On April 26, 2024, Ctrl Alt Destroy, Inc. (“CAD”), a California Corporation and cannabis licensee filed a lawsuit against Nicole Elliott in her official capacity as Director of the State of California’s Department of Cannabis Control (“DCC”) and Rob Bonta in his official capacity as Attorney General of the State of California, seeking declaratory and injunctive relief alleging that California’s Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”) is unconstitutional under the Fifth and Fourteenth Amendments to the US Constitution and is preempted by the National Labor Relations Act (“NLRA”).Continue Reading Cannabis Operator Challenges California State Statute and Regulations Requiring Labor Peace Agreements

On April 23, 2024, the Federal Trade Commission (“FTC”) issued its Final Rule banning employers from imposing post-employment noncompete requirements on their workers (the “Final Rule”). The FTC has indicated that it will continue to prioritize enforcement in the healthcare industry, with objectives seeming to include alleviating physician shortages and improving access to healthcare. What the Final Rule means for healthcare organizations generally, and for nonprofits in particular, is not entirely clear and is likely to be challenged. Continue Reading What the FTC’s Noncompete Ban Means for Healthcare

Federal law establishes minimum wage and overtime requirements for non-exempt employees. These rules do not apply to individuals who qualify under the executive, administrative, and professional exemptions in the Fair Labor Standards Act of 1938 (“FLSA”). Individuals only qualify as exempt if they meet specified requirements that include a salary level test, among other rules.Continue Reading New DOL Exemption Rule Requires Two-Step Salary Increases Under FLSA for Exempt Employees

Effective as of March 20, 2024, New York City law permits “any person” to initiate a private right of action for violations of the Earned Safe and Sick Time Act (“ESSTA”). The new law amends Section 20-924 of the New York City Administrative Code and allows employees to file a lawsuit alleging a violation of ESSTA within two years of the date the employee knew or should have known about the alleged violation.Continue Reading NYC Permits Private Right of Action for Earned Safe and Sick Time Violations

On April 23, 2024, the Federal Trade Commission (the “FTC”) voted 3-2 to issue its final rule (“Final Rule”) banning employers from imposing noncompete clauses on their workers, approving the final rule in a special Open Commission Meeting. Continue Reading FTC Votes to Ban Noncompete Agreements

On April 17, 2024, the U.S. Supreme Court resolved a decades-old circuit split regarding what amount of harm a plaintiff must demonstrate to bring an employment discrimination claim under Title VII of the Civil Rights Act (“Title VII”). In Muldrow v. City of St. Louis, a unified Court ruled that a plaintiff need only show “some”—and not “significant”—harm from an employment decision to plead and prove employment discrimination under Title VII. Before Muldrow, a number of appellate courts dismissed transfer-based Title VII claims unless the plaintiff could show that the transfer resulted in “significant” harm. The Supreme Court rejected that standard in Muldrow, holding that a plaintiff need only show that the transfer resulted in “some harm” with respect to an identifiable term or condition of employment. The Supreme Court’s new standard raises fresh considerations for employers making transfer decisions, and may have broader implications beyond the transfer context.Continue Reading Supreme Court Eases Burden for Title VII Plaintiffs Challenging Transfer Decisions

Through Board decisions, rule making, and NLRB General Counsel’s (“GC”) memoranda, the National Labor Relations Board (“NLRB” or “the Board”) continues to expand the potential penalties for employers found to have committed unfair labor practices (“ULP”). The shift toward an employee-friendly enforcement scheme has continued with GC Jennifer Abruzzo’s latest memorandum, issued on April 8, 2024, wherein the GC stated her desire to expand the availability of remedies for violations of labor law to even those employees who did not file, or are not identified in, ULP charges. Continue Reading NLRB General Counsel Issues New Memo Further Expanding Penalties for Unfair Labor Practice Violations

In 2022, the Maryland General Assembly passed the Time to Care Act of 2022 (the “Act”), setting up a paid family and medical leave program for Maryland employees. Through Family and Medical Leave Insurance (“FAMLI”), eligible Maryland employees may receive up to 12 weeks of paid family and medical leave for the various reasons detailed below. FAMLI will be funded by both employer and employee contributions. Though eligible employees are not able to draw from the fund until January 1, 2026, required contributions are currently scheduled to begin on October 1, 2024. Therefore, Maryland employers should begin planning for implementation of the program and ensure that employees have advance notice of the upcoming deductions from their wages related to FAMLI.Continue Reading Maryland Paid Family Leave Employer Contributions Begin This Year – What Employers Need to Know and Expect

As we previously reported here in March 2020, the implementation of remote work policies heightens the risk of misappropriation of trade secrets in remote work environments and could require businesses to take additional steps to ensure the security of their trade secrets and confidential information. In the last few years, the Securities and Exchange Commission (“SEC”) has charged several individuals with insider trading after they misappropriated material, nonpublic information obtained as a result of their remote work environment.[1] Most recently, a man was charged with insider trading after misappropriating trade secrets he obtained by listening to his wife’s[2] business calls while the two worked from home.Continue Reading Lesson Learned: Man Charged with Insider Trading After Misappropriating Information from Wife’s Work-From-Home Calls

Starting July 1, 2024, California employers across all industries must have a written Workplace Violence Prevention Plan (“WVPP”) in place. As previously reported, the recently enacted SB 553 established this new requirement, along with mandatory employee training, initial and periodic workplace violence hazard inspections, and maintenance of a violent incident log and other related records. On March 18, 2024, California’s Division of Occupational Safety and Health (“Cal/OSHA”), the agency responsible for enforcing the new law’s requirements, announced the creation of its Cal/OSHA Workplace Violence Prevention Guidance and Resources webpage. The webpage contains guidance and educational materials on the new law and workplace violence prevention, a model WVPP, fact sheets, and other resources for employers and employees. Continue Reading Cal/OSHA Publishes Long-Awaited Guidance and Model Workplace Violence Prevention Plan