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US District Court Sets Aside the FTC’s Noncompete Ban on a Nationwide Basis

On August 20, the US District Court for the Northern District of Texas held that the Federal Trade Commission’s (FTC) final rule banning noncompetes is unlawful and “set aside” the rule. “The Rule shall not be enforced or...more

Grounds for Liability: Massachusetts Appeals Court Evaluates Standard for Employer’s Vicarious Liability

This month in Pettiford v. Branded Management Group, LLC, the Massachusetts Appeals Court took a novel approach to vicarious liability, holding that the failure of a restaurant’s employees to stop the allegedly racist actions...more

US District Court Enjoins Federal Trade Commission’s Noncompete Rule For The Named Plaintiffs

On July 3, the US District Court for the Northern District of Texas issued a decision and order enjoining the Federal Trade Commission (FTC) from enforcing its final rule banning most noncompete agreements....more

The Impact of the FTC’s Noncompete Rule on Current and Future Noncompete Litigation

On April 23, the Federal Trade Commission (FTC) voted 3-2 to publish a final rule with sweeping effect, purporting to bar prospectively and invalidate retroactively most employee noncompete agreements....more

EEOC Finalizes Long-Delayed Harassment Guidance

On April 29, the US Equal Employment Opportunity Commission (EEOC) published its final guidance on workplace harassment. The final guidance addresses key updates in harassment law, including the US Supreme Court’s decision...more

The FTC’s Rule Banning Noncompetes: September 4 Effective Date and FTC-Sponsored Compliance Webinar

On April 30, the Federal Register announced that the Federal Trade Commission’s (FTC) Non-Compete Clause Rule is scheduled to be published on May 7. The Rule becomes effective 120 days after publication, resulting in an...more

How to Respond to Employee Questions about the FTC’s Noncompete Ban (As a Company that Uses Noncompetes)

As discussed in our recent alerts, the final rule would bar employers from entering into and enforcing noncompetes with most workers. ArentFox Schiff’s Trade Secrets, Noncompetes & Employee Mobility Team has been...more

EEOC Issues Final Guidance on Pregnancy Workers Fairness Act

On April 15, the Equal Employment Opportunity Commission (EEOC) issued its long-awaited final rule and interpretive guidance implementing the Pregnant Workers Fairness Act (PWFA). As noted in AFS’s previous alerts (here...more

The Federal Trade Commission Attempts to Ban Employee Noncompete Covenants

Today, the Federal Trade Commission adopted a final rule purporting to ban noncompete covenants for workers nationwide, which will become effective 120 days after publication in the Federal Register, unless first enjoined in...more

Top 10 Legal Challenges for Employers

With 2024 underway, we highlight some of the most pressing legal issues facing employers this year, including increased regulation of noncompetition agreements, new paid family and medical leave laws, a new Overtime Rule, and...more

Federal Trade Commission to Vote on Proposed Noncompete Ban on April 23

On April 16, the Federal Trade Commission (FTC) announced that it will hold a special Open Commission Meeting on Tuesday, April 23 at 2:00 p.m. ET, for purposes of voting on its proposed final rule banning noncompete...more

2023 Trade Secrets End of Year Report

2023 was a banner year for trade secrets, non-competes, and other restrictive covenants. Employee non-competes continued to garner attention at the federal agency level, drawing commentary and action from the Federal Trade...more

A Percent-of-Profit Incentive Payment is Not “Wages” Under the Massachusetts Wage Act

The Massachusetts Wage Act (MA Wage Act) is one of the most punitive wage payment laws in the country. Employers who violate the MA Wage Act are liable for treble damages, attorney’s fees, and costs. The question of what...more

2/28/2024  /  Incentives , Treble Damages , Wage Act , Wages

Avoiding Application of the Massachusetts Wage Act to Out-of-State Employees

The Massachusetts Wage Act is one of the most punitive wage payment laws in the country. Employers who run afoul of its provisions, even unintentionally, are liable for treble damages, attorneys’ fees, and costs. ...more

Hiring Company’s Remedial Measures Protect Against a Threatened Temporary Restraining Order

In June 2023, a federal judge in the Northern District of Illinois denied Aon Corp.’s request for a temporary restraining order against Alliant Insurance Services, Inc. and nine former Aon employees after they allegedly...more

Significant Changes to Massachusetts Paid Family Leave Coming on November 1, 2023

Beginning on November 1, 2023, employees receiving paid benefits under the Massachusetts Paid Family and Medical Leave law (PFML) can supplement, or “top off,” the state paid benefit with other accrued paid time off such as...more

EEOC Issues Proposed Enforcement Guidance on Harassment in the Workplace

On September 29, 2023, the Equal Employment Opportunity Commission (EEOC) issued Proposed Enforcement Guidance on Harassment in the Workplace, which presents a legal analysis of the standards for harassment and employer...more

Department of Labor Proposes Significant Increase in FLSA Exempt Salary Threshold

On August 30, 2023, the US Department of Labor announced a Notice of Proposed Rulemaking, which would increase the white-collar exemption salary threshold for employees to qualify as exempt under the Fair Labor Standards Act...more

Supreme Court Raises Bar for Employers Assessing Employee Religious Accommodation Requests

Title VII requires employers to accommodate their employees’ religious practices unless it would impose an “undue hardship on the conduct of the employer’s business.” Fifty years ago, in Trans World Airlines, Inc. v....more

Federal Court Hits the Brakes on $105 Million Trade Secret Verdict Against Ford Motor Company

Earlier this month, a federal judge in the Eastern District of Michigan overturned a jury verdict of nearly $105 million against Ford Motor Company for breach of contract and misappropriation of trade secrets. Finding that...more

EEOC Warns Against the Potential Adverse Impact of Artificial Intelligence

The Equal Employment Opportunity Commission (EEOC) has issued a resource outlining potential liability under Title VII of the Civil Rights Act of 1964 (Title VII) for employers who utilize algorithmic decision-making...more

The Five Pitfalls for Employers to Avoid When Exiting Employees

In today’s competitive employment market, employee resignations are reaching near record-highs. Whether a separation is voluntary or involuntary, employee terminations often happen quickly and involve many moving parts. To...more

DOL Issues Notice of Proposed Rulemaking Revisiting Definition of Independent Contractor

On October 11, 2022, the US Department of Labor (DOL) issued a notice of proposed rulemaking that would revisit the definition of an independent contractor under the Fair Labor Standards Act (FLSA)....more

Massachusetts Highest Court Awards Treble Damages Under the Wage Act, Even After Employer Remedied Violation

Beth Reuter was terminated from her employment with the City of Methuen (the “City”). On her termination date, the City failed to pay Ms. Reuter for her accrued, unused vacation time, as required by M. G. L. c. 149, § 148...more

Proposed Federal and State Legislation Will Eliminate Compulsory Arbitration in Sexual Assault and Harassment Cases

Following House approval of H.R. 4445 with overwhelming support (335 Yeas to 97 Nays) on February 7, 2022, the Senate approved the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 by voice vote on...more

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