SCOTUS Hears Oral Argument on Whether NLRA Preempts State Court Lawsuits Against Unions for Property Damage Caused During Labor Disputes
The Sheppard Mullin Labor & Employment Law Blog
by Bianca Rodriguez, Keahn Morris, John Bolesta and James Hays
1w ago
The new year begins with one of the most anticipated labor cases on the high court’s docket in decades. On January 10, 2023, the U.S. Supreme Court heard oral argument in Glacier Northwest, Inc. v. International Brotherhood of Teamsters Local Union No. 174 to decide whether the National Labor Relations Act (“NLRA” or the “Act”) preempts state court lawsuits for tort damages caused by unions during strikes. Employers should gain much greater clarity into whether they can seek relief from such conduct via a damages lawsuit. If the U.S. Supreme Court finds that such conduct is not preem ..read more
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Buyer Beware: Delaware Declines to Enforce Sale of Business Non-Compete
The Sheppard Mullin Labor & Employment Law Blog
by Kevin Cloutier, Stephen LaSala, Shawn D. Fabian and Umar Sattar
1w ago
Courts and state legislatures continue to take aim at post-employment non-competes. In a companion blog, we recently detailed the Federal Trade Commission’s proposed rule banning post-employment non-competes. However, for years (and even under the FTC’s overreaching proposed rule), non-competes in the sale of business context have generally received less scrutiny. The Delaware Chancery Court threw the deal world a curveball when it recently declined to enforce a sale of business non-compete. In Kodiak Building Partners, LLC v Adams, the Delaware Chancery Court ruled that a non-compet ..read more
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What the Third Circuit’s Looming Decision Regarding Whether College Athletes Can Constitute “Employees” Will Mean for Universities and Employers of Unpaid Student Interns
The Sheppard Mullin Labor & Employment Law Blog
by Babak Yousefzadeh and Skyler Hicks
1w ago
The Third Circuit is expected to soon make a decision as to whether student-athletes can be considered university “employees” under the Fair Labor Standards Act (“FLSA”). But its interpretation of the law might reverberate beyond the confines of college sports and could implicate whether unpaid student interns must also be treated as employees. In late 2019, Ralph Johnson, a former Villanova University football player, initiated a class action in the Eastern District of Pennsylvania, Johnson et al. v. National Collegiate Athletic Association et al., asserting that student-athletes in Penn ..read more
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California Labor Commissioner Issues FAQs Clarifying Pay Transparency Law
The Sheppard Mullin Labor & Employment Law Blog
by Dimiana Saad
1w ago
As we previously reported here last fall, California enacted a pay transparency law (SB 1162) requiring employers with 15 or more employees to disclose pay scales in job postings beginning January 1, 2023. The Labor Commissioner recently issued guidance in the form of FAQs to address some of the unanswered questions regarding the interpretation and enforcement of the California Equal Pay Act. The law expands pay data reporting requirements for California employers with 100 or more employees, and requires employers with 15 or more employees to include the “pay scale” for a position in any job p ..read more
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New Jersey Legislature Passes Bill to Set the Effective Date of Amendments to the New Jersey WARN Act
The Sheppard Mullin Labor & Employment Law Blog
by Sean Kirby and Wolfram Ott*
2w ago
On December 19, 2022, the New Jersey Legislature passed a bill that, if signed by Governor Phil Murphy, would amend the effective date of amendments to the Millville Dallas Airmotive Plant Job Loss Notification Act (“NJ WARN”) that were originally passed in January of 2020. Those amendments were previously paused as a result of the COVID-19 pandemic, and under that pause would take effect 90 days after Governor Murphy’s Executive Order No. 103 expired. Because Executive Order No. 103 remains in effect, without any indication of when it may expire, the New Jersey Legislature passed th ..read more
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FTC Seeks to Ban Noncompete Agreements in Employment Contracts
The Sheppard Mullin Labor & Employment Law Blog
by John Carroll, Leo Caseria, Thomas Dillickrath, Bevin Newman, Jake Walker, Kevin Cloutier and Stephen Fox
3w ago
On January 5, 2023, the Federal Trade Commission (“FTC”) announced a broad proposed rule that would ban employers from imposing noncompete clauses on their workers. The FTC press release announcing the proposed rule states that noncompete clauses—which apply to about one in five American workers—suppress wages, hamper innovation, block entrepreneurs from starting new businesses and reduce American workers’ earnings between $250 billion and $296 billion per year.[1] The proposed rule would prohibit employers from: (1) entering into or attempting to enter into a noncompete with a worker; (2) mai ..read more
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Governor Hochul Signs New York Pay Transparency Bill Into Law
The Sheppard Mullin Labor & Employment Law Blog
by Lindsay Colvin Stone
1M ago
On December 21, 2022, Governor Kathy Hochul signed S.9427-A/A.10477 (the “New York Pay Transparency Law” or “NYPTL”), a pay transparency law that will affect most employers who do business in the state of New York. The New York Pay Transparency Law will take effect on September 18, 2023. The New York Pay Transparency Law amends the New York Labor Law to require covered employers to include the following information in advertisements for internal and external “job, promotion, or transfer opportunities”: The compensation or range of compensation (defined as “the minimum and maximum annual ..read more
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Ring in the New Year With a Refresher on COVID-19 Regulations and Laws
The Sheppard Mullin Labor & Employment Law Blog
by Luke Bickel and Robert Foster
1M ago
As the end of the year draws near, it is important for employers in California to remember there are multiple COVID-19 regulations and laws that will still apply to the workplace in 2023. The Division of Occupational Safety and Health of California’s (“Cal/OSHA”) constantly evolving COVID-19 Emergency Temporary Standard (“ETS”) that has been in effect for the last two years is finally expiring. However, the ETS will be replaced by Cal/OSHA’s new COVID-19 Prevention Non-Emergency Regulations (“Permanent Standard”), which will remain in effect through 2024. This article provides a comprehen ..read more
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President Biden Signs “Speak Out Act” Limiting the Enforceability of Non-Disclosure and Non-Disparagement Provisions in Sexual Harassment Cases
The Sheppard Mullin Labor & Employment Law Blog
by Rachel Moroski and Tomi Oshita
1M ago
On December 7, 2022, President Biden signed the Speak Out Act (the “Act”) into law. The Act limits the enforceability of pre-dispute non-disclosure and non-disparagement clauses relating to sexual assault and sexual harassment claims, but does not prohibit such provisions in settlement agreements or severance agreements. Scope The Act prohibits the enforcement of non-disclosure agreements (NDAs) and non-disparagement clauses between employers and employees and independent contractors, and between goods and services providers and consumers, that were in place before a sexual assault or har ..read more
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New Year, New Rules for Employers Doing Business in New York in 2023
The Sheppard Mullin Labor & Employment Law Blog
by Sean Kirby and Wolfram Ott*
1M ago
Last year New York state and local legislatures implemented a number of employment laws and ordinances that are set to take effect in 2023. This update summarizes these new legal requirements to help New York employers prepare for 2023. Paid Family Leave 2023 will see some important changes to New York’s Paid Family Leave program because New York has greatly expanded the family members covered under the program. Beginning January 1, 2023, the law now includes siblings in the definition of family members covered under Paid Family Leave. Siblings are defined to include biological, adop ..read more
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