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USA: District Court Holds Overtime Rule Invalid; Is End of Obama-Era Rule Here?

The Department of Labor’s May 2016 Final Rule, which would have more than doubled the minimum salary necessary to satisfy the “executive, administrative or professional” (the “EAP” or “white collar”) overtime exemptions under the Fair Labor Standards Act, is invalid, the U.S. District Court for the Eastern District of Texas has held. State of Nevada v. U.S. Dep’t of Labor, No. 4:16-CV-731, 2017 U.S. Dist. LEXIS 140522 (E.D. Tex. Aug. 31, 2017). This cements the position the court took in granting a preliminary injunction against the DOL last November

USA: EEOC Pay Reporting Obligations Suspended

The U.S. Office of Management and Budget’s Office of Information Regulatory Affairs (OIRA) has directed the Acting Chair of the Equal Employment Opportunity Commission (EEOC) to suspend implementation of the EEOC’s revised EEO-1 report, which included detailed pay reporting obligations. Prior to this directive issued on August 29, 2017, employers were scheduled to make their first pay disclosures under the revised EEO-1 report by March 31, 2018

UK: Restrictive Covenants: Non-compete clause invalid because it extended to minor shareholdings in a competing business

The UK Court of Appeal has decided that a covenant in an employment contract which prevented an employee from competing with the business of the employer for six months after termination was too wide and therefore not enforceable. It was too wide because it effectively prohibited the employee from holding a minor shareholding in a competing business for investment purposes. The case is a reminder to employers to draft restrictive covenants very carefully to avoid them being struck out in restraint of trade. Tillman v Egon Zehnder Ltd

UK: Compensation and Remedies: Calculation of a week’s pay must include employer pension contributions

Departing from long established practice, a UK Court has decided that the calculation of a week’s pay should include employer pension contributions. The case concerned the calculation of the statutory cap for the unfair dismissal compensatory award, and the Court’s decision increases the potential value of the cap (subject to the current overall cap of £80,541). However, the decision is far reaching as it extends to other UK remedies such as compensation for failure to inform and consult on the transfer of a business or change in service provider, and the protective award for failure to inform or consult in large scale (collective) redundancy dismissals. These awards will be relevant to employees who have a “strong connection to Great Britain” but are nevertheless working outside the UK. University of Sunderland v Drossou