Chris Larson’s Post

UPDATE on the "Noncompete Rule" that was to go in effect. So last Spring I penned an open letter to the Federal Trade Commission (FTC) as a part of the public comment period for a rule they were going to put in place that would eliminate non-compete clauses in employment contracts. This I felt would have a significant impact on our profession as many of us are subjugated by these clauses in our employment agreements that would prohibit clients from following us should we decide to change employers. Since i submitted my letter I've been receiving periodic updates from the FTC regarding the progress on the new rules implantation. The rule was enacted by the FTC and was set to go into place on Sept 4th, 2024... That was until yesterday when a judge in the Northern District of Texas ruled to block enforcement of the new rule by the FTC (link below). The FTC has already stated they are considering an appeal which will take this case the the US Fifth Circuit Court of Appeals. I'm not a law expert by any means, but I'm willing to bet that court will side with Texas District's ruling (Alito is the Circuit's Justice and the Chief Judge of the Circuit was appointed by W Bush). For all intensive purposes, I'm guessing this will end up in the Supreme Court sometime during their next term. My biased opinion is that this could go either way, but this isn't a 14th Amendment issue and this seems like a fairly reasonable exercise of the Executive Branch's authority. Will continue to keep an eye on this and I hope the Judiciary sees exactly what we as clinicians have had to deal with under non-compete clauses in the Mental Health field. #mentalhealth #workersrights #noncompete #FTC #AppealsCourt #therapist #employmentlaw

UPDATE ON THE FTC BAN: I still get questions a lot from reporters about this. Another phone call today! As you all know, the FTC proposed a ban to non-competes, which I wrote about in Medical Economics. But it's been ripe for challenge, and thus far a Texas court said it was overreaching, and just fine by a Pennsylvania court. When there is a split in the courts, you guys know what that means - it's likely to work its way through the appellate courts and up to SCOTUS. What will happen? Think about the leaning of the court and make your judgment from there. Based on the fact that this current court has reversed 40 years of precedent by overturning the Chevron line of cases, stating that courts should not give government agencies deference to interpret laws, I think it's clear how they will vote. The winds are shifting. I doubt this ban will hold. That's why it's imperative for us to continue to push on local state levels for changes to non-compete laws that help our doctors. https://lnkd.in/gPNc4QYr

FTC - NON-COMPETES Delayed ----As PREDICTED - from my previous post-  https://lnkd.in/e44bSpTa - there are now multiple court actions and lawsuits attempting to block enforcement of the recent FTC ban on non-compete clauses.   In the article from the firm of Holland & Knight LLP - the authors (David Santeusanio, Bryan Neal, Sara Schretenthaler Staha, Howard Sokol, Jasmine M. Tobias), first analyze a Texas district court order of Wednesday July 3rd (Ryan LLC v. Federal Trade Commission) - then discuss several other pending actions against the non-compete ruling.   MY TAKE: In HEALTHCARE - For doctors and other practitioners subject to non-compete clauses - who are trapped in abusive and toxic workplace conditions (conditions promoted by these non-compete clauses) - now with no way out except to LEAVE a city and possibly the State in which you and your family reside and have become firmly established and connected  - and MOVE to a distant local, thus profoundly DISRUPTING your financial stability, and disrupting the life, connections and relationships  you, your spouse, your children  have established throughout your living system.   Managements know this well - and uses this as leverage to keep you from leaving – as well as not feeling any need to improve abusive healthcare workplace conditions.     – Thus, such delays and a possible cancelling of the FTC’ non-compete ruling - ALLOW these non-compete-promoted healthcare workplace ABUSES to continue unchecked - further contributing to healthcare system workplace failures and sub-optimal patient outcomes. #toxicworkplace, #burnout, #healthcareworkers, #moralinjury, #doctors, American Medical Association American College of Emergency Physicians Tennessee Medical Association Gillian Schmitz Aisha Terry (formerly Liferidge) Alison Haddock, MD, FACEP Jonathan Fisher, MD, MPH Samuel A.A. Levine Lesley Fair Rahul Rao Tara Isa Koslov Lina Khan Doug Chesson Tisha Titus, MD, MPH Leon C. Adelman, MD, MBA, FACEP, FAAEM Adriana Alvarez Melissa Rudy Erika Edwards Doximity Kelley Kramer Katie Johnston Michael Arroyo Peter Stavros David Whitestone Chadd Kraus Aria Bendix Joseph Choi Ryan Stanton Sarah Owermohle Deidre McPhillips Erin Schumaker Linda Restrepo Linda Lawrence Susan Morse Thinkers360

ICYMI: Update on What We Know 📰 ⚖ ▶ AOC’s PTO policy violates the law and misuses taxpayer funds.   ▶ All five justices have recused themselves from the case.   ▶ A fair and impartial panel of judges is crucial for reviewing and deciding AOC’s lawsuit against the state.   ▶ This case continues to pose a serious constitutional threat to the system of checks and balances.  🔔 We’ll continue to inform you as we work to prevent the taxpayer monies from bearing the cost of improper payouts and as we fight to keep the checks and balances of our government. https://lnkd.in/g-DagMrh

