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A federal judge in Texas has put the Federal Trade Commission's (FTC) nationwide ban on non-compete agreements on hold. For the challengers involved in the case, the injunction delays the enforcement of the FTC's rule, set to take effect on September 4, 2024. The judge’s final decision, which is expected on or before August 30, 2024, could have broader implications for all employers, if upheld. The final decision is expected to be subject to further appeals, likely extending into 2025. A similar injunction, currently being considered in a Pennsylvania federal court, will be decided in the coming days (by July 23, 2024), which may have further implications for the challengers and beyond.
Employers should keep themselves updated on this ongoing legal matter and remain aware of state-level regulations regarding non-competes.
The summer will bring changes in many jurisdictions to the minimum wage/minimum salary thresholds for exemptions from minimum wage and overtime requirements, and other minimum pay requirements. Most minimum pay requirements get updated on or around January 1, or on or around July 1. As mentioned in our last edition, the most notable update includes exempt salary pay requirements increasing for exemption types at the Federal level.
Employers should review the pay requirement updates linked here and make adjustments to their employee compensation details and classifications as needed.
On April 29, 2024, the Equal Employment Opportunity Commission (EEOC) issued new enforcement guidance on harassment in the workplace. The new guidance addresses discrimination based on gender identity, sexual orientation, stereotyping, and virtual or in-person harassment in the workplace and through virtual environments and technologies.
The EEOC also released a summary of its key provisions, an FAQ on workplace harassment for employees, and a fact sheet for small businesses on preventing and addressing workplace harassment. Employers should review their anti-harassment policies, processes, and procedures that take into consideration these protections to ensure they are complying with the new guidance.
On April 23, 2024, the Federal Trade Commission (FTC) issued its final rule prohibiting non-compete agreements, with some limited exceptions. The rule has already begun to face legal challenges, and if the rule does ultimately take effect, the earliest effective date would not be until at least late August 2024. Once effective, the rule would prohibit employers from entering into non-compete clauses with workers and enforcing existing non-compete agreements, unless they cover certain senior executives (workers who earn more than $151,164 annually and are in policy-making positions). Additionally, employers will need to provide notice to covered current and former workers that their non-competes are no longer enforceable.
Although there is no immediate action required, employers should review their non-compete agreements and discuss potential next steps with their employment counsel.
The Equal Employment Opportunity Commission (EEOC) recently issued final rules regarding the implementation of the Pregnant Workers Fairness Act (PWFA), which originally took effect in June 2023. The final rules cover lactation support and other accommodations for expectant workers, including fertility and abortion care. The PWFA applies to employees and applicants and requires employers to provide accommodations for current, past, and potential pregnancy-related medical conditions, including miscarriage, abortion, and postpartum complications. The PWFA requires employers to provide reasonable accommodations similar to those under the Americans with Disabilities Act (ADA). Unlike the ADA, the PWFA may also require such accommodations on a temporary basis, even if the essential functions of the job cannot be performed.
Employers should review and revise their policies and processes related to medical conditions covered under the PWFA and reasonable accommodations accordingly.
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