The Bottom Line We have previously issued alerts concerning the Federal Trade Commission’s (FTC) rule banning most employee and independent contractor non-competes (the Rule) (May 6, 2024, January 26, 2023) and come to you now with a major update. On August 20, 2024, the federal court in Continue Reading
The Supreme Court Lowers the Bar Employees Must Meet to Establish “Harm” for Discrimination Claims Under Title VII
The Bottom Line The Supreme Court of the United States recently addressed the standard to be applied to claims of discriminatory job transfers under Title VII, holding that an employee challenging a job transfer under Title VII must show that the transfer brought about some harm with respect Continue Reading
California Pushes the Boundaries of Its Ability To Limit Employer Use of Restrictive Covenants Agreements
The Bottom Line California already has among the strictest limitations in the United States on the use of employee restrictive covenants agreements. Specifically, California Business and Professions Code Section 16600 voids “every contract by which anyone is restrained from engaging in a Continue Reading
New York Expands Scope of Negligent Supervision and Retention Claims Against Employers
The Bottom Line Prospective customers (not just existing customers) may pursue claims against New York employers arising from an employee's misconduct under the doctrine of negligent supervision and retention. But the facts must still show that the employer owed a duty to the prospective customer Continue Reading
What’s the Harm? Second Circuit Requires Proof of Irreparable Harm to Enjoin Restrictive Covenant Violations
The Bottom Line When companies seek a court injunction for a restrictive covenant violation, they often focus on the covenant’s enforceability. They do this by arguing that the non-compete and customer non-solicitation covenants protect legitimate business interests — and is narrowly tailored Continue Reading
U.S. Department of Labor Proposes New Rule on Independent Contractor Status
The Bottom Line The U.S. Department of Labor has proposed a new rule addressing the distinction between employees and independent contractors under the Fair Labor Standards Act.If adopted, it will replace the rule announced by the DOL in January 2021 and will be more focused on the “totality of Continue Reading
Washington, D.C. Rolls Back Proposed Ban on Non-Compete Agreements
The Bottom Line Washington, D.C.’s amended law banning non-compete agreements contains an exception for highly compensated employees and no longer outright bans anti-moonlighting provisions in all instances. Employers should be mindful of the total annual compensation awarded to employees in Continue Reading