Health Care Practitioner Noncompete Ban Signed Into Pennsylvania Law

On July 17, 2024, Gov. Josh Shapiro signed the Fair Contracting for Health Care Practitioners Act into Pennsylvania law. The Act prohibits the enforcement of certain noncompete covenants entered into after January 1, 2025, by health care practitioners and their employers, subject to limited, but important, exceptions. Therefore, Pennsylvania health care employers should review their employment agreements and revise them to ensure compliance.

To view the full alert, visit the Faegre Drinker website.

NLRB Withdraws Appeal of Joint Employer Rule Decision

Now that the NLRB has withdrawn its bid to keep the 2023 rule alive, what does this mean for employers? Likely, the NLRB is already looking at alternative methods to implement a similar standard either through new rule making or adjudications. In the interim, the standard now reverts to the 2020 rule, which requires an entity to actually exercise direct and immediate control over the terms and conditions of employment for a group of employees in order to be considered a joint employer.

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Court Blocks FTC Rule Banning Employment Noncompete Agreements on a Limited Basis

The FTC’s Rule banning noncompete agreements against the plaintiffs in Ryan LLC v. Federal Trade Commission has been enjoined. The court’s order signals a tough road ahead for the FTC’s Rule on a nationwide scale, although a second order is due by the end of July in a separate case. Nevertheless, employers should be aware of increasing judicial scrutiny and legislative limitations of restrictive covenants.

To view the full alert, visit the Faegre Drinker website.

SCOTUS Orders NLRB to Follow Same Injunction Standards as Other Litigants

This decision has largely been cast as a win for Starbucks and a blow for labor. However, as other courts had already recognized, there is no language in the National Labor Relations Act that grants the NLRB special access to the powerful tool of preliminary injunctions. SCOTUS’s decision merely standardized that recognition across the federal circuits.

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FTC Issues Final Rule Banning Employment Noncompete Agreements

On April 23, 2024, in a 3-2 vote along party lines, the U.S. Federal Trade Commission issued a final rule that will ban essentially all employment noncompete agreements nationwide. This alert dives into the key takeaways and what to expect next.

To view the full alert, visit the Faegre Drinker website.

Ever-Expanding Jurisdiction of the National Labor Relations Board

The decision held that the basketball players were employees of Dartmouth because the college had the right to control their work by scheduling practice times, strictly managing away-game travel, and issuing a handbook of rules, which players must follow; and because the college compensated the players for their work. The decision dismisses Dartmouth’s contention that athletic clothing and equipment, which the school provides equally to all team members free of charge, is not salary because the college does not provide more of these items to its starters compared to nonstarters. While the Board rejected Dartmouth’s request to stay the election pending appeal, a full appeal of the merits of the regional directors will soon see the Board members weigh in on this extraordinary extension of the agency’s jurisdiction into amateur athletics.

To view the full alert, visit the Faegre Drinker website.

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