The Weekly Guide to Employment Law Developments

The Rocky Mountain Employer

Labor & Employment Law Updates

Recent Court Ruling Signals a Split in Authority Regarding the Validity and Enforceability of the FTC’s Final Rule Banning Nearly All Noncompete Agreements

“As previously discussed in The Rocky Mountain Employer, since the Federal Trade Commission (“FTC”) issued its final Non-Compete Clause Rule (the “Rule”) on April 23, 2024, the Rule has been the subject of multiple legal challenges across the country, including within the U.S. District Court for the Northern District of Texas where the court enjoined the application and enforcement of the Rule as against the named plaintiffs because it found that the FTC lacked the authority to issues “substantive” rules like the Rule at issue.”

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NLRB Withdraws Appeal to the Fifth Circuit Regarding its Joint Employment Rules

The Rocky Mountain Employer previously discussed a final rule issued by the National Labor Relations Board, which was previously set to go into effect in early 2024 and which would have significantly lessened the burden of employees and the Board to establish joint employment between two entities for purposes of bargaining obligations and liability for unfair labor practices under the National Labor Relations Act".”

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Discrimination Lawsuit Against AI-Powered Hiring Tool Developer Allowed to Proceed to the Merits

On July 12, 2024, the United States District Court for the Northern District of California ordered that Mr. Derek Mobley’s employment-related lawsuit against Workday, Inc. could proceed past the pleadings stage—notwithstanding that Workday was not Mr. Mobley’s employer, but rather a developer of an artificial intelligence (“AI”)-based employment and resume screening platform.”

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Federal District Court Enjoins the FTC’s Rule Banning Nearly All Non-Compete Agreements

On July 3, 2024, the U.S. District Court for the Northern District of Texas granted plaintiff Ryan LLC’s and other plaintiff-intervenors’ (including the United States Chamber of Commerce) request for a preliminary injunction against the Federal Trade Commission and its recent Final Rule banning nearly all non-compete agreements, set to go into effect on September 4, 2024.“

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“Promising Practices” Guidelines Released by EEOC to Address Harassment in the Construction Industry

Recently the Equal Employment Opportunity Commission (“Commission”) published Promising Practices for Preventing Harassment in the Construction Industry, outlining practices the Commission identifies as effective means for combatting systemic harassment in the construction industry, and placing greater responsibility on employers to ensure that harassment prevention commitments are met.”

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U.S. Supreme Court Reaffirms Traditional Equitable Principles for Preliminary Injunctions under Section 10(j) of the National Labor Relations Act

On May 8, 2024, in the Starbucks Corp. v. McKinney litigation, the United States Supreme Court resolved federal Courts of Appeals' split on the standard that the National Labor Relations Board must satisfy when seeking a federal court preliminary injunction to enjoin the alleged unfair labor practices of employers under Section 10(j) of the National Labor Relations Act.”

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The Eighth Circuit Court of Appeals Requires Disability Accommodations for Obtaining Previously Inaccessible Privileges; Not for “Personal Reasons.”

On June 4, 2024, the Eighth Circuit Court of Appeals (the “Eighth Circuit” or “Court”) issued its ruling in Howard v. City of Sedalia where it held that employers need not accommodate employees if the accommodation would also assist a disabled employee off the clock as well.”

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Biometric Data Amendment Creates New Requirements for Employees under the Colorado Privacy Act

On May 31, 2024, Governor Polis signed into law HB-1130, amending and expanding the reach of the Colorado Privacy Act (“CPA”) by imposing specific requirements on employers regarding their handling of biometric data.”

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Colorado Pioneers Law Aimed at Addressing Discrimination in Artificial Intelligence Systems

“On May 17, 2024, Governor Jared Polis signed the Colorado Artificial Intelligence Act (SB24-205, or the “CAIA”) into law, which is intended to prevent or minimize discrimination stemming from the use of artificial intelligence systems.”

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Colorado General Assembly Wraps Up its 2024 Regular Session, with the Worker Freedom Act Poised to Become Law

On May 8, 2024, the Colorado General Assembly concluded its 2024 Regular Session, approving 525 bills out of the 705 bills introduced, and with Governor Polis still needing to sign (or veto) approximately 330 bills.“

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Department of Labor Issues Final Rule Raising the Minimum Salary Requirements for Executive, Administrative, Professional, and “Highly Compensated Employees” for Overtime Exemptions under the FLSA

Effective July 1, 2024, the U.S. Department of Labor (“DOL”) will increase the minimum salary threshold necessary for exemptions to the Fair Labor Standards Act’s (“FLSA’s”) overtime requirements for executive, administrative, and professional employees—including the salary thresholds for “highly-compensated employees” under the FLSA.”

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COVID-19 May Be Considered an Occupational Disease Under the Workers’ Compensation Act of Colorado

“On May 2, 2024, the Colorado Court of Appeals (the “court”) issued its decision in Life Care Centers of America v. Industrial Claim Appeals Office, holding that COVID-19--depending on the circumstances—can satisfy the statutory definition of an occupational disease under the Workers’ Compensation Act of Colorado.”

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FTC’s Final Rule Banning Most Noncompete Agreements Already Under Fire in Federal Court

“On April 23, 2024, the Federal Trade Commission (“FTC”) issued its final Non-Compete Clause Rule (the “Rule”), which is set to become effective 120 days after it is published in the Federal Register.“

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EEOC Publishes Final Rules Governing the Pregnant Workers Fairness Act

On April 15, 2024, the Equal Employment Opportunity Commission (“EEOC”)  released its highly anticipated revised rules (“Final Rules”) regarding interpretation and enforcement of the Pregnant Workers Fairness Act (“PWFA”).”

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U.S. Supreme Court Lessens the Burden for Employees Alleging a Discriminatory Job Transfer

On April 17, 2024, the United States Supreme Court issued its decision in Muldrow v. City of St. Louis,[1] and held that an employee alleging that his or her job transfer was discriminatory in violation of Title VII of the Civil Rights Act of 1964 need only show that the transfer left them worse off in order to state a cognizable discrimination claim.”

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OSHA Walkaround Rule Provides a Potential New Avenue for Labor Union Access to Private Workspaces

On April 1, 2024, the Occupational Safety and Health Administration (“OSHA”) published its final rule regarding who may be designated to represent employees during physical worksite inspections conducted by OSHA Compliance Safety and Health Officers (“CSHOs”), colloquially referred to as the “Walkaround Rule”.“

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Groff v. DeJoy in Action – Jury Finds That Employee’s COVID-19 Religious Accommodation Request Would Cause Undue Hardship

After a two-day trial on the merits of Robert Varkonyi’s claim that his employer failed to accommodate his request for a religious exemption from the company’s COVID-19 vaccination requirement, a jury returned a verdict finding that undue hardship would result to the employer if the request were granted.“

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The Decision to Recognize a Union versus a Board Election— the Denver Art Museum’s Recent Unionization

“In the wake of a contentious unionization effort, Denver Art Museum (the “Museum”) workers successfully unionized on March 7th, 2024.”

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Colorado Supreme Court Hears Oral Argument on Overtime Pay Calculations After Tenth Circuit Certifies Question of State Law

On March 13, 2024, Colorado’s high court heard argument from the parties in Hamilton v. Amazon.com Services LLC, a federal proposed class action against the retail giant challenging the company’s calculation of overtime pay when employees work shifts already paid at a premium “holiday incentive pay” rate.”

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