As previously noted in our Coolidge Wall blog (https://www.coollaw.com/blog/2023/01/ftc-proposes-rule-to-ban-noncompete-clauses/), on January 5, 2023, the Federal Trade Commission (FTC) released a Notice of Proposed Rulemaking called the “Non-Compete Clause Rule” (the “Proposed Rule”). The Proposed Rule would prohibit employers in most industries from executing or maintaining noncompetition agreements with their employees and other workers. This exercise of executive branch power would interfere with the ability of companies and individuals to enter contracts, in the name of preventing “restraints on trade.”  The Proposed Rule would literally void noncompetition agreements already in existence, and it would, we predict, have enormous unintended negative consequences …
Federal Trade Commission (FTC) Proposes Rule to Ban Noncompete Clauses
On January 5, 2023, the FTC released a Notice of Proposed Rulemaking that would prohibit employers from executing noncompete agreements with paid or unpaid employees, independent contractors, interns, volunteers, and apprentices. In addition to prohibiting employers from enforcing new noncompete agreements, the proposed rule would also operate retroactively to render existing noncompete clauses unenforceable and require employers to inform employees subject to a noncompete that the noncompete is void within 45 days of the rule’s implementation. The FTC proposed rule defines noncompete clauses to mean “a contractual term between an employer and a worker that prevents the worker from seeking …
Ohio’s New Concealed Carry Gun Law: How Does It Impact Private Employers?
Effective June 13, 2022, Ohio Senate Bill 215, permits “qualifying adults” to legally carry, possess, and conceal a handgun without a license, background check, or training requirements. According to the new statute, codified at Ohio Revised Code § 2923.125A: Regardless of whether the person has been issued a concealed handgun license, … a person who is a qualifying adult may carry a concealed handgun that is not a restricted firearm anywhere in this state in which a person who has been issued a concealed handgun license may carry a concealed handgun. A “qualifying adult” must, among other criteria, be at …
The Latest on OSHA: Sixth Circuit Lifts Stay of OSHA Emergency Temporary Standard
As we have described previously in recent months, several precarious federal mandates have been issued by the administration of President Biden as the country works its way toward recovery from the COVID-19 pandemic. On November 5, 2021, OSHA issued an Emergency Temporary Standard (ETS), requiring that all employers with 100 or more employees either mandate COVID-19 vaccination for all employees or allow employees to elect weekly COVID-19 testing.  In the most recent court challenge, this mandate, originally stayed by the Fifth Circuit Court of Appeals, has been reinstated by the Sixth Circuit Court of Appeals. Inevitably, the next stop will …
The State of Stays: Federal Vaccine Mandates Suspended for Now
As we have described previously in recent months, several precarious federal mandates have been issued by the administration of President Biden as the country works its way toward recovery from the COVID-19 pandemic. These federal mandates have imposed significant burdens on private industry by sapping much-needed corporate resources, creating a sense of overreach and invasiveness, and alienating vaccine-resistant employees at the exact moment many employers are trying desperately to rev back up and to revitalize the economy. The mandates have been implemented primarily by three executive-branch sources affecting three huge sectors of the economy: Executive Order 14042 affecting federal contractors, …
OSHA Issues Emergency Temporary Standard for Large Employers
The U.S. Occupational Safety and Health Administration (OSHA) issued its long-awaited Emergency Temporary Standard (ETS) requiring employers with 100 or more employees to ensure that their employees are either fully vaccinated against COVID-19 or are tested on a weekly basis. This ETS compliments previous efforts by the federal government to address the COVID-19 pandemic, including Executive Orders requiring federal contractors and federal employees to be vaccinated, and regulations issued by the Centers for Medicare and Medicaid Services (CMS) requiring vaccination for employees of health care facilities. Legal Challenges Legal challenges opposing the ETS have already been filed in various U.S. …
Discrimination Law Protects Homosexual and Transgender Workers
In a landmark decision, the United States Supreme Court determined on June 15, 2020 that most gay and transgender workers are protected under federal law from employment discrimination. Justice Gorsuch delivered the Court’s 6-3 opinion in Bostock v. Clayton County.[1] The issue in Bostock was one of statutory construction. Title VII of the Civil Rights Act of 1964 makes it “unlawful for an employer to fail or refuse to hire or discharge any individual, or otherwise to discriminate against any individual . . . because of such individual’s race, color, religion, sex, or national origin.”[2] The Court considered whether the …
Department of Labor Rolls Out Long Anticipated Update to Overtime Regulations
On September 24, 2019, the Department of Labor issued a long anticipated final rule that will update the overtime regulations that have been in place since 2004. The Department of Labor’s mandates are scheduled to go into effect on January 1, 2020. We now have the long-awaited answer to the question posed in a Coolidge Wall blog published May 1, 2017, titled “What Will Happen To The Salary-Exempt Regulations Under the New Administration?” After a proposed 2016 final rule issued by the Department of Labor updating the 2004 salary threshold requirements for overtime was invalidated by the U.S. District Court …
Recent Tax Legislation Eliminates Deduction for Confidential Sexual Harassment Settlements
Last December, Congress responded to an avalanche of sexual harassment and abuse claims across the country by including a provision within the Tax Cuts and Jobs Act at Section 13307 impacting an employer’s ability to obtain a tax deduction for settlements paid that include nondisclosure agreements. Internal Revenue Code Section 162(q) now provides that no deduction will be allowed for any settlement or payment related to sexual harassment or sexual abuse if such settlement or payment is subject to a nondisclosure agreement. Deductions for attorney’s fees related to such confidential sexual harassment settlements or payments are also prohibited. The drafters …
Department of Labor Withdraws Guidance on Joint Employment and Independent Contractors
This past Wednesday, June 6, 2017, the Department of Labor (DOL) issued a press release announcing the withdrawal of its 2015 and 2016 guidance, formally called “Administrator’s Interpretation” (AI), concerning independent contractors and joint employment. Specifically, in the 2015 AI addressing independent contractors, the DOL took an expansive view of who would be classified as an employee. In the 2016 AI addressing joint employment, the DOL sought to broadly define the concept of joint employment under the federal Fair Labor Standards Act (FLSA) and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA). The withdrawal of these two AIs may …