This week, we’re highlighting two landmark decisions the courts have handed down concerning the U.S. Department of Labor (DOL) and Federal Trade Commission (FTC).

Federal Appeals Court Vacates DOL’s 80/20/30 Rule Regarding Tipped Employees

On August 23, 2024, the U.S. Court of Appeals for the Fifth Circuit vacated the DOL’s controversial “80/20/30” rule, offering a significant reprieve for businesses with tipped employees by aligning wage practices with federal law. This case reshapes the landscape for employers and has implications for future compliance. Learn more about the appeals court decision nullifying the DOL’s tip credit rule.

Texas Court Shoots Down FTC Non-Compete Ban Nationwide

In a pivotal decision on August 20, the U.S. District Court for the Northern District of Texas nullified the FTC's nationwide non-compete ban, finding that the rule exceeded the agency's authority and lacked necessary justification. With ongoing appeals and potential state-level legislative shifts on the horizon, businesses should stay informed about the evolving landscape of non-compete agreements. Learn more about the federal court decision overruling the FTC’s non-compete ban.