New FTC Rule Bans Noncompetes (Or Tries To)
New FTC Rule Bans Noncompetes (or tries to) On April 23, 2024, the Federal Trade Commission (FTC) announced a final rule that would ban most noncompete agreements. Touting that the rule “will generate over 8,500 new businesses each year, raise worker wages, lower health care costs, and boost innovation,” the FTC estimated that approximately 30 million employees are subject to noncompete agreements. The rule caveats employer’s existing noncompetes with senior executives, permitting them to remain in force. However, all other noncompetes will be ineffective after the 120-day period after the publication of the final rule expires. Faced with this, many companies are
Supreme Court Lowers Discrimination Threshold for Job Transfers
Supreme Court Lowers Discrimination Threshold for Job Transfers On April 17, 2024, a unanimous U.S. Supreme Court ruling lowered the bar employees must clear to prove discrimination in job transfer lawsuits. In the case at bar, a police officer who worked as a task force officer with an intelligence unit in the FBI was reassigned by a new unit commander who cited that the intelligence unit’s work was “very dangerous.” Her new assignment stripped her of a regular work schedule, a vehicle, and her status with the FBI. The Court reversed the appellate ruling against the officer and outlined a less-stringent test
FLSA and Belo Plans
Fair Labor Standards Act and Belo Plans In 1938, Franklin D. Roosevelt signed into law the Fair Labor Standards Act (FLSA). The FLS set the minimum wage, introduced the forty-hour work week, restricted child labor, and set overtime pay regulation.But, as employers soon realized, the overtime provision requiring time-and-a-half to be paid often creates complicated bookkeeping. To remedy this, employers were permitted to institute a Belo plan. This plan allows employers to pay employees who work unpredictable schedules a fixed salary. Employers like the simplicity, and employees enjoy the steady paycheck.To qualify as a Belo plan under the FLSA, though, four
Upcoming Department of Labor Rule Change Clamps Down on Independent Contractors
Soon, a new Department of Labor rule will make it more difficult for someone to qualify as an independent contractor. On January 10, 2024, the Department of Labor announced a rule that provides updated guidance on whether an individual is an employee or independent contractor under the Fair Labor Standards Act (“FLSA”). The rule, which will go into effect on March 11, 2024, replaces a rule promulgated under the Trump administration that made it easier for individuals to qualify as independent contractors. In its press release, the Department of Labor argued that the old rule caused a “misclassification of employees as