As workers were leaving their offices for the Fourth of July holiday, the Northern District of Texas issued its much-anticipated order preliminarily enjoining the effective date of the Federal Trade Commission’s (FTC) controversial noncompete ban rule. The court’s decision, however, is limited to the named plaintiffs — a tax accounting firm and several business groups — in the case. Although the stay is temporary pending the court’s final decision on the merits of the case and applies only to the movants in the case, it signals that a permanent and nationwide injunction is likely.Continue Reading Texas Court Temporarily Enjoins FTC Noncompete Ban Rule

On January 2, the U.S. Department of Labor (DOL) published a hotly anticipated final rule, which establishes a six-factor test for determining whether a worker is an employee or an independent contractor for purposes of coverage under the Fair Labor Standards Act (FLSA). The final rule was adopted after publication of a proposed rule in October 2022 and following a 61-day comment period in which the DOL received more than 55,000 comments. The final rule also rescinds an independent contractor rule, issued in January 2021, which never went into effect due to legal challenges. The new final rule becomes effective on March 11.Continue Reading DOL Publishes Final Independent Contractor Rule

Executive Summary

On February 21, the National Labor Relations Board (NLRB or Board) reversed course from its own Trump-era precedent when it held that an employer’s offer of employee severance agreements with broad confidentiality and non-disparagement provisions is an unfair labor practice in violation of Section 8(a)(1) of the National Labor Relations Act (Act). In light of this change, all employers, regardless of whether they are unionized, should carefully consider actions including:Continue Reading NLRB Prohibits Confidentiality and Non-Disparagement Provisions in Severance Agreements With Broad Implications

Q: Who are the newest members of the National Labor Relations Board (NLRB), and what does their arrival mean for the future of micro-units?

A: Party control of the National Labor Relations Board recently shifted to the Democrats when the Senate approved two Biden appointees. In August, longtime union-side attorneys Gwynne Wilcox and David Prouty joined fellow Democrat Chairman Lauren McFerran and Republican appointees John Ring and Michael Kaplan on the five-member board.Continue Reading New NLRB Members Could Heighten Burden for Employers Seeking to Challenge “Micro-Units”

States are re-opening in various phases, and some exercise facilities have opened their doors once again. For most states, gyms and fitness studios shuttered for months are now considering how to operate and attempt to recoup months of lost revenue while complying with strict social-distancing guidelines. Additionally, many states are seeing mandatory face covering orders for the first time.
Continue Reading Considerations for Re-Opening Gyms and Fitness Studios

AUTHORS
Ashley Hager, Partner, Troutman Sanders
Seth Ford, Partner, Troutman Sanders
Emily Reber, Associate, Troutman Sanders
Tracey Diamond, Of Counsel, Pepper Hamilton

We are continuing our series of guidance on the new issues facing employers during the COVID-19 outbreak. In our last post, Coronavirus and OSHA: What Employers Need to Know,

Troutman Sanders has been closely monitoring the Centers for Disease Control and Prevention and other world authorities’ updates and recommendations regarding the novel coronavirus (COVID-19).

All Troutman Sanders’ lawyers and staff have been strongly encouraged to work remotely beginning Tuesday, March 17. Essential on-site services will be maintained in each office. We have no known

Since we first covered it a few weeks ago, the outbreak of coronavirus (COVID-19) has had an unprecedented impact and is no longer simply making headlines. It has now begun interrupting the flow of business – impacting financial markets, disrupting travel plans, and forcing the cancellation of meetings and events. (To the great disappointment of

For those who missed it while getting an early start to their Labor Day weekend, late last week a federal judge closed the door on regulations that would have significantly changed overtime exemptions after previously leaving that door ajar.

Most employers became very familiar — and concerned — with the proposed regulations over the past

In Part 1 and Part 2 of this series of posts, we began the discussion of what the Defend Trade Secrets Act (DTSA), enacted in May 2016, really means for employers in defending their trade secrets.  In particular, we addressed some of the “good” the DTSA offers for employers, including:  (1) a clear path to federal court, (2) ex parte seizure orders and (3) international application.  In Part 3, we addressed the bad — four potential downsides of the DTSA for employers, including mandatory disclosure of whistleblower protections.  In this final Part 4, we outline questions left unanswered by the DTSA which are worth watching for future developments.
Continue Reading The Defend Trade Secrets Act: What Does it Really Mean for Employers? The Good, the Bad and the Ambiguous, Part 4