Labor, Employment, Benefits & Immigration

Two states on opposite coasts are reshaping the rules governing noncompete agreements in their jurisdictions. Virginia has amended its law to prohibit enforcement of noncompetes against employees who are terminated without cause in the absence of certain severance benefits, while Washington has gone further by enacting a near-total ban on noncompete agreements for all workers. Together, these laws reflect a broader national trend of restricting noncompetes and may call for businesses with employees in either state to review their current agreements

President Donald Trump signed an Executive Order (EO) on March 26, “Addressing DEI Discrimination by Federal Contractors,” reinforcing the Trump Administration’s stance on DEI programs and escalating the related restrictions on what the Administration considers “racially discriminatory DEI activities.” The Executive Order, which took effect immediately, mandates that all federal government prime contracts, “contract-like” instruments and subcontracts, including lower-tier subcontracts, include a specific contract clause, requiring contractors to comply with the clause or risk potential False Claims Act (FCA) liability. Contractors

Miles and Stockbridge’s Labor, Employment, Benefits & Immigration Practice Group presented its 24th annual Hot Topics in Employment Law Seminar last week to business executives, human resources professionals and in-house counsel. Topics included navigating the use of AI in the workplace, updates from the National Labor Relations Board, immigration policy shifts, DEI policy enforcement and the importance of properly drafted employment documents. Here are highlights from the three interactive sessions. Adjusting to an AI-influenced Workplace AI continues to be a driving issue in

Many employers issue paychecks biweekly, which results in 26 pay periods per year. This year, 2026 employers will encounter an adjustment where a biweekly pay schedule may result in 27 pay periods.   Employers that started the year with a paycheck on Friday, Jan. 2, may intend to pay the final paycheck of 2026 on Thursday, Dec. 31, given that Friday, Jan. 1, 2027, is a holiday. If an employer follows this schedule, then they will have 27 pay periods this year

The State of Maryland processed nearly two million unemployment claims during the COVID-19 pandemic. A large number of those claims were fraudulent, with the full extent of the fraud yet to be understood. A significant amount of the fraud involved identity theft, where fraudsters applied for benefits in the names of individuals whose personal information had been compromised. During the pandemic, many employers received calls from anxious employees who had received notices that unemployment benefits had been applied for or awarded

It’s that time of year to celebrate all our hard work over the last 12 months! As 2025 winds down, however, employers should take steps to ensure they aren’t carrying any potential liability into 2026 from those exciting and fun office holiday parties. Employers should have their policies in place about the overconsumption of alcohol and harassment. Everyone should be informed and educated, so that everyone can enjoy the holiday season. First, some general recommendations about holiday parties: Be inclusive of all

Beginning in April, state and local governments will be required to comply with a new final rule published by the U.S. Department of Justice updating regulations for Title II of the Americans with Disabilities Act. The Rule establishes specific requirements, including technical standards, for all digital services provided by public entities, such as websites, mobile applications, online learning platforms, registration systems and financial aid information to ensure that such services are accessible to people with disabilities. Title II of the ADA

California Gov. Gavin Newsom recently signed into law sweeping legislation designed to restrict employers and training providers from requiring workers to repay costs or fees when they leave employment, so-called “training repayment agreement provisions” (TRAPs). The law, set to take effect Jan. 1[1], applies broadly to any person in California permitted to work for or on behalf of an employer or to participate in any other work relationship, job training program or skills training program, including employees and prospective employees. Overview The

President Donald Trump signed a proclamation last week, “Restriction on Entry of Certain Nonimmigrant Workers,” purportedly to reduce the use and abuses of the H-1B non-immigrant classification and adjust the prevailing wage threshold in order to prioritize petitions for highly compensated and highly skilled H-1B workers. While the situation is fluid, here is what we know: The proclamation became effective Sept. 21. The Department of State, U.S. Customs and Border Protection, United States Citizenship and Immigration Services and the White House have

Business executives, human resources professionals and in-house counsel attended last week’s D.C. Hot Topics in Employment Law Seminar, presented by Miles & Stockbridge’s Labor, Employment, Benefits & Immigration Practice Group. The event was an encore and updated presentation of the practice group’s Hot Topics in Employment Law Seminar held annually in February in Baltimore. Topics included the use of AI in workplace and performance management; myriad  employment issues raised on a day-to-day basis with human resources professionals, including disability and religious accommodations and

