Key U.S. District Court Ruling: Plaintiff’s Challenge to DEI Program Under Section 1981 Fails When She Lacked Standing Because She Did Not Apply

Although the ruling has been appealed, plaintiffs bringing challenges to organizational DEI programs face standing concerns when they do not apply for or otherwise attempt to participate in those programs. As these cases continue to unfold, organizations should be prepared to assert standing defenses when it becomes clear that a plaintiff did not take these affirmative steps.

To view the full alert, visit the Faegre Drinker website.

Hurry Up (But Also Wait): The DOL’s Final Rule for Overtime Exemptions and Likely Legal Challenges

Employers should review their existing exempt workers’ salaries and identify whether any increases may need to be made to comply with the rule’s increases. They should also, though, keep an eye on any challenges that are filed, and be prepared to adjust and adapt as needed.

To view the full alert, visit the Faegre Drinker website.

FTC Issues Final Rule Banning Employment Noncompete Agreements

On April 23, 2024, in a 3-2 vote along party lines, the U.S. Federal Trade Commission issued a final rule that will ban essentially all employment noncompete agreements nationwide. This alert dives into the key takeaways and what to expect next.

To view the full alert, visit the Faegre Drinker website.

The FTC Non-Compete Rule – It’s Finally Here (Almost)!

Yesterday, the Federal Trade Commission (FTC) announced that, next Tuesday, April 23, it will be releasing the final version of its proposed rule largely prohibiting employee non-competition restrictions. See FTC Announces Special Open Commission Meeting on Rule to Ban Noncompetes | Federal Trade Commission. The announcement will be preceded by a vote by the five FTC commissioners on whether to “authorize public disclosure of the proposed final rule.” Assuming that disclosure is authorized, which is expected, the FTC will present the rule and then vote to issue it. As of yet, there has been no indication whether the final rule will be the same as the proposed rule or, if not, what the changes will be.

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Illinois Federal Court Temporarily Enjoins Key Amendment to the Illinois Day and Temporary Labor Services Act

In August 2023, Illinois Governor Pritzker signed sweeping amendments to the Illinois Day and Temporary Labor Services Act (DTLSA) that imposed new obligations on both the day and temporary labor service agencies employing covered laborers and the clients to whom those agencies contract for temporary labor. Recently, one of those amendments (indeed the key amendment) was temporarily enjoined by an Illinois federal court, calling into question the future impact such amendments will have on the temporary labor market.

As way of background, the 2023 amendments to the DTLSA included, most significantly, a requirement that laborers assigned to a client for more than 90 calendar days (in any 12-month period, whether consecutively or intermittently) must be paid, by the temporary agency, at least the rate of pay and equivalent benefits as the lowest-paid directly hired employee of the client with the same level of seniority at the client and performing the same or substantially similar work. Agencies may alternatively pay “the hourly cash equivalent of the actual cost benefits” in lieu of providing equivalent benefits.  The Illinois Department of Labor (IDOL) defined benefits as including health care, vision, dental, life insurance, retirement, leave, other similar employee benefits, and other employee benefits as required by State and federal law.  The pay and equivalent benefits obligation was one of several obligations placed on covered agencies and the clients with whom they contract. These amendments were due to take effect immediately and the IDOL passed emergency rules to provide guidance to employers on compliance.  However, in September 2023 the Joint Committee on Administrative Rules (JCAR) objected to those rules. And then in November 2023, Governor Pritzker signed a new amendment to the DTLSA to delay the effective date of these new obligations until April 1, 2024.

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Canada’s Online Harms Act Aimed to Address Harmful Online Content

Earlier this week, Canada introduced Bill C-63, also referred to as the Online Harms Act (the “Act”), which would require online content providers to act responsibly with regard to the platforms they operate and to remove harmful online content. The Act further establishes a Digital Safety Commission of Canada to administer and enforce the legislation, as well as ensure that operators of social media services are held accountable under the requirements of the Act.

Purpose

The Act is aimed to promote online safety and protect children from harmful online content. The Act requires content providers to swiftly remove all harmful content, defined under the Act to include:

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