On August 20, 2024, the federal U.S. District Court for the Northern District of Texas set aside the FTC’s rule (Rule) banning non-competes. The Rule was set to take effect on September 4, 2024....more
As we previously reported, on April 23, 2024, the Federal Trade Commission (FTC) adopted a final rule banning post-employment noncompete agreements nationwide, with limited exceptions related to the sale of a business and any...more
8/5/2024
/ Compliance ,
Employment Contract ,
Federal Bans ,
Federal Trade Commission (FTC) ,
Final Rules ,
Non-Compete Agreements ,
Notice Requirements ,
Pending Litigation ,
Popular ,
Preliminary Injunctions ,
Restrictive Covenants ,
Unfair Competition
On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 to adopt a final rule broadly banning post-employment noncompete agreements. This federal ban prohibits for-profit employers from entering into noncompete...more
4/29/2024
/ Chamber of Commerce ,
Corporate Executives ,
Employer Liability Issues ,
Employment Contract ,
Exceptions ,
Federal Trade Commission (FTC) ,
Final Rules ,
Former Employee ,
Model Forms ,
Non-Compete Agreements ,
Notice Requirements ,
Restrictive Covenants ,
Unfair Competition
2023 was a seismic year for the employment landscape, with changes to state and federal laws that touch on hiring, firing, and just about everything in between. Members of Fenwick’s employment group recently walked through...more
2/1/2024
/ Arbitration Agreements ,
Artificial Intelligence ,
California ,
Department of Labor (DOL) ,
Employee Benefits ,
Employees ,
Employer Liability Issues ,
Employment Policies ,
Independent Contractors ,
Joint Employers ,
Labor Reform ,
New Legislation ,
New York ,
NLRB ,
Non-Compete Agreements ,
Paid Leave ,
Private Attorneys General Act (PAGA) ,
State Labor Laws ,
Technology ,
Wage and Hour
On January 10, 2024, the U.S. Department of Labor released its final rule for determining worker classification under the Fair Labor Standards Act (“FLSA”). The final rule returns to the economic reality test historically...more
1/30/2024
/ ABC Test ,
Classification ,
Department of Labor (DOL) ,
Employee Definition ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Final Rules ,
Hiring & Firing ,
Independent Contractors ,
Misclassification ,
New Rules ,
Wage and Hour
On December 22, 2023, Governor Kathy Hochul vetoed legislation passed by New York lawmakers this past summer, which sought to ban nearly all non-competition agreements state-wide (as previously reported here). In a memo...more
1/10/2024
/ Employer Liability Issues ,
Employment Contract ,
Governor Vetoes ,
Legislative Agendas ,
New York ,
Non-Compete Agreements ,
State and Local Government ,
State Bans ,
State Labor Laws ,
State Legislatures ,
Wage and Hour
Once a startup has properly classified its worker, it should document its relationship with the worker in order to clearly identify the classification, compensation and benefits (e.g., base salary, bonus, commissions, equity,...more
On September 1, 2023, California Governor Gavin Newsom signed into law SB 699, which amends California Business & Professions Code Section 16600 to prohibit employers from entering into, or attempting to enforce,...more
An important part of hiring employees is deciding how to compensate them. Because of limited capital, startups often implement equity-only compensation or deferred compensation arrangements in lieu of regular salaries....more
Hiring workers is an important step for startups. Startups engage two main types of workers—employees and independent contractors. It can be difficult to determine the proper classification of a worker, especially since both...more
The New York State Senate and New York State Assembly recently passed legislation (Bill S3100A and Bill A1278A) that would prohibit the use of non-competition agreements entirely. If the legislation is signed into law by...more
On February 21, 2023, the National Labor Relations Board (NLRB) held that including broad confidentiality and non-disparagement clauses in severance agreements violates the National Labor Relations Act (NLRA)...more
3/1/2023
/ Confidentiality Agreements ,
Contract Terms ,
Employees ,
Employer Liability Issues ,
Employment Litigation ,
Employment Policies ,
Former Employee ,
Hiring & Firing ,
Labor Reform ,
NLRA ,
NLRB ,
Non-Disparagement Provisions ,
Section 7 ,
Severance Agreements
On January 5, 2023, the Federal Trade Commission (FTC) announced its long-anticipated proposed rule, which if adopted, would essentially ban all noncompete agreements between employers and their workers that restrict such...more
Join Fenwick’s Employment Practices Group for a 90-minute discussion of the legal developments and emerging trends that shaped 2022 then hear about the compliance recommendations, practical takeaways, and perspective on what...more
12/23/2022
/ Continuing Legal Education ,
Diversity and Inclusion Standards (D&I) ,
Employer Liability Issues ,
Employment Policies ,
Federal Labor Laws ,
Hiring & Firing ,
Labor Regulations ,
