The recent federal court ruling that struck down the Federal Trade Commission’s (FTC) rule banning non-compete agreements has given employers some relief, but it doesn’t mean non-competes are no longer under scrutiny. While the ruling prevents the FTC’s proposed ban from taking effect, state legislatures across the country have been tightening restrictions or imposing outright
Federal Court strikes down FTC rule that would have banned non-competition agreements starting September 4
On Tuesday, August 20, a federal judge in Texas shot down the Federal Trade Commission’s rule banning noncompete agreements (“the Rule”) that was set to take effect September 4. This means that the FTC cannot enforce the Rule. As a result, enforceable non-competes currently in place remain enforceable, and businesses and workers are free to
Minnesota Will Become the Fourth State to Ban All Noncompete Agreements
Minnesota’s new law will take effect on July 1, 2023, prohibiting all noncompete agreements, except those entered during the sale of a business or in anticipation of the dissolution of a business. The law will not apply retroactively to void existing noncompete agreements and will not prohibit the continued use of non-solicitation, confidentiality, trade secret
NLRB Returns to Longstanding Position Limiting Use of Confidentiality, Non-Disclosure, and Non-Disparagement Clauses in Employee Severance Agreements
The General Counsel of the National Labor Relations Board (NLRB), Jennifer A. Abruzzo, issued guidance on March 22, 2023, about the NLRB’s McLaren Macomb, 372 NLRB No. 58, decision from February 21, 2023, which reinstated a limit on the confidentiality, non-disclosure, and non-disparagement clauses that employers may include in severance agreements with most of their lower-level employees.[1] While not law, the General Counsel’s guidance is intended to address the uncertainty among employers regarding what language is deemed acceptable to include in severance agreements and what language may create liability under the National Labor Relations Act (NLRA) following McLaren Macomb.[2]
The McLaren Macomb decision specifically held that employers may not condition severance on the employee’s waiver of rights protected by the NLRA and that agreements between employers and employees that restrict employees from engaging in activity protected by the NLRA or from filing unfair labor practice (ULP) charges with the NLRB, helping other employees in doing so, or assisting during the Agency’s investigatory process are unlawful. The NLRB observed that the employer’s offer is itself an attempt to deter employees from exercising their statutory rights, at a time when employees may feel they must give up their rights in order to get the benefits provided in the agreement. It also provided that the conduct of an employer is irrelevant to assessing the lawfulness of a severance agreement, and the plain language of the severance agreement alone can constitute a violation. While the Maclaren Macomb decision has been described as a return to the standard applied in earlier cases, many speculate that it indicates that the NLRB intends to take a broader view of how severance agreements infringe on employees’ rights under Section 7 of the NLRA.Continue Reading NLRB Returns to Longstanding Position Limiting Use of Confidentiality, Non-Disclosure, and Non-Disparagement Clauses in Employee Severance Agreements
Oregon Health Authority Announces Sunset Date for Indoor Mask Requirements
On February 7, 2022, the Oregon Health Authority (“OHA”) announced that it would lift the general state-wide indoor mask requirement no later than March 31, 2022. Per the OHA, the mask requirement for schools will also lifted by March 31, in coordination with the Oregon Department of Education (“ODE”).
The OHA is basing its decision
Oregon Health Authority Releases Mandatory Vaccine Rule and Religious/Medical Exemption Forms for Health Care Workers
Last week, Governor Kate Brown announced that the State of Oregon would require that all health care workers be fully vaccinated against COVID-19 unless they could prove they were entitled to a religious or medical exception. The Oregon Health Authority (“OHA”) just released its administrative rule implementing the Governor’s announcement: effective October 18, 2021, health
Oregon to Require Vaccinations for All Health Care Workers
On August 19, 2021, just two weeks after announcing that all Oregon health care workers must either be fully vaccinated or test weekly for COVID-19, which we blogged about here, Governor Brown announced that vaccinations will be mandatory for health care workers starting October 18, 2021, assuming the vaccines have full FDA approval by
Oregon Legislature Further Limits Employee Non-Competition Agreements, Including Imposing a 12-Month Limit on Duration
Over the last several years, the Oregon Legislature has whittled away employers’ ability to enforce employee non-competition agreements (see our posts from 2007, 2015). Senate Bill 169, which Governor Brown signed into law on May 21, 2021, further limits an employer’s ability to impose non-competition obligations on employees. Effective starting January 1
Face Coverings Are Now Required for Employees of Select Oregon Businesses
Pursuant to Oregon Health Authority (OHA) guidance, employers in certain businesses must require employees, contractors, and volunteers to wear a mask, face covering, or face shield, unless an accommodation for people with disabilities or other exemption applies. On June 11, 2020, the OHA issued updated guidance explaining that face coverings are not required when eating/drinking
Reopening Oregon: Governor Brown Releases Details and Guidance for Businesses
On Thursday, May 7, 2020 – six weeks after Oregon Governor Brown announced a statewide “Stay Home” order – Governor Brown released details for Reopening Oregon over the coming weeks and months. The Governor’s plan follows federal guidance and permits certain businesses to reopen in phases after specific public health prerequisites are met.
In the first phase of the plan, counties that satisfy those prerequisites may permit certain business activities starting on May 15. Phase 1 activities include sit-down dining at restaurants and bars and personal care services. Each phase is required to last at least 21 days to ensure that each health benchmark is met before further loosening restrictions in the next phase.
In her announcement, the Governor also issued guidance for various sectors of the state – the public, employers, outdoor recreation, restaurants & bars, retail stores, and personal services providers. The state’s guidance for employers is summarized below; we provided more detail for many of these concepts in our own Ten Things to Consider in Getting Back to Work.
General Considerations
- Know the signs of COVID-19 illness and have a plan for what to do if an employee develops symptoms at the workplace.
- Follow state and federal guidelines to protect employee health and safety.
- Promote social distancing at work.
- Understand your obligations under state and federal leave laws.
Continue Reading Reopening Oregon: Governor Brown Releases Details and Guidance for Businesses