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

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 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

On July 9, 2024, the United States Court of Appeals for the Fifth Circuit told the National Labor Relations Board’s to reconsider the standard for whether abusive or inappropriate speech is protected under Section 7 of the National Labor Relations Act. In so doing, the Fifth Circuit vacated the National Labor Relations Board’s decision in Lion Elastomers, LLC (Lion II), 372 NLRB No. 83 (2023), and reinstated the standard in General Motors, LLC (GM), 369 NLRB No. 127 (2020). Continue Reading The NLRB Must Apply Its Prior Standard for Protected Employee Outbursts and Abusive Speech

Amidst a wave of non-compete bans sweeping California, North Dakota, Oklahoma, Minnesota and, most recently, the nation via the Federal Trade Commission’s non-compete prohibition, Maine Governor Janet Mills departed from this growing trend and vetoed L.D. 1496, An Act To Prohibit Noncompete Clauses (“L.D. 1496”) in April 2024. If enacted, the L.D. 1496 would have effectively foreclosed employers from entering into non-compete clauses with employees in Maine.Continue Reading Maine Governor’s Veto of Non-Compete Ban Bucks Growing Trend Among States and Federal Trade Commission

On March 12, 2024, the Ninth Circuit published a decision in Ortiz v. Randstad Inhouse Services, LLC, holding that the Plaintiff Adan Ortiz (“Plaintiff”) qualified as a “transportation worker” under the Federal Arbitration Act, and was thus exempted from mandatory arbitration under the FAA. The district court rejected the employer’s arguments that Plaintiff was bound by the arbitration mandate under the FAA because he performed duties on a purely local basis. This case continues to establish that the scope of the “transportation worker” exemption under the FAA is broader than only those workers that physically move goods or people across state lines, such as truck drivers and cargo pilots.Continue Reading Ninth Circuit Finds Shipping Warehouse Employee Qualified as Exempt “Transportation Worker” Under the Federal Arbitration Act

On July 3, District Judge Ada Brown of the Northern District of Texas issued an order enjoining the Federal Trade Commission (“FTC”) from enforcing its “Final Rule” against plaintiffs Ryan, LLC (“Ryan”) and the U.S. Chamber of Commerce (the “Chamber”). If implemented, the Final Rule would effectively render nearly all non-compete agreements unlawful. Accordingly, this opinion was one of the most highly anticipated judicial decisions in antitrust and labor and employment law in recent memory.Continue Reading Not So “Final”? Texas Federal Court Enjoins Enforcement of FTC’s Noncompete Ban, Leaving Future of Commission’s Rule in Doubt

As previously discussed, on June 18, 2024, California’s political leaders announced a tentative deal to reform a number of aspects of California’s Private Attorneys General Act (“PAGA”). On June 27, 2024, the PAGA reform bills, Senate Bill 92 and Assembly Bill 2288, were approved by the California Legislature and on July 1, 2024, Governor Newsom signed both bills into law. The PAGA reform bills contain urgency clauses such that the bills take effect upon signing. Both bills explicitly apply only to PAGA claims filed on or after June 19, 2024, or those PAGA claims for which the required notice to California’s Labor Workforce Development Agency (“LWDA”) was filed on or after June 19, 2024. The PAGA reform bills add details to the previously announced key reform components of increased employee share of PAGA penalties, caps on penalties for employers who take steps to comply with the Labor Code or fix potential issues after receiving notice of a PAGA claim, and requiring the representative plaintiff to experience every alleged PAGA violation to have standing. These reform bills are likely to curb, but not eliminate PAGA litigation for California employers going forward.Continue Reading A Closer Look: Unpacking California’s Landmark PAGA Legislation

The Supreme Court will soon hear a wage and hour case with massive implications for employers defending claims under the Fair Labor Standards Act (“FLSA”). Depending on the outcome, the high court’s decision could make it far more difficult for employers to prove a plaintiff/employee is exempt from the FLSA’s minimum wage and overtime requirements. Continue Reading New SCOTUS Case Could Make Fair Labor Standards Act Claims More Difficult for Employers to Defend

California’s Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”) requires commercial cannabis entities to obtain a license from California’s Department of Cannabis Control (“DCC”) to cultivate, distribute, transport, store, manufacture, process, and sell cannabis in the state of California. Since its enactment, MAUCRSA required licensees with 20 or more employees to enter into Labor Peace Agreements (“LPAs”) with “bona fide” labor organizations to receive and renew a license from the DCC, as previously outlined here. LPAs require commercial cannabis licensees and labor organizations to agree to not engage in conduct that would disrupt or interfere with the other’s dealings. In 2022, AB 195 reduced the employee threshold requirement by half, effective July 1, 2024. That means, effective July 1, 2024, all license applicants with 10 or more employees must comply with the LPA requirement to obtain a license, and all current licensees with 10 or more employees must so comply to renew their license. Continue Reading July 1 Deadline Looms for Cannabis Operators to Maintain and Renew Their Licenses by Entering into Labor Peace Agreements