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California Supreme Court Rules that Trial Courts Lack Inherent Authority to Strike PAGA Claims on Manageability Grounds

  • California Supreme Court held that trial courts lack inherent authority to strike (dismiss with prejudice) claims under the PAGA.
  • Class action manageability requirement cannot be superimposed onto PAGA claims.
  • The Court did not decide whether an employer may strike an unmanageable PAGA claim on the ground that the claim violates an employer’s due process rights.




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House Hearing Highlights Real Estate Contractor Question

Jim Paretti explains his view about the independent contractor rule that applies to real estate agents, and how it’s reviving an ongoing debate weeks before the regulation is set to take effect.

Law360 Employment Authority

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Originalism, Social Contract, and Labor Rights: What the Reawakening of Natural Law Means for Exclusive Union Representation

Alex MacDonald explains why natural labor law and principles may soon return to center stage in the legal world. 

North Dakota Law Review

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Back to the Future? UK Government Consults on the Potential Reintroduction of Tribunal Fees

At the end of January 2024, the UK Government set out a surprise proposal to introduce a £55 fee for individuals to bring proceedings in the Employment Tribunals (ET) and Employment Appeal Tribunal (EAT).




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2nd Circ. Fortifies Employer Defenses Against Attacks On DEI

After a recent Second Circuit decision curbed an ideological organization's ability to bring a case against a DEI program without proving someone had actually been harmed, Cindy-Ann L. Thomas said other courts will take note of the standing rationale.

Law360 Employment Authority

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DOL's Final Rule on Independent Contractor Classification Likely Is Not the Final Word

Andrea M. Kirshenbaum and Jennifer N. Capozzola dive into the U.S. DOL’s final rule (2024 IC Rule) for analyzing whether a worker should be classified as an employee or independent contractor under the FLSA and the lawsuits and challenges that remain in its path. 

The Legal Intelligencer

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Ontario, Canada’s Divisional Court Confirms Unionized Workplaces May Pursue Human Rights Claims Before Labour Arbitrator or Human Rights Tribunal




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Supreme Court makes it easier to file workplace discrimination claims

Alyesha Asghar said the Supreme Court’s decision in Muldrow v. St. Louis, which will make it easier for employees to pursue discrimination claims over job transfers, does not mean an end to IE&D.

The Washington Post

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New York City Bans Contractual Provisions Shortening Period of Time to File Complaints or Civil Actions Relating to Discrimination, Harassment or Violence

Effective May 11, 2024, New York City now prohibits employers from entering into any type of agreement that shortens the statutory period by which an employee may file an administrative claim or complaint, or civil action, relating to unlawful discriminatory practices, harassment or violence under the New York City Human Rights Law, Admin. Code § 8-101, et seq. (NYCHRL).




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Minimum Salaries and the Evolving Workforce: Why the DOL’s New Automatic Salary Updates Clash With Legal Precedent and Economic Facts

Alexander MacDonald says overtime exemptions are about to get more expensive as the salary necessary to qualify for the FLSA’s “white collar” exemptions will rise in July and again in January 2025.

The Federalist Society




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Judge Dismisses Former UberBlack Drivers' Employment Dispute Following Second Hung Jury

Robert W. Pritchard comments on the dismissal of a longstanding dispute between Uber and its former drivers.

The Legal Intelligencer

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BIPA claim accrual changes signed into law

Orly Henry discusses BIPA reform and applying the law to pending cases.

Chicago Daily Law Bulletin

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Illinois Extends Statute of Limitations for Filing Discrimination Claims Under Illinois Human Rights Act, Adds Protected Classes, and Clarifies AI Use in Employment Decisions

Last week, Governor JB Pritzker signed into law several bills that significantly amend the Illinois Human Rights Act (IHRA). As a result of these amendments, Illinois employers should expect an uptick in discrimination cases proceeding through state courts and agencies.

Longer Statute of Limitations Period




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How CEOs Can Address Politics In The Workplace Ahead Of The 2024 Election

Bradford J. Kelley and Michael J. Lotito discuss key steps to consider when business leaders work with their teams and HR departments to develop political speech policies and enforcement strategies.

