The Federal Trade Commission (FTC) has just issued a Non-Compete Clause Rule banning all Non-Competes. 

This Final Rule provides that it is an unfair method of competition for persons to, among other things, enter into non-compete clauses. While this Final Rule does not include a salary threshold, it does allow for non-competes when a business is sold, and also allows existing non-competes to be enforced for senior executives.

So, existing non-competes for workers, who are not senior executives, are no longer enforceable (retroactively undoing contracts). Is that a violation of due process / impermissible taking for employers? Are constitutional challenges next?  

Yet, the most interesting paragraph of the Final Rule reads:

Non-solicitation agreements are generally not non-compete clauses under the final rule because, while they restrict who a worker may contact after they leave their job, they do not by their terms or necessarily in their effect prevent a worker from seeking or accepting other work or starting a business. However, non-solicitation agreements can satisfy the definition of non-compete clause in § 910.1 where they function to prevent a worker from seeking or accepting other work or starting a business after their employment ends. Whether a non-solicitation agreement—or a no-hire agreement or a no-business agreement, both of which were referenced by commenters, as discussed previously—meets this threshold is a fact-specific inquiry. The Commission further notes that—like all the restrictive employment agreements described in this Part III.D—non-solicitation agreements, no-hire, and no-business agreements are subject to section 5’s prohibition of unfair methods of competition, irrespective of whether they are covered by the final rule. 

Moving forward, non-competes are mostly gone, but non-solicitation agreements, no-hire, and no-business agreements are clearly also on the chopping block where the utilization of each could easily result in protected litigation as to whether they are covered by the Final Rule or generally by section 5's prohibition of unfair methods of competition.

You can read the FTC's press release here.

You can read the Final Non-Compete Clause Rule here.  

On May 25, 2022, the NYS Division of Human Rights proposed 9 NYCRR 466.16, which will require any entity that administers any public housing program or assistance to provide a detailed notice of rights from source of income discrimination. The enabling statute, Executive Law 170-e, explains that an entity that administers includes "any state, county, municipal or other governmental entity. . . or any agency or instrumentality of such an entity, and any public or private non-profit entity authorized to administer any public housing program or assistance."

Specifically, "[t]he notice is to advise individuals of their right to nondiscrimination based on lawful source of income in housing pursuant to Human Rights Law section 296.2-a (publicly-assisted housing) or Human Rights Law section 296.5 (private housing)" pursuant to the regulation. 

The notice must be provided as follows:

• Current recipients must receive notice within 30 days after the effective date of the regulation;
• Future recipients must receive notice "upon notification such individual qualifies for the voucher or assistance"; 
• "In writing, and in 14 point... font";
• Electronically is permissible by a link to the notice; &
• On all websites administered by the entity. 

KNOW YOUR LEGAL RIGHTS AS A RECIPIENT OF HOUSING ASSISTANCE

By law, you are protected from housing discrimination.

On March 11, 2021, the NYS Board of Real Estate continued its mission of optimizing the regulation of real estate brokers in our state by holding its meeting. 

To remind real estate brokers and salespersons, the public is welcome at these meetings where the public can bring comments from the floor. Its encouraged that Lieb School students attend these meetings to have your voices heard.

"[T]he Board has general authority to promulgate rules and regulations affecting real estate brokers and salespersons in order to administer and effectuate the purposes of Article 12-A of the Real Property Law."

A complete video of the meeting is available on youtube.

In summary, the following was discussed:

• 5 hearings that have been held by the DOS and 10 others that scheduled as a result of the Newsday Long Island Divided expose;
• Brokerages compliance with the Executive Orders about essential workers and safety in light of COVID;
• Communication with Complainants and Respondents about outcomes of Administrative cases; 
• Current real estate licensee numbers for February 2020 and February 2021 were provided in a report;
• 27 Schools have submitted course applications for the 2.5 hours of business ethics topic (Lieb School is one of these schools);
• 23 Schools have submitted course applications for the 1 hour of recent legal matters topic (Lieb School is one of these schools);
• 2020 Exam Results:
• Salesperson = 17,643 applicants with a pass rate of 59%
• Broker = 1,464 applicants with a pass rate of 65%
• Executive Order Updates:
• Extension of the Licenses continued through March 28, 2021
• Electronic Notarization of Documents continued through March 28, 2021

The US Department of Transportation just added a new wrinkle into your post-pandemic travel plans if you have an emotional support animal. According to new regulations, effective January 11, 2021, carriers can consider emotional support animals to be pets and therefore, make no special accommodations for you even if you are emotionally disabled and need such emotional support animal to function. This is a particularly troublesome decision by the US Government for veterans suffering from PTSD and autistic individuals who both often need emotional support animals to function. 

The new regulations also have enhanced rules for disabled passengers with service animals. A service animal is now defined as a "dog, regardless of breed or type, that is individually trained to do work or perform tasks for the benefit of a qualified individual with a disability, including a physical, sensory, psychiatric, intellectual, or other mental disability." As a result, if you have a service monkey or peacock, too bad - these animals don't count anymore. Previously, they did as per the Department of Transportation's website and pursuant to a 2008 regulation (14 CFR 382.117).  

Even if your service animal is a dog, there are other rules that you still need to know. The Department of Transportation is created a form that can be required for travelers requesting an accommodation. This form requires that you certify that your animal is trained, has good behavior, and good health. Additionally, the form can be required up to 48 hours before flights or at the departure gate for animals that will be transported in the cabin. Finally, the regulations allow carriers to require service animals to be harnessed, leashed, or otherwise tethered while onboard. 

It is imperative that airlines train their teams about these new regulations and travelers are immediately noticed about their lessoned rights and heightened obligations.