On average, it takes well over a year for an employer and a newly certified labor union to reach agreement on a first contract. Nonetheless, operationalizing the proposed truncated timelines will often prove difficult, and result in significant burden on employers. In this dynamic time of change at the NLRB and in federal labor law, it is essential that employers stay mindful and up-to-date on the changes and what they might ultimately mean for their businesses.
Author: Jillian S. B. Lukacik
Pres. Trump Removes NLRB GC and Member, Testing Limits of Presidential Authority
On the heels of firing NLRB General Counsel Jennifer Abruzzo, Pres. Trump’s decision to remove Board Member Gwynne Wilcox is an unprecedented move that could hamper the National Labor Relations Board and draw swift legal challenges to test the longstanding removal protections recognized by the Supreme Court for independent federal agency heads. Removing Wilcox also leaves the Board with only two members, and the Supreme Court has held that absent its three-member quorum, the NLRB cannot execute its duties. These developments are sure to have a direct and immediate impact on federal labor law and labor-management relations, to which employers should pay close attention in this rapidly changing landscape.
To view the full alert, visit the Faegre Drinker website.
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Now that the NLRB has withdrawn its bid to keep the 2023 rule alive, what does this mean for employers?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.
To view the full alert, visit the Faegre Drinker website.
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.
To view the full alert, visit the Faegre Drinker website.