Insights

Washington – January 10, 2022: Crowell & Moring represented the founders of Aerial Armor in the sale of the company to Dedrone Holdings Inc., a leader in smart airport security.

Washington, D.C., May 5, 2016: Crowell & Moring represented OpenText, the largest software company in Canada and a global leader in Enterprise Information Management, in its acquisition of ANXe Business Corp. (ANX). ANX is a leading provider of cloud-based information exchange services to the US Automotive and Healthcare industries.

Washington, D.C. – June 9, 2015: Aquarian Systems, Inc. (Aquarian) and two of its employees have prevailed in a trade secret lawsuit filed against the company by ProLogic Inc. On June 5, ProLogic voluntarily dismissed—without a settlement—the remaining claims in its $25 million suit, which accused Aquarian and two former ProLogic employees who became employees of Aquarian of trade secret misappropriation, tortious interference, and breach of contract. The claims in the complaint centered around the alleged misappropriation of software created by ProLogic and delivered to the U.S. Department of State (DoS), to which DoS had a broad license. Additionally, ProLogic alleged that the defendants tortiously interfered with ProLogic's business expectancy by submitting a proposal for, and winning, a new DoS contract, which was established as a small business set aside for which ProLogic was ineligible. Crowell & Moring represented Aquarian in this matter, as well as the individual defendants after the claims against Aquarian were dismissed on May 6, 2015.

On April 26, 2024, the Department of Labor (“DOL”) published the Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees Rule (“Final Rule”), which will increase the minimum salary thresholds for bona fide executive, administrative, and professional exemptions under the FLSA.  Effective July 1, 2024, the annual salary thresholds for these “white collar” exemptions will increase to $43,888 (from $35,568) and increase again on January 1, 2025 to $58,656 and the threshold for highly-compensated employees will also increase from $107,432 to $132,964.  Effective July 1, 2025, the methodology will change and these thresholds will increase again (to $58,656 and $151,164, respectively).

On January 10, 2024, the U.S. Department of Labor (“DOL”) published its final rule on Employee or Independent Contractor Classification under the Fair Labor Standards Act (“FLSA”). Crowell & Moring previously reported on the proposed rule announced on October 11, 2022. The final rule rescinds the “core factors” independent contractor rule adopted by the Trump administration in 2021 and returns to a “totality of the circumstances” analysis for determining whether a worker is properly classified as an employee or independent contractor. According to the DOL, the new final rule institutes an analysis that better aligns with judicial precedent and the FLSA’s text and purpose. The final rule goes into effect on March 11, 2024.

Effective January 1, 2024, California employees will be entitled to accrue and use more paid sick leave per year.  On October 4, 2023, California Governor Gavin Newsom signed SB 616 into law, which amends the Healthy Workplaces, Healthy Families Act of 2014 (“HWHFA”) and significantly expands paid sick leave requirements for employers in California.  Further, non-construction industry employees covered by a collective bargaining agreement (“CBA”), previously excluded from coverage, will now be entitled to certain benefits and protections under the HWHFA.  The amendment also preempts local ordinances that are contrary to the HWHFA with respect to certain issues, for example, rate and timing of pay, and advance leave and notice.

Please join us for the next edition of Third Thursday – Crowell & Moring's Labor and Employment Update, a webinar series dedicated to helping our clients stay on top of developing law and emerging compliance issues. This month's program covers a difficult wage and hour question. Employers continue to struggle over the definition of what constitutes “compensable work” and the corresponding duty to pay for certain activities performed before and after the normal work day. The Supreme Court’s decision earlier this week to review the Ninth Circuit’s controversial decision in Integrity Staffing Solutions, Inc. v. Busk illustrates the problem. Busk presents the specific question of whether time spent waiting to undergo a security check following work must be compensated. 

Please join us for the next edition of Third Thursday – Crowell & Moring's Labor and Employment Update, a webinar series dedicated to helping our clients stay on top of developing law, emerging compliance issues, and best practices.

Please join us for the next edition of Third Thursday – Crowell & Moring's Wage Hour Update, a webinar series dedicated to providing practical solutions to wage hour problems that continue to vex even the most sophisticated employers.  Our Third Thursday webinars review important developments in wage hour law, and focus on best practices for compliance and strategies for managing and winning complex wage and hour litigation. Our next webinar will take place on Thursday, February 21 at 12:00 p.m. Eastern.

Protecting trade secret, confidential, and non-public information is a key issue for many employers that takes many forms, including physical and electronic security, confidentiality agreements and restrictive covenants with employees, and steps to minimize IP leakage. While many of these measures apply to all employers, government contractors may be subject to certain rules that in some cases broaden, or in other cases restrict the methods through which contractors can protect their trade secrets and confidential information. For instance, there are specific statutory and regulatory mechanisms for contractors to protect against the release of trade secret information, such as through the Procurement Integrity Act and the Freedom of Information Act. Additionally, there may be special trade secret considerations for government contractors that develop intellectual property in whole, or in part, with government funds under a federal contract.