Non-Competes Eased, Anti-DEI Rule Blocked, Contractor Rule in Limbo

This week, we’re covering the relaxation of state-level non-compete rules, the recent block of Executive Order 14173’s diversity, equity, and inclusion (DEI)-related certification requirement, and a federal appeals court’s decision to pause a challenge to the Biden-era independent contractor rule.

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Non-Competes Eased in Kansas and Virginia

Kansas has enacted a law permitting non-competes while setting requirements for non-solicit provisions. Additionally, effective July 1, 2025, Virginia will prohibit non-compete agreements for non-exempt employees.

Federal Contractor DEI Rule Blocked

In a lawsuit brought by Chicago Women in Trades, a federal judge paused a rule from Executive Order 14173 requiring federal contractors to certify that they don’t operate DEI programs that violate anti-discrimination laws, citing unclear definitions of “illegal” DEI programs.

Independent Contractor Rule in Limbo

The U.S. Court of Appeals for the Fifth Circuit paused a challenge to the 2024 independent contractor rule, allowing the U.S. Department of Labor time to consider revising or replacing it. For now, the Biden-era rule remains in effect.

Other Highlights

Insider Strategies for Wage and Hour Compliance Success: One-on-One with Paul DeCamp
Wage and hour compliance is fraught with challenges, from unclear regulations to shifting enforcement priorities. Watch as Paul DeCamp shares insider tips on navigating these complexities and mitigating risks.

New York State Proposes Bill to Ban Non-Competes Except for Highly Compensated Workers and in Sales of Businesses
Trade Secrets & Employee Mobility
Daniel R. Levy, Gretel Zumwalt

New Jersey Supreme Court Confirms: Commissions Are Wages Under the New Jersey Wage Payment Law
Wage and Hour Defense Blog
Alkida Kacani, Jessica Hajdukiewicz

Texas Joins List of Legislatures Seeking to Ban Non-Compete Agreements
Trade Secrets & Employee Mobility
Daniel R. Levy, Alkida Kacani

FTC Issues RFI on Anti-Competitive Regulations
Antitrust Byte
E. John Steren, Patricia M. Wagner

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Employment Law This Week® gives a rundown of the top developments in employment and labor law and workforce management in a matter of minutes every #WorkforceWednesday®. 

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