Labor and Employment Alert

Employment Pulse (October 2024 Edition)

October 1, 2024

Welcome to Employment Pulse: Light Up & Energize Your Workforce

We are excited to introduce Employment Pulse, McGlinchey’s new thought leadership platform focused on the latest trends, developments, and key decisions shaping the world of labor and employment law. Our team of experienced attorneys will provide timely insights to help employers stay competitive, meet regulatory requirements, and tackle evolving workplace challenges. This newsletter will empower you with actionable knowledge to ensure your workplace remains resilient, compliant, and positioned for success.

Texas District Court Blocks FTC Non-Compete Rule

On August 20, 2024, a Texas District Court judge entered a final judgment blocking the implementation of the FTC’s proposed non-compete rule. It would have broadly banned the enforcement of non-compete clauses in employment agreements for nearly all employees nationwide and required employers to provide notice to employees (current and former) that their non-compete agreements were no longer enforceable.

NLRB Set to Return to Obama Union Election Rules

In 2020, the National Labor Relations Board (NLRB) made various amendments to its rules and regulations governing blocking charges, the voluntary-recognition bar doctrine, and proof of majority support for labor organizations representing employers in the construction industry. The NLRB is now rescinding the final three amendments, and the new Rule will become effective on September 30, 2024.

Court Upholds Law Classifying App-Based Drivers as Independent Contractors: Does What Happens in California, Stay in California?

The California Supreme Court recently upheld a California law that classifies drivers for app-based transportation companies, such as Uber, Lyft, or DoorDash, as independent contractors and not employees. As a result, app-based drivers are not covered by California workers’ compensation laws, which generally apply to employees and not to independent contractors.

Wage Payments and Noncompetes: Louisiana Legislature Amends Two Important Employment Laws

The Louisiana Legislature amended two important employment laws: the wage payment statute and the noncompete statute. The amendments to the wage payment statute become effective on August 1, 2024, and the amendments to the noncompete statute become effective on January 1, 2025.

When Does After-Hours Work Turn into Compensable Work?

In a recent case from the Fifth Circuit for the United States Court of Appeals, the court held that an employer should have known that an employee was working long hours beyond his regular schedule while responding to emails or returning voicemails during his hour-long commute home. This ruling came despite the parties’ agreement that the employee was paid for all the hours worked he reported to his employer.

Don’t Talk Politics at a Cocktail Party but Can Employees Talk Politics at Work?

Come November, the United States citizens will vote for the next president. While all presidential elections cause differences of opinion (and sometimes hurt feelings), when can an employee talk politics at work? When can employees talk politics outside of work? The answer is going to be different depending on whether your organization is public or private.

FTC Votes on Final Rule to Ban Non-Compete Agreements

Following an extended public comment period that began in January of 2023, the Federal Trade Commission (FTC) voted Tuesday, April 23 to implement a new rule that would effectively ban non-compete agreements nationwide, except in limited circumstances.

Pregnant Workers Fairness Act: EEOC Regulations Finalized

After reviewing nearly 100,000 comments, the final Pregnant Workers Fairness Act (PWFA) has been adopted and was published in the Federal Register on April 19, 2024. While the effective date of the regulations is sixty (60) days from publication, the statute has been in effect since June 27, 2023.

Proposed Legislation to Reduce Workweek to 32 Hours

Vermont Senator Bernie Sanders introduced proposed legislation that would reduce the standard workweek in the United States from 40 to 32 hours. The Bill, titled the “Thirty-Two Hour Workweek Act,” would amend Section 7 of the FLSA, removing the language that has limited the standard workweek to 40 hours since the passage of the FLSA in 1940.

Florida’s Stop WOKE Act Put on Ice: What This Means for DEI Initiatives

Governor Ron DeSantis made headlines in 2022 when he signed into law several bills intended to curb a “woke agenda” from “taking over our schools and workplaces.” One of these bills, Stop the Wrongs to Our Kids and Employers Act, amended the Florida Civil Rights Act to prevent teachings or mandatory workplace activities that suggest that a person is privileged or oppressed based on their race, color, sex, or national origin. 

Workplace Retaliation: Court Slashes $366M Jury Verdict

This significant workplace retaliation case, Harris v. FedEx, underscores the critical importance of conducting thorough investigations into any allegations of discrimination or harassment by employees. Thorough documentation of the investigation process and issuance of findings in accordance with the evidence obtained is essential and paramount not only in refuting claims of retaliatory actions but also in shielding your organization from the risk of significant punitive damages.