Labor & Employment Law Update

A little less than a year ago, businesses were scrambling to get ready for the then-impending Federal Trade Commission’s (FTC) final rule that would have blocked nearly all non-compete agreements between employers and employees. A Texas federal district court put all of that on hold in August 2024, holding that the FTC didn’t have the authority to issue the non-compete rule.

Since then, the issue has largely faded from headlines as businesses continued on as before the FTC rule. Questions remain, though, about the status of the rule and steps states are taking to regulate (or not) this popular tool in employers’ arsenals to protect their hard-earned goodwill and prevent unfair competition in the market.

As states and cities have created new paid family and medical leave requirements for employers, the layers of overlapping regulation have left even the most seasoned employee benefits professionals and leave administrators with legitimate questions about how those schemes interact with the federal Family and Medical Leave Act (FMLA).

Recently released guidance from the United States Department of Labor (DOL), in the form of an opinion letter, attempts to resolve many of those questions.

Less than a month before the changes are set to go into effect, the Illinois Department of Labor has given employers some guidance on how the department will be enforcing the new requirements and published the poster that employers must display to their employees.

2025 is set to be another year of expanded paid leave requirements for employers. While the results are still preliminary, employers should start preparing in the states that have voted in new leave laws.