During the past 12 months, the Dental Trade Alliance (DTA) has provided member alerts on several important regulatory rules issued by the U.S. Federal Trade Commission (FTC), the U.S. Department of Labor (DOL), and the U.S. Environmental Protection Agency (EPA). Recent events have caused regulatory action in these areas to be delayed by the agency or enjoined by courts.
First, the FTC's new rule on noncompete clauses in employment contracts, originally scheduled for imposition on September 4, 2024, was enjoined nationwide by a Texas federal judge. The FTC's rule prohibited almost all noncompete agreements. Furthermore, it would have required employers to notify current and former employees that any noncompetes they may have been subject to were no longer enforceable.
On its website, the FTC acknowledged it has been stopped from enforcing the new rule, but the agency stated that it will appeal the decision. In the meantime, there is no reason to comply with the FTC's noncompete regulations; however, one should be mindful that many states enforce their own bans on noncompete agreements.
Second, the DOL's modification of its existing salary thresholds for when employees qualify as exempt from overtime pay under the executive, administrative, or professional exemption or the highly qualified compensation employee exemption is being litigated in multiple cases. In one case, a Texas federal judge enjoined the rule's application, albeit only as it applies to the plaintiffs in that case.
These new thresholds went into effect on July 1, 2024, but are set to increase on January 1, 2025. Currently, the thresholds are enforceable against private employers, but expect more court decisions before the January 1, 2025, deadline. One of those decisions could create a national injunction against this rule.
Third, the EPA is delaying implementation of the requirement that manufacturers and importers of PFAS and PFAS-containing articles report data regarding their use, disposal, and hazards to the EPA for the period commencing January 1, 2011. Originally, the reporting period was to commence on November 12, 2024, and end on May 8, 2025. The period will now commence on July 11, 2025, and will end on January 5, 2026.
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