By Bradley Hunt, Attorney at Law
The law is an interesting – and ever-changing – field. There have been some recent, notable challenges in the area of employment law. As we expect many of these rulings to be challenged or overturned, we recommend checking for updates before making decisions based on this article!
- The law around non-compete agreements was to have changed effective September 2024, with the majority of non-competes becoming unenforceable. This is now up in the air, so non-compete agreements may still be enforceable, depending on state law and how they are written. That said, we encourage employers to look at other options to protect their businesses. A specific non-disclosure agreement or confidentiality agreement may be an option that is easier to enforce.
- On March 14, 2025, President Trump rescinded an Executive Order that had gone into effect on 1/1/25 increasing the federal hourly minimum wage businesses had to pay under federal contracts or sub-contracts to $17.75 for both tipped and non-tipped workers. There is now some question about whether federal contractors must pay the most recent hourly wage of $13.30 an hour or the general $7.25/hr. minimum wage. If this applies to your business, you may wish to pay the higher wage to be on the safe side or consult an attorney on this subject.
- If your employees are required to agree to arbitration as part of their employment agreement, then they leave your employment but are re-hired at a future date, you should have them re-sign the employment agreement. In certain cases, the prior arbitration agreement has been found to have ended with the employee’s first termination date.
- Cybersecurity and data privacy – including employee monitoring – is an up-and-coming issue. Depending on where you are located, the law may require you to disclose that you are monitoring your employees. North Carolina law assumes employees do not have an expectation of privacy using company email or equipment. If you have remote employees or operate in several states, check the laws in each location. In any event, it can benefit employers to be up-front with this type of disclosure.
While laws frequently change, we are in a period of rapid turmoil where it can be hard for employers to keep up with the latest changes. Contact our office if you would like to schedule an appointment with an employment law attorney.