On May 7, 2024, in Ryan, LLC v. FTC et al., Judge Ada Brown of the U.S. District Court for the Northern District of Texas set a briefing schedule on Ryan’s Motion for Stay of Effective Date and Preliminary Injunction (the “Motion”) attacking the FTC Final Rule banning employer-employee non‑compete restrictions, and ordered that she would rule on the merits of the Motion on or before July 3, 2024—two months before the FTC Final Rule is scheduled to become effective on September 4, 2024. 

Continue Reading Motion Seeking to Stay or Enjoin FTC Final Rule Banning Employer-Employee Non‑Competes Set for Ruling by July 3, 2024

The California Department of Industrial Relations recently released its FAQs regarding the new fast food minimum wage law, AB 1228, which took effect on April 1, 2024.  The legislation sets an industry-wide minimum wage for employees in fast food establishments at $20.00 per hour and applies to employees at fast food restaurants that are part of a chain with 60 or more nationwide locations, offer limited or no table service, and are engaged in selling food and beverages for immediate consumption.  Significantly, franchises, regardless of their ownership structure, must comply if they meet these criteria.

Continue Reading Navigating New Minimum Wage Requirements for California’s Fast Food Industry

On April 12, 2024, the U.S. Supreme Court, in a unanimous decision, held that transportation workers need not work in the transportation industry to be exempt from coverage under section 1 of the Federal Arbitration Act (“FAA”).  Bissonnette, et al. v. LePage Bakeries Park St., LLC, et al., No. 23-51.  (See here.)  The Court found the determining factor to be the nature of the employee’s work for the company, not what the company does generally.  

Continue Reading Delivering the Goods:  The Exemption from Arbitration Focuses on the Worker, Not the Industry

The U.S. Department of Labor’s announcement of the final rule concerning Occupational Safety and Health Administration (“OSHA”) inspections has employers ringing alarm bells.  Set to take effect on May 31, 2024, the rule amends 29 C.F.R. § 1903.8(c) and makes significant changes to who is eligible to accompany OSHA Compliance Safety and Health Officers (“CSHO”) during workplace inspections, which are commonly referred to as “walkarounds.”

Continue Reading Navigating the New OSHA Walkaround Rule

The Los Angeles County Board of Supervisors recently passed the Fair Chance Ordinance for Employers (“Ordinance”), L.A. Cnty. Code § 8.300 et seq., in an effort to ensure  “individuals with criminal records have fair and equitable access to opportunities for gainful employment.”  By September 3, 2024, employers in the unincorporated areas of Los Angeles County with five or more employees must comply with the Ordinance.

Continue Reading L.A. County Board of Supervisors Passes Fair Chance Ordinance

Several key changes to UK employment rights  will come into effect in April 2024. By way of brief summary, the key changes for employers to be aware of, and those that will require immediate attention to ensure legally compliant and up-to-date HR policies and practices in the UK, include the following:

Continue Reading Key Changes Impacting UK Employment Law From April 2024

In Johnson v. Lowe’s Home Centers, LLC, the Ninth Circuit sided with the California Supreme Court’s ruling in Adolph v. Uber Techs. Inc., 14 Cal. 5th 1104 (2023), and held that the district court was correct to send the individual plaintiff’s Private Attorneys General Act (“PAGA”) claims to arbitration, but reversed the dismissal of the representative PAGA claims, holding they must remain in court.  Although whether PAGA representative claims should remain in court after the plaintiff has been compelled to arbitrate his or her individual claims remains unsettled under the Federal Arbitration Action (“FAA”), and ultimately will be decided by the U.S. Supreme Court, the Ninth Circuit ruling wasn’t particularly surprising.  What is more interesting is the concurrence by Judge Kenneth Lee, who noted some tension between the FAA and Adolph

Continue Reading Trying to Reconcile the Tension between the Federal Arbitration Act and Adolph

Seven years after the UK Supreme Court decided that the payment of fees to bring Employment Tribunal claims was unlawful and should be abolished, the Government has published a consultation paper to reintroduce fees in the Employment Tribunals (“ET”) and Employment Appeal Tribunal (“EAT”).

Continue Reading UK Government Proposes to Reintroduce Employment Tribunal Fees

On January 9, 2024, the Department of Labor (DOL) announced a final rule creating the test for independent contractor status under the Fair Labor Standards Act. The final rule marks the rescission of the Trump administration’s more employer-friendly rule and revives the likeness of prior tests that are more likely to classify workers as employees rather than independent contractors. The final rule proposes a six-factor test to be applied when evaluating a worker’s status with some guidelines on the interpretation on how to apply the factors. The final rule goes into effect on March 11, 2024. For more detailed information on the DOL’s final rule, see here.

Although non-competition agreements are under ongoing attack at the federal and state levels (including being banned in California, Minnesota, North Dakota, and Oklahoma, among others), New York State is not yet ready to join that movement.  Late last month, New York Governor Kathy Hochul vetoed Senate Bill S3100A, which was passed in June 2023 by the NYS Assembly and the Senate and would have prohibited all non-compete agreements.  In vetoing the bill, Governor Hochul expressed concern about the impact that the legislation would have on the interest of the many businesses operating in the state to protect the competitive advantage that key employees bring.

Continue Reading New York Governor Vetoes Bill Banning Non-Compete Agreements