On January 5, the Federal Trade Commission (FTC) voted 3-1 to publish its Notice of Proposed Rulemaking, proposing a new rule that, if implemented, would bar employers from entering into noncompete agreements with their workers, and require employers to rescind existing noncompete restrictions with current and former workers. The proposed rule supersedes state laws that are less protective of employees, but keeps the state law that provides employees greater protection. The proposed rule excludes franchisees from the definition of “worker” and has a single, limited exception that applies to the sale of a business.Continue Reading FTC Proposes Rule to Ban Noncompete Clauses With Very Limited Exceptions

Q. May an employer discipline or discharge an employee for appearing in a TikTok video?

A. If the employee is part of a union, inappropriate conduct in a TikTok video may not be sufficient grounds for a just cause termination. In 2019, a Pennsylvania school district terminated a third-grade teacher after the district discovered the teacher had appeared with her minor daughter in an online TikTok video. However, following arbitration and two appeals, the teacher was reinstated to her former position and received all lost earnings, seniority, and benefits.Continue Reading Inappropriate Video Conduct Not Always Sufficient Grounds for Employment Termination

Q: Does Colorado have a law prohibiting an employer from requiring employees to sign a restrictive covenant agreement?

A: Yes. On August 10, a new Colorado law took effect that voids noncompete and customer nonsolicitation covenants with certain Colorado employees, depending on their compensation level. The new law places significant penalties upon noncompliant employers and will void any provision that violates the law.Continue Reading Colorado Implements New Restrictive Covenant Laws