Employment & Labor

Article by Todd Leeson[1] There is much confusion regarding whether private sector employers are able to maintain policies regarding Diversity, Equity and Inclusion (DEI) in the workplace.  I have been following the public policy and legal issues surrounding DEI for years.  I have also closely scrutinized the activities over the last few weeks including the Executive Orders (EOs) recently issued by President Trump.  This article is the combination of my experience, as well as dozens upon dozens of articles and legal authorities I have studied. It is not exhaustive, but is intended to convey my primary thoughts at this time. […]

On January 15, 2025, a unanimous Supreme Court ruled that the preponderance of the evidence standard should be used by courts when determining whether an employer has proven that an employee is exempt and not eligible to be paid overtime.[1] Justice Kavanaugh began his opinion by noting that under the Fair Labor Standard Act (“FLSA”) certain categories of employees are exempt from the minimum wage and overtime pay requirements. Exempt employees “can range from baseball players to seaman to maple syrup processors to software engineers to fire fighters.” The FLSA places the burden on the employer to show that an […]

As a reminder, Virginia is one of eleven states (along with Washington, D.C.) that imposes restrictions on the use of non-compete agreements for so-called “low wage employees.” Effective now in 2025, the salary threshold defining a “low wage employee” in Virginia has increased from $73,320 to $76,081 annually. This adjustment reflects changes to the state’s Average Weekly Wage, as determined by the Virginia Department of Labor and Industry (DOLI). Employers should take note of this updated threshold to ensure compliance with Virginia law regarding non-compete agreements. For a deeper understanding of the “low wage” salary restrictions and how the annual […]

Work-related injuries occur in an endless and variety of ways. In those instances where injuries happen when an employee is in the course of his/her employment and the accident arises out of a risk of that employment, workers’ compensation benefits should be available to the injured worker. If the actual injuries themselves were “caused” by a defective product or the negligence of a third party, then the injured employee can collect both workers’ compensation benefits and recover money damages against the third party at the same time. At first blush, Virginia law on this subject might seem like a double […]

Last month,[1] we posted an article that described the challenge businesses faced due to a Department of Labor (DOL) regulation (the “2024 Rule”) that was set to require employers to raise the minimum salary paid to most exempt employees for a second time in six months. The second phase of the 2024 Rule, which would require a salary of $58,656, was set to become effective on January 1, 2025. Now, thanks to a federal court in Texas employers are no longer required to raise salaries comply this new DOL rule. Last Friday, the Court ruled [2] that the DOL’s 2024 […]

In the workplace, an employee is considered “exempt” or a “non-exempt” based on the employee’s specific job duties, and the manner and amount of compensation paid.  Only non-exempt employees are eligible for overtime pay according to the Fair Labor Standards Act (“FSLA”).  The Department of Labor’s (DOL) has announced that the minimum salary to qualify for overtime exempt status will increase to $58,656 effective January 1, 2025. For some businesses the only option will be to comply by raising employee salaries to at least this new minimum level.  However, it is not the only option and businesses should consider carefully […]

Article originally published by Valley Business Front in Issue 193, October 2024: Valley Business FRONT, Issue 193, October 2024. In the 35 years that I have represented Virginia businesses and executives in workplace matters and litigation, I have lost count as to the number of times I have heard someone say words to the effect that non-compete agreements are “unlawful” in Virginia. (Spoiler alert: they can be lawful.) This article provides answers, and an update. As a General Statement, Non-Compete Agreements may be Valid in Virginia if Narrowly Tailored to Prevent Direct Competition. It is true that restraints against competition […]

On Tuesday, August 20, 2024, U.S. District Court Judge Ada E. Brown ruled that the FTC’s Final Rule banning non-compete agreements (the “Rule”), which was set to take effect on September 4, 2024, was “promulgated . . . in excess of [the FTC’s] statutory authority.”  Ryan LLC, v. Federal Trade Commission, 3:24-cv-00986-E (N.D. Tex. 2024). As a result, the Court held that, consistent with Administrative Procedure Act (“APA”) § 706(2)(A)-(C), the Rule would be “set aside.” Critically, the Court concluded, based on “a couple of recent cases,” that “setting aside agency action under § 706 has ‘nationwide effect,’ is ‘not […]

Article co-written by Ryan Starks, David Paxton, and Summer Associate Haley Leipzig On April 23, 2024, the Federal Trade Commission (“FTC”) issued a Final Rule (the “Rule”) that will enact a “comprehensive ban on non-competes with all workers” as of September 4, 2024.[1]  The Rule aims to prohibit employers from using or enforcing non-compete agreements with employees or independent contractors when their employment ends, in order to address what the FTC deems “unfair methods of restricting competition.”[2]  The full text of the Rule can be accessed here.[3]. If the FTC rule becomes effective, it will supersede and supplant Virginia law […]

On April 23, 2024, the Federal Trade Commission (“FTC”) issued a Final Rule which provides that it is an “unfair method of competition” for employers to enter into non-compete clauses with their workers after August 21, 2024—or 120 days after the Final Rule is published in the Federal Register.  The Final Rule is available here.  The Final Rule was issued after the FTC received more than 26,000 public comments in response to its Notice of Proposed Rulemaking issued in January 2023. While the ban is scheduled to take effect 120 days after the Final Rule is published in the Federal […]