An effective way to increase diversity hiring is to require diverse candidate slates for interviewing. Such slates include at least two diverse or women candidates in the pool of finalists. Employers should take heed, however, because there are limits to which a recruiter or a staffing agency can go in building such a slate. Alyesha Dotson discusses the avenues to intentionally recruit for diversity in a fair and smart manner to avoid violating antidiscrimination laws.
  

A properly structured and implemented Affinity Group (AKA Employee Resource Group) is a powerful tool in an employer’s Diversity Equity & Inclusion tool belt. But, unwary employers may risk violating the National Labor Relations Act if they bargain with an Affinity Group. In this month’s podcast, Alyesha Asghar Dotson discusses the do’s and don’ts of interacting with an active Affinity Group within your organization.
  

Watershed events in recent years like the resurgence of Black Lives Matter and #MeToo have galvanized organizations to step up their commitments in the Diversity, Equity and Inclusion space to gauge the “cultural temperature.” The persisting pandemic has raised the stakes. Accordingly, many companies seeking a roadmap for these efforts increasingly want to begin their journey with a snapshot of who’s in the mix and how they are feeling. Enter the “Diversity Questionnaire.”

Littler Principal Cindy-Ann Thomas and her guest, Littler Shareholder Alyesha Dotson:

Jim Paretti shares his opinion on the EEOC’s response to COVID-19 vaccine incentives.

Law360 Employment Authority

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(June 3, 2021) – Littler, the world’s largest employment and labor law practice representing management, has selected Shareholder Jeremy Hawpe (Dallas) as co-chair of its Pride affinity group, joining Shareholder Lauren Schwartzreich (Denver), and succeeding Shareholder Darren Gibson (Austin) who is stepping down to focus on his growing and active practice.

As the current economic crisis escalates and governmental plans to provide billions of dollars to intervene in the capital markets take shape, financial institutions and other businesses are being forced to restructure their operations through merger, acquisition or reductions in force. The tough economic climate will also, no doubt, lead companies to reassess their benefit plans and executive compensation packages. However, employers must evaluate their own responses to these developments to ensure that they are complying with legal requirements and proceeding cautiously.

"How Obama's Cap on Exec Salaries Could Cause as Many Problems as it Solves," The National Law Journal

The Securities and Exchange Commission (SEC) released proposed rules on March 2, 2011, in connection with provisions of the Dodd-Frank Act that prohibit "covered financial institutions" from providing incentive-based compensation that encourages inappropriate risks, by providing either excessive compensation or incentives that could lead to material financial loss to the institution.

Section 162(m) of the Internal Revenue Code (the "Code") generally limits the deductibility of compensation paid by a publicly traded corporation to its top executive officers (the "covered employees") to $1 million annually (the "Million Dollar Cap"). However, this limit will not apply to certain amounts that qualify as "performance-based compensation." Compensation attributable to stock options, stock appreciation rights ("SARs") and restricted stock grants may qualify as performance-based compensation if they meet certain requirements.

The Virginia Supreme Court has spoken again on the calculation of damages in a complex employment contract case. In Online Resources Corp. v. Lawlor, No. 120208 (Va. Jan. 10, 2013), the court addressed the expert qualifications required for the valuation of equity following the termination of the chairman and chief executive officer (CEO) ("executive") of a publicly-traded company, as well as the applicability of Delaware Corporations Law to related change in control (CIC) provisions. 

Background

In a reassuring decision for employers, the UK High Court has confirmed that an employer’s use of a contractual provision to claw back an employee’s bonus was lawful. The ruling in Steel v Spencer Road LLP provides helpful guidance on the circumstances in which a bonus clawback will not constitute a restraint of trade, though employers should be mindful that not all such provisions will be enforceable.

Laura Jousselin, Raoul Parekh and Stephan Swinkels discuss how European employers are responding to workplace changes, including AI and remote workplace demands from employees.

International Employment Lawyer

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In the Chancellor of the Exchequer’s Autumn Statement, Jeremy Hunt promised that “the government will expand the business Visitor rules to allow businesspeople to engage in a wider range of permitted activities and paid engagements, to take effect from January 2024. The government will also explore further reforms to the business visitor rules during 2024.”

The first of these changes took effect from January 31, 2024. They were not a major reform of the business and other permitted activities that can be carried out on a visit visa, but there are some important changes.

The Department of Homeland Security (DHS) announced that the agency will establish a new process to consider, on a case-by-case basis, requests from eligible noncitizen spouses of U.S. citizens for parole-in-place status.  Parole-in-place allows noncitizens who entered the United States without the authorization of an immigration officer to remain in the United States for a certain period.  If paroled, eligible noncitizen spouses will be able to apply for permanent residence without having to leave the United States to be processed for an Immigrant Visa at a U.S.

On June 20, 2024, USCIS extended the validity of certain work permits issued to Temporary Protected Status (TPS) beneficiaries under the TPS designations for El Salvador, Honduras, Nepal, Nicaragua, and Sudan. All impacted beneficiaries will receive Form I-797, Notice of Action, notifying them of the extension of their Employment Authorization Documents (EADs or “work permits”) through March 9, 2025.

On August 9, 2024, Illinois Governor JB Pritzker signed Senate Bill 0508 (“SB0508”) into law. This new law provides additional employment protections for individuals flagged by an employment eligibility verification system, including federal E-Verify, as having identification discrepancies. The new rights and protections created by SB0508 will take effect on January 1, 2025. This evaluation does not address whether the state law directly restricts or curtails the use of E Verify.