New Legislation ,
Regulatory Agenda ,
State Labor Laws ,
Wage and Hour ,
Webinars ,
Workplace Safety
U.S. Department of Labor Publishes Proposed Rule on Independent Contractor Classification Under the Fair Labor Standards Act -
On October 13, 2022, the U.S. Department of Labor (DOL) published a proposed rule updating the...more
10/25/2022
/ Arbitration ,
California ,
Cannabis Products ,
Coronavirus/COVID-19 ,
Data Reporting ,
Department of Labor (DOL) ,
Employee Definition ,
Employees ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Governor Newsom ,
Hiring & Firing ,
Independent Contractors ,
Job Ads ,
Marijuana ,
New York ,
Notice Requirements ,
Off-The-Clock ,
Paid Leave ,
Pay Transparency ,
Popular ,
Proposed Rules ,
Rulemaking Process ,
Wage and Hour
On September 27, 2022, California Governor Gavin Newsom signed into law SB 1162, which expands California’s existing pay transparency and employee data reporting laws. California joins New York and Colorado, which have...more
10/10/2022
/ California ,
Data Reporting ,
EEO-1 ,
Employees ,
Employer Liability Issues ,
Governor Newsom ,
Job Applicants ,
New Legislation ,
Pay Data ,
Pay Transparency ,
Reporting Requirements ,
Salary/Wage History ,
Wage and Hour
On March 3, 2022, President Biden signed into law the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (the Act), which amends the Federal Arbitration Act (the FAA) and prohibits employers from requiring...more
3/24/2022
/ Arbitration ,
Arbitration Agreements ,
Biden Administration ,
Employees ,
Employer Liability Issues ,
Employment Litigation ,
Employment Policies ,
Federal Arbitration Act ,
Legislative Agendas ,
Mandatory Arbitration Clauses ,
New Legislation ,
Sexual Assault ,
Sexual Harassment
[Editor’s Note (01/14/22): In a 6-3 ruling, on January 14, 2022, the U.S. Supreme Court reversed the Sixth’s Circuit’s ruling described below, and thereby re-imposed an injunction preventing OSHA from enforcing its Emergency...more
On December 13, 2021, the California Department of Public Health (CDPH), citing the Omicron variant and the need for additional protection during the holiday season, issued statewide guidance requiring face masks to be worn...more
[Editor’s Note (12/20/21): The U.S. Court of Appeals for the Sixth Circuit has lifted the Fifth Circuit’s injunction halting enforcement of the OSHA Standards, and, specifically, the mandate regarding vaccination or weekly...more
[Editor's Note (12/07/21): A second court―the U.S. District Court for the Southern District of Georgia―has issued an injunction halting enforcement of the federal contractor vaccine mandate on a nationwide basis. The district...more
12/8/2021
/ Biden Administration ,
Constitutional Challenges ,
Coronavirus/COVID-19 ,
Employees ,
Employer Liability Issues ,
Employer Mandates ,
Executive Orders ,
Federal Contractors ,
Federal Employees ,
Injunctions ,
Multidistrict Litigation ,
OSHA ,
State and Local Government ,
Stays ,
Subcontractors ,
Vaccinations ,
Virus Testing
On November 4, 2021, the federal Occupational Safety and Health Administration (OSHA) issued its long-awaited emergency standards to implement President Biden’s Vaccine/Testing Mandate for businesses with 100 or more...more
11/9/2021
/ Biden Administration ,
Constitutional Challenges ,
Coronavirus/COVID-19 ,
Employees ,
Employer Liability Issues ,
Employer Mandates ,
Federal Contractors ,
Federal Employees ,
Injunctions ,
OSHA ,
Stays ,
Vaccinations ,
Virus Testing ,
Workplace Safety
HERO Act Plans Remain In “Active” Status for New York State Employers On September 6, 2021, New York’s Commissioner of Health designated COVID-19 as an airborne infectious disease under the Health and Essential Rights Act...more
10/7/2021
/ Biden Administration ,
Coronavirus/COVID-19 ,
Emergency Management Plans ,
Employer Mandates ,
Executive Orders ,
Federal Contractors ,
Federal Employees ,
Health and Essential Rights (HERO) Act ,
Infectious Diseases ,
Masks ,
New York ,
OSHA ,
Regulatory Requirements ,
Safety Programs ,
Social Distancing ,
Subcontractors ,
Vaccinations ,
Workplace Safety
On May 5, 2021, New York Governor Andrew Cuomo signed into law the Health and Essential Rights Act (HERO Act), which requires all private New York employers to implement workplace safety plans to prevent the spread of...more
New ARPA/COBRA Subsidy -
The federal American Rescue Plan Act of 2021 (ARPA) provides for a 100% subsidy of COBRA premiums for six months from April 1, 2021 through September 30, 2021, for individuals (and their covered...more
4/1/2021
/ American Rescue Plan Act of 2021 ,
Benefit Plan Sponsors ,
Biden Administration ,
COBRA ,
Coronavirus/COVID-19 ,
Covered Employees ,
Covered Employer ,
Employee Benefits ,
Employer Group Health Plans ,
Employer Mandates ,
Equal Employment Opportunity Commission (EEOC) ,
Governor Cuomo ,
Governor Newsom ,
Health Insurance ,
New Guidance ,
Non-Compete Agreements ,
Notice Requirements ,
Paid Sick Leave ,
Premium Subsidies ,
Relief Measures ,
State and Local Government ,
Tax Credits ,
Vaccinations