SHRM’s Post

Whether because of the pandemic or otherwise, the Illinois Freedom to Work Act did not receive much attention on its passing in 2017 or when amended in 2022. Nevertheless, it is extremely important for Illinois employers who employ non-competes and non-solicits to know of its terms. Here is a quick summary of key points: It is effective generally as of January 1, 2017, but key amendments weren't effective until January 1, 2022; It codifies much of the existing Illinois common law on the enforceability of restrictive covenants, except that it: Prohibits employers from having employees making less than $75,001 a year sign non-competes; Prohibits employers from having employees making less than $45,001 a year sign non-solicits; Prohibits employers from having employees covered by a CBA sign a non-compete; Voids any non-compete or non-solicit unless (1) the employer advises the employee in writing to consult with an attorney before entering into the covenant and (2) the employer provides the employee with a copy of the covenant at least 14 calendar days before the commencement of the employee's employment or the employer provides the employee with at least 14 calendar days to review the covenant; and It makes it even less likely in Illinois that a court will reform/modify an overly broad restriction to conform it to existing law. In other words, "blue-penciling" clauses are largely worthless in Illinois so employers must draft narrower restrictions in the first instance. https://lnkd.in/gA7WFmDD

The case Evans V TESG is a timely reminder for employers to consider five key questions when assessing whether a high income employee is eligible to make an unfair dismissal application. Rachel Drew, Rose Dimitrious and Maud Beach explore details of the case and key implications for employers below. #unfairdismissal #highincomeemployees #WRS #modernawards #employmentcontracts #FairWorkAct #workplace #casestudy #law

Dismissing employees can be tricky. But assessing the risks in terminating someone's employment, and ensuring that there is a strong process in place, can help ensure employers are in a strong position to defend unfair dismissal applications. In this article, Rachel Drew, Rose Dimitrious and Maud Beach provide valuable insights into the recent decision of Evans v TESG concerning a high income employee and the question of award coverage, following his termination, in order to determine his eligibility to make an unfair dismissal application. They also have a look at the key implications for employers. A worthwhile read!

COMPLIANCE WEBINAR: On March 11, 2024, the U.S. Department of Labor’s (“DOL”) new rule on the proper classification of employees and independent contractors takes effect under federal law. The new rule marks a return to the “economic realities” test previously used by the DOL during the Obama Administration. During this webinar, attendees will learn the critical tests under the new rule, as well as best practices and practical recommendations to ensure that independent contractors are utilized lawfully. Pre-approved for 1 SHRM credit hour. Pending approval for HRCI credit. 📅 March 5th 🕚 11:00am EST 📍 https://lnkd.in/gMWT_wcM See you there! #goingbeyondbenefits #employeebenefits

‘Zombie’ enterprise agreements. A Productivity Commission report found that 56% of employees covered by an enterprise agreement are on an expired agreement, or ‘zombie agreement’. Prior to the reforms, pre 2009 enterprise agreements could operate past their expiry date unless they were replaced with new agreements or terminated by the FWC. As these ‘zombie agreements’ remained fully enforceable, despite being expired, the terms of the agreement were often out of sync with modern awards. The Government notes one zombie agreement terminated in January 2022 saw employees $5 per hour on Saturdays, $10 per hour on Sundays and $24+ per hour on public holidays, worse off than the relevant modern award. The ‘Secure Pay, Better Pay’ reforms generally sunset these zombie agreements. Read more 👉 https://lttr.ai/AIqWv Important: This article is for information only. If your workplace is likely to be impacted by the amendments, please ensure you seek professional assistance from an industrial relations specialist. We are not specialists and cannot assist with the application of industrial law, awards, or applicable pay rates. #Asbconsultingandtax #Accountant #businessadvisor

The median total compensation for general counsel in the US across all industries in 2022 was down three percent from 2021, according to a recent study. https://hubs.la/Q021t5pg0 #InHouse #LegalNews #LegalInsight #LegalIndustry

There's been significant debate for years on whether non-compete agreements should be banned. Many reasons exist to support an employer's entering into such agreements with their employees, including to protect a bevy of confidential information that the employee often learns during their employment. On the other hand, there's (an equally legitimate) concern about whether non-competes interfere with one's ability to earn a living in their chosen profession. Nevertheless, the Federal Trade Commission (FTC), in a party-line vote, voted 3-2 today to approve a rule that would ban employers from imposing non-compete contracts on their employees. The rule would go into effect 120 days after publishing in the Federal Register, and would require, among other things, that employers notify most employees (except certain executives) that their agreements are now unenforceable. This is a HUGE development in #noncompetelaw that also coincides with state laws that already have begun changing the tide behind the enforceability of non-competes. Of course, this remains subject to legal challenge, not the least of which is whether the FTC possessed authority to impose the ban (likely leaning toward arguments centered on separation of powers). This is certainly an issue to watch, and WalMcK Legal, PLLC will be watching it closely. #Staytuned for more updates. #walmcklegal #employmentlaw #noncompete #covenantsnottocompete #restrictivecovenants #FTC #federaltradecommission #noncompeteban #hr #hrlaw

The FTC's new rule banning non-compete agreements is a game-changer for employers and employees. As a healthcare attorney, I understand the complexities this brings. Our latest blog post at Michael V. Favia & Associates, P.C., breaks down what this means for your business and how to navigate these changes effectively. Read more here: https://bit.ly/44LmfzU  #HealthcareLaw #EmploymentLaw #FTC #ChicagoLawyer #MichaelVFavia

If this law is adopted then no more non compete in employees' contracts.

The government has updated the Code of Practice on dismissal and re-engagement (commonly known as ‘Fire and Rehire’). If approved by Parliament, this code will be in effect later this year. Here's what you need to know... 🔍 Key Provisions: No major changes from the original draft published in January 2023, but some tweaks have been made following public consultation. ✉️ Contacting Acas: Employers must now contact Acas at an early stage before considering fire and rehire, strengthening the requirement for mediation. 📝 Information in Writing: It's now considered good practice for employers to provide information in writing. 🔄 Phasing-in Changes: Originally obligatory, now downgraded to best practice. 🔥 Applicability: The code applies where both redundancy and fire and rehire are options, with no set minimum consultation period. ⛔ Coercion: Employers are prohibited from using threats of dismissal to force employees into signing new terms. 🤝 Meaningful Discussions: Employers must explore alternatives and engage in meaningful discussions before considering fire and rehire. ⏳ Last Resort: Fire and rehire should only be used as a last resort. 📉 Consequences: While there's no standalone claim for failure to follow the code, tribunals can uplift compensation by up to 25% for unreasonable failure to comply. Stay informed, stay compliant. #HRConsultancy #EmploymentLaw #FireAndRehire #CodeOfPractice #HRSupport #HRConsultantsShropshire #HRAdvice #ShropshireBusiness #WestMidlandsBusiness #TelfordBusiness