A tale of two approaches to noncompete agreements

Big news on noncompetes—from two very different directions.

First, the NLRB just quietly backed off its aggressive stance that most noncompetes violate federal labor law. The agency's Acting General Counsel rescinded 2023's memo that took that position, signaling a retreat from treating noncompetes as an unfair labor practice.

Meanwhile, Ohio lawmakers are headed in the opposite direction. Last month, they introduced SB 11, a bipartisan bill that would ban nearly all noncompetes in the state. If it passes, it'll be a game-changer, giving employees much more freedom to jump to competitors.

EEOC moves to dismiss transgender-discrimination lawsuits

"EEOC seeks to drop race discrimination cases brought on behalf of Black workers, citing Trump's executive order."

This is not a real headline.

But this is: "EEOC seeks to drop transgender discrimination cases, citing Trump's executive order."

What makes an accommodation "reasonable"?

Let's talk about Nguyen v. Bessent and the IRS's year-long effort to accommodate an employee with medical limitations.

Thuy-Ai Nguyen, an IT specialist at the IRS, requested multiple accommodations related to her severe depression, anxiety, and cognitive impairment. Her requests? A transfer to a different division, formal training, a part-time schedule, and the ability to work from home or transfer to a location with a shorter commute.

The IRS partially granted her requests: It offered her a new assignment with different immediate supervisors, on-the-job training, and a six-month part-time schedule. But it denied her telework request, arguing that in-person training was necessary. They also searched for positions closer to her home but found no vacancies.

Nguyen rejected the offer, arguing it wasn't a "reasonable" accommodation because her higher-level manager remained the same and she still had to commute to the same location.

The court disagreed.

WIRTW #747: the 'tariffs' edition

The Trump administration just announced new tariffs on aluminum and steel. That might not sound like a big deal to most, but for small businesses—including my beloved craft breweries—25% is a gut punch.

The craft beer industry is already struggling post-Covid. Breweries took on debt to survive the shutdowns, taproom traffic isn't what it used to be as many consumers shy away from alcohol, and supply-chain costs have been unpredictable and high. Now, just as many are trying to regain their footing, they get hit with another hurdle.

Most craft breweries package their beer in aluminum cans. If the cost of aluminum goes up because of tariffs, so does the cost of packaging. And it's not just cans, brewing equipment is made of steel. Fermenters, brite tanks, brewhouses, kegs, construction materials—all of it. So, breweries that want to replace aging equipment, expand, or just keep up with demand are looking at higher costs across the board.

And let's be clear: These costs don't just disappear. Breweries will have to pass them down to consumers. That means your favorite local beer is about to get more expensive. Meanwhile, the biggest players—macro-breweries with deep pockets—can absorb these price increases far more easily than your neighborhood local. This isn't just an economic issue; it's a competition killer.

Tariffs like these don't "protect American businesses." They protect big business at the expense of the little guys who drive innovation, create jobs, and bring character to our communities. If we want to support small businesses, we should be fighting against policies that make it harder for them to compete.

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Here's what I read this week that you should read, too.

The attack on DEI does not mean employers must or should eliminate anti-harassment training

Even as some push back forcefully against DEI workplace initiatives, courts are pushing back even harder. Consider these excerpts from Diemert v. City of Seattle, in which a federal judge dismissed the claims of a white man who alleged that his employer's mandatory DEI training created a racially hostile work environment.

Protecting the rule of law

"Judges aren't allowed to control the executive's legitimate power." — Vice President JD Vance

We need to talk about the rule of law—because it's under serious attack.

How to respond to the Justice Department's DEI hitlist

"The Department of Justice's Civil Rights Division will investigate, eliminate, and penalize illegal DEI and DEIA preferences, mandates, policies, programs, and activities in the private sector." 

 

That's the key sentence from a Feb. 5, 2025, memo that Attorney General Pam Bondi sent to all DOJ employees.

What does it mean? No one really knows. What we do know is that diversity, equity, inclusion, and accessibility are top priorities for this administration. The key question is how the administration defines "illegal."

Here's what we can infer so far: