Yesterday, August 28th, the Federal Trade Commission (the “FTC”) and the Department of Justice Antitrust Division (the “DOJ”) (the “Antitrust Agencies”), together with the Department of Labor (the “DOL”) and National Labor Relations Board (the “NLRB”), signed a new agreement (the Memorandum of Understanding or “MOU”) that seeks to enhance the ability of the FTC and DOJ to investigate the impact of mergers and acquisitions on labor markets.Continue Reading U.S. Federal Antitrust Agencies Announce Cooperation Initiative with Labor Agencies in Merger Review
California Court of Appeal Rules That Partial Sale of Business Can Bind Seller-Owner to a Noncompetition Agreement
In Samuelian v. Life Generations Healthcare, LLC, — Cal. App. 5th —, 2024 WL 3878448 (Cal. App. Aug. 20, 2024), the California Court of Appeal answered two long outstanding questions of California law concerning the enforceability of noncompetition agreements in the context of the sale of a business:Continue Reading California Court of Appeal Rules That Partial Sale of Business Can Bind Seller-Owner to a Noncompetition Agreement
NLRB Will No Longer Approve Employer Proposed Consent Orders
As we have previously reported, from the time President Biden took office, the National Labor Relations Board (“NLRB” or the “Board”) began systematically reversing Trump-era policy, and shifting toward pro-union and pro-employee policies. On August 22, 2024, the Board continued that push. This time taking steps to significantly impede the ability of employers to avoid unfair labor practice (“ULP”) charges without resorting to litigation. Continue Reading NLRB Will No Longer Approve Employer Proposed Consent Orders
California Assembly Committee Revives State’s Captive Audience Meeting Ban
On August 15, 2024, the Appropriations Committee of the California State Assembly passed SB 399 by a vote of 10–3. The bill had passed the Senate in 2023 and has been with the Assembly since, waiting for action and a vote. Continue Reading California Assembly Committee Revives State’s Captive Audience Meeting Ban
Final Word on Final Rule? Texas District Court Eviscerates FTC’s Non-Compete Ban
On July 3, 2024, Judge Ada Brown of the U.S. District Court for the Northern District of Texas entered a limited, preliminary injunction barring the Federal Trade Commission (“FTC”) from enforcing its controversial Final Rule (“Rule”) which purports to ban almost all non-compete agreements. Importantly, Judge Brown’s preliminary order only enjoined enforcement of the Final Rule against the named plaintiffs who opposed it. On August 20, 2024 – just two weeks before the Rule’s effective date – Judge Brown greatly expanded the scope of her initial ruling by granting summary judgment for the plaintiffs and ordering the Rule be completely “set aside” and “not be enforced or otherwise take effect on September 4, 2024[.]” Judge Brown’s order may be the fatal blow for the Rule, and should end a months-long saga of uncertainty for employers.Continue Reading Final Word on Final Rule? Texas District Court Eviscerates FTC’s Non-Compete Ban
The NLRB Implements Its Fair Choice – Employee Voice Final Rule – Effective September 30, 2024
On July 26, 2024, the National Labor Relations Board (“Board”) issued its Fair Choice – Employee Voice Final Rule (“Final Rule”), which rescinds a trio of April 2020 amendments to the Board’s Rules and Regulations[1] affecting the Board’s processing of petitions that ultimately make it easier for unions to maintain recognition and stifles employee choice in whether to be represented by a union. With the final rule, the Board once again revives many pre-2020 Board policies. Continue Reading The NLRB Implements Its Fair Choice – Employee Voice Final Rule – Effective September 30, 2024
You Are Sponsoring a Foreign National Employee for Permanent Residency, Can You Clawback Some of the Fees?
Companies usually hire a foreign national who requires visa sponsorship because they cannot find a U.S. worker with those skill sets, which is frequently in the STEM fields. However, visa sponsorship comes with significant costs to the employer. Employers may be able to recover a portion of the immigration sponsorship fees by implementing what are called “clawback” provisions into their employment agreements. Clawback provisions are terms in the employment agreements that, in the event of a resignation by the employee before a certain date, require the employee to reimburse the employer for a portion of the costs or fees associated with his or her visa sponsorship.Continue Reading You Are Sponsoring a Foreign National Employee for Permanent Residency, Can You Clawback Some of the Fees?
Delay In California’s Minimum Wage Increase for Health Care Workers
As we previously reported here, nearly all health care facilities in California will soon be required to increase the minimum wage paid to health care workers, ranging anywhere from $18 per hour up to $23 per hour depending on the type of health care facility. The increased health care minimum wage was set to go into effect on June 1, 2024; however, on May 31, 2024, Governor Newsom signed SB 828, which provided for a one month delay, to July 1, 2024. Now, there is a further delay after Governor Newsom and state legislators came to an agreement to delay implementation of the increased health care minimum wage until October 15, 2024 (possibly until January 1, 2025) upon passage of AB 159.Continue Reading Delay In California’s Minimum Wage Increase for Health Care Workers
Intervening Authority: California Supreme Court Curbs the Authority of PAGA Litigants to Intervene in Overlapping PAGA Actions
On August 1, 2024, the California Supreme Court issued a decision in Turrieta v. Lyft that substantially narrows the authority of PAGA litigants to intervene in overlapping PAGA actions. The Supreme Court’s ruling confirms that the courts and the Labor & Workforce Development Agency (“LWDA”) – and not competing PAGA litigants – have primary responsibility for providing oversight of PAGA settlements.Continue Reading Intervening Authority: California Supreme Court Curbs the Authority of PAGA Litigants to Intervene in Overlapping PAGA Actions
Texas Judge Enjoins NLRB From Proceeding Against SpaceX, Casting Further Doubt on NLRB’s Constitutionality
A federal judge in Texas recently cast new doubt on the National Labor Relations Board’s (NLRB) ability to oversee labor disputes, agreeing with SpaceX that the agency’s Board Members and Administrative Law Judges (ALJs) are likely serving unconstitutionally.Continue Reading Texas Judge Enjoins NLRB From Proceeding Against SpaceX, Casting Further Doubt on NLRB’s Constitutionality
California’s New Heat Illness Prevention Standard for Indoor Workplaces Is Now Effective
California’s new “Heat Illness Prevention in Indoor Places of Employment” standard is now in effect as of July 23, 2024. The new regulation applies to most California workplaces where the indoor temperature reaches 82°F or higher (e.g., warehouses, distribution centers, manufacturing plants, and restaurants). The standard requires those employers to implement a written indoor heat illness prevention plan that includes procedures for accessing water and cool-down areas, acclimatization, training employees, and emergency response measures. Covered employers who have not already drafted and implemented their plan should do so immediately. Continue Reading California’s New Heat Illness Prevention Standard for Indoor Workplaces Is Now Effective