Labor Relations

A Ban For Some, But Not All: Exception to the FTC’s Proposed Ban on Non-Compete Clauses

February 2, 2023

By Bradley A. Hoppe, Kevin G. Cope, and Paul J. Buehler III

The Federal Trade Commission (FTC) sent a shockwave through the corporate world on Jan. 5, 2023, when it released a proposed regulation banning non-compete clauses in all but extremely limited circumstances. The proposed regulation was subsequently published for comment in the Federal Register on Jan. 9, 2023 and is open for comment until March 20, 2023.[1]

Read More >> A Ban For Some, But Not All: Exception to the FTC’s Proposed Ban on Non-Compete Clauses

Update Regarding New York’s Healthcare Vaccine Mandate

January 31, 2023

By Adam P. Mastroleo and Hannah K. Redmond

On Jan. 13, 2023, Onondaga County Supreme Court Justice, Hon. Gerard J. Neri, struck down a regulation adopted by the New York State Department of Health (NYSDOH) – 10 N.Y.C.R.R. § 2.61 (the Regulation) – requiring covered healthcare entities to ensure that their “personnel” are “fully vaccinated” against COVID-19.[1] Judge Neri invalidated the Regulation on several grounds, holding that the NYSDOH exceeded its authority in implementing the Regulation and that the Regulation lacked a rational basis given the NYSDOH’s acknowledgement that the mandate does not prevent transmission.[2]

Read More >> Update Regarding New York’s Healthcare Vaccine Mandate

Governor Hochul Signs Warehouse Worker Protection Act Into Law

January 25, 2023

By Aarti Chandan, Mark A. Moldenhauer, James J. Rooney, and Thomas G. Eron

On Dec. 21, 2022, Gov. Kathy Hochul signed the Warehouse Worker Protection Act (WWPA), S.8922/A 10020, into law. This new legislation aims to protect warehouse distribution workers from undisclosed or unlawful work speed quotas and includes protections for workers who fail to meet these quotas. The law takes effect 60 days after its signing, i.e., Feb. 19, 2023.

Read More >> Governor Hochul Signs Warehouse Worker Protection Act Into Law

New York Releases Revised Sexual Harassment Prevention Model Policy for Public Comment

January 23, 2023

By Kristen E. Smith and Theresa E. Rusnak

On Jan. 12, 2023, the New York State Department of Labor (DOL), in consultation with the New York State Division of Human Rights, released a revised sexual harassment prevention model policy for public review and comment. The agencies collected public input regarding the policy revision in late 2022, and DOL is providing a 30-day comment period for feedback prior to the revision being finalized. The comment period will run through Feb. 11, 2023.

Read More >> New York Releases Revised Sexual Harassment Prevention Model Policy for Public Comment

New York’s Healthcare Vaccine Mandate Comes Under Fire . . . Again

January 17, 2023

By Adam P. Mastroleo and Hannah K. Redmond

In August 2021, the New York State Department of Health (NYSDOH) implemented an emergency regulation – 10 N.Y.C.R.R. § 2.61 (the Regulation) – requiring covered healthcare entities to ensure that their “personnel” are “fully vaccinated” against COVID-19. The NYSDOH Commissioner permanently adopted the regulation in June 2022. Commonly referred to as a COVID-19 vaccine mandate for healthcare workers, the Regulation has been the subject of several legal challenges in both state and federal courts.

Read More >> New York’s Healthcare Vaccine Mandate Comes Under Fire . . . Again

New York Amends Its Labor Law Restricting Mandatory Overtime for Nurses

January 9, 2023

By Sanjeeve K. DeSoyza and Rebecca J. LaPoint

On Dec. 30, 2022, Gov. Hochul signed a bill (A.286/S.1997) that amends New York Labor Law § 167. Originally enacted in 2009, Section 167 restricts “healthcare employers” from requiring nurses to work beyond their regularly scheduled hours, with four limited exceptions, where the overtime is during or due to:

Read More >> New York Amends Its Labor Law Restricting Mandatory Overtime for Nurses

Are Non-Compete Clauses A Thing Of The Past? Analyzing the FTC’s New Regulation Declaring Non-Compete Clauses An Unfair Method Of Competition

January 6, 2023

By Bradley A. Hoppe and Kevin G. Cope

On July 9, 2021, President Biden issued an executive order that, among other things, directed the Federal Trade Commission (FTC) “to curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility.” Making good on (and, in fact, going significantly beyond) this directive, on Jan. 5, 2023, the FTC released its proposed regulation which declares most non-compete clauses, and other clauses which have the effect of prohibiting competition, an unfair method of competition. This proposed regulation has a wide-reaching impact and is analyzed more fully below.