Chief Executive

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The Artificial Intelligence Angle: Loper Bright’s Impact on Federal and State AI Legislation, Regulations, and Guidance

  • The Supreme Court’s decision in Loper Bright may serve to limit federal agencies’ guidance on an employer’s use of AI in the workplace.
  • State and local laws and regulations governing AI, on the other hand, may proliferate.
  • Whether federal agencies will rely on more formal rulemaking processes or on less-formal guidance documents as they respond to Loper Bright remains uncertain.




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DOL Issues Guidance on the American Rescue Plan Act COBRA Subsidy

On March 11, 2021, President Biden signed into law the American Rescue Plan Act (ARPA) that contains a new, temporary COBRA subsidy.




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Philadelphia Hotel, Airport Hospitality, and Event Center Businesses Face Significant New Recall and Retention Obligations

Philadelphia has imposed significant new recall and retention obligations on hotel, airport hospitality, and event center businesses as they struggle to recover in this uncertain COVID-19 economy.  The new obligations are contained in a legislative package, styled as the Black Workers Matter Economic Recovery Package, which became law in Januar




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Radical Expansion of New Jersey WARN Act Nears

Updated June 8, 2021




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IRS Issues Guidance on the American Rescue Plan Act COBRA Subsidy

On March 11, 2021, President Biden signed into law the American Rescue Plan Act (ARPA) that contains a new, temporary COBRA subsidy. The ARPA COBRA subsidy requires employers to cover 100% of an employee’s cost of continuing group health coverage under COBRA from April 1, 2021 through September 30, 2021 for those who lost their health care coverage on account of a reduction of hours or an involuntary termination.




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Total Recall? Key Takeaways on the Nevada Hospitality and Travel Workers Right to Return Act

The Governor of Nevada recently signed into law Senate Bill 386, which is Nevada’s version of the trending “return to work” or “right to recall” laws being passed in other jurisdictions throughout the country in response to the COVID-19 pandemic.  These laws typically require that employees who were laid off due to the pandemic be given priority to be offered their former jobs before external candidates are considered.  Nevada’s law, the Nevada Hospitality and Travel Workers Right to Return Act (“the Act”), does not apply to all businesses, but generally to such businesses that were most a




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Five Key Questions to Formulate a Top-Down Strategy for APAC Layoffs

Isha Malhotra, Trent Sutton and Nancy Zhang offer guidelines for in-house counsel when advising a business on a restructure in APAC.

ACC Docket

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New Jersey Enacts Last-Minute Bill Tying the Hands of Successor Hotels

On January 18, 2022, Governor Philip D. Murphy signed NJ A6246 / S4295, which significantly restricts the business discretion of successor hotels. The New Jersey Senate and General Assembly passed this bill by an overwhelming majority on the final day of the previous legislative session.




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Restructuring Your Workforce in APAC: War Stories from the Trenches




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NLRB Finds Business Closure Illegal But Backs Off Order to Reopen

In RAV Truck & Trailer Repairs, Inc., 372 NLRB No. 25 (Dec. 14, 2022), the National Labor Relations Board (NLRB) issued a supplemental decision in a case that will have implications for employers seeking to close shop, especially those operating in multiple locations.




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UK Government Issues New Draft Code of Practice on Dismissal and Re-engagement

In late January 2023, the UK Government published a draft Code of Practice on Dismissal and Re-engagement. The trigger for the draft Code was the increased attention on the use of dismissal and re-engagement (also known as “fire and rehire”) by employers during the COVID-19 pandemic.




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NLRB Decision Addresses Interaction between Confidentiality and Nondisparagement Provisions in Severance Agreements and Section 7 Rights

  • In McLaren Macomb, the NLRB overturned two decisions that had permitted employers to include confidentiality and nondisparagement provisions in severance agreements.
  • “Mere proffer” of a severance agreement that conditions receipt of benefits on the “forfeiture of statutory rights” violates the NLRA.
  • This Insight includes key takeaways from the Board’s decision and answers to common employer questions.




