Peacock Keller, LLP in News

As we celebrate the 100th anniversary of Peacock Keller, LLP, we reflect on a legacy of client satisfaction, legal expertise, and community involvement that has shaped our firm and our region. Founded in 1925 by Ralph W. Peacock, a Washington County native and graduate of Muskingum College and the University of Pittsburgh School of Law, our firm has evolved from a local practice to a regional powerhouse.

Ralph W. Peacock, a general practitioner with expertise in trial and office practice, became a recognized leader in business, corporate, and mineral law. His innovative approach to legal practice, which included the introduction of dictating equipment, electric typewriters, and copying machines, positioned the firm for success. Throughout his career, he also made significant contributions to Pennsylvania's legal community, including his pioneering work for the Public Utility Commission and his extensive representation of the Commonwealth of Pennsylvania in condemnation matters.

In 1950, Charles C. Keller joined the firm, beginning a partnership that would define the next era of growth. Alongside Davis G. Yohe, the firm expanded in both reputation and reach. Keller became one of the region's most prominent litigators, while Yohe earned national recognition as an authority on mineral law and eminent domain. The firm was renamed Peacock, Keller & Yohe in 1956 and continued its expansion with new partners and associates.

Peacock Keller continued to grow throughout the late 20th century, adding attorneys with diverse professional backgrounds, including former law clerks, military officers, and large-firm lawyers. This expansion allowed the firm to develop specialized expertise in areas such as energy law, employment law, business law, school law, estates and trusts, and construction law.

In 1981, Mary Gail Korsmeyer became the firm’s first female partner, a milestone that reflected the firm’s commitment to diversity and leadership. Since then, many attorneys have followed, with notable contributions in leadership roles within professional organizations, including the Pennsylvania Bar Association and the American College of Trial Lawyers.

Peacock Keller's attorneys have long been leaders in both the legal profession and the communities we serve. Our firm has been actively involved in local organizations such as the Washington County Chamber of Commerce, the Washington County Community Foundation, and Rotary International. Through initiatives like the "Off-the-Shelf" benefit event, Peacock Keller has raised tens of thousands of dollars for local libraries, further cementing our commitment to community service.

From a single office in Washington, PA, to a modern regional practice with offices in Southpointe and Waynesburg, Peacock Keller’s 100-year history is marked by innovation, excellence, and an unwavering commitment to our clients and community. We are proud of our past and excited for the future as we continue to provide exceptional legal services to clients across Southwestern Pennsylvania and beyond.

Here’s to the next century of service, leadership, and success.

Can you please put a pop up on our website for our Thanksgiving hours?

Wednesday 11/27- 8:00am- 2:00pm

Thursday 11/28- Closed

Friday 11/29- Closed

By Robert A. Vernon, Esq. 

There was big news last week out of two federal rulemaking bodies that will have a substantial impact on how businesses operate.  

On Tuesday, April 23, 2024, the Federal Trade Commission voted to finalize a Rule prohibiting companies from entering into non-compete agreements with their employees and from enforcing existing agreements with most employees.  This Rule will go into effect 120 days after its final publication, likely in the coming months.

The same day, the Department of Labor’s Wage and Hour Division revised its rules regarding the Fair Labor Standards Act’s definition of “Salary-Exempt” employees, increasing the minimum salary for employees exempted from federal overtime pay requirements to $43,888 per year ($844 per week) effective July 1, 2024, and again to $58,656 per year ($1,128 per week) effective January 1, 2025.

FTC Prohibition of Non-Compete Agreements

The new Federal Trade Commission Final Rule bans employers from entering into any new non-compete agreements with all “workers,” which includes employees, independent contractors, interns, volunteers, and apprentices (among others).  The Rule further requires that existing non-competes with most workers are unenforceable after the Rule takes effect.  

Non-compete agreements are defined by the FTC to include not only explicit agreements prohibiting an employee from working for a competitor or operating their own business in competition with a prior employer after the conclusion of employment, but to also include agreements that financially penalize an employee for competing with their former employer, such as agreements requiring an employee to forfeit deferred compensation or bonuses or to pay a penalty.  The FTC has also stated that it will closely analyze other agreements, such as non-disclosure, confidentiality, trade-secret, and non-solicitation agreements to determine whether those agreements are so broad or encompassing that they have the same effect as a non-compete.  Employers should carefully review the terms of any of these agreements currently being used to ensure that they are narrow enough in scope to not fall under the prohibitions of the new Rule.