Read More >> Are Non-Compete Clauses A Thing Of The Past? Analyzing the FTC’s New Regulation Declaring Non-Compete Clauses An Unfair Method Of Competition

NLRB Asserts Employment Protections for Student-Athletes and Seeks to Hold the University of Southern California, Pac-12 Conference and NCAA Liable

December 20, 2022

By Peter A. Jones, Thomas G. Eron, and Richard J. Evrard

The National Labor Relations Board (NLRB) General Counsel has issued a complaint against the University of Southern California (USC), the Pac-12 Conference and the NCAA claiming that certain USC student-athletes are employees under the National Labor Relations Act (NLRA), and that the conference and the NCAA, along with the university, can be held jointly responsible employers for the treatment of those students under the law. This NLRB litigation portends fundamental consequences for private college and university athletic programs.

Read More >> NLRB Asserts Employment Protections for Student-Athletes and Seeks to Hold the University of Southern California, Pac-12 Conference and NCAA Liable

NLRB Restores Obama-Era Bargaining Unit Test

December 16, 2022

By Peter H. Wiltenburg

On Dec. 14, 2022, the National Labor Relations Board (NLRB or Board) issued a decision that (again) modifies its standard for bargaining-unit determination cases where a labor union seeks to represent a unit that contains some, but not all, of the job classifications at a particular workplace. The decision, in American Steel Construction, Inc., revives the Board’s prior test governing such determinations set forth in Specialty Healthcare & Rehabilitation Center of Mobile, 357 NLRB 934 (2011), which was overruled in PCC Structurals, 365 NLRB No. 160 (2017), and The Boeing Co., 368 NLRB No. 67 (2019).

In its 2011 Specialty Healthcare decision, the Board identified the elements to be satisfied if the proposed union was to be recognized. Among these were that the unit is “sufficiently distinct.” If a party contested the petitioned-for unit on this ground – thereby arguing that certain employees not included in the proposed unit should have been – it would bear the burden of proving that there was an “overwhelming community of interest” between the petitioned-for employees and excluded employees in order to add the excluded employees to the petitioned-for unit. This was a difficult standard for employers to meet and widely recognized as a boon for union organizing.  In the wake of Specialty Healthcare, unusual “microunits” were organized, including cosmetic and fragrance counter employees at a Macy’s department store.  

In its 2017 PCC Structurals decision, the Board overruled Specialty Healthcare and adopted a different test for the “sufficiently distinct” element: instead of the “overwhelming community of interest” test, the Board adopted a test whereby “the interests of those within the proposed unit and the shared and distinct interests of those excluded from that unit must be comparatively analyzed and weighed.” This test therefore removed the burden from the employer challenging the composition of the unit and instituted a balancing test that did not explicitly begin with deference to the petitioned-for unit. The test gave employers far greater ability to oppose recognition of a unit consisting of some, but not all, of the employees within their workplace.  

This week’s decision in American Steel expressly overrules PCC Structurals and Boeing and reinstates the “overwhelming community of interest” standard of Specialty Healthcare. The Board elaborated that this means that when there are only “minimal differences, from the perspective of collective bargaining… then an overwhelming community of interest exists, and that classification must be included in the unit.” The Board indicated that meeting this standard would be akin to showing that “there is no rational basis for the exclusion.” So long as the petitioned-for unit consists of a clearly identifiable group of employees with a shared “community of interest,” the Board will presume the unit to be appropriate. The impact of this decision is to again empower unions and employees to organize along narrower lines of job classification. Even prior to American Steel, employers have seen a significant uptick in organizing activity in the last several years. This decision will likely further invigorate unions to again focus on “micro units” as a path to organizing workplaces, and employers again face the prospects of multiple distinct bargaining units among their employees.

If you have any questions or would like additional information regarding this decision, or other legal developments, please contact Peter Wiltenburg or any attorney in Bond’s labor and employment practice.

Earned Safe and Sick Time Act Proposal

December 9, 2022

By Jane M. Sovern and Paige Carey

New York City’s Earned Safe and Sick Time Act (ESSTA or Act) provides covered employees with the right to use safe and sick leave as it accrues for a delineated list of circumstances. On Aug. 11, 2022, the New York City Council introduced a proposal to amend the ESSTA’s definition of “employee.” Under this proposal, certain independent contractors would qualify as employees and receive benefit coverage under the Act. The proposal would require hiring entities to engage in detailed analyses of individuals providing services to determine wither they are independent contractors or employees.

Read More >> Earned Safe and Sick Time Act Proposal