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Ontario, Canada Introduces Bill 79, Working for Workers Act, 2023 for First Reading

On March 20, 2023, Ontario introduced Bill 79, Working for Workers Act, 2023 for First Reading.




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WARNing: Amendments to the New York WARN Act Regulations are Now in Effect

Compliance with the New York Worker Adjustment and Retraining Notification (NY WARN) Act just got harder (again). On June 21, 2023, the New York Department of Labor’s amendments to the NY WARN regulations took effect and some of the changes are sweeping.

Employer Coverage

Under the amended regulations, the definition of a covered employer is expanded to count not just employees at a single site of employment in the state, but also employees who work remotely but are “based at the employment site.”

New Notice Content Requirements




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Ontario, Canada’s Bill 79, Working for Workers Act, 2023 Is Now in Force

On October 26, 2023, Ontario’s Bill 79, Working for Workers Act, 2023 (Bill 79) received Royal Assent and came into force. The statutes amended by Bill 79 include the Employment Standards Act, 2000 (ESA), the Occupational Health and Safety Act (OHSA) and the Employment Protection for Foreign Nationals Act, 2009 (EPFNA).

ESA Amendments

Bill 79 made the following amendments to the ESA:




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$15 Minimum Wage For State Employees Gaining Traction

As many states are raising the minimum wage for state employees, Shannon Meade explains that minimum wage increases will differ based on where the employees are located.

Law360 Employment Authority

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Employment Law Class Actions in Nevada

Diana Dickinson and Montgomery Paek write about how employers can protect themselves against employment law class actions and discuss a few issues in Nevada that have sparked significant class action litigation and appellate review.

Clark County Bar Association

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"Violates what is most sacred": X-ray of the initiative that allowed banks to charge themselves Chinese wages

Jorge Sales Boyoli weighs in on a reform that was almost passed in Mexico, which “violates the most sacred thing that a worker has: his salary.” 

El Heraldo de Mexico

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PTU goal will be breached

Jorge Sales Boyoli discusses the Participation of Workers in the Utilities (PTU) in Mexico and how it is affecting employers and employees this year.

El Heraldo de Aguascalientes

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Increased Liability for Subcontractor’s Injured Workers

William Foster and Katie Towery share the changes in the legal landscape and how it could result in manufacturers’ increased liability for workplace accidents. 

Industry Today

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As Luxury Starts to Embrace Crypto, Are Crypto Wages Coming Next?

Lee Schreter and Justin Brown suggest four practical recommendations for companies that opt to issue crypto outright in connection with employees’ wages.

The Fashion Law

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Next Up From DOL: Overtime, Independent Contractor Rules

Michael Lotito weighs in on the U.S. Department of Labor's Wage and Hour Division’s key proposals and nominations.

Law360 Employment Authority

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2023 Contractor Pay Reporting on Deck for California Employers

Joy Rosenquist offers employers tips to manage compliance challenges that may arise from California’s new regulations that are designed to increase pay transparency.

WorldatWork

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Maine Legislative Roundup: New Employment Laws Were Enacted This Session

The First Special Session of the 131st Maine Legislature included debate about more than 2,000 bills. Many that were adopted will impact employers in the Pine Tree State. Below is a brief summary of important employment law changes enacted this session. 

An Act to Create the Maine Paid Family and Medical Leave Benefits Program

The budget signed by Maine Governor Janet Mills on July 11, 2023, included funding for one of the broadest and most generous paid family and medical leave programs in the country.




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When stress is an accident at work

Sara Olabarría explains how courts determine whether stress is the cause of a work accident. 

El País

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Puerto Rico Governor Amends Workers’ Compensation Act to Provide Reduction of Employee Premiums for Safe Workplaces

On August 8, 2023, the Governor of Puerto Rico signed into law Act No. 85-2023, effective immediately. The statute amends Puerto Rico’s Workers’ Compensation Act by further incentivizing safe workplaces.




