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: Matthew A. Fontana
Updates From the Acting General Counsel and the Quorum-less National Labor Relations Board
Recent leadership changes at the National Labor Relations Board (NLRB), following the removal of key members by President Donald Trump, are sparking significant policy shifts. As the Board struggles with a lack of quorum, new challenges are emerging, including legal battles over the certification of union elections and the constitutionality of member removal protections. With a more employer-friendly approach under new leadership, the NLRB’s future direction could reshape labor law enforcement and business practices in the coming months.
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Now that the NLRB has withdrawn its bid to keep the 2023 rule alive, what does this mean for employers?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.
IRS Announces Final Regulations Implementing Prevailing Wage and Apprenticeship Requirements for Clean Energy Projects Under the Inflation Reduction Act
While the final regulations provide much needed guidance and predictability for taxpayers, they also make clear that the next step for anyone seeking the enhanced clean energy tax credits is to tighten internal compliance programs to guard against penalties or potential loss of the enhanced tax credits.
For the full alert, visit the Faegre Drinker website.