Following a split between federal district courts (federal judges in Texas and Florida ruled to temporarily block the Federal Trade Commission’s ban while a Pennsylvania court upheld it), a federal district judge in Texas has issued a nationwide injunction setting aside the ban. This means that the FTC’s rule banning most non-compete agreements will not take effect on September 4th as widely reported.
There is much uncertainty about the future of FTC's new rule (the “FTC Rule”) making most non-compete agreements unlawful and barring employers from enforcing past non-compete clauses against nearly all employees and independent contractors.
Today, Governor Pritzker signed Senate Bill 3650 (SB 3650), which amends the Illinois Day and Temporary Labor Services Act (the “Act”) -- AGAIN. This is the 3rd major amendment to the Act in just over a year. The impact of the changes are effective immediately. The latest amendments are primarily focused on clarifying pieces of the massive changes to the staffing industry ushered in last August through House Bill 2862 (HB 2862).
SB 3650 imposes NEW and additional requirements on staffing agencies and third-party user clients who use temporary labor in Illinois, including the ...
On July 25, 2024, California’s Supreme Court issued a highly anticipated ruling that allows app-based rideshare and delivery companies to classify drivers as independent contractors instead of employees, if certain conditions are satisfied.
In the case of Castellanos v. State of California, California’s Supreme Court upheld Proposition 22 (“Prop 22”) as constitutional, holding that Prop 22 does not unlawfully impede on or restrict the state legislature’s ability to enact workers’ compensation laws or otherwise conflict with the state’s constitution.
It seems like a lifetime ago that we first posted on the legalization of cannabis in Illinois and its effect on Illinois employers, way back in November 2019. At that time we provided a detailed overview of the clarifications and updates to the Illinois Cannabis Regulation and Tax Act (“Cannabis Act”) as it relates to use in the workplace. Of course, use of cannabis at the workplace, or use that leads to impairment of an employee while on duty at the workplace, is allowed to be prohibited by the employer, even in a state where it is legal, such as Illinois. That is essentially a common sense no-brainer as it implicates safety concerns, and can be analogized to the use of alcohol at the workplace. But, the question remained to what extent can a positive drug test for cannabis (separate from impairment or use at the workplace) be used to deny or terminate employment, especially when that use was “recreational” and done off duty?
A judge in the U.S. District Court for the Eastern District of Pennsylvania declined on July 23 to enjoin the Federal Trade Commission’s (FTC’s) ban on non-compete agreements. ATS Tree Services, LLC v. FTC, Case No. 2:24-cv-01743-KBH. The court rejected the employer’s argument that the agency lacks authority to establish the rule. The decision conflicts with a ruling by the U.S. District Court for the Northern District of Texas earlier this month, which preliminarily enjoined the rule for the plaintiffs in that case.
Cultivate a thriving culture and drive your business to new heights by transforming your managers into dynamic leaders. Amundsen Davis's Leadership & Management Training Series is perfectly crafted for ambitious mid to senior-level managers from any sector to thrive. Join us this fall for our virtual series meant to help future leaders learn the ins and outs of compliance and management, whether you are developing policies, recruiting new talent, or handling employee issues.
Join us on Wednesday, July 31 at 10AM CT as we present a timely webcast for employers, discussing the rising cost of health care plans.
The webcast will cover:
- Addressing GLP-1 coverage and mental health needs
- Compliance considerations for spousal incentives
- Considerations for alternative contribution structures and wellness incentives
On June 24, 2024, a federal district court judge enjoined parts of the United States Department of Labor’s August 23, 2023 prevailing wage rule that greatly expanded the definition of “construction” on federal prevailing wage projects. Such expansion of what constitutes covered “construction” work on federal prevailing wage projects was never contemplated by the actual federal prevailing law itself (the Davis-Bacon Act or DBA). In a fairly scathing rebuke of the US DOL’s 2023 rule, the court found “…[the US DOL]… usurped Congress’ law-making power and attempted substantive amendments to the DBA. Presidents and their agencies act ultra vires and do violence to the Constitution when they attempt to unilaterally amend Acts of Congress to suit their policy choices…” Interestingly, the court’s decision came before the US Supreme Court eliminated the Chevron deference doctrine.
On July 3, 2024, a federal judge in Texas issued a preliminary injunction that stays the US Federal Trade Commission’s (FTC) near-total ban on non-compete agreements for the named plaintiffs seeking to invalidate the ban which is set to take effect on September 4, 2024.
Welcome to the Labor and Employment Law Update where attorneys from Amundsen Davis blog about management side labor and employment issues.
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