Laws & Regulations

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On June 28, 2024, the Supreme Court overruled its 1984 Chevron decision, which required federal courts to defer to administrative agencies’ interpretations of ambiguous statutes. Under the new rule, announced in Loper Bright Enterprises v. Raimondo, courts reviewing an agency action must independently decide whether an agency’s interpretation of an ambiguous statute is correct. However, when a statute delegates discretionary authority to an agency, courts must respect that delegation, while making sure that the agency acts within its delegated authority. The Loper Bright decision is a big win for businesses and other organizations who believe that federal agencies – including workplace agencies like the Department of Labor, the National Labor Relations Board, and the Equal Employment Opportunity Commission – have too much power.Continue Reading U.S. Supreme Court Undermines Federal Agency Authority, With Impact on the Workplace

In Starbucks Corp. v. McKinney, the Supreme Court held that a more stringent test applied to lawsuits filed by the National Labor Relations Board (the “Board”) that seek injunctions to halt serious labor violations.  While the decision directs district courts to adopt the tightened standard, several circuits, including the Fourth Circuit, have already been consistently applying the higher standard.   Continue Reading NLRB Injunctions Are Now More Difficult to Obtain, At Least in Some Jurisdictions

As most employers (hopefully) know, the U.S. Department of Labor issued a final rule that will significantly increase the salary threshold for the exemptions from the Fair Labor Standard Act’s minimum wage and overtime requirements, as discussed in our April 24, 2024 E-lert. Consistent with the now-standard practice in response to pretty much any regulation issued by any federal workforce agency, three lawsuits have been filed to enjoin the rule from taking effect on the scheduled date of July 1, 2024. In Texas, of course. Because those Texas federal courts have been notoriously unfriendly to federal agency actions. But those three lawsuits are pending before three different judges…Continue Reading Three Overtime Rule Lawsuits, Three Judges – What Now?

Many companies treat the annual EEO-1 filing requirement with, let’s say, some lack of urgency and, historically, there has been little to no consequence for failing to file the EEO-1 form. But a recent press release from the Equal Employment Opportunity Commission makes clear that those days may be over, as the agency announced that it has filed suit against fifteen companies across a wide range of industries for failing to file those mandatory reports in 2021 and 2022! Continue Reading Wait – the EEOC Is Really Serious About the EEO-1 Filing Requirement!

On April 8, National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo issued GC Memo 24-04, providing yet another memorandum broadening remedies for employees that have been wrongfully discharged for engaging in union or other protected concerted activity.  In this memo, GC Abruzzo encouraged Regions to pursue make-whole remedies for all employees, including those not identified in an unfair labor practice investigation, allegedly harmed by the unlawful rules or contract terms. Continue Reading General Counsel Abruzzo’s Latest Memorandum Encourages a Further Expansion of Remedies for Employees

On April 29, 2024, the Equal Employment Opportunity Commission issued its long-promised Enforcement Guidance on Harassment in the Workplace. The document updates and replaces existing EEOC resources on workplace harassment and unsurprisingly (under this pro-worker administration) takes a very broad approach to the topic. Of particular interest to employers, the EEOC also provides specific direction on what it would consider to be best practices for employers in preventing and addressing workplace harassment, including as to policies, training and investigations.Continue Reading The EEOC’s New Harassment Guidance: What Employers Need to Know

On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 to issue a Final Rule banning nearly all non-compete clauses in employment agreements nationwide. As set forth in the FTC’s fact sheet, non-compete provisions are “an unfair method of competition” and therefore violate the Federal Trade Commission Act. The U.S. Chamber of Commerce, however, has already filed suit to block the Final Rule. Continue Reading FTC Bans Nearly All Non-Compete Agreements – For Now…

On Tuesday, April 23, 2024, the United States Department of Labor (DOL) released a final rule raising the salary thresholds to qualify for overtime exemptions under the Fair Labor Standards Act (FLSA). The rule will become effective on July 1, 2024.Continue Reading DOL Significantly Increases Salary Threshold for Overtime Eligibility

The U.S. Supreme Court, in a unanimous decision, has ruled that adverse employment actions need not be “significant” in order to constitute a violation of Title VII’s prohibition against discrimination. This ruling undercuts decades of court decisions that applied a heightened standard of harm, although recent federal appellate court rulings already showed a trend away from that standard.Continue Reading Supreme Court Lowers the Bar for Title VII Discrimination Claims

On April 15, 2024, the Equal Employment Opportunity Commission (EEOC) issued a Final Rule and Interpretive Guidance to implement the relatively new Pregnant Workers Fairness Act (PWFA), which was enacted by Congress in December of 2022 and which already took effect on June 27, 2023. The Final Rule and Interpretive Guidance provide guidance, with many illustrative examples, on how the EEOC plans to interpret employers’ obligations under the PWFA – and in some cases, expands the obligations beyond even the heightened standards under the Americans with Disabilities Act.Continue Reading The EEOC Releases Onerous Final Rule Implementing the Pregnant Workers Fairness Act