The final rule issued by the U.S. Department of Labor (DOL) intends to clarify the standard for determining whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA).
The legislation would have banned the use of noncompete agreements and potentially other forms of employment contracts in the Empire State.
This week, the National Labor Relations Board (NLRB) issued an interpretative memorandum asserting that many non-compete agreements interfere with employees rights.
In its submitted comments, the Big “I” stated that its “members have significant interest in the proposed regulation and worry the proposal will threaten the competitiveness, viability, and value of their businesses.”
The proposed new rule would prohibit the use of noncompete agreements and would apply to employees, independent contractors, interns, volunteers, apprentices, and other types of workers.
House Republicans’ letter states that the FTC is exceeding its delegated authority and lacks congressional authority in federal statute to initiate this type of rulemaking.
The current 60-day comment period is a remarkably short window for the business community to assess the sweeping effects of the startling proposal to ban noncompete agreements.
The rule would apply to employees, independent contractors, interns, volunteers, apprentices, and other types of workers.
