On August 20, 2024, the Northern District of Texas in the case of Ryan, LLC v. Federal Trade Commission granted summary judgment to the Plaintiff Ryan, LLC, enjoining the FTC from implementing its rule banning non-compete...more
9/3/2024
/ Competition ,
Confidential Information ,
Employer Liability Issues ,
Employment Contract ,
Federal Trade Commission (FTC) ,
Final Rules ,
Hiring & Firing ,
Intellectual Property Protection ,
Motion To Enjoin ,
Non-Compete Agreements ,
Popular ,
Restrictive Covenants
On July 12, 2024, the FTC released several statements and a News Release as its first response to comments collected in response to the March 2023 Franchise Request for Information (RFI). These actions are part of the FTC’s...more
As reported on July 3 by the Polsinelli Labor & Employment practice group alert, by order dated July 3, 2024 the Northern District of Texas granted a preliminary injunction preventing the Federal Trade Commission (FTC) from...more
As explained in Polsinelli’s prior alert of April 24, 2024, the FTC announced its final rule on non-compete covenants (the “Rule”) on April 23, 2024.
Critically, the Rule does not prohibit non-compete agreements between...more
4/30/2024
/ Competition ,
Employer Liability Issues ,
Employment Contract ,
Federal Trade Commission (FTC) ,
Franchisee ,
Franchises ,
Franchisors ,
Intellectual Property Protection ,
Labor Reform ,
Non-Compete Agreements ,
Restrictive Covenants
On the eve of its going into effect, a federal court struck down the expansive joint-employment standard announced by the National Labor Relations Board (“NLRB” or “Board”) last fall. At issue is who may be considered a...more
3/12/2024
/ Browning-Ferris Industries of California Inc. ,
Collective Bargaining ,
Employer Liability Issues ,
Federal Labor Laws ,
Franchises ,
Hiring & Firing ,
Joint Employers ,
Labor Reform ,
NLRA ,
NLRB ,
Staffing Agencies ,
Unfair Labor Practices ,
Unions ,
Wage and Hour
The National Labor Relations Board (“Board”) published its final rule in the Federal Register, which has the effect of greatly expanding who may be considered a “joint employer” under the National Labor Relations Act (“Act”)....more
On Friday, March 10, 2023, the Federal Trade Commission issued a Request for Information (“RFI”) soliciting public comments on various issues pertaining to the franchisor-franchisee relationship, including franchisor supply...more
3/20/2023
/ Federal Trade Commission (FTC) ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
FTC Franchise Rule ,
Public Comment ,
Regulatory Agenda ,
Request For Information ,
Rulemaking Process ,
Unfair or Deceptive Trade Practices
The North American Securities Administrators Association, Inc. (“NASAA”) has just adopted a new policy regarding the use of franchise questionnaires and acknowledgments in the franchise sales process. In its Statement of...more
On July 29, 2021, the U.S. Department of Labor announced it is rescinding a final rule issued just last year (2020 Final Rule) that sought to clarify the standard for finding two separate entities to be “joint employers”...more
8/9/2021
/ Corporate Counsel ,
Department of Labor (DOL) ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Federal Labor Laws ,
Franchisee ,
Franchises ,
Franchisors ,
Hiring & Firing ,
Joint Employers ,
Labor Regulations ,
Minimum Wage ,
Over-Time ,
Restaurant Industry ,
Rulemaking Process ,
Wage and Hour
Despite recent setbacks, the U.S. Department of Labor (“DOL”) is continuing its efforts to clarify the standard for finding two separate entities to be “joint employers” under the Fair Labor Standards Act (“FLSA”). Under the...more
From a ballot measure in California, to a court decision in Massachusetts, to federal regulations proposed by the Department of Labor, several recent developments could impact whether a franchisor’s independent franchisees...more
11/12/2020
/ ABC Test ,
Department of Labor (DOL) ,
Dynamex ,
Employee Definition ,
Employer Liability Issues ,
Franchises ,
Gig Economy ,
Independent Contractors ,
Lanham Act ,
Misclassification ,
Wage and Hour
On January 12, 2020, the U.S. Department of Labor announced a final rule that updates its regulations interpreting when multiple entities can be held liable as “joint employers” for wage-and-hour violations under the Fair...more
1/16/2020
/ Corporate Counsel ,
Department of Labor (DOL) ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Federal Labor Laws ,
Final Rules ,
Franchises ,
Franchisors ,
Joint Employers ,
Labor Reform ,
Labor Regulations ,
Rulemaking Process ,
Wage and Hour
Franchise agreements often contain provisions prohibiting the franchisee from soliciting or hiring workers employed by the franchisor or other franchisees. Such “anti-poaching” agreements have recently come under increased...more