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Total Articles: 10

Non-Compete News: Pennsylvania Considers the "Freedom to Work Act"

Executive Summary: Pennsylvania is entertaining legislation to ban all non-compete covenants. Like other states concerned with the effects of restrictions on the mobility of the workforce, the prohibition on non-compete agreements, Pennsylvania House Bill 1938, is founded on the Commonwealth’s interest in lowering the unemployment rate, promoting innovation, entrepreneurship, and business expansion, improving existing business opportunities for qualified workers, and promoting unrestricted trade and mobility of employees in the workforce. 2017 PA H.B. 1938. Besides banning non-competes, the proposed law creates a private cause of action against any employer trying to enforce a non-compete covenant. Employers violating the law could be liable for compensatory and punitive damages and the former employee’s attorneys’ fees. The bill currently is before the House Labor & Industry Committee.

Pennsylvania Supreme Court Will Hear Employer Appeal in State Minimum Wage Act Case

On February 2, 2018, we reported that General Nutrition Centers, Inc. (GNC), the employer in a case brought by a class of salaried, nonexempt, current or former Pennsylvania store managers, assistant managers, or senior managers under the Pennsylvania Minimum Wage Act (PMWA) (43 P.S. Secs. 333.101–333.115) had asked the Pennsylvania Supreme Court to hear its appeal of a 2–1 decision issued by the Pennsylvania Superior Court on December 22, 2017. The issue was the proper method of calculating the amount of overtime compensation owed to salaried, nonexempt employees.

Major Changes Proposed to Pennsylvania’s Overtime Rules

Employers with operations in Pennsylvania may want to take note of significant changes in the pipeline to the state’s wage and hour rules. Specifically, on June 23, 2018, the Pennsylvania Department of Labor and Industry (PA DLI) published proposed rulemaking containing drastic changes to some of the state’s white collar exemptions to the Pennsylvania Minimum Wage Act (PMWA).

Pennsylvania Proposes More Than Doubling the Salary Level for Overtime Exemptions

On June 12, 2018, the Pennsylvania Department of Labor and Industry (“DLI”) submitted a proposed rulemaking to amend the regulations that exempt executive, administrative, and professional (EAP) salaried workers from overtime requirements under the Minimum Wage Act of 1968.

Keystone State Targets the Gig Economy: Pennsylvania’s New Nonemployee Withholding and Reporting Requirements

On October 30, 2017, Governor Tom Wolf of Pennsylvania signed into law Act 43 of 2017. This new law provides that beginning July 1, 2018, Pennsylvania businesses that pay at least $5,000 in Pennsylvania-source nonemployee compensation or business income to a nonresident individual (or disregarded entity that has a nonresident member) are required to withhold from such payments the current applicable income tax rate (currently 3.07 percent).

Pennsylvania Department of Labor and Industry Proposes Amendments to the State's White Collar Exemption Regulations

The Pennsylvania Department of Labor and Industry (DLI) responded to Governor Tom Wolf’s call to modernize Pennsylvania’s outdated overtime rules for “white collar” employees. On June 12, 2018, the DLI submitted to the Pennsylvania Independent Regulatory Review Commission (IRRC) a proposed rulemaking package that would update the Executive, Administrative and Professional (EAP) exemptions to the minimum wage and overtime requirements of the Pennsylvania Minimum Wage Act (PMWA).

Constitutionality of Philadelphia’s Salary History Ban Appealed to Third Circuit

The constitutionality of the Philadelphia ordinance aimed at regulating employers’ requests for and reliance on salary histories has been appealed to the U.S. Court of Appeals for the Third Circuit.

Philadelphia Salary History Ban Partially Blocked

Philadelphia's ban on salary history questions violates the First Amendment and that provision may not take effect, a federal judge has ruled. However, US District Judge Mitchell S. Goldberg also called the Philadelphia ordinance "a significant positive attempt to address the wage gap" and upheld a separate provision that forbids employers from basing hiring decisions on salary history.

Philadelphia’s Salary History Inquiry Ban Violates the First Amendment, Federal Court Rules

Philadelphia’s ban on salary history inquiries violates the First Amendment, a federal district court in Philadelphia has ruled in a 54-page opinion. The Chamber of Commerce for Greater Philadelphia v. City of Philadelphia et al., No. 17-1548 (Apr. 30, 2018). Because the decision is based on the First Amendment, it has broader implications for salary history inquiry bans passed by various state and local governments.

Pennsylvania Federal Court Hands Uber Another Important Win In Misclassification Battle

I wrote an article last week about a Pennsylvania federal court victory for Uber, repelling a misclassification attack from several drivers who claimed they should have been considered employees. You can read the full summary here. A few points are worth noting:

Jackson Lewis P.C. | Maryland | Maryland Employers, Are You Ready? New Sexual Harassment Law Takes Effect October 1 (September 12, 2018)

Ogletree Deakins | Michigan | Paid Leave: Coming to a Michigan Workplace Near You (September 09, 2018)

Littler Mendelson, P.C. | Michigan | From Ballots to Bills: Michigan Adopts Paid Sick and Safe Time Law and Raises the Minimum Wage (September 11, 2018)

Littler Mendelson, P.C. | California | California Countdown 2018: Which Labor and Employment Bills Will the Governor Sign? (September 05, 2018)

Littler Mendelson, P.C. | New York | Significant Compliance Challenges in New York State's Proposed Anti-Sex Harassment Rules: What Can Employers Do Now? (September 07, 2018)

Fisher Phillips | New York | State Appeals Court Expands Scope Of NYC’s Marital Status Discrimination Law (September 12, 2018)

Jackson Lewis P.C. | New York | Reminder: New York City Employers Must Distribute Fact Sheet, Post Notice on Sexual Harassment Law by Sept. 6 (September 06, 2018)

Littler Mendelson, P.C. | Connecticut | Connecticut Continues to Extend Protections to Employees under State Medical Marijuana Law, Rejects Federal Preemption Defense (September 11, 2018)

Goldberg Segalla LLP | New York | New Legislation on Sexual Harassment Will Signifigcantly Affect the Handling of These Cases for Municipalities (September 06, 2018)

Jackson Lewis P.C. | Connecticut | Connecticut Court Holds That Refusing To Hire Medical Marijuana User Constitutes Employment Discrimination (September 06, 2018)