Employers outside of TX/5th Circ still face a lot of uncertainty regarding #noncompetes. Why? Today's Texas decision *purports* to be nationwide. But it's unclear whether the court has authority to reach beyond its jurisdictional borders. Consider: ❌ No statute expressly authorizes courts to act beyond their own jurisdictions by issuing nationwide injunctions. ❌ Unclear whether vacatur of a rule under Administrative Procedure Act is any different; scholars routinely note that is functionally similar to injunction; poses same issues. ❌ Supreme Court has not squarely ruled on this circuit split. ❌ Justice Gorsuch has previously expressed skepticism about the authority of individual courts/circuits to take nationwide judicial actions. ❌ In her ruling, Judge Brown says she is merely "setting aside" the rule and not engaging in vacatur– but then cites 5th Circuit precedent saying such "setting aside" has "nationwide" effect– running squarely back into Justice Gorsuch's admonition against such judicial overreach. ❌ Third Circuit employers need to keep in mind that a district court judge denied an employer's preliminary injunction– opinion signals strong likelihood that judge will rule on merits that FTC noncompete ban can go into effect. Even if the next steps are expedited, it will take some time for this to play out (appeal to 5th Circuit, then actions to bring circuit split to Supreme Court)– this definitely will not be resolved before the September 4th implementation date slated for the FTC's #noncompete ban. At a federal level, this will keep playing out well into next year. And of course, noncompetes are also subject to state laws. They will remain banned in California (where they have been illegal since 1872), Oklahoma, Minnesota, and North Dakota– and restricted to some degree in other states as well. Some relevant links in comments.

A federal court in Texas yesterday blocked the FTC’s Non-Compete Rule and set the rule aside. The FTC is thus prohibited from enforcing the rule on a nationwide basis and it will no longer go into effect on September 4, 2024 (unless an appellate court says otherwise). More info on our Mintz Employment Blog below. #FTC #NonCompetes #EmploymentLaw

New legislation to remove municipal councillors   Per The Trillium, the harshest penalty outside of the courts that municipal politicians could currently face is a pay cut for 90 days. The only way they can be removed from office is when the electorate votes them out in an election. The Municipal Accountability Act introduced by the government last week proposes to change that. Where councillors are found to have harmed the “health, safety or well-being of persons”, a process would be available for their council to remove them.   Under the proposed new framework, the process would start with the local Integrity Commissioner investigating and recommending to the province’s Integrity Commissioner that the councillor in question be removed. The province’s Integrity Commissioner would then complete their own inquiry and recommend removal to the local council. The final stage would be a council vote which would require a unanimous decision in order to remove the councillor.   Some observers question the requirement for a unanimous vote, citing personal friendships among councillors that could derail the process with just one dissenting vote. Municipal Affairs Minister Paul Calandra said the process is intended to set a very high bar. The Big City Mayors responded through a statement from its Chair and Mayor of Burlington, Marianne Meed Ward (C.Dir.): “This is important legislation that our mayors have been fighting for, and we are happy to see that the province is addressing the importance of a municipal code of conduct for all municipal councils and staff.”   Offences will be outlined in a code of conduct that will apply to all 444 Ontario municipalities.

🚨 Breaking News: The U.S. Chamber of Commerce has initiated legal action seeking an injunction against the FTC’s new rule banning non-compete agreements. Citing concerns over the sweeping prohibitions which they argue overstep the FTC's authority, the Chamber asserts that non-competes can have pro-competitive benefits, such as protecting investments and promoting training and development of employees. They argue that the rule is a drastic move with serious economic and legal implications. This legal challenge sets the stage for a clash over regulatory power and economic freedom, highlighting a fundamental debate about the balance between worker rights and business protections. Stay tuned as this develops! #BusinessLaw #GeneralCounsel

California Employers! ⚠️ On July 1st, Governor Newsom signed two bills that reform various aspects of the Private Attorneys General Act (PAGA). Here's what you need to know: 📌 Reduced Penalty Caps - Penalties are now capped depending on the type of violation or corrective actions taken by the employer. 📌 Cure Opportunities - Employers are able to avoid penalties by coming into compliance with the Labor Code sections allegedly violated. Additional opportunities are available for small employers (<100 employees). 📌 Standing Updates - Plaintiffs must have personally experienced the alleged PAGA violations within a one-year statute of limitations in order to bring a lawsuit. (Note: certain nonprofits are exempt from these stricter standing requirements.) If you have employees in California, it's important to stay informed and ensure compliance with these new regulations. Have questions about the PAGA updates and how they apply to your business? We're here to help! Send us a message today to book a complimentary HR assessment. https://www.rfr.bz/lmeotgt #HRConsulting #EmploymentLaw #HRCompliance #HR