Impact for Employers: The NLRB General Counsel Doubles Down on Restrictive Covenants and Stay-or-Pay Provisions

The General Counsel of the National Labor Relations Board ("NLRB") issued Memorandum GC 25-01 on October 7, 2024, which establishes her intent to "urge the Board not only to find certain non-compete provisions unlawful, but also, as fully as possible to remedy the harmful effects on employees when employers use and apply them."

The General Counsel has proposed a 60-day period, starting from the issuance of the October 7 Memorandum, for employers to address and rectify any existing "stay-or-pay" provisions that may not align with legitimate business interests. This directive necessitates that employers quickly evaluate their current provisions in light of the new guidelines, as many restrictive covenants and "stay-or-pay" clauses are likely to violate Section 7, according to the General Counsel's criteria. More ›

Eleventh Circuit Rules Mandatory Meeting Prohibition of Florida's "Stop W.O.K.E. Act" Restricting Workplace Diversity Training is Unconstitutional

Earlier this month, the Eleventh Circuit affirmed the district court's preliminary order blocking enforcement of the Individual Freedom Act's provision banning mandatory workplace trainings endorsing certain viewpoints. More ›

FAQs: Florida Requires Certain Employers to Use Federal E-Verify System to Confirm Employees are Legally Eligible to Work

Beginning on July 1, 2023, private employers in Florida with more than 25 employees will be required to use the federal E-Verify system for all new hires in order to verify that newly hired employees are legally authorized to work in the U.S. The 25-employee threshold refers to the total number of company employees, not just those employees who work in Florida. Covered Florida employers must enroll in E-Verify using the E-Verify.gov website and follow the registration process. E-Verify requires the employer to transcribe a new hire’s information from his or her I-9 into E-Verify, which will confirm whether the new hire is authorized to work in the U.S. Employers who do not comply with this new law will be subjected to stiff penalties for noncompliance, including costly daily fines and suspension and/or revocation of state licenses. The penalties for noncompliance will take effect July 1, 2024. More ›