Compliance Stuff

  As eyes turned toward Washington this week and what employers anticipate on a range of labor and employment law issues, practitioners are keeping a close eye on how the changing landscape at the federal level may impact state action . While employers are always wise to track changes impacting their workforce, now more than ever is a good time to prepare for shifting sands and the need to regularly review and revisit policies and procedures to ensure compliance. Here are just some of the issues on which we expect to see activity at the state level. Civil Rights Enforcement and DEI Leading up to the inauguration, President Trump made statements to cut Diversity Equity and Inclusion (“DEI”) initiatives from the Federal Government.  Those statements came to fruition just days into the new administration through an  executive order  dismantling the federal government’s diversity and inclusion programs and placing DEI staff on paid leave immediately .  On the same d...

You probably know the f ederal non-compete ban is on ice for now – but that doesn’t mean employers are free to use non-competes indiscriminately . What remains in the wake of the FTC’s ban is a highly complex, constantly shifting patchwork of state laws that regulate the administration and substance of non-compete agreements. Here’s your reminder to-do list, including the top 10 state law issues you’ll still need to tackle, even though the FTC’s non-compete ban did not take effect September 4. First, Catch Up on Breaking News In case you missed it, a Texas federal judge struck down the Federal Trade Commission’s proposed non-compete ban on August 20, blocking the rule from taking effect on September 4 for all employers nationwide. You can read more about this significant development here . Then, Review the Top 10 State Law Issues You Still Must Consider _____  Give Advance Notice When Required In some states, you can’t just give non-competes to new hires on the first date of employ...

  Background:  The Federal Trade Commission (FTC) issued an extremely broad Final Rule banning most non-competes. As expected, there have been multiple court challenges to the Final Rule, but, to date, no court has issued a nationwide injunction preventing the Final Rule from going into effect, as scheduled, on September 4, 2024. Judge Ada Brown of the Northern District of Texas has indicated, however, that she intends to issue a decision on the merits on or before August 30, 2024.  The Final Rule includes language requiring that employers provide an individualized notice to each worker subject to a non-compete prohibited under the Final Rule . According to the Final Rule, these notices must state that the employer will not enforce the prohibited non-compete and that it is illegal. With no injunction currently in place, employers need to start assessing whether this notice requirement applies to their contracts so they are ready in the event that Judge Brown decides ...