Lavanga V. Wijekoon and Emily Linn examine a new Illinois law (SB 1782) that enhances restrictions on the employment of minors and imposes certain new civil and criminal penalties on violating employers.

SHRM

View (Subscription required)

Andrea M. Kirshenbaum and Jennifer N. Capozzola dive into the U.S. DOL’s final rule (2024 IC Rule) for analyzing whether a worker should be classified as an employee or independent contractor under the FLSA and the lawsuits and challenges that remain in its path. 

The Legal Intelligencer

View

In the first such decision from a federal appellate court, the U.S. Court of Appeals for the Fifth Circuit has ruled the COVID-19 pandemic is not a “natural disaster” that exempts employers from providing advance notice of mass layoffs and plant closures under the WARN Act. The court also opined that the natural-disaster exception requires proof of proximate causation, not but-for causation.¹

Lee Schreter comments on why raising the overtime salary threshold might not be a good idea with a recession on the way.

Law360 Employment Authority

View (Subscription required.)

Lee Schreter comments on the U.S. Department of Labor’s proposed overtime rule, which is tentatively slated to be released in October, and the Fair Labor Standards Act’s independent contractor rule.

SHRM Online

View (Subscription required.)

Michael Lotito weighs in on the U.S. Department of Labor's Wage and Hour Division’s key proposals and nominations.

Law360 Employment Authority

View (Subscription required.)

James A. Paretti Jr. says the DOL’s new overtime rule is likely to face a legal challenge, so employers should start reviewing their workforces but stop short of implementing changes right away.

Law360 Employment Authority

View (Subscription required.)

On January 8, 2021, the Pension Benefit Guaranty Corporation (PBGC) issued its final rule modifying the calculation of withdrawal liability by multiemployer pension plans.  This final rule amends the agency’s regulations on allocating unfunded vested benefits to withdrawing employers (29 C.F.R. § 4211) and notice, collection, and redetermination of withdrawal liability (29 C.F.R. § 4219).

On March 10, 2021, the Department of Labor’s Employee Benefits Security Administration (EBSA) announced that it will not enforce or otherwise pursue enforcement actions with respect to two recently issued final rules amending the “investment duties” regulation under Title I of the Employee Retirement Income Security Act (ERISA).

Sarah Bryan Fask talks about the federal government’s temporary rescue of more than 200 union-brokered pension plans.

Bloomberg Law

View (Subscription required.)

On October 14, 2022, the Pension Benefit Guaranty Corporation (PBGC), the federal agency that insures and regulates private-sector defined benefit pension plans under Title IV of the Employee Retirement Income Security Act of 1974 (ERISA), published a proposed rule governing employer withdrawal liability.

Employers offering 401(k) and similar retirement plans should familiarize themselves with a new rule published by the Employee Benefits Security Administration of the U.S. Department of Labor, Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights, which takes effect on January 30, 2023.

Shannon Meade examines the key labor and employment regulatory actions included in the Biden administration’s long-awaited Fall 2022 Unified Agenda of Regulatory and Deregulatory Actions.

SHRM Online

View (Subscription required.)

Employers that rely on non-compete agreements to protect their trade secrets and other legitimate business interests got some welcome news on August 20.

This article was originally posted in International Employment Lawyer.

The recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank") mandates, for publicly traded companies, shareholder advisory votes on compensation packages provided to top executives and on "golden parachute" packages payable in connection with corporate transactions.

The Securities and Exchange Commission (SEC) released proposed rules on March 2, 2011, in connection with provisions of the Dodd-Frank Act that prohibit "covered financial institutions" from providing incentive-based compensation that encourages inappropriate risks, by providing either excessive compensation or incentives that could lead to material financial loss to the institution.

Section 162(m) of the Internal Revenue Code (the "Code") generally limits the deductibility of compensation paid by a publicly traded corporation to its top executive officers (the "covered employees") to $1 million annually (the "Million Dollar Cap"). However, this limit will not apply to certain amounts that qualify as "performance-based compensation." Compensation attributable to stock options, stock appreciation rights ("SARs") and restricted stock grants may qualify as performance-based compensation if they meet certain requirements.

On August 29, 2014, the Texas Supreme Court in Exxon Mobil Corp. v.

In the Chancellor of the Exchequer’s Autumn Statement, Jeremy Hunt promised that “the government will expand the business Visitor rules to allow businesspeople to engage in a wider range of permitted activities and paid engagements, to take effect from January 2024. The government will also explore further reforms to the business visitor rules during 2024.”

The first of these changes took effect from January 31, 2024. They were not a major reform of the business and other permitted activities that can be carried out on a visit visa, but there are some important changes.

The rules on the employment of third-country nationals (which apply regionally) were recently amended in the Brussels Capital Region by an ordinance issued on February 1, 2024, and its implementing decree on May 16, 2024. The following is a summary of these new rules.

David Christlieb talks about the Supreme Court striking down affirmative action, as well as its decision in siding with an employee who refused to work.

WGN Radio

View

Michael Lotito says the U.S. Supreme Court’s decision to nix Chevron deference sends a message to federal agencies that the days of administrative overreach are over.

Law360 Employment Authority

View (Subscription required.)

On August 23, 2024, in Restaurant Law Center v. U.S. Department of Labor, the U.S. Court of Appeals for the Fifth Circuit vacated the U.S. Department of Labor’s so-called “80/20/30 Rule” that governed how tipped employees must be paid under the Fair Labor Standards Act (FLSA). The Fifth Circuit found the Rule was inconsistent with the text of the FLSA, and was arbitrary and capricious. 

Melissa McDonagh said employers should continue to be thoughtful with their approach to noncompete agreements, ensuring compliance with existing state laws and monitoring the status of the FTC noncompete rule as it winds its way through the appellate process.

WorldatWork

View

In the wake of the Supreme Court’s Loper decision, Jamie Spataro says existing regulations and standards that went through extensive rulemaking are ripe for being challenged.

Business Insurance

View (Subscription required)

Dan Boatright discusses the Fifth Circuit Court of Appeal’s decision to strike down the 80/20 labor rule and what that decision means for employers. 

Nation’s Restaurant News

View

David Gartenberg said he is worried about the fact that the rule leaves the FAMLI benefits out of alignment with unpaid Family and Medical Leave benefits allowed under federal law. 

The Sum & Substance

View