U.S. Attorney General Pam Bondi recently issued new guidance aimed at clarifying the current administration’s stance on the permissibility of diversity, equity and inclusion policies and procedures under federal anti-discrimination laws such as Title VII of the Civil Rights Act of 1964 and Title IX of the Education Amendments Act of 1972 – particularly among entities that receive federal funding, such as schools, universities, state and local governments, health care providers, nonprofits and other private employers. In its guidance, the Department

Noncompete provisions for most health care professionals will be banned or restricted in Maryland as of July 1. Last year, the Maryland General Assembly passed House Bill 1388, significantly impacting the enforceability of noncompete provisions for health care professionals. A noncompete provision is a post-employment restrictive covenant that prohibits an employee from obtaining subsequent employment, including self-employment, in the same or similar business or trade as their former employer. Noncompete provisions are often limited in geographic scope and time. Under

Washington Gov. Bob Ferguson on May 13 signed the Securing Timely Notification and Benefits for Laid-Off Employees Act into law. Effective July 27, this statute mirrors the federal Worker Adjustment and Retraining Notification (WARN) Act, establishing notice requirements for certain business closures and mass layoffs in Washington. Here’s what employers need to know. Who’s Covered? Employers with 50 or more employees in Washington, excluding part-time workers – but does not extend to state and local governments or political subdivisions. All Washington employees, including part-time

One now-shuttered digital media startup learned a hard lesson about the importance of complying with the requirements of the federal Worker Adjustment and Retraining Notification Act and its New York state-equivalent. JAF Communications Inc., operating as The Messenger, agreed to pay $4.5 million to class members for failing to provide advance notice of their mass layoff before the company shut down Jan. 31, 2024. The parties’ joint motion for settlement approval is pending in the U.S. District Court in New York. The

Three years after Maryland’s Paid Family and Medical Leave Insurance Program (FAMLI) was established by the Time to Care Act of 2022 (TCA), the General Assembly on Monday passed House Bill 102, which delays certain dates related to annual reporting and the implementation of the program. Gov. Wes Moore is expected to sign the bill into law in the coming weeks. The bill would delay when employers and employees must begin submitting contributions for the funding of the program and when

Companies have always faced the potential for a visit from an agent from U.S. Immigration and Customs Enforcement (ICE) but President Donald Trump’s heightened focus on immigration increases the likelihood of that reality. Over the past month, the Trump administration has issued new policies that alter previous guidelines for how ICE agents may act in the line of duty. Of course, a visit from an ICE agent, like contact with any law enforcement officer, may prompt nervous or inappropriate reactions that

The acting general counsel for the National Labor Relations Board on Friday rescinded numerous general counsel memoranda on key Biden-era policies and priorities issued by his predecessor. William Cowan’s memorandum indicates the first significant shift in labor policy priorities under the Trump Administration, previewing fewer restrictions on employers in the next four years. Although GC memos are non-binding, they provide enforcement guidance for NLRB Regional Offices and inform unions and employers of recent developments in board law and policy. New Priorities Impact

President Donald Trump last week removed National Labor Relations Board member Gwynne A. Wilcox and terminated the board’s general counsel, Jennifer Abruzzo. The president then fired acting General Counsel Jessica Rutter on Feb. 1, replacing her with William Cowan. Although the termination of the general counsel was expected and consistent with actions taken by prior presidents, Wilcox’s removal was the first time a president has removed a sitting board member and potentially sets up a legal battle over the president’s

President Donald Trump signed a number of executive orders in his first week in office with broad implications for federal agencies, contractors and, potentially, private employers. Executive orders only apply to federal agencies and their employees and do not impose requirements on private employers. But private employers should be aware of these issues and prepare for potential impacts on their organizations. Order on Gender Identity and Expression Trump signed an executive order Jan. 20, titled “Defending Women From Gender Ideology Extremism and

The Equal Employment Opportunity Commission (EEOC) recently issued guidance to assist health care providers in addressing their patients’ needs for accommodation under the Pregnant Workers Fairness Act (PWFA). The PWFA requires employers with 15 or more employees to provide reasonable accommodations for employees with known limitations related to or arising out of pregnancy, childbirth and related medical conditions, unless the accommodation will cause the employer an undue hardship. The EEOC’s guidance is intended to aid health care providers in understanding

