ryan, LLC v. FTC issued an Order on a Motion for Summary Judgment in which the Court vacated the FTC Rule. Specifically, the Court states: “The Court sets aside the Non-Compete Rule. Consequently, the Rule shall not be enforced or otherwise take effect on its effective date of September 4, 2024 or thereafter.” This decision provides welcome clarity in …

Learn more

Uncertainty Continues Regarding Enforceability Of FTC’s Non-Compete “Ban”

by

Following the April 23, 2024 vote by the Federal Trade Commission (FTC) to issue a rule largely banning non-compete agreements in employment agreements, there has been continuing uncertainty as to whether that rule will actually go into effect. Almost immediately after the rule was issued, several companies and industry groups filed lawsuits seeking to block the rule’s application. The central argument articulated by these litigants is that the FTC lacks the statutory rulemaking authority to issue the non-compete “ban.” As of now, the rule remains scheduled to go into effect on September 4, 2024. These cases have started to progress …

Learn more

DOL Issues Guidance On Artificial Intelligence In Workplace

by

On April 29, the Department of Labor’s Wage and Hour Division (WHD) issued Field Assistance Bulletin No. 2024-1 on “Artificial Intelligence and Automated Systems in the Workplace Under the Fair Labor Standards Act and Other Federal Labor Standards.”  The bulletin provides helpful guidance to employers who are presently using or considering using “artificial intelligence” or “AI” in the workplace to assist with managing employees. Likewise, employees should be aware of how the use of AI or other technologies may affect their rights in the workplace.    This guidance highlights the fact that employers’ legal obligations and responsibilities with respect to their …

Learn more

DOL Issues Final Rule Increasing Salary Thresholds for FLSA Exemptions

by

On April 23, 2024, the U.S. Department of Labor (DOL) released its anticipated final rule impacting annual salary-level thresholds for exemptions to overtime requirements pursuant to the Fair Labor Standards Act (FLSA). In addition to increasing applicable earnings thresholds, the final rule also introduces a mechanism for automatically updating those thresholds on a going forward basis every three years. Presently, the salary threshold under the FLSA for executive, administrative, and professional employees is $684 per week, which annualizes to $35,568 per year. The threshold for highly compensated employees under the FLSA is currently $107,432 per year. Effective July 1, 2024, …

Learn more

Emerging Issues We Are Watching in 2024

by

As we step into 2024, there are several emerging developments from various federal and state agencies that we are monitoring.  Some of the more significant issues we are watching are set forth below: Potential Bans on Non-Compete Restrictions: Both the Federal Trade Commission (FTC) and the National Labor Relations Board (NLRB) have taken steps that could lead to a broad ban or other significant limitation on the use of non-compete clauses in employment contracts. Movement by one or both of these agencies on this issue could come as early as April 2024. Such a ban or even a more watered-down …

Learn more

Changes to Massachusetts Paid Family Medical Leave Benefits

by

PFML Weekly Benefit Increase For 2024, the Massachusetts Department of Family and Medical Leave (DFML) has increased the maximum weekly Paid Family and Medical Leave (PFML) benefit amount to $1,149.90 per week. Previously, the maximum benefit was $1,129.82. This benefit rate change became effective January 1, 2024. PFML Contribution Rate Increase Required contribution rates to the PFML trust fund have also increased in 2024. For employers with 25 or more covered employees, the total contribution rate rises to 0.88% (from 0.63%). In particular, the family leave contribution rate is now 0.18%, and the medical leave contribution rate is now 0.70%. …

Learn more