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FTC Noncompete Ban Struck Down Nationwide

On August 20, 2024, a federal judge struck down the Federal Trade Commission (FTC) rule that banned virtually all noncompete clauses. The rule, slated to apply as of September 4, 2024, will not take effect.

The U.S. District Court for the Northern District of Texas concluded that the FTC exceeded its authority when it issued the rule and that the rule itself was overbroad because it applied to all noncompete clauses rather than targeting those that were harmful.

Resourcing Edge will continue to monitor the situation and communicate updates if they develop.

Enforcement of DOL’s 80/20/30 Tip Credit Rule is Blocked

The Fifth Circuit Court of Appeals struck down the Department of Labor’s (DOL) final rule regarding the so-called 80/20/30 Tip Credit Rule. This rule that sought to revise how tipped employees must be paid under the Fair Labor Standards Act (FLSA) and, accordingly, how employers could use the tip credit toward their minimum wage obligation under the FLSA. Please note that this decision only dealt with the federal government’s treatment of the tip credit, not those imposed under state law, which may prohibit the use of the tip credit altogether. See Rest. Law Ctr. v. U.S. Dept. of Labor, No. 23-50562 (5th Cir. Aug. 23, 2024).

Resourcing Edge will communicate any guidance as it is released by the DOL.

USCIS Extends Form I-9 Expiration Date

U.S. Citizenship and Immigration Services (USCIS) has extended the expiration date of the current Form I-9 (Rev. 08/01/23) to May 31, 2027.

Employers that use the Form I-9 with the expiration date of July 31, 2026, can continue using it until that date. Effective July 31, 2026, only Form I-9 (Rev. 08/01/23), with the expiration date of May 31, 2027, will be accepted.

Form I-9 and instructions with the updated expiration date:

HR Consulting Team, HR Services
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