Employers are breathing a sigh of relief after the U.S. Supreme Court last week unanimously confirmed the application of a “preponderance of the evidence” standard to an employer’s burden of proof when it seeks to establish that an employee is exempt from the minimum wage and overtime pay provisions of the Fair Labor Standards Act (FLSA). How Did We Get Here? The Supreme Court sought to resolve a split among federal circuit courts to determine whether employers need only demonstrate by

The 2nd U.S. Circuit Court of Appeals earlier this month vacated a lower court’s permanent injunction that had prevented the employer notice requirement in New York’s reproductive health bias law from taking effect. The appellate court’s decision in Compass Care v. Hochul means New York employers that have employee handbooks must now include notice of employee’s rights and remedies under the reproductive health bias law in those handbooks. The reproductive health bias law, which took effect in 2020, prohibits employers from

A federal judge in Kentucky on Thursday ruled the 2024 Title IX regulations were “arbitrary and capricious” and in violation of the Administrative Procedures Act (APA). Unlike other courts that had issued injunctions preventing the regulations from being implemented in certain states or by certain schools, this court ordered the rule to be vacated, which means that it now may not be enforced by the Department of Education anywhere in the nation. The 2020 regulations that were in place prior

(The following was originally posted Dec. 7, 2023.) It’s the most wonderful time of the year, full of holiday cheer but, unfortunately for some employers, also legal risks and potential liability. A company’s annual holiday party, gala or event can quickly turn from a celebration into a headache. That’s why now is a good time for employers to ensure they have policies in place on the overconsumption of alcohol and harassment. Additionally, employers should consider their possible exposure and ways to

The National Labor Relations Board held last week that captive audience meetings violate Section 8 of the National Labor Relations Act. A captive audience meeting occurs when an employer requires employees to attend anti-union meetings or face discipline or discharge. The Nov. 13 decision in Amazon.com Services overturns a 1948 decision, with the board unanimously holding that captive audience meetings have a “reasonable tendency” to interfere with employees’ exercise of their rights under Section 7 of the NLRA, which includes the

The weather may be turning colder in Maryland but employers now have new obligations under state law to protect employees against heat hazards. Maryland’s Occupational Safety and Health (MOSH) Division of Labor and Industry recently published its Heat Illness Prevention Standard. It became effective Sept. 30, shortly after the Federal Occupational Safety and Health Administration (OSHA) released a proposed rule for comprehensive heat injury and illness prevention. The Standard differs slightly from OSHA’s proposed rule, specifically for rest periods when

On November 15, 2024, a federal judge vacated and set aside the final rule issued by the Department of Labor (“DOL” or the “Department”), which increased the salary threshold required to classify certain positions as exempt under the white-collar exemptions of the Fair Labor Standards Act (“FLSA”). As a result of the ruling, the $58,656 salary threshold increase set for Jan. 1 will no longer take effect and the prior increase (from $35,568 per year to $43,888 per year) which

Maryland’s Time to Care Act (TTCA), enacted more than two years ago and since amended twice, established a paid family and medical leave insurance (FAMLI) program for Maryland employees. The Maryland Department of Labor’s new FAMLI Division recently issued proposed regulations to implement the program in accordance with the TTCA. Applicable to all employers with at least one Maryland employee, FAMLI will provide eligible employees in Maryland with 12 weeks of paid family and medical “leave and benefits” for certain qualifying

The Maryland Department of Health (MDH) released an updated policy manual at the end of September for the 2025 Conrad 30 Waiver Program application cycle, which opened Oct. 1. Changes include an online-only submission process, flexibility for the three-providers- per-practice-site limitation, and guidance regarding telehealth. The Conrad 30 program is one avenue for an immigrant physician to obtain a waiver of the two-year home residency requirement and help alleviate the physician shortage in the United States. (For an overview of the

A slew of new employment laws take effect Tuesday in Maryland related to job postings, wage statements, discrimination, prevailing wages and workplace fraud, among other topics. Notably, Maryland employers should be apprised of the following: Salary Transparency in Job Postings As discussed in greater depth earlier this year, Maryland employers are now required to include the “wage range” for all open and posted job positions. “Wage range” is defined as the minimum and maximum hourly rate or salary for a position, set

