Earlier today, the United States District Court for the Eastern District of Texas granted summary judgment in favor of the state of Texas and a coalition of business organizations, striking down the Department of Labor’s regulations mandating significant increases to the salary basis for white-collar employees. As a result, the increases in salary implemented last July, as well as the increase that was to go into effect on January 1, have been nullified.Continue Reading Overtime Exemption Rules Requiring Salary Increases for White-Collar Employees Vacated By Texas Court

Yesterday, a federal court in Texas issued a nationwide injunction preventing the Federal Trade Commission’s rule banning nearly all employee non-compete agreements from taking effect on September 4, 2024. The case, Ryan LLC et al. v. Federal Trade Commission, Case No. 3:24-cv-00986 (N.D. Tex.), was brought by a Texas tax preparation company and the U.S. Chamber of Commerce. This ruling was widely expected because the court issued an order in July 2024 that blocked the FTC from applying the rule as to the plaintiff, but signaled that it would decide whether to issue a broader injunction before the FTC rule took effect. It followed through, and you can read the court’s opinion here.Continue Reading Federal Court Blocks FTC Rule Banning Employee Non-Competes

On Wednesday, July 31, 2024, the Michigan Supreme Court handed down its opinion in Mothering Justice et al. v. Attorney General et al. In this case, community organizations challenged the State Attorney General’s determination that the Michigan Legislature could adopt a citizen initiative ballot proposal and later amend it in the same legislative session. The two laws at issue, the Improved Workforce Opportunity Wage Act (the Wage Act) and the Earned Sick Time Act (the ESTA), were contained in ballot initiatives which were adopted by the Michigan Legislature in September of 2018. The Legislature’s adoption precluded the initiatives from appearing on the November 2018 ballot. The following December, however, the Legislature significantly amended the adopted proposals, including extending the time a new state minimum wage requirement would increase to $12 per hour and reinstating the tip credit at 38 percent of the regular minimum wage.Continue Reading Employers Take Note: Michigan Supreme Court Imposes a February 2025 Deadline to Drastically Overhaul Key Employment Policies Statewide

On July 3, 2024, Judge Ada E. Brown of the United States District Court for the Northern District of Texas issued a preliminary injunction in Ryan et al. v. Federal Trade Commission, preventing the FTC’s rule banning most noncompetes from going into effect, but only for the party who brought the litigation challenging the rule, Ryan, Inc. The Court promised that it would enter a final ruling on the merits of the action by August 30, 2024—just days before the FTC rule is set to go into effect. That final ruling likely will have implications for the rule’s enforceability throughout the nation.Continue Reading Judge Preliminarily Pauses FTC Noncompete Ban as Applied to the Texas Challengers; Ruling on the Merits Expected in August

Last month, the U.S. Equal Employment Opportunity Commission (“EEOC’) unveiled its highly anticipated Enforcement Guidance on Workplace Harassment.

After almost a decade of efforts to update its harassment guidelines, the EEOC’s new guidance delves into topics that are most relevant to the modern workforce. The guidance sets forth the EEOC’s position on its definition of “protected characteristics” and identifies workplace behaviors that rise to the level of harassment. These topics include, for example, the #MeToo movement which swept the nation with well-publicized lawsuits involving sexual harassment and sexual violence and the U.S. Supreme Court’s decision in Bostock v. Clayton County, Georgia, where the Court ruled that Title VII of the Civil Rights Act protects workers from discrimination based on their sexual orientation and gender identity.Continue Reading The Equal Employment Opportunity Commission Issues New Guidance Regarding In-Office and Virtual Harassment in the Workplace

On April 19, 2024, the EEOC unveiled its final rule implementing the Pregnant Workers Fairness Act (PWFA). This regulation goes into effect June 18, 2024. This final rule requires covered employers to provide reasonable accommodations to qualified employees for known limitations related to pregnancy, childbirth, or related medical conditions.

What You Need to Know

Continue Reading EEOC Unveils its Final Rule Implementing the Pregnant Workers Fairness Act

The federal Fair Labor Standards Act (“FLSA”) is the law that, among other things, requires covered employees to be paid time-and-a-half for hours worked over 40 hours in a given week. As we have repeatedly said to anyone who will listen, the fact that cannabis remains federally illegal does not mean that cannabis employers can ignore federal employment (or any other) law. The case of Waxler v All Green Transport LLC, et al., currently pending in the U.S. District Court for the Western District of Michigan with case number 23-cv-00897, is a perfect example of that.Continue Reading Michigan Secure Cannabis Transporter Does Not Get Quick Dismissal From FLSA Case

In an open commission meeting on Tuesday, April 23, 2024, the Federal Trade Commission (FTC) voted 3-to-2 to ban nearly all non-compete agreements between employers and workers (broadly defined to include employees, independent contractors, and others, whether paid or unpaid). The effective date of the final rule could be on or about August 23, 2024, depending on the success of legal challenges, which have already commenced. Continue Reading Federal Trade Commission Approves Final Rule Banning Nearly All Worker Non-Competes

On April 23, the U.S. Department of Labor (“DOL”) published a set of final regulations dramatically increasing the salary level most executive, professional, and administrative employees must be paid to retain their overtime exempt status under the Fair Labor Standards Act. In most respects, and after considering 33,000 comments, the final regulations are similar to those proposed last September. The DOL has “dug-in” on many of the proposed regulations’ controversial terms. The changes are to the salary level test, only. The DOL did not modify the other two tests most workers must satisfy to be deemed exempt, i.e., the salary basis test and the duties test.Continue Reading New Overtime Exemption Rules Announced: What Employers Need to Know and Do

On April 17, 2024, the United States Supreme Court delivered a pivotal ruling in Muldrow v. City of St. Louis, fundamentally reshaping the landscape of Title VII litigation. This landmark decision dismantled the longstanding requirement, upheld by several Circuit Courts, requiring plaintiffs to demonstrate “significant harm” to seek recourse for alleged discriminatory acts by their employers. In doing so, the Court obliterated a barrier to litigation, enabling employees to challenge any job action, regardless of its magnitude, if perceived to stem from discriminatory motives as long as it inflicts some injury, no matter how slight. This development underscores the need for employers to exercise heightened vigilance lack any semblance of discriminatory intent.Continue Reading Supreme Court Issues Landmark Decision Rejecting “Significant Harm” Requirement in Title VII Cases – Opening the Door to More Employment Discrimination Claims