Labor & Employment

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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

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

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

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

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

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

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

On June 18, 2024, California Governor Gavin Newsom, Senate President pro Tempore Mike McGuire and Assembly Speaker Robert Rivas announced a tentative deal to reform a number of aspects of California’s Private Attorneys General Act (PAGA). While legislation is yet to be introduced, the publicly announced key components of PAGA reform include an increase in employees’ 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. This reform, if enacted, is likely to curb, but not eliminate PAGA litigation for California employers going forward.Continue Reading PAGA Reimagined: A New Chapter for California’s Employers and Employees

On March 8, 2024, a federal judge in the United States District Court for the Eastern District of Texas dealt a serious blow to the National Labor Relations Board’s (the “Board”) efforts to further increase the reach of the National Labor Relations Act (“the NLRA”). Judge J. Campbell Barker struck down a final rule issued by the Board that would have drastically broadened the standard the Board applies to determine when employers are joint-employers for the purposes of federal labor law. The blow was delivered three days before the rule was set to take effect on March 11, 2024 following a 14-day stay order also issued by Judge Barker. Continue Reading Federal Judge’s Decision Deals Serious Blow to NLRB’s Joint Employer Rule and Continued Efforts to Expand Who Constitutes an Employer Under the NLRA

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

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