NLRB Revokes Key Labor Policies

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On February 14, 2025, National Labor Relations Board (NLRB) Acting General Counsel William Cowen issued Memorandum 25-05, rescinding over a dozen policy memoranda established by his predecessor, Jennifer Abruzzo. This action signifies a strategic shift in the NLRB’s approach to several contentious labor issues.

Among the rescinded documents are memoranda that addressed the rights of student-athletes under the National Labor Relations Act (NLRA) and the disclosure obligations of educational institutions under the Family Educational Rights and Privacy Act (FERPA).

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SCOTUS to Review Standard in Reverse Discrimination Cases

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The U.S. Supreme Court is set to hear a case that could significantly impact employment discrimination law. The case, Ames v. Ohio Department of Youth Services, raises the issue of whether plaintiffs in so-called “reverse discrimination” cases should be required to meet a heightened pleading standard—an issue that has divided federal courts for years.

Understanding “Background Circumstances”

Under Title VII of the Civil Rights Act of 1964, it is unlawful for employers to discriminate based on race,

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Supreme Court Clarifies Evidence Standard for FLSA Exemptions

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On January 15, 2025, the U.S. Supreme Court unanimously ruled that employers must demonstrate an employee’s exemption from the Fair Labor Standards Act (FLSA) using the preponderance of the evidence standard, aligning with the approach of six other circuit courts.

Key Points:

  • Preponderance of the Evidence Standard: This standard requires employers to show that it is more likely than not that an employee qualifies for an exemption under the FLSA.

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Good Riddance, Chevron Deference

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In Loper Bright Enterprises v. Raimondo, the U.S. Supreme Court overruled the Chevron deference doctrine, which had guided judicial deference to federal agency interpretations of ambiguous statutes for nearly 40 years.

The Chevron deference doctrine emerged from the U.S. Supreme Court’s 1984 decision in Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc. It established a two-step framework for courts to follow when reviewing federal agency interpretations of ambiguous statutes:

  1. Step One: Courts must determine whether the statute is clear.

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Activist NLRB Shockingly Overturns 76-Year-Old Precedent

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On November 13, 2024, the National Labor Relations Board (“NLRB”) issued a landmark decision prohibiting employers from holding mandatory meetings to discuss their views on unionization, commonly known as “captive audience meetings.” This ruling overturns a 76-year-old precedent established in the 1948 Babcock & Wilcox Co. case, which permitted such meetings under the National Labor Relations Act (“NLRA”).

Historically, employers have utilized captive audience meetings as a tool to communicate their perspectives on unionization to employees during work hours.

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NLRB Weighs in on Stay-or-Pay Agreements

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In a recent move following the McLaren Macomb case, the National Labor Relations Board (“NLRB”) general counsel (“GC”) issued guidance on October 7, 2024, indicating that “stay-or-pay” clauses may violate labor laws.

Key Points

  • The GC’s memo warns employers that employment terms requiring employees to stay for a set time or repay certain expenses could be illegal.
  • The GC plans to seek broader remedies for overly broad noncompete and stay-or-pay agreements.

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Introducing the New Form I-9

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In a move aimed at streamlining and modernizing the employment verification process, the U.S. Citizenship and Immigration Services (USCIS) released a revised version of the Form I-9, the Employment Eligibility Verification form, on August 1, 2023. This updated form, with an edition date of 08/01/23, replaces the previous edition from 2019 (dated 10/21/19). The alterations mark a significant shift in the way employers verify the eligibility of their employees to work in the United States.

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NLRB’s Landmark Decision Reshapes Employer Work Rules: Stericycle, Inc. and Teamsters Local 628 (372 NLRB No. 113, 2023)

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In a pivotal move that again reshapes the landscape of employer-employee relations, the National Labor Relations Board (NLRB) recently issued a significant decision in the case of Stericycle, Inc. and Teamsters Local 628. This ruling (372 NLRB No. 113, 2023) ushers in a new era for evaluating employer work rules and policies, marking a departure from previous standards and a notable shift toward prioritizing employee rights.  In Stericycle, the Board reviewed the decision of an administrative law judge who found that the Respondent violated Section 8(a)(1) by maintaining certain rules for its employees that  addressed personal conduct,

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Noncompete Agreements Under Siege

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There has always been a tension between two important competing principles that underlie American law when it comes to noncompete agreements.  First, is the freedom to contract, which gives individuals the right to bargain with others over nearly any topic and come to a good, bad, or indifferent deal.  For example, employers argue that they should have the right to contractually protect their trade secrets and the time and investments they make in developing customer relationships and goodwill. 

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U.S. Supreme Court Landmark Decision

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Yesterday, June 15, 2020, the United States Supreme Court issued a decision in Bostock v. Clayton County, Georgia (and two other consolidated case) that has been highly anticipated in the business community for years. The issue: Does Title VII of the Civil Rights Act of 1964 prohibit discrimination based on sexual orientation and gender identity? In a 6-3 ruling, Trump-appointed Justice Neil Gorsuch wrote the majority opinion answering this question, “YES.”

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