FTC Rule Banning Non-Compete Clauses Effective on September 4, 2024

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On April 25, we posted a blog on the Federal Trade Commission’s new rule that will retroactively ban most non-compete agreements and prohibit such agreements going forward, with limited exceptions. At the time we posted, the date the new rule would go into effect was not clear as the FTC needed to file the rule in the Federal Register-the U.S. government’s daily gazette that publishes new rules from federal agencies, among other items. The FTC said that once it made this filing,  the rule would take effect 120 days later.  Last Tuesday, May 7, the FTC filed the rule in the Federal Register. And so, the 120 days began to run from that date and will be effective on September 4, 2024.

See Non-Compete Clause Rule here. However, there are currently multiple federal lawsuits filed seeking to block the final rule from becoming effective, including one brought by the U.S. Chamber of Commerce. Therefore, it is unclear if the rule will take effect on September 4 or if it will be invalidated by the courts. As soon as we hear something, we will provide an update.

Two New Rules Could Have Profound Impact on U.S. Businesses

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Assuming they survive certain legal challenges, new rules issued by the Federal Trade Commission (FTC) and the U.S. Department of Labor (DOL) could dramatically impact the relationship between employers and employees in the United States. The FTC has passed a rule banning non-compete agreements and prohibiting enforcement of non-compete agreements against most workers. The DOL rule significantly increases the salary threshold to qualify for an overtime exemption as an executive, administrative, or professional employee.

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Employers Beware – Involuntary Job Transfers Can Support Discrimination Suits

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A recent U.S. Supreme Court case examined the question of whether an involuntary job transfer can be discriminatory even if the employee’s pay and job title remain the same. The answer? Yes. Historically, most courts, including the Eleventh Circuit, required an employee to have suffered a “significant” employment disadvantage from any involuntary transfer for an employee’s discrimination suit to survive. Under this standard, if an employee’s pay and title remained the same, a discrimination lawsuit would typically not survive.

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REGISTER NOW! 2024 Tampa Labor & Employment Law Seminar

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We are excited to host our Tampa Labor & Employment Law Seminar this year. Our annual seminars draw hundreds of human resource professionals, in-house counsel and senior executives from Florida’s top businesses. And for good reason! No one does events quite like we do – our seminars are not just lectures, they are learning experiences. This year will not disappoint.

Find out more and register below. We are also planning our Annual Miami Labor & Employment Law Seminar for the fall, so stay tuned for details!

CLICK HERE TO REGISTER

MONDAY, MAY 20, 2024

Aloft Tampa Midtown | 3550 Midtown Drive, Tampa, FL 33607

8:30 a.m. – 9:00 a.m. | Registration & Breakfast

9:00 a.m. – 12:00 p.m. | Presentations

12:00 p.m. | Lunch

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Florida Child Labor – An Update

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On February 27, we posted a blog on proposed legislation to modify the law regulating child labor in Florida. The bill that the Florida Legislature passed is somewhat different from the bill we blogged about on February 27. We updated our chart detailing the differences between current Florida law and the changes HB 49 makes to child labor restrictions. The bill is awaiting the Governor’s signature.

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More Work Opportunities for Florida Kids?

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The Florida Legislature is proposing to change the state’s law regulating the employment of minors ages 14 to 17. Below is a summary of the current limitations on child labor in Florida and how the rules will change once the current bill, HB 49, becomes law.

HB 49 passed favorably out of Senate Rules earlier today, having already passed through the House. We will continue to monitor the status of HB 49.

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Independent Contractor or Employee? It’s Complicated

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Worker classification just got as complicated as Ross and Rachel’s relationship status on ‘Friends’! Last month, the U.S. Department of Labor (DOL) issued a new rule on how to classify employees and independent contractors under the Fair Labor Standards Act (FLSA).

Moving forward, the DOL will use a multifactor, “totality-of-the-circumstances” test to determine whether a worker classifies as an employee or independent contractor. Under the new rule, employers must weigh the following six factors, without giving greater weight to any individual factor:

  1. the worker’s opportunity for profit or loss depending on managerial skill;
  2. investments by the worker and the potential employer;
  3. the degree of permanence of the work relationship;
  4. the nature and degree of control;
  5. the extent to which the work performed is an integral part of the potential employer’s business; and
  6. the worker’s skill and initiative.

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Happy Holidays from Stearns Weaver Miller’s Labor & Employment Department!

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Thank you for being a subscriber. Wishing you a joyous holiday season and happy, healthy year ahead.

We hope that BeLabor the Point has brought you important information throughout the year and a few smiles along the way. Speaking of smiles, click on the image below to view our Labor & Employment Law Department’s holiday card!

Navigating the Naughty and Nice of Holiday Office Parties

‘Tis the season to be jolly, but also the season to be vigilant. Although this time of year is great for fostering camaraderie, it can also present challenges for HR. The office holiday party, in particular, can be a potential minefield of HR issues. View our previous blog posts by Janet McEnery and Glenn Rissman for a few tips to help you navigate your holiday party planning.

Some Recent Developments in Employment Authorization: TPS Extension for Venezuela and Five-Year EADs

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The Department of Homeland Security recently announced that it will extend Temporary Protected Status (TPS) for Venezuela for eighteen months.  TPS for Venezuela is currently set to expire on March 10, 2024.  Based on an advanced copy of the Federal Register Notice, the re-designation will extend TPS for Venezuela to April 2, 2025.  The U.S. Citizenship And Immigration Services (USCIS) will also automatically extend the Employment Authorization Document (EAD) of Venezuelan nationals through March 10, 2025.  To qualify for the automatic extension, the individual must currently hold an EAD with the notation A-12 or C-19 under “Category” and the EAD card must expire on March 10, 2024 or September 9, 2022.  The employee must also re-register for TPS but the employer may not ask for proof that the employee re-registered for TPS or proof of the employee’s Venezuelan citizenship.

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