08.10.2023NLRB Applies a Shifting Burdens Analysis in Reviewing Employer Work Rules; Boeing OverruledOn August 2, 2023, the NLRB further limited employers’ flexibility in designing work rules by holding that all work rules will be reviewed on a case-by-case basis, and no work rules will get an automatic pass. The Board’s 3-1 decision in Stericycle Inc. holds that once the NLRB General Counsel proves that a work rule could chill employees’ exercise of Section 7 rights, there is a presumption that the rule is unlawful, which the employer can rebut only with proof that the work rule serves a lawful business interest, the rule advances the lawful interest, and a more narrowly tailored rule would not advance the interest.
06.27.2023New York Assembly Passes Bill to Ban Non-Compete AgreementsOn June 20, 2023, the New York State Assembly passed a bill (A1278B) to make non-compete agreements unlawful. The New York State Senate previously passed the bill’s counterpart (S3100A). The bills aim to prohibit non-compete agreements and authorize covered individuals to bring a civil action against employers alleged to have violated the bills’ provisions. The bills make clear that they would ban non-competes entered into or modified after the effective date. If signed by Governor Kathy Hochul, the bills would come into effect 30 days after being signed into law. While the business community reacted with shock and anger at the bills, the proposed bills in New York follow the nationwide trend against non-competes that we have been tracking for the past several years.
02.24.2023NLRB Places NDAs and Non-Disparagement Agreements with Rank and File Employees in its Cross-HairsOn February 21, 2023, in McLaren Macomb, 372 NLRB No. 58, the NLRB made a broadside attack on precedent and confidentiality and non-disparagement provisions in severance agreements signed by rank and file employees. This far-reaching decision calls into question the enforceability of standard severance and employment agreement provisions entered into with statutory employees going forward.
09.08.2021Stepping In Where Unions Have Failed, NYC Council Imposes Just Cause Standard On Non-Union EmployersAs our readers may be aware, in March 2021, New York City passed an ordinance requiring fast food employers to have just cause to discharge their employees, where discharge includes termination, constructive discharge, indefinite suspension, and reduction in hours by more than 15%. The ordinance has been effective as of July 5, 2021, and enforcement of these mandates began September 3, 2021.