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.
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.
What does it mean if a union makes a “demand for recognition,” or “request for voluntary recognition” to an employer? What does a union mean when it says it has a “showing of interest” or “proof of majority support” or “majority status,” or that it has been “designated as Section 9(a) representative by the majority of employees in an appropriate unit”?
These magic words are now of critical importance to employers and their employees due to a dramatic change the National Labor Relations Board (NLRB) announced on August 25, 2023, in how it interprets the National Labor Relations Act (NLRA).
Continue reading “The New Critical Importance of a Union Request for Recognition”
A recent employer settlement with a National Labor Relations Board Region shows that the General Counsel is not just focused on noncompetition restrictions, but also nonsolicitation restrictions that the General Counsel believes are overbroad.
New York state is poised to join four other states in banning employment-related noncompete agreements. In addition to standalone noncompetition agreements, noncompete restrictions on employees within offer letters, employment agreements, stock option agreements and other employment-related agreements, are subject to the new law’s prohibition.
Continue reading “New York Legislature Agrees to Ban Noncompete Agreements”
The General Counsel of the National Labor Relations Board (the Board) issued new guidance announcing her position that certain noncompete agreements violate the National Labor Relations Act. Citing McLaren Macomb, the General Counsel urged the Board to adopt her position regarding noncompete agreements, arguing that the Board already embraced a similarly restrictive standard for analyzing the lawfulness of severance agreements.
Continue reading “NLRB GC’s Latest Guidance Expands Restrictions to Noncompete Provisions”