The U.S. District Court for the Northern District of Texas issued its decision Tuesday that the business world had been awaiting with bated breath, striking down the Federal Trade Commission's (FTC) final rule making unlawful virtually all noncompete agreements. Unlike the preliminary injunction granted by the court last month, which was limited only to the parties, the court this week “set aside” the FTC rule, which now may not be enforced by the federal agency anywhere in the nation. The Court’s

We are less than 100 days away from Election Day 2024, so it is critical for employers to ensure that they are following applicable voting leave laws in the states where they have employees. Not all states require employers to provide employees with leave to vote. But several require employers to provide employees with one or more hours of voting leave, and a vast majority of those states require employers to pay employees for that time. Below is a roundup of

As record-high temperatures enveloped most of the U.S. earlier this month, the federal Occupational Safety and Health Administration (OSHA) released a proposed rule for comprehensive heat injury and illness prevention. The proposed rule, “Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings,” was many years in the making and would affect employers throughout the United States. In the interim, OSHA and various state regulators that have not already adopted their own laws are issuing citations under Section 5(a)1

On July 3, 2024, the U.S. District Court for the Northern District of Texas issued a limited stay and preliminary injunction of the Federal Trade Commission's (FTC) final rule making unlawful virtually all non-compete agreements. This is an important decision and a win for business groups seeking to invalidate the rule. However, it does not put an end to the rule, as the court specifically rejected the request by plaintiffs for a nationwide injunction, instead limiting the application of the

Louisiana recently passed new legislation prohibiting employers from including nondisclosure provisions in agreements with employees that prospectively forbid employees from disclosing or discussing certain facts or claims concerning sexual harassment. Specifically, effective August 1, Louisiana employers will be prohibited from including in agreements with employees a “nondisclosure clause,” defined as “an agreement between an employee and employer that prevents, or has the effect of preventing, an employee from disclosing or discussing a hostile work environment, allegations of a hostile work environment,

More than a dozen business groups last month filed a much-anticipated lawsuit seeking to block the U.S. Department of Labor’s (DOL) new final rule that will significantly raise the minimum salary thresholds for exempt employees under the Fair Labor Standards Act (FLSA). The final rule increases the minimum annual salary threshold for exempt executive, administrative, and professional (EAP) employees, as well as outside sales and computer employees from $35,568 per year to $43,888 per year July 1. Then, on Jan. 1,

Under new legislation amending Maryland’s Equal Pay for Equal Work Law, employers in the state will be required, as of Oct. 1, to include certain wage information in both public and internal job postings and advertisements. This includes any solicitation intended to recruit applicants for a specific available position, such as recruitment done directly by an employer or indirectly through a third party. These new disclosure requirements will apply to any position that will be physically performed, at least in

The Supreme Court last month made it easier for employees who are involuntarily transferred from one position to another to pursue employment discrimination claims under Title VII of the Civil Rights Act of 1964. Traditionally, for a transfer to constitute a sufficient change to the terms and conditions of employment to establish a discrimination claim, an employee needs to demonstrate that they were left at a significant disadvantage because of the transfer. In Muldrow v. City of St. Louis, Missouri, the

Miles & Stockbridge attorneys participated today in a call with the U.S. Chamber of Commerce for an update on litigation the Chamber has filed to stay or enjoin the effectiveness of the FTC rule banning almost all employee non-competes. (Click here to read our summary of the rule.) Here are some key takeaways from the call: The Chamber filed a lawsuit in U.S. District Court for the Eastern District of Texas challenging the rule and seeking to stay or enjoin the effectiveness of

Schools that have been anxiously awaiting the U.S. Department of Education’s final regulations enforcing and interpreting Title IX need wait no longer. The department issued final regulations last week that will govern sex discrimination complaints relating to conduct that occurs after Aug. 1, 2024. The new regulations include significant changes from prior Title IX regulations issued in 2020. The final regulations, among other changes, raise the bar for schools’ compliance, change the definition of sexual harassment, expand protections for LGBTQ+ and

