KMK Law Management Rights Blog

On November 15, 2024, the US District Court for the Eastern District of Texas overturned the Department of Labor’s (DOL) final rule which increased the salary threshold for workers to be exempt from overtime requirements.

This summer, eyes were focused on the Federal Trade Commission and its announced rule seeking to invalidate millions of non-compete agreements across the country. That rule was ultimately struck down in the Court, but federal efforts to invalidate non-compete agreements have continued. As previously covered by this blog, the General Counsel of the National Labor Relations Board (“NLRB”) took aim at non-compete agreements in May of 2023, announcing her opinion that such agreements could restrict employees’ Section 7 rights under the National Labor Relations Act (“NLRA”). At that time, the General Counsel directed NLRB field offices to submit cases involving non-compete agreements for further investigation. 

After a summer of speculation, businesses and individuals across the country were provided some clarity as the Federal Trade Commission’s (FTC) rule invalidating millions of non-compete agreements was struck down by a federal district court. The FTC’s rule—which largely invalidated non-compete agreements—was announced in April and set to take effect on September 4, 2024. Since that announcement, however, multiple lawsuits have been filed against the FTC, challenging its rulemaking authority to impose this sweeping new rule. In the months that followed, all eyes have been on the courts to see whether the rule would take effect as scheduled.

The Federal Trade Commission’s (FTC) push to invalidate non-compete agreements for millions of workers gained steam today, courtesy of a ruling out of the Eastern District of Pennsylvania. As noted by this blog, in April of 2024 the FTC announced a final Rule largely invalidating non-compete agreements across the country. In the aftermath of that announcement multiple lawsuits were filed against the FTC, seeking to enjoin enforcement of this Rule. 

Earlier this month, opponents of the FTC’s Rule were offered a glimmer of hope when the U.S. District Court for the Northern ...

Yesterday, the Federal Trade Commission (“FTC”) announced its long-anticipated final rule finding that the vast majority of non-compete agreements constitute unfair methods of competition, and are thus invalid. An estimated 30 million employees are covered by non-compete agreements, representing nearly one in five U.S. workers. Thus, this announced rule has the potential to significantly impact the labor market, as well as cause a shift in employers’ business strategies.

On April 15, 2024 the Equal Employment Opportunity Commission (EEOC) announced its finalized regulations of the Pregnant Workers Fairness Act (PWFA). Effective last year, the PWFA requires employers to provide reasonable accommodations to employees and applicants with known physical limitations related to pregnancy, childbirth, or related medical conditions. But while the law went into effect on June 27, 2023, the EEOC is just now announcing its final rule providing guidance as to how this law will be interpreted and administered. 

On January 9, 2024, the Department of Labor announced that the changes to its independent contractor rule under the Fair Labor Standards Act (FLSA) which were proposed last year will go into effect starting March 11, 2024. This new standard rescinds the independent contractor status rule announced in 2021, reverting back to the Department of Labor’s previous interpretation.

Employers seeking to enforce non-compete agreements against their former employees will face a new hurdle following the latest news out of Washington, DC. National Labor Relations Board (“NLRB”) General Counsel Jennifer A. Abruzzo, who is responsive for the investigation and prosecution of unfair labor practice cases and for the general supervision of NLRB field offices, released a memorandum today announcing her interpretation that many non-compete agreements violate the National Labor Relations Act (“NLRA”) and thus are not enforceable. She has directed NLRB field offices to submit cases involving non-compete agreements for further investigation.

Ever since the Sixth Circuit dissolved the injunction to OSHA’s Emergency Temporary Standard (ETS), which mandates employers with 100 employees or more to require employees be vaccinated or submit to weekly testing and wear masks, all eyes have turned to the Supreme Court for intervention.  After hearing oral arguments on this issue on January 7, 2022, today the Court acted. In a per curiam opinion (an opinion issued in the name of the Court rather than a specific Justice), the Court reinstituted the stay which had been dissolved by the Sixth Circuit. Following the Sixth Circuit’s ...

On Friday evening, employers were delivered updates on two of the federal vaccine mandates, courtesy of the Eleventh and Sixth Circuits.