In Coinbase, Inc. v. Bielski, the Supreme Court of the United States resolved a circuit split over whether district courts must stay proceedings while an interlocutory appeal of a denial of a motion to compel arbitration is ongoing. The Supreme Court held they must.
In a blog earlier this year, we discussed the Delaware Chancery Court’s refusal to enforce a sale of business non-compete in Kodiak Building Partners, LLC v Adams. We wondered then whether Kodiak represented a one-off decision or whether it augured a trend that might give buyers of businesses pause. Delaware courts seem to have answered the question. In what constitutes a notable trend for buyers of businesses, Delaware courts have twice more refused to enforce non-competes under a sale of a business analysis.
Continue Reading Buyer Beware: Delaware Courts Continue to Refuse to Enforce Deal-Based Non-Competes
Executive Summary
A sweeping bill that would effectively ban all newly entered non-compete agreements (and potentially impact provisions and agreements that act as a de facto non-compete) for all employees, regardless of wage or income level, is heading to New York Governor Kathy Hochul’s desk.
As we previously reported here, at the beginning of 2023, the Supreme Court heard oral argument on one of the most anticipated labor cases on the high court’s docket in decades to address whether the National Labor Relations Act (“NLRA” or the “Act”) preempts state court lawsuits for tort damages caused by unions during strikes. On June 1, 2023, the Supreme Court issued its decision in Glacier Northwest, Inc., dba Calportland v. International Brotherhood of Teamsters Local Union No. 174, U.S., No. 21 – 1449, reversing the Washington Supreme Court’s decision and held that the employer’s state law tort claims were not preempted by the Act.
On June 13, 2023, the National Labor Relations Board (the “Board” or “NLRB”) overturned another business-friendly Board decision in favor of a return to a more employee-favorable standard for determining if a worker is an employee or an independent contractor under the National Labor Relations Act (“NLRA”). Independent contractors are exempt from the rights and protections of the NLRA, including the right to form and join unions.
Continue Reading NLRB Overturns Standard for Independent Contractor Status Under the NLRA
Many California employers may be facing another minimum wage increase on July 1st. Earlier this year, California’s minimum wage was increased to $15.50 for all employers. However, local entities (like cities and counties) are allowed to establish a higher minimum wage rate for employees working within their jurisdiction. Starting on July 1, 2023, a number of localities will raise their minimum wage.
Continue Reading July 1, 2023 Minimum Wage Increases in California Counties and Municipalities
On the heels of the National Labor Relations Board’s decision in McLaren Macomb, which invalidated most confidentiality and nondisparagement provisions in a variety of employment agreements (as we covered here and here), NLRB General Counsel Jennifer Abruzzo (the “GC”) issued GC Memorandum 23-08 on May 30, 2023, announcing that, in her view, the proffer, maintenance, and enforcement of non-compete provisions violate Section 8(a)(1) of the National Labor Relations Act (the “Act”) except in very limited circumstances. This direct challenge to the lawfulness of commonly-used non-compete agreements mirrors the Federal Trade Commission’s (“FTC”) recent proposed rulemaking that would ban employers from imposing such agreements on their workers, and follows the Board’s memoranda of understanding with the FTC and the Department of Justice’s Antitrust Division, both of which addressed the anticompetitive effects of non-compete agreements (covered here).
Continue Reading NLRB General Counsel Announces Employee Non-Compete Agreements Violate the NLRA
On May 16, 2023, National Labor Relations Board General Counsel Jennifer Abruzzo (the “GC”) issued revisions to her original July 6, 2020 memorandum of suggested manual election protocols for use during the COVID-19 pandemic, found here. The Board’s policies have generally favored manual elections, but that rule was upended by the COVID-19 pandemic. During the onset of COVID-19, manual elections were halted completely and when elections resumed, they were conducted by mail-in ballot to ensure participant safety. As the pandemic wore on and more workers and employers alike learned how to safely return to the physical workplace, the Board issued its initial suggestions of how to safely conduct a manual election, signaling a desire to return to the status quo.
On December 29, 2022, the Providing Urgent Maternal Protections for Nursing Mothers Act (“PUMP”) was signed into law. PUMP further amends the federal Fair Labor Standards Act (“FLSA”) by extending protections for employees who need to express breast milk at work. PUMP broadens the available remedies for violations and extends employee coverage requirements. The U.S. Department of Labor Wage and Hour Division (the “DOL”) recently issued guidance on PUMP’s requirements.
Continue Reading The Department of Labor Issues Guidance for Employers Concerning the PUMP Act
In People ex rel. Garcia-Brower v. Kolla’s, Inc., the California Supreme Court resolved a split between the Courts of Appeal for the First and Second Districts over whether a protected “disclosure” under Labor Code section 1102.5(b) includes a report of unlawful activity made to an employer or agency that already knew about the reported unlawful activity. The Supreme Court held that it does.