Deepti Orekondy and Jorge R. Lopez discuss the new rights and protections provided under lllinois’ new Senate Bill 0508, which provides additional employment protections for individuals flagged by an employment eligibility verification system.

SHRM

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Jeff Nowak and Rich Falcone talk through a hypothetical HR dilemma involving a workplace complaint.

SHRM Online

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Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

Download full Q2 2023 Global Guide Quarterly

Deadline for the Implementation of the Whistleblowing Reporting System

New Legislation Enacted

Authors: Sonia Cortés, Partner, and Isabel Herrero, Attorney-at-Law – Abdón Pedrajas | Littler

A recent District of Columbia federal court ruling reminds employers that a severance agreement containing a release of claims under the False Claims Act does not guarantee dismissal of a suit on those grounds.

Background on the FCA

UPDATE: This law took effect on February 8, 2024.

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Dear Littler,

On February 14, 2023, OFCCP announced that it was again extending the deadline for employers to file objections to the disclosure of their EEO-1 data in response to a FOIA request from the Center for Investigative Reporting. The deadline for submitting objections is now March 3, 2023. 

Last week the Equal Employment Opportunity Commission revealed that the 2022 EEO-1 reporting deadline is again being postponed.  Reporting, which was expected to begin in July, is now “tentatively” scheduled to open in the fall of 2023.  The change was referenced in brief notices on an EEOC webpage and the EEO-1 website.

According to the EEO-1 website:

On August 24, 2023, the Office of Management and Budget approved a request from the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) to revise the “Itemized Listing” that OFCCP uses to collect information from federal contractors that are selected for supply or service audits. Among the changes that have been approved is a new requirement that audited contractors:

Littler Women's Leadership Initiative co-chair Margaret Parnell Hogan, interviews fellow Littler attorney Dionysia L. Johnson-Massie, about how respecting women in the workplace helps recruit and retain crucial talent, among other IE&D efforts.
  

On March 29, 2024, the Office of Management and Budget (OMB) published revisions to Statistical Policy Directive No. 15: Standards for Maintaining, Collecting, and Presenting Federal Data on Race and Ethnicity (SPD 15). These changes will impact how companies collect the race and ethnicity data for their federal reporting. 

Ben Sandahl discusses a Minnesota case that raises several issues for companies working with independent contractors.

Westlaw Today

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The Connecticut Supreme Court recently adopted the U.S. Supreme Court's relatively narrow definition of “supervisor” for use in determining when employers are liable under the Connecticut Fair Employment Practices Act (CFEPA) for creating or failing to remedy a hostile work environment. The decision provides employers with clarity as the term is not defined by the CFEPA.

In July, the Third Circuit upheld a District of New Jersey decision to throw out a withdrawal liability assessment, finding the multiemployer pension fund was barred from pursuing its claim because the fund unreasonably delayed notification of a withdrawal liability assessment for 12 years.

Withdrawal Liability Assessments Under ERISA

On August 22, 2024, the U.S. Court of Appeals for the Ninth Circuit issued its decision in Synoracki v. Alaska Airlines, Inc., reviving a class action under the Uniformed Services Employment and Reemployment Rights Act (USERRA).¹ The case was brought by pilots who served in the Air Force Reserves who were seeking from their civilian employer sick leave and vacation accruals during periods of military leave.

Alexander MacDonald discusses the filing of an amicus brief with the U.S. Supreme Court asking the court to clarify a prior 1984 decision which, if successful, could weaken a new form of “exclusive representation” for unions.

Labor Union News (Podcast)

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In the wake of the Supreme Court’s Loper decision, Jamie Spataro says existing regulations and standards that went through extensive rulemaking are ripe for being challenged.

Business Insurance

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Ellen Donovan McCann, Alice Kokodis and Jim Paretti explain the Massachusetts Department of Family and Medical Leave’s new, more employer-friendly guidance.

SHRM Online

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As Washington, D.C., prepares to join a growing group of state and local jurisdictions requiring pay transparency in job postings and recruiting practices, Joy Rosenquist comments on how the D.C. law is different. 

WorldatWork

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In November 2023, soon after Illinois Governor JB Pritzker signed amendments to the Illinois Day and Temporary Labor Services Act (the “Act”), several staffing agencies and associations sued for an injunction against enforcement of certain provisions of the Act.  In Staffing Services Association of Illinois v. Flanagan, Case No. 23-CV-16208, these parties claimed that Sections 11, 42, and 67 of the Act were preempted by the National Labor Relations Act (NLRA), the Employee Retirement Income Security Act of 1974 (ERISA) and the due process clauses of the U.S.

Oregon’s Paid Family and Medical Leave Insurance Program (“Paid Leave Oregon”) generally provides eligible employees with up to 12 weeks of paid time off for leave that qualifies as family, medical, or safe leave. Since Paid Leave Oregon took effect on September 3, 2023, employees have been stacking Paid Leave Oregon leave benefits and Oregon Family Leave Act (OFLA) leave benefits, leaving employers frustrated with staffing shortages.

Jeanine Conley Daves and Alexa Laborda Nelson explain how employers can take steps to ensure they are in compliance with the recent COVID-19 relief plans and avoid potential whistleblower litigation.

Chief Executive

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Philip Berkowitz weighs in on the Anti-Money Laundering Act’s whistleblower protections that took effect this year.

SHRM Online

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Natasha Adom discusses measures FCA, PRA and BoE regulators are considering to improve diversity and inclusion in the financial services sector. 

Investment Week

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Michael Lotito and Bruce Sarchet share their thoughts on SB 93, a new California law that requires some employers in the hospitality industry to prioritize recalling workers who were laid off due to COVID-19.

SHRM Online

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