Labor & Employment Developments 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.

On Oct. 4, 2024, the U.S. Supreme Court granted certiorari to hear Ames v. Ohio Department of Youth Services –a reverse discrimination case from the U.S. Court of Appeals for the Sixth Circuit. The question before the Supreme Court is whether the heightened “background circumstances” rule adopted by the Sixth Circuit for reverse discrimination cases is discriminatory and runs afoul of Title VII. The “background circumstances” rule is an additional requirement imposed by certain circuits for proving discrimination in cases involving members of majority groups – so-called reverse discrimination cases. A plaintiff typically satisfies the “background circumstances” by presenting evidence that a member of the relevant minority group made the employment decision at issue, or with statistical evidence showing a pattern of discrimination by the employer against members of the majority group. Ames v. Ohio Dept. of Youth Servs., 87 F.4th 822, 825 (6th Cir. 2023)

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 ...

The Department of Labor (DOL) announced on April 23, 2024, a final rule that expands the compensation threshold for exemption eligibility under the Fair Labor Standards Act (FLSA). On July 1, 2024, most salaried workers who earn less than $43,888 per year will become eligible for overtime pay under the final rule, which increases the salary threshold from $35,568 to $43,888 per year. This threshold will increase again on January 1, 2025 to $58,656 per year.

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. 

Terminating an employee is often a long process involving warnings and documentation of performance issues. However, there are several scenarios that may call for immediate termination of employment. Employers often view these scenarios as safe from an employment law perspective but there can be hidden risks. 

In this new podcast episode, recent cases and news from the world of Labor & Employment Law will be discussed.