On February 2, 2023, the California Court of Appeal issued an important follow-up decision to the United States Supreme Court’s decision in Viking River Cruises, Inc. v. Moriana, — U.S. —, 142 S. Ct. 1906 (2022). Galarsa v. Dolgen California, LLC, — Cal. Rptr. 3d — , 2023 WL 2212196 (2023),addresses whether a plaintiff alleging claims under the California Private Attorneys General Act of 2004 (PAGA) retains standing to assert claims premised on California Labor Code violations suffered by other employees when the claims arising from alleged violations suffered by the plaintiff are compelled to arbitration. The Court…
Continue Reading California Court of Appeal Holds That a PAGA Plaintiff Maintains Standing to Assert Representative Claims Even When Individual Claims Are Compelled to Arbitration

The Fair Labor Standards Act of 1938 (“FLSA”) created the right to a minimum wage and overtime pay. The FLSA also provides exemptions to overtime pay requirements for certain employees. Under the “bona fide executive” exemption, “highly compensated employees” are exempt from overtime if performing at least one qualifying job duty. However, on February 22, 2023, the United States Supreme Court, in its 6-3 decision in Helix Energy Solution Group, Inc. v. Hewitt, clarified that highly compensated employees paid on a “day-rate” do not qualify for this exemption because a day-rate does not satisfy the salary basis test.
Continue Reading Supreme Court Clarifies a “Day-Rate” Does Not Meet the FLSA “Salary Basis” Test, Even for Highly Compensated Employees

On March 3, 2023, Governor Kathy Hochul signed a series of amendments to the New York Pay Transparency Law (“NYPTL”) into law. As we previously reported, the NYPTL takes effect on September 17, 2023 and will require covered employers to include the following information in advertisements for internal and external “job, promotion, or transfer opportunities”:…
Continue Reading New York Amends Statewide Pay Transparency Law

As we previously reported, the National Labor Relations Board (“NLRB” or “Board”) under President Biden is working to undo much of any employer-friendly actions taken during the previous administration. On February 21, 2023, the Board continued in its trend and wiped away a Trump-era ruling which gave employers certain latitude in drafting and executing severance agreements with their employees. Specifically, the Board, in a divided decision, ruled employers can no longer offer severance agreements containing clauses that (i) prevent employees from making disparaging remarks about their former employer or (ii) compel departing employees to keep the contents of the severance…
Continue Reading We Can Now Add Civility and Secrecy to the List of Things Money Can’t Buy: NLRB Rules Non-Disparagement and Confidentiality Clauses in Severance Agreements Unlawfully Restrain and Coerce Employees

Recently, Illinois became the third state to pass a mandatory paid time off law called the “Paid Leave for All Workers Act” (the “Act”), which grants employees a minimum of 40 hours of paid time off per year for any reason. Only Nevada and Maine provide similarly sweeping mandatory paid leave. Governor Pritzker has indicated he will sign the legislation. This new law, which would be effective January 1, 2024, will have a major impact on the landscape of paid leave in Illinois. It affects nearly everyone, its uses are unlimited, and it comes with new reporting and record-keeping requirements, as well…
Continue Reading Time to Update Your Policies: Illinois Passes Sweeping Paid Leave Legislation

Imagine paying millions to acquire a company only to later discover the restrictive covenants in the employment agreements of high-level executives were unenforceable. That’s precisely what happened in Intertek Asset Integrity Management. In Intertek, Texas’s Twelfth Court of Appeals held a company Vice President’s non-compete was unenforceable by the purchaser-entity because the underlying employment agreement lacked an assignment clause. Such language, if included, would have permitted the seller to transfer the contract’s rights and obligations without the employee’s consent. Assignability clauses are frequently buried in the “miscellaneous” section of agreements and—too often—omitted. Businesses who overlook these terms in Texas employment…
Continue Reading Missed Assignments: The Importance of Assignability Clauses in Restrictive Covenant Agreements

On Tuesday January 10, 2023, the Equal Employment Opportunity Commission (“EEOC”) publicly released its Draft Strategic Enforcement Plan (“SEP”) for fiscal years 2023-2027. The SEP describes the EEOC’s top enforcement priorities, making it critical information for employers around the country.
Continue Reading EEOC Announces Enforcement Priorities for 2023-2027

In a victory for the plaintiffs’ bar, the Illinois Supreme Court has ruled that all claims under Illinois’s Biometric Information Privacy Act (“BIPA”), 740 ILCS 14/1, et seq., are subject to a five-year statute of limitations. For years, litigants and courts have grappled with whether BIPA claims must be brought within one, two, or five years of an alleged BIPA violation. The Court’s long-awaited decision in Tims v. Black Horse Carriers, Inc., 2023 IL 127801 (Ill. Feb. 2, 2023), puts an end to that pervasive uncertainty.
Continue Reading Illinois Supreme Court Rules All BIPA Claims Are Subject to Five-Year Time Limit

A five year long saga appears to be coming to a close as Washington D.C.’s alternative minimum wage for tipped employees is set to begin phasing out in May 2023. Under the new D.C. law, the minimum wage for tipped workers will rise incrementally until July 1, 2027, when their base wage will equal the minimum wage for other D.C. workers. D.C. joins seven other states that have eliminated the lower minimum wage for tipped employees – including Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington State.
Continue Reading Once, Twice, Gone: After Two Ballot Initiatives, D.C.’s Minimum Wage Tip Credit Set to Be Phased Out

The new year begins with one of the most anticipated labor cases on the high court’s docket in decades. On January 10, 2023, the U.S. Supreme Court heard oral argument in Glacier Northwest, Inc. v. International Brotherhood of Teamsters Local Union No. 174 to decide whether the National Labor Relations Act (“NLRA” or the “Act”) preempts state court lawsuits for tort damages caused by unions during strikes. Employers should gain much greater clarity into whether they can seek relief from such conduct via a damages lawsuit. If the U.S. Supreme Court finds that such conduct is not preempted and may be litigated…
Continue Reading SCOTUS Hears Oral Argument on Whether NLRA Preempts State Court Lawsuits Against Unions for Property Damage Caused During Labor Disputes

Courts and state legislatures continue to take aim at post-employment non-competes. In a companion blog, we recently detailed the Federal Trade Commission’s proposed rule banning post-employment non-competes. However, for years (and even under the FTC’s overreaching proposed rule), non-competes in the sale of business context have generally received less scrutiny.
Continue Reading Buyer Beware: Delaware Declines to Enforce Sale of Business Non-Compete

The Third Circuit is expected to soon make a decision as to whether student-athletes can be considered university “employees” under the Fair Labor Standards Act (“FLSA”). But its interpretation of the law might reverberate beyond the confines of college sports and could implicate whether unpaid student interns must also be treated as employees.
Continue Reading What the Third Circuit’s Looming Decision Regarding Whether College Athletes Can Constitute “Employees” Will Mean for Universities and Employers of Unpaid Student Interns

As we previously reported here last fall, California enacted a pay transparency law (SB 1162) requiring employers with 15 or more employees to disclose pay scales in job postings beginning January 1, 2023. The Labor Commissioner recently issued guidance in the form of FAQs to address some of the unanswered questions regarding the interpretation and enforcement of the California Equal Pay Act.
Continue Reading California Labor Commissioner Issues FAQs Clarifying Pay Transparency Law