ILS Weekly Strategic Insights

Overview

• Important Update for Employers: Texas Federal Court Blocks FTC Noncompete Ban Nationwide
• California Supreme Court Ruling: Public Employers Exempt from PAGA Penalties
• Fifth Circuit Strikes Down 80/20/30 Rule: Key Insights for Hospitality Employers
• Adapting to the New Era of Remote and Hybrid Work: Comprehensive Strategies for Employers
• Avoid Costly Mistakes: Properly Classifying AI Roles Under Wage and Hour Laws
• Ninth Circuit Ruling: Personal Social Media Posts Can Create Workplace Harassment Risks

1. Important Update for Employers: Texas Federal Court Blocks FTC Noncompete Ban Nationwide

In a pivotal decision on August 20, 2024, the U.S. District Court for the Northern District of Texas set aside the Federal Trade Commission’s (FTC’s) proposed ban on most noncompete agreements. This ruling means that businesses can continue to use noncompete agreements as permitted by state law without the imminent federal restriction.

2. California Supreme Court Ruling: Public Employers Exempt from PAGA Penalties

The California Supreme Court recently issued a pivotal ruling that exempts public employers from penalties under the state’s Private Attorneys General Act (PAGA). This decision, made in Stone v. Alameda Health System, reinforces the legal distinctions between public and private employers under California law. Understanding the implications of this ruling is essential for all employers as they ensure compliance with the state’s complex labor laws.

3. Fifth Circuit Strikes Down 80/20/30 Rule: Key Insights for Hospitality Employers

On August 23, 2024, the U.S. Court of Appeals for the Fifth Circuit made a significant decision in Restaurant Law Center v. U.S. Department of Labor. The court vacated the Department of Labor’s (DOL) 80/20/30 Rule, which has been a point of contention for employers relying on tip credits under the Fair Labor Standards Act (FLSA). This ruling provides clarity and relief to many employers in the hospitality industry, particularly those within the Fifth Circuit’s jurisdiction, which includes Texas, Louisiana, and Mississippi.

4. Adapting to the New Era of Remote and Hybrid Work: Comprehensive Strategies for Employers

The shift to remote and hybrid work has transformed business operations. While initial challenges like technology setup have been overcome, employers now face more complex issues. Here are some essential strategies to help employers effectively manage a dispersed workforce in the long term.

5. Avoid Costly Mistakes: Properly Classifying AI Roles Under Wage and Hour Laws

As AI continues to reshape industries, employers are hiring for roles that didn’t exist just a few years ago. Positions like AI specialists and Prompt Engineers present unique challenges when it comes to classification under federal and state wage and hour laws. Proper classification is essential to avoid legal risks and ensure compliance.

6. Ninth Circuit Ruling: Personal Social Media Posts Can Create Workplace Harassment Risks

The recent ruling by the U.S. Court of Appeals for the Ninth Circuit in Okonowsky v. Merrick Garland?highlights the growing responsibility of employers to address harassment that occurs on social media. The court’s decision on July 25, 2024, made it clear that employers can be held liable under Title VII of the Civil Rights Act for hostile work environments created by employees’ online actions, even if those actions take place outside the physical workplace.

More Insights

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