In a decision issued on September 14, 2020, U.S. District Court Judge William S. Stickman IV ruled that certain restrictions ordered by Pennsylvania Governor Tom Wolf to slow the spread of COVID-19 were unconstitutional. Judge Stickman’s decision comes after several other Pennsylvania courts upheld the restrictions as being within Wolf’s authority and courts in other states had upheld similar types of orders.
Author: David J. Woolf
The Lost Wage Assistance Program Provides Relief After the CARES Act $600 Weekly Benefit Expired
On August 8, 2020, President Trump authorized the creation of the Lost Wage Assistance (LWA) program to provide lost wage assistance to unemployed individuals as a result of COVID-19. The LWA is intended to provide additional unemployment assistance after the Coronavirus Aid, Relief and Economic Security (CARES) Act’s $600 per week supplement expired on July 31, 2020. Under the LWA program, eligible claimants may receive $300 or $400 in supplemental benefits.
The Federal Emergency Management Agency (FEMA) will provide grants to participating states, territories and the District of Columbia for lost wage assistance. States may provide eligible claimants $400 per week, with a $300 federal contribution, in addition to an individual’s regular weekly unemployment benefit (UI) amount. The benefit is funded using 75% from the Disaster Relief Fund administered by FEMA and the remaining 25% through state unemployment insurance funding.
New Philadelphia Ordinance Protects Employees Who Blow the Whistle on Unsafe Workplaces During COVID-19
On Friday, June 26, 2020, Philadelphia Mayor Jim Kenney signed the Essential Workers Protection Act, providing protections to workers who speak out about unsafe workplace conditions during the COVID-19 pandemic. The ordinance, which is touted as the first of its kind in the United States, was supported by more than two dozen labor, advocacy and nonprofit organizations in Philadelphia.
With Pennsylvania Non-Competes, As in Life, Timing is Everything
In Pennsylvania, it has long been known that waiting until after the start of employment to have an employee sign a non-competition agreement comes with the real risk that the agreement will be unenforceable for lack of consideration. Last week, the Pennsylvania Supreme Court provided definitive guidance on the issue in Rullex Co., LLC v. Tel-Stream, Inc., et al., holding that a non-competition agreement entered into after an employee commences employment fails for lack of consideration unless the essential provisions of those restrictions were agreed to before the employee started work.
Continue reading “With Pennsylvania Non-Competes, As in Life, Timing is Everything”
The Philadelphia Area Transitions from Red Phase to Yellow, Allowing More Business Activity
On April 22, Governor Tom Wolf outlined a three-phase plan for reopening Pennsylvania businesses, following a color-coded system: Red, Yellow and Green. As the COVID-19 threat continues to slow, each county has been moving gradually through the phases. According to the Commonwealth, the phases are designed to decrease the continued spread of COVID-19 while relaxing restrictions and promoting the resumption of business activity.
Following is a brief description of each phase:
Delaware Chancery Court Declines to Blue-Pencil Overly Broad Noncompete Agreement; Casts Doubt on Choice of Law Provisions
A recent Delaware Chancery Court opinion has elucidated Delaware’s approach to judicially modifying, or “blue-penciling,” overly broad noncompete agreements and deferring to parties’ choice of law provisions. The case, FP UC Holdings, LLC, et al. v. James W. Hamilton, Jr., et al., C.A. No. 2019-1029-JRS (Del Ch. Mar. 27, 2020), highlights the importance of drafting well-tailored restrictive covenants, and shows that even in Delaware – where employers often have been reassured by the safe harbor of courts’ relative willingness to blue-pencil problematic agreements and apply Delaware law to fact patterns that have developed in other states – employers must make careful drafting and choice of law decisions. It also emphasizes that if an employer’s intent is to litigate in Delaware, the employer should do so from the beginning, without acquiescing to another court’s jurisdiction.