In an 11th-hour compromise late on February 20th, the Michigan Legislature passed an amendment to the Earned Sick Time Act that was scheduled to go into effect on February 21st. The amendatory act addresses many of the provisions of the ESTA that employers found most onerous while keeping in place the basic contours of the original law. Among the changes:Continue Reading Michigan’s Last-Minute Sick Leave Overhaul: Key Changes Employers Need to Know
2025 Michigan Labor and Employment Legal Updates
Mothering Justice Decision
On July 31, 2024, the Michigan Supreme Court decided Mothering Justice et al. v. Attorney General et al. In that case, the Court reinstated two laws, the Earned Sick Time Act and the Improved Workforce Opportunity Wage Act, that appeared on the Michigan state ballot in September 2018. After having been voted upon, the Michigan legislature amended both laws. In Mothering Justice, the Court found this amendment process to be unlawful and reinstated both laws as drafted in 2018, effective on February 21, 2025. Each has major implications for Michigan employers, as explained below:Continue Reading 2025 Michigan Labor and Employment Legal Updates
Overtime Exemption Rules Requiring Salary Increases for White-Collar Employees Vacated By Texas Court
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
Federal Court Blocks FTC Rule Banning Employee Non-Competes
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
Employers Take Note: Michigan Supreme Court Imposes a February 2025 Deadline to Drastically Overhaul Key Employment Policies Statewide
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
Judge Preliminarily Pauses FTC Noncompete Ban as Applied to the Texas Challengers; Ruling on the Merits Expected in August
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
Federal Trade Commission Approves Final Rule Banning Nearly All Worker Non-Competes
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
Supreme Court Issues Landmark Decision Rejecting “Significant Harm” Requirement in Title VII Cases – Opening the Door to More Employment Discrimination Claims
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
DOL Proposes New White Collar Exemption Regulations – Legal Issues Abound!
On August 30, 2023, the U.S. Department of Labor announced its proposed new regulations on who can be treated as exempt from overtime pay. These proposals have been in the pipeline for nearly two years, with many in the business community anxious about what to expect. Some of that anxiety was somewhat undeserved, but some fears have been realized.Continue Reading DOL Proposes New White Collar Exemption Regulations – Legal Issues Abound!
Religious Accommodation Standard Under Title VII Reformed by U.S. Supreme Court Ruling in Groff v. DeJoy
The United States Supreme Court issued an opinion in Groff v. DeJoy, clarifying its earlier opinion in Trans World Airlines v. Hardison, 432 U.S. 63 (1977) that described an employer’s obligation to an employee seeking an accommodation based upon their religious beliefs. The Plaintiff in the case, Gerald Groff, worked for the U.S. Postal Service as a rural carrier associate, covering for full-time workers who were absent. Groff was a long-time Evangelical Christian who, for religious reasons, believes that Sundays should be devoted exclusively to worship and rest, not secular labor, and could therefore not work on Sundays.Continue Reading Religious Accommodation Standard Under Title VII Reformed by U.S. Supreme Court Ruling in Groff v. DeJoy