On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 along party lines to ban all new noncompete agreements nationwide and render existing noncompete agreements binding most workers unenforceable. The Final Rule, slated for publication in the Federal Register, provides that employers’ use of noncompete agreements amounts to an “unfair method of competition” that runs afoul of Section 5 of the FTC Act.
For a deeper dive, join our multidisciplinary team of employment and antitrust lawyers for a webinar covering what employers need to know about the Final Rule and what to do next.
FTC’s Final Noncompete Rule: What It Means and Next Steps for Employers Wednesday, May 8, 2024 Webinar | 2:00 – 3:00 pm (EDT)
How should the chief executive officer (CEO) respond to the host of internal and external challenges facing their business? In this Forbes article, Michael Peregrine suggests the CEO adopt a mindset rooted in rational confidence in the company’s future and in the leadership’s decision-making.
The Paid Leave for All Workers Act (PLAWA) was signed into law by Governor J.B. Pritzker on March 13, 2023, ensuring that all workers in Illinois receive 40 hours of paid time off annually for any purpose. The law will become effective on January 1, 2024, requiring employers to utilize the remaining months of 2023 to ensure they are equipped to comply with the new legislation.
Illinois has joined Maine and Nevada as the third state to implement such a measure.
CEOs may think they are fully in control of their workforces, but this belief may be more of an illusion than reality. In this Forbes article, McDermott Partner Michael Peregrine says certain pandemic-era changes to their authority may be more lasting than they realize–especially as it relates to their dynamic with the board of directors.
Employment background checks help employers hire individuals with integrity whom they can trust, and who do not present a risk to the business, other employees, or the customers and clients that the business serves. Buyers in transactions may view target businesses that run background checks as lower risk for employee performance and retention issues. Background checks also constitute an important area for employment diligence in transactions because an employer or background check vendor’s failure to follow the hypertechnical disclosure and authorization requirements of the Fair Credit Reporting Act (FCRA) and other applicable state and local laws risks potentially material class action exposure and $1,000 penalties per violation. This article explores mitigation strategies that buyers may use in due diligence to identify and valuate potential FCRA exposure.
More employers are beginning to take notice of Monkeypox and how it might impact their workplaces. In this HR Brew article, McDermott Partner Michelle Strowhiro said employers need to present information from a factual basis to dispel rumors that might circulate in the workforce.
“To the extent that employees are…creating a hostile environment, it’s incumbent on employers to take proactive action to stop that,” Strowhiro said.
What should employers be telling workers about monkeypox? In this Fortune article, McDermott Partner Michelle Strowhiro said the first thing is to make sure workers properly understand the signs and symptoms of the viral disease.
“Now’s the time to evolve [your] COVID-19 policy into a greater safety policy that includes monkeypox, and covers the symptoms of monkeypox and protocols of what to do if you have symptoms or test positive,” Strowhiro said.
How can organizations cope with change fatigue in uncertain times? In this Forbes article, McDermott Partner Michael Peregrine draws on historical and present examples to argue that effective leadership starts with the proper tone at the top.
“A positive organizational culture may come less easily these days, not because the organization itself is less robust, but because of the insidious impact of change fatigue,” Peregrine writes. “And that fatigue can undermine the spirit of the workforce and its faith in the future.”
Many employers will likely encourage vaccination rather than mandate it. In this Ladders article, McDermott Partner Michelle Strowhiro notes the administrative burdens associated with tracking mandatory employee vaccination.
How should corporate boards respond to the Delta variant?
In this Forbes article, McDermott’s Michael Peregrine argues that the way in which a board responds to the challenge may “well define its future credibility on workforce culture concerns.”
“The new, Delta-prompted potential for intra-organizational clash is the latest and potentially one of the most significant of these concerns,” Peregrine writes.
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