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On July 3, the U.S. District Court for the Northern District of Texas issued a limited preliminary injunction and stay of the Federal Trade Commission’s noncompete final rule, holding that the FTC exceeded its statutory authority and violated the Administrative Procedure Act. The Court limited the scope of the injunctive relief to named plaintiff Ryan LLC and plaintiff-intervenors the Chamber of Commerce of the United States of America; the Business Roundtable; the Texas Association of Business; and the Longview Chamber of Commerce.
On April 10, the U.S. Senate passed H.J. Res 98, the Joint Employer Congressional Review Act resolution of disapproval, in a 50-48 vote. ABC sent a key vote letter to senators ahead of the vote urging them to support the resolution, which would nullify the ABC-opposed National Labor Relations Board’s 2023 joint employer final rule. The Senate’s action comes two months after the U.S. House of Representatives passed H.J. Res 98 in a 206-177 vote, with eight Democrats supporting. Although President Joe Biden has vowed to veto the resolution, passage in the House and Senate sends a strong message to the administration as they continue to implement harmful labor policies.
On March 25, the U.S. House of Representatives Committee on Education and the Workforce passed the ABC-supported H.J. Res. 116, the Congressional Review Act resolution to nullify the U.S. Department of Labor’s independent contractor final rule, in a 21-13 vote with all Republicans present voting in support.
On March 8, the U.S. District Court for the Eastern District of Texas vacated the National Labor Relations Board’s 2023 Joint Employer Final Rule and the Board’s rescission of the ABC-supported 2020 Joint Employer Final Rule. Under the court’s decision, the 2020 final rule, which provides clear criteria for companies to apply when determining their joint employer status, remains in effect today. ABC opposed the 2023 final rule, which was scheduled to go into effect on March 11.
On March 5, ABC, its Southeast Texas chapter and additional plaintiffs filed an amended complaint in the U.S. District Court for the Eastern District of Texas arguing that the U.S. Department of Labor’s Employee or Independent Contractor Classification Under the Fair Labor Standards Act final rule is unlawful and a violation of the Administrative Procedure Act. The rule goes into effect on March 11.
The National Labor Relations Board’s joint employer rule will go into effect on Feb. 26. The new standard, opposed by ABC, will only be applied to cases filed after the rule becomes effective.
On Jan. 9, the U.S. Department of Labor’s Wage and Hour Division announced the final rule on Employee or Independent Contractor Classification Under the Fair Labor Standards Act, which rescinds the ABC-supported 2021 final rule and replaces it with a confusing multifactor analysis to determine whether a worker is an employee or an independent contractor. The final rule takes effect on March 11.
On Nov. 16, the National Labor Relations Board extended the effective date of its final rule on Joint Employer Status Under the National Labor Relations Act from Dec. 26 to Feb. 26, 2024. The new standard will only be applied to cases filed after the rule becomes effective.