Labor Management Relations

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.

Top 10 Noncompete Developments of 2024

Without a doubt, 2024 was a roller coaster of a year for employers in the area of noncompete law, from an FTC attempted nationwide ban on most noncompete agreements, to continued state law action seeking to narrow the use of noncompete provisions, to a growing number of court decisions revealing deep frustration by judges asked to enforce overbroad post-employment restrictions. Employers looking to protect confidential information and customer goodwill through the use of noncompetition or nonsolicitation provisions should stay abreast of state law developments and review existing agreements to ensure they are narrowly tailored to address judicially recognized protectable interests.

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Now that the NLRB has withdrawn its bid to keep the 2023 rule alive, what does this mean for employers?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

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.