Compliance Stuff

In a significant decision, the Delaware Supreme Court reversed the dismissal of Payscale, Inc.’s breach of contract claims arising from Erin Norman’s alleged violations of the noncompete, non-solicitation, and confidentiality provisions contained in the incentive equity agreement that she signed as an employee. The decision reaffirms: (1) nationwide, 18-month noncompetes may be enforceable when they are sufficiently tied to an employer’s articulated economic interests, (2) contingent equity awards are legally sufficient consideration for restrictive covenants , and (3) a plaintiff may plead circumstantial allegations to support claims for breach of non-solicitation and confidentiality provisions. Background Norman entered into an incentive equity agreement that included noncompete, non-solicitation, and confidentiality provisions. In exchange, she received “Profit Interest Units” (PIUs) in Payscale’s parent holding company. At the time, the PIUs were valued at $0, but the PIUs would v...

The Supreme Court of the United States recently denied certiorari in  Bivens v. Zep, Inc. , leaving in place a stark circuit split on the standard for employer liability when customers or other third parties harass employees. 00:00 24:53 Quick Hits The Supreme Court left intact the Sixth Circuit’s intent-based standard for employer liability for third-party harassment. The Sixth Circuit’s ruling diverges sharply from the EEOC’s position, as well as that of almost all other circuits to address the issue. Employers in Kentucky, Michigan, Ohio, and Tennessee continue to benefit from the higher bar for employer liability set by the Sixth Circuit, while employers in most other jurisdictions remain subject to a more employee-friendly standard. Background In  Bivens v. Zep Inc . , the Sixth Circuit held that an employer can be liable for customer harassment only if it intended for the harassment to occur or was willfully indifferent to it. In its decision, the Sixth Circuit rejected ...

In response to concerns about the rapidly changing economy and the impact of artificial intelligence (AI) on the labor market, the White House is encouraging employers to adopt AI tools and train workers to effectively leverage them, as evidenced by the U.S. Department of Labor’s new guidance to promote “AI literacy.” Quick Hits The DOL’s AI Literacy Framework defines essential skills for effectively using and evaluating generative AI technologies in the workplace. The framework encourages employers to provide hands-on training to ensure all employees possess baseline AI literacy skills to engage with AI tools responsibly and effectively. The framework outlines foundational content areas and key principles for effective training, including experiential learning and the integration of complementary human skills alongside AI competencies. On February 13, 2026, the U.S. Department of Labor’s Employment and Training Administration published  Training and Employment Notice (TEN) 07-25 ,...

On April 16, 2026, Alabama Governor Kay Ivey signed the  Alabama Personal Data Protection Act  (APDPA) into law, making A labama the twenty-first state to enact a comprehensive privacy law. Alabama is the second state to pass a comprehensive privacy law this year, with  Oklahoma  passing a comprehensive privacy law last month. Notably, the APDPA has l ow applicability thresholds, applying to entities that control or process personal information of more than 25,000 Alabama residents or derive more than 25% of gross revenue from the sale of personal data. However, the law contains a narrow definition of sale and includes standard entity-wide exemptions for entities covered by the Gramm-Leach-Bliley Act (GLBA), as well as both covered entities and business associates regulated by the Health Insurance Portability and Accountability Act (HIPAA) . It also i ncludes exemptions for personal data processed in a “commercial” or “employment” context. Additionally, unlike many...