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Massachusetts Revises Its Workers’ Compensation Notice Requirement

Stephen T. Melnick discusses the Massachusetts Department of Industrial Accidents (DIA)’s revised workers’ compensation notice for employees, which Massachusetts employers will start using Sept. 16, 2024.

SHRM

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The Emergency Pension Plan Relief Act Proposes Aid to Struggling Multiemployer Pension Plans

House Education and Labor Chairman Bobby Scott (D-VA) recently introduced legislation that seeks to provide aid to multiemployer pension plans (MEPs) facing insolvency. Entitled the Emergency Pension Plan Relief Act (EPPRA), the bill would fund this aid directly from the U.S. Treasury.




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The Butch Lewis Emergency Pension Plan Relief Act of 2021 Becomes Law

On March 11, 2021, President Biden signed into law the $1.9 trillion American Rescue Plan Act of 2021, which includes the Butch Lewis Emergency Pension Plan Relief Act of 2021.  This law is designed to forestall the insolvency of approximately 100 multiemployer pension plans that were expected to run out of money necessary to pay vested benefits over the next 20 years.  Included among these funds is a particularly large fund that – absent congressional intervention – would have gone insolvent by 2025, leaving millions of retirees without their expected monthly pension. 




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Disability Benefits Policy Language Warrants Arbitrary and Capricious Standard of Review Despite Enactment of Anti-Discretionary Statute

A federal court in New Jersey recently applied the arbitrary and capricious standard of review for a denial of benefits claim despite the enactment of an anti-discretionary statute in Minnesota, which governed the benefit plan policy. Hocheiser v. Liberty Mut. Ins. Co., 2021 U.S. Dist. LEXIS 32154 (D.N.J. Feb. 22, 2021).




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Supreme Court Declines to Hear Appeal in ERISA Class Action Permitting Recalculation of Benefits as Available Relief

The U.S. Supreme Court declined to review the Second Circuit’s decision in Laurent v. PricewaterhouseCoopers LLP, which held that retirees could receive money damages in the form of recalculated benefits in a class action over how the company’s cash balance pension plan calculated lump-sum benefits.




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Supreme Court Sends Case Involving ERISA Breach of Fiduciary Duty Pleading Standard Back to Seventh Circuit for Revised Analysis

On Monday, January 24, 2022, the U.S. Supreme Court issued an opinion in a case of critical interest to employers offering 401(k) or other defined-contribution retirement plans.  In Hughes v. Northwestern University, Case No. 19-1401, the Court voted unanimously to vacate a decision from the U.S. Court of Appeals for the Seventh Circuit, temporarily reinstating allegations by employees of Northwestern University that the fiduciaries of Northwestern’s retirement plans had violated the duty of prudence required by ERISA.




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Second Circuit Finds No Successor Liability for ERISA Withdrawal Where Employer Did Not Acquire Unionized Facility or Employees

On January 27, 2022, in New York State Teamsters Conference Pension and Retirement Fund v. C&S Wholesale Grocers, Inc., the Second Circuit joined the Third, Seventh, and Ninth Circuits in applying the doctrine of successor liability to claims for withdrawal liability under the Employee Retirement Income Security Act (ERISA). The court did not, however, find successor liability in this case because the acquiring company specifically did not acquire the facility or employees that triggered the liability.




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PBGC Issues Proposed Rule on Withdrawal Liability Actuarial Interest Rate Assumptions

On October 14, 2022, the Pension Benefit Guaranty Corporation (PBGC), the federal agency that insures and regulates private-sector defined benefit pension plans under Title IV of the Employee Retirement Income Security Act of 1974 (ERISA), published a proposed rule governing employer withdrawal liability.




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First Circuit Creates New Fiduciary Duty Under ERISA for Insurers Accepting Group Premiums from Employers

  • First Circuit held that an insurer has a fiduciary duty under ERISA to verify individual employee eligibility for group benefit plan coverage at or near the time of enrollment.
  • Insurers can shift the duty of eligibility verification to employers through the plan’s language.




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Update in ERISA Litigation Involving Breaches