Britni A. Summers

Webinar  

07.28.2020  |  1:00 PM - 2:30 PM  

On April 23, 2024, the Federal Trade Commission (FTC) held an open meeting and voted 3-2 (along party lines) to issue a Final Rule that bans post-employment non-compete agreements. According to the FTC, approximately 30 million people nationwide (1 in 5 workers in the U.S.) are bound by non-compete clauses.  

The Department of Labor (DOL) released its highly anticipated final rule regarding overtime for white collar workers. As expected, the final rule will nearly double the salary threshold for exempt workers beginning January 1, 2025, with a smaller increase beginning on July 1, 2024. The final rule also increased the salary level for the highly compensated employee exemption. Below is a table with the scheduled increases:  

When employees decide to leave their employer and engage in competition, they frequently overlook their duty of loyalty. Absent a non-compete or non-solicitation restriction, an employee may believe that he or she can freely engage in discussions with clients and customers regarding their intention to leave employment and engage in a competitive business.  

Recently, the General Counsel for the National Labor Relations Board (“NLRB”), Jennifer Abruzzo, issued a memorandum responding to inquiries that became prevalent after the McLaren Macomb decision. In McLaren Macomb, the NLRB took aim at overbroad non-disparagement and confidentiality provisions in severance agreements. The NLRB also found that simply offering a severance agreement to an employee can violate the National Labor Relations Act (“NLRA” or the “Act”) if the agreement provides severance benefits in exchange for giving up statutory rights under Section 7 of the Act - NLRB Takes Aim At Severance Agreements.