As we previously wrote when the Pregnant Workers Fairness Act (PWFA) went into effect in June 2023, the law requires most employers with 15 or more employees to provide “reasonable accommodations” for a qualified employee’s known limitations related to pregnancy, childbirth or related medical conditions unless the accommodation will cause the employer an undue hardship. Last week, the Equal Employment Opportunity Commission (EEOC) issued a Final Rule to implement the PWFA. The Final Rule clarifies that, to be protected under the

The Department of Labor (DOL) on Tuesday increased the salary thresholds for the Fair Labor Standards Act (FLSA) white collar exemptions from overtime pay requirements. On July 1, the minimum annual salary threshold for an exempt employee will be $43,888 ($844 per week), up from $35,568 ($684 per week). This threshold will increase to $58,656 ($1,128 per week) on Jan. 1, 2025. To qualify for the FLSA’s highly compensated employee exemption, employees will now have to earn $132,964 per year

The Federal Trade Commission (FTC) on Tuesday, in a 3-2 vote, approved a final rule banning non-competes in almost all employment contexts. This sweeping rule, while not unexpected, has caused quite a stir among employers and workers alike. Here is what employers need to know. Background The rule, which was first proposed in January, comes on the heels of the Biden administration’s 2021 executive order designed to “promote competition in the American economy, which will lower prices for families, increase wages

Miles & Stockbridge’s Labor, Employment, Benefits & Immigration Practice Group presented its 22nd annual Hot Topics in Employment Law seminar April 11 to clients from throughout Maryland and beyond. Topics covered included diversity, equity and inclusion programs, federal and state leave law updates and myriad employment issues raised on a day-to-day basis with human resources professionals, including disability and religious accommodations in the workplace, the impact of changing cannabis and clean slate laws on employers. Here are some highlights from

A New York law recently went into effect significantly limiting employers’ ability to make inquiries regarding employees’ personal social media accounts. Specifically, the new law makes it unlawful for an employer to request, require or coerce any employee or job applicant to: disclose any username and password, password or other authentication information for accessing a personal account through an electronic device[1]; allow the employer to access the employee's or applicant’s personal account in the presence of the employer; or reproduce pictures, videos or other

A federal judge in Vermont last month ruled a plaintiff’s medical marijuana use was not protected by the Americans with Disabilities Act. In Skoric v. Marble Valley Regional Transit District et al., the plaintiff was fired by his employer for failing a random drug test by testing positive for marijuana despite having a valid, state-issued medical marijuana card and being prescribed medical marijuana to treat his chronic pain and depression. In granting the motion to dismiss, the court considered whether the

New York Gov. Kathy Hochul in December vetoed a bill passed by the New York Legislature that would have prohibited nearly all noncompete agreements in the state regardless of the context, salary level or job function of the employee signing it. The ban would have applied equally to all employees and managers alike, regardless of rank or position.  In particular, the vetoed bill would have barred employers from imposing contract language that prohibits New York employees or other “covered individuals” from

The Department of Homeland Security (DHS) announced Friday key changes to the H-1B lottery for Fiscal Year 2025, including a beneficiary-centric selection process for H–1B registrations; start-date flexibility for certain H–1B cap-subject petitions; and codification of the agency’s ability to deny or revoke H-1B petitions where the underlying registration or petition contained a false attestation or was otherwise invalid. The United States Citizenship and Immigration Services (USCIS) is authorized to grant up to 85,000 H-1B cap-subject petitions per fiscal year, of

The Department of Homeland Security published a final rule Jan. 31 adjusting the filing fees for applications for immigration benefits submitted to U.S. Citizenship and Immigration Services (USCIS). For most application types — and particularly for most employment-based requests — the fees will increase, in some cases substantially. The new fees will go into effect on April 1 unless implementation is delayed or otherwise impacted due to legal challenges. Notable Changes The most notable changes in the fee structure for common employment-based

The National Labor Relations Board (NLRB) is chipping away at employment agreements and other restrictive covenants one clause at a time. In a recent memorandum, the General Counsel said she believes restricting employees from holding outside or secondary employment violates federal labor law, and she intends to urge the NLRB’s Democratic-appointee-controlled Board to reach the same conclusion. The General Counsel was providing a regional office advice about the lawfulness of various provisions in a company’s employment agreement when she took issue with