ILS Weekly Strategic Insights

Overview

1. Richard Q. Liu Recognized in Best Lawyers: Ones to Watch? in America
2. FTC Non-Compete Rule: Latest Court Rulings and What They Mean for Employers
3. Critical Update for Employers: Impacts of the Turrieta v. Lyft, Inc. Ruling on PAGA Intervention
4. Protecting Your Business from AI-Driven Cyber Scams in the Remote Work Era
5. California Supreme Court Ruling: Single Racial Slur by Coworker Can Expose Employers to Liability

Firm News

1. Richard Q. Liu Recognized in Best Lawyers: Ones to Watch? in America

We are excited to announce that our Managing Partner, Richard Q. Liu, has been included in the 2025 edition of Best Lawyers: Ones to Watch? in America?for his exceptional work in Labor and Employment Law - Management. This recognition highlights Richard's dedication to delivering top-tier legal services and his outstanding contributions to the field.

Legal Updates

1. FTC Non-Compete Rule: Latest Court Rulings and What They Mean for Employers

On April 23, 2024, the Federal Trade Commission (FTC) approved a Final Rule that dramatically changes the landscape for non-compete agreements in the United States. Set to take effect on September 4, 2024, this rule prohibits almost all non-compete clauses between employers and workers. This rule is a significant regulatory development, potentially affecting millions of workers and businesses across the country. However, the rule's future is uncertain, with several ongoing legal challenges that could alter or delay its implementation.

Given the ongoing legal challenges and the potential for changes to the rule, it is imperative that businesses remain vigilant and informed. The next few months will be critical as courts continue to address the rule's legality, and employers must be prepared to adapt to any developments that may arise.

2. Critical Update for Employers: Impacts of the Turrieta v. Lyft, Inc. Ruling on PAGA Intervention

On August 1, 2024, the California Supreme Court delivered a crucial ruling in Turrieta v. Lyft, Inc., addressing whether a party can intervene in another party’s ongoing Private Attorneys General Act (PAGA) action that involves overlapping claims. The court, in a decision authored by Justice Martin J. Jenkins, held that such intervention is inconsistent with the legislative intent of PAGA. This decision provides important guidance for both employers and plaintiffs involved in PAGA litigation.

3. Protecting Your Business from AI-Driven Cyber Scams in the Remote Work Era

In a recent and alarming incident, a leading cybersecurity training company fell victim to a sophisticated scam involving a North Korean cybercriminal who utilized AI deepfake tools to falsify his identity. Despite the company's expertise in cybersecurity, this malicious actor managed to penetrate their hiring process, posing as a remote worker with the intent to compromise their systems. This incident serves as a stark reminder that such threats can target any business, regardless of its cybersecurity acumen.

4. California Supreme Court Ruling: Single Racial Slur by Coworker Can Expose Employers to Liability

In a pivotal ruling, the California Supreme Court in Bailey v. San Francisco District Attorney’s Office?examined critical issues related to workplace harassment and retaliation under the Fair Employment and Housing Act (FEHA). This decision highlights the importance of preventing and addressing even isolated incidents of racial harassment and provides clarity on what constitutes an adverse employment action in retaliation claims. Employers should take note of this ruling to ensure their policies and practices are in compliance with legal standards and to foster a safe, respectful work environment.

More Insights

Thank you for being a part of our community and for your continued support. We hope you found this edition informative and valuable. For more insights and updates, stay connected with us on LinkedIn and visit our website at https://www.consultils.com/.