#WorkforceWednesday: Courts Side with Employers – Tip Credit Rule and Non-Compete Ban Struck Down Nationwide

This week, we’re highlighting two landmark decisions the courts have handed down concerning the U.S. Department of Labor (DOL) and Federal Trade Commission (FTC).

Federal Appeals Court Vacates DOL’s 80/20/30 Rule Regarding Tipped Employees

On August 23, 2024, the U.S. Court of Appeals for the Fifth Circuit vacated the DOL’s controversial “80/20/30” rule, offering a significant reprieve for businesses with tipped employees by aligning wage practices with federal law. This case, which was litigated and won by Epstein Becker Green lawyers Paul DeCamp and Kathleen A. Barrett, reshapes the landscape for employers and has implications for future compliance. Learn more about the appeals court decision nullifying the DOL’s tip credit rule.

Texas Court Shoots Down FTC Non-Compete Ban Nationwide

In a pivotal decision on August 20, the U.S. District Court for the Northern District of Texas nullified the FTC's nationwide non-compete ban, finding that the rule exceeded the agency's authority and lacked necessary justification. With ongoing appeals and potential state-level legislative shifts on the horizon, businesses should stay informed about the evolving landscape of non-compete agreements. Learn more about the federal court decision overruling the FTC’s non-compete ban.

Other Highlights

5th Circ. Strikes Down DOL Tip Rule
Law360 (subscription required)
Paul Decamp quoted

Fight Over Health Non-Compete Pacts Far from Over
Axios
Peter A. Steinmeyer quoted

Mental Health Parity Rules Incoming: What Employers Need to Know
Workforce Bulletin
David Shillcutt, Cassandra Labbees

MI Agencies Request Clarity on New Minimum Wage & Tip Credit Requirements
Workforce Bulletin
Adam S. Forman, Nancy Gunzenhauser Popper

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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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