The FTC has carved out limited exceptions to the Rule:

• Existing non-compete agreements with senior executives of a company may continue to be enforced after the Rule takes effect.  The FTC defines a senior executive as an employee with “policy making authority” for the entire business whose total compensation is at least $151,464 per year, excluding fringe benefits.  A “policy making position” is extremely limited under the FTC’s definition to include a company’s president, CEO, or an equivalent position.  New non-compete agreements with senior executives will still be prohibited.  

• A non-compete agreement may be permissible where it is agreed upon in connection with the sale of a business, a worker’s ownership interest in a business, or all or substantially all of a business’s operating assets.  The FTC’s guidance cautions, however, that this exception only applies to the sale of a business in a bona fide arms-length transaction, and that arrangements such as stock buybacks and redemptions or sales between subsidiaries would not qualify for this exception.

The FTC Rule requires employers to provide written notice to each worker that had previously entered into a non-compete clause or agreement that the agreement is no longer enforceable, and that the employer will not attempt to enforce the non-compete agreement against the worker.  The FTC has provided model language, found here, that it considers appropriate notice.  

There is some good news for those employers who are already seeking to enforce a non-compete agreement against a former employee: the new Rule specifically states that actions to enforce an agreement that was violated prior to the Rule’s effective date are excluded from the non-enforcement language.  This means that if a former employee becomes employed by a competitor or otherwise violates an existing non-compete prior to the Rule’s effective date, the employer is permitted to take action to enforce the non-compete and seek damages for the employee’s violation of the agreement.

The FTC Final Rule will go into effect 120 days after its publication in the Federal Register.  The date of publication has not been determined at this time.  

We anticipate substantial litigation on the FTC’s authority to enact and enforce this Rule in the coming months.  Two groups, one led by the United States Chamber of Commerce, have already filed lawsuits seeking Court intervention to declare the Rule in violation of the FTC’s authority under the U.S. Constitution and other federal law and to prevent the FTC from enforcing the Rule.  The attorneys at Peacock Keller, LLP will continue to closely monitor any new developments in these regulations and stand ready to assist you in answering any concerns and developing effective and enforceable agreements and policies in line with these new regulations and other relevant laws.

FLSA Salary Basis Increase for Overtime Exempt Workers

The Fair Labor Standards Act permits employers to employ certain employees on a salary basis, not subject to overtime pay, provided that certain limited exceptions apply.  Most commonly, employees must satisfy certain duties requirements, commonly called the “white collar” overtime exemptions (executive, administrative, professional, computer) and satisfy a minimum salary requirement.  That requirement was last updated in 2020, when it was increased to $684 per week ($35,568 per year).

An employee can also qualify for exempt status as a highly compensated employee if he or she meets a less stringent version of the duties test and earns at least $107,432 per year.

On April 23, 2024, the Wage and Hour Division issued its own Final Rule increasing the minimum salary requirements for the overtime exemption.  Effective July 1, 2024, an exempt employee under the more stringent white-collar exemptions must receive a minimum salary of $844 per week ($42,888 per year).  The minimum salary requirement will again increase on January 1, 2025 to $1,128 per week ($58,656 per year).

An employee classified as exempt under the highly compensated employee classification will see similar increases, to $132,964 per week beginning on July 1, 2024, and to $151,164 per week beginning on January 1, 2025.

The Rule provides for additional increases every three years, beginning July 1, 2027, based on current earnings data.  The Department of Labor will publish any salary basis increase at least 150 days prior to that increase taking effect.

As with the FTC Rule, we are likely to see attempts to block these changes to the FLSA overtime-exempt requirements through the Courts.  The Department of Labor attempted to increase the salary basis requirements in 2016 coupled with automatic increase language similar to this new Rule but was blocked by the Courts.  Ultimately, the Department of Labor rescinded those increases in favor of the more modest salary basis requirements currently in effect.

At this point, employers should prepare for the salary basis increase to take effect in a few short months.  Employers should work with their labor and employment counsel to carefully evaluate the current salaries of their exempt employees.  If any exempt employee falls below the minimum salary requirements, the employer should consider whether it would be better to increase that employee’s salary or re-classify that position as non-exempt and subject to overtime laws.  Employers should act quickly in making this determination, to allow for time to adequately notify affected employees and provide appropriate training on timekeeping and overtime policies.

The attorneys at Peacock Keller are experienced in wage and hour matters and advising employers of all sizes on how to comply with federal and state wage regulations.  We are happy to assist with any questions you may have regarding these rapidly changing regulations.