Labor Management Relations

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Now that the NLRB has withdrawn its bid to keep the 2023 rule alive, what does this mean for employers?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.

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.

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.

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.

The FTC Non-Compete Rule – It’s Finally Here (Almost)!

Yesterday, the Federal Trade Commission (FTC) announced that, next Tuesday, April 23, it will be releasing the final version of its proposed rule largely prohibiting employee non-competition restrictions. See FTC Announces Special Open Commission Meeting on Rule to Ban Noncompetes | Federal Trade Commission. The announcement will be preceded by a vote by the five FTC commissioners on whether to “authorize public disclosure of the proposed final rule.” Assuming that disclosure is authorized, which is expected, the FTC will present the rule and then vote to issue it. As of yet, there has been no indication whether the final rule will be the same as the proposed rule or, if not, what the changes will be.

Continue reading “The FTC Non-Compete Rule – It’s Finally Here (Almost)!”

Federal Court Strikes Down NLRB’s New Joint Employer Rule, Leaving 2020 Rule in Place for Now

The 2023 rule, which was set to take effect on March 11, would have expanded the joint employer test to include reserved and indirect control — potentially exposing franchisors to claims that their franchise agreements and brand standards make them joint employers of their franchisee’s employees for purposes of collective bargaining and labor disputes. The federal district court concluded that the 2023 rule is unlawful because it would expand joint employment beyond the outer limits set by the common-law definition of employment. Other courts are likely to weigh in. The NLRB may appeal to the Fifth Circuit. A parallel suit brought by the Service Employees International Union regarding the scope of the 2023 rule is currently pending before the D.C. Circuit. Either or both of those cases may ultimately go to the U.S. Supreme Court. We conclude with two relevant handouts that identify franchisors’ best practices.

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