New York Expands Labor Relations Act to the Private Sector and Immediately Faces Challenges

In response to the prolonged lack of a quorum at the National Labor Relations Board (“NLRB”) and the Supreme Court‘s May 2025 ruling allowing President Trump’s removal of NLRB Chair Gwynne Wilcox to stand (at least for the time being), New York State has enacted legislation, colloquially referred to as the “NLRB Trigger Bill”, to fill the purported gap in protection and enforcement of labor relations laws. The bill, which Governor Hochul signed on September 5, 2025, amends the New York State Labor Relations Act (“NYSLRA”) by expanding its applicability to private sector employees covered by the National Labor Relations Act (“NLRA”) - employees who were previously explicitly excluded from NYSLRA coverage.

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Kate TownleyNlrb, Labor
FTC Noncompete Rule Abandoned, But Noncompetes Still Under Scrutiny

The FTC and various states have continued to evolve their approach to assessing enforceability of noncompete clauses.  In light of recent and potential changes, it is critical for employers to remain vigilant on how they draft noncompete and other restrictive covenants agreements with employees, and to examine existing agreements for compliance. This alert summarizes some of the key recent takeaways in this area.

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Department of Justice Issues Guidance on DEI for Recipients of Federal Funding

Aligning with the Trump administration’s recent series of Executive Orders targeting Diversity, Equity, and Inclusion, the Department of Justice recently released a memorandum entitled “Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination.” While the guidance is not binding, it is illustrative of the DOJ’s approach to enforcing federal antidiscrimination laws.  Employers that receive federal funding should pay particular attention to the guidance, though the guidance document is of note to all employers. The guidance provides a non-exhaustive list of practices that the DOJ views as potentially unlawful, and further details some “best practices” for employers to consider implementing to ensure compliance with federal anti-discrimination laws.

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DOJ Announces Civil Rights Fraud Initiative for Investigating DEI Programs of Federal Contractors and Grantees

The U.S. Department of Justice (“DOJ”) recently announced the creation of the Civil Rights Fraud Initiative (the “Initiative”). The Initiative will use the False Claims Act (“FCA”) to investigate and pursue claims against any recipient of federal funds that “knowingly violates federal civil rights laws,” with a particular emphasis on bringing claims against entities engaging in diversity, equity, and inclusion (“DEI”) practices that may violate federal anti-discrimination laws. This stems from an early Trump Administration Executive Order, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” (the “Executive Order”), which first linked violations of federal anti-discrimination laws with potential enforcement under the FCA.

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