Impact for Employers: The NLRB General Counsel Doubles Down on Restrictive Covenants and Stay-or-Pay Provisions

The General Counsel of the National Labor Relations Board ("NLRB") issued Memorandum GC 25-01 on October 7, 2024, which establishes her intent to "urge the Board not only to find certain non-compete provisions unlawful, but also, as fully as possible to remedy the harmful effects on employees when employers use and apply them."

The General Counsel has proposed a 60-day period, starting from the issuance of the October 7 Memorandum, for employers to address and rectify any existing "stay-or-pay" provisions that may not align with legitimate business interests. This directive necessitates that employers quickly evaluate their current provisions in light of the new guidelines, as many restrictive covenants and "stay-or-pay" clauses are likely to violate Section 7, according to the General Counsel's criteria. More ›

Is Your Business Prepared to Comply With New York's Retail Worker Safety Act?

On September 4, 2024, Governor Kathy Hochul signed the Retail Worker Safety Act  (the "Act") into law. The Act, which takes effect on March 3, 2025, requires retail employers to develop and implement programs to prevent workplace violence. It also requires retail employers with 500 or more retail employees nationwide to install panic buttons by January 1, 2027. More ›

How the EFAA Applies to Employee Arbitration Agreements in Sexual Harassment Cases Involving Conduct That Preceded the Law’s Effective Date

On August 12, 2024, the Second Circuit held that a plaintiff's hostile work environment claims were subject to the federal Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 ("EFAA"), even though the plaintiff's claims arose before the EFAA's enactment.

The Court found that pursuant to the continuing violation doctrine, a hostile work environment claim accrues each time a plaintiff continues to experience sexual harassment. More ›

Texas Federal Judge Strikes Down FTC’s Noncompete Ban

On August 20, 2024, Judge Ada Brown of the United States District Court for the Northern District of Texas set aside and barred the nationwide implementation and enforcement of the FTC’s Final Noncompete Rule. More ›

Second Circuit Dismisses Remote Employee's Discrimination Claim Brought Under New York State Human Rights Law

On March 20, 2024, the Second Circuit dismissed a remote employee's discrimination claim brought under the New York State Human Rights Law (NYSHRL). The Court held that the employee's discrimination did not meet the "impact test" because the impact was only incidentally felt in New York. More ›

FTC Faces Setback in U.S. District Court Over Noncompete Rule

On July 3, 2024, Judge Ada Brown of the United States District Court for the Northern District of Texas preliminarily enjoined the Federal Trade Commission ("FTC") from enforcing the Final Noncompete Rule ("Rule") against the parties to the pending lawsuit.

At this time, the prohibition on enforcement of the Rule is limited to the parties to the lawsuit. After additional briefing, the court deferred broader relief to later proceedings and intends to rule on the merits of the claim for injunctive relief on or before August 30, 2024. More ›

What Does New York City's Expanded Anti-Discrimination Protection Mean for Employers?

On May 11, 2024, a new law went into effect, amending New York City Administrative Code §§ 8-109 and 8-502. The law prohibits provisions in agreements that shorten the timeframe an employee has to file a claim for unlawful discriminatory practices, harassment, or violence under the New York City Human Rights Law ("NYCHRL").  More ›

U.S. Supreme Court Rejects Relaxed Standard for Injunctive Relief Under Section 10(j) of the National Labor Relations Act

On June 13, 2024, the U.S. Supreme Court, in Starbucks Corp. v. McKinney (National Labor Relations Board), No. 23-367, rejected the arguments of the National Labor Relations Board (the “Board”) to relax the standard that a district court must employ in deciding whether to implement injunctive relief under Section 10(j) of the National Labor Relations Act (the “Act”).  More ›

New York State 2024-2025 Budget Impact on Employers

On April 20, 2024, New York legislators approved the New York State 2024-2025 Budget. The Budget included three amendments to New York Labor Law affecting all New York employers. More ›

EEOC Publishes Final Guidance on Workplace Harassment

On April 29, 2024, the Equal Employment Opportunity Commission (EEOC) published a final version of its Enforcement Guidance on Workplace Harassment. The new guidance provides  updates and agency direction on workplace harassment in virtual or online work environments, as well as harassment related to sexual orientation, gender identity, pregnancy, and religion. More ›