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.
The legislation, which was negotiated among Gov. Newsom, legislators, and labor and business groups, provides employers with new and powerful tools for addressing and defending PAGA claims. As a result of this new law, the initiative to repeal and replace PAGA, which was scheduled to appear on the November ballot in California, has been withdrawn. We summarize the key provisions of the reform legislation.
For the full alert, visit the Faegre Drinker website.
California Gov. Gavin Newsom signed several laws impacting California employers in 2023. Some of the new laws became effective immediately and others, including some that were signed into law just weeks ago, take effect January 1, 2024, or later. These new laws address several topics, including expanding paid sick leave, leave of absence for reproductive loss, minimum wage increases for fast-food restaurant employees and health care workers, restraint on trade, and workplace violence prevention standards.
Continue reading “New California Laws for 2024 and Beyond: What Employers Should Know”
Recently, the California Supreme Court ruled in The People ex rel. Lilia Garcia-Brower v. Kolla’s Inc. that California’s whistleblower protection statute (Labor Code § 1102.5) protects employees who disclose unlawful conduct, even when the recipient of the disclosure is already aware of the conduct. This ruling expands the definition of “disclose” such that the law now covers a wider array of employee retaliation claims against employers.
Section 1102.5(b) states that employers may not retaliate against an employee for disclosing information (or because the employer believes that the employee has disclosed or will disclose information) about conduct which the employee reasonably believes is unlawful.
The California Supreme Court recently held that Private Attorneys General Act (PAGA) plaintiffs do have standing to pursue their representative PAGA claims in state court even if their individual PAGA claims are compelled to arbitration.
In 2022, California Gov. Gavin Newsom signed many laws impacting California employers. Some of the new laws became effective immediately and others, including some that were signed into law just weeks ago, take effect January 1, 2023, or later. These new laws address several topics, including supplemental paid sick leave, pay transparency, leaves of absence and fast-food restaurant employment standards.
As a reminder, the minimum wage in California is increasing to $15.50 per hour on January 1, 2023, for all employers — regardless of the number of workers employed by an employer. Also, many cities and local governments in California have enacted minimum wage ordinances exceeding the state minimum wage.
Continue reading “New California Laws for 2023 and Beyond: What Employers Should Know”