On Friday, November 15, 2024, a federal district court in Texas struck down the US Department of Labor’s 2024 rule increasing the salary basis test for exempt employees. This rule involved an increase in the salary basis in July 2024 (to $844 per week), an increase set to go into effect in January 2025 (to $1,128 per week), and graduated increases every three years beginning in July 2027. The Texas Court’s order applies nationwide, effectively rolling back the “salary basis test” to the 2019 level of $684 per week. The Court also struck down the increases to the Highly Compensated
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Five Employment Law Trends from Fall 2024
As we wrap up 2024, several key employment law trends are emerging that may impact your workplace in 2025. From new requirements under the Pregnant Workers Fairness Act to rising wage and hour claims, it’s essential to stay ahead. Here are the top five trends we’re watching—and how to ensure your organization is prepared Five Employment Law Trends from Fall 2024
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Judge Blocks FTC Ban on Noncompetes
On Tuesday, August 20, 2024, a federal court in the Northern District of Texas struck down the Federal Trade Commission’s (“FTC”) rule banning the use and enforcement of most non-compete clauses. The rule, that was scheduled to go into effect on September 4, 2024, has been set aside in its entirety. Employers are no longer required to provide notice to current and former employees that their non-compete clauses cannot be enforced. The court struck down the rule on two different bases. First, it found that Congress had not given the FTC the authority to make substantive rules regarding unfair competition. Second, the court
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Non-Competes Are Going Away – Or Are They?
In April, the Federal Trade Commission (“FTC”) enacted a new rule, set to go into effect on September 4th, 2024, that effectively eliminates most existing Non-Compete Agreements and prohibits new ones from being entered into within the United States. Although it is scheduled to go into effect, there are several court challenges to it, so there is a very real possibility that it will either not go into effect as scheduled or will be modified in some way. The Ryan LLC v. FTC case in the Eastern District of Texas is one to pay particular attention to. Forward thinking employers should familiarize
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