October Legal Updates

DOL OT Rule Here to Stay?

On Wednesday, in Mayfield v. Department of Labor, the United States Court of Appeals for the Fifth Circuit held that the US DOL’s explicitly delegated authority to “define” and “delimit” the terms of the executive, administrative, and professional (EAP) exemptions includes the power to set a minimum salary for exemption. Does this validate the rule and preclude any further challenges?

 

GA Supreme Court Removes Need for Geographic Location for Nonsolicitations

The Supreme Court of Georgia ruled last week that restrictive covenants don't need to contain an explicit territorial component for them to be deemed reasonable under state law. Previously, a GA Court of Appeals ruling said that such was required to be enforceable.

 

FTC Non-Compete Litigation Update

In Philadelphia case challenging the FTC rule, plaintiff ATS Tree Services LLC asked the court for a stay pending the outcome of an appeal in the Texas case, Ryan v. TFC , which it says would resolve the issues in its case against the commission if left standing. In that case, a Texas federal judge prohibited the enforcement of the FTC's noncompete ban.

ATS argued in its brief that a stay promoted the interests of judicial economy and would not harm either party.

 

Are You Talking to Me?

On August 28, 2024, the NLRB and US DOL (“Labor Agencies”) entered into a Memorandum of Understanding with the DOJ – Antitrust Division and the FTC (the “Antitrust Agencies”) that formalizes the commitment of Labor Agencies to support Antitrust Agencies’ review of mergers (“MOU”). The MOU requires that the Labor Agencies: (i) train Antitrust Agency personnel on issues that fall within the Labor Agencies jurisdiction, including the duty to bargain in good faith, successor bargaining obligations, and unfair labor practices; (ii) meet bi-annually with the Antitrust Agencies to discuss implementing and coordinating the MOU obligations; (iii) and continue to uphold and expand upon prior agreements between Labor Agencies and Antitrust Agencies.

 

MA Updates WC Notice

The Massachusetts Department of Industrial Accidents (DIA) has published a revised workers’ compensation Notice to Employees, which Massachusetts employers should use starting September 16, 2024

Read the revised notice.

 

Los Angeles Freelance Workers Protections

On August 7, 2024, LA released its “Model Contract” under the Freelance Workers Protections Ordinance (FWPO). This ordinance, which took effect on July 1, 2023, was designed to bolster protections for freelance workers in Los Angeles.

Like laws passed in IL and NY, this ordinance requires:

  • Written contracts are required for all agreements valued at $600 or more.
  • Full payment must be made by the specified date in the contract, or within 30 days after work completion if no date is specified.
  • Both parties must retain records for four years.
  • Retaliation against freelance workers for exercising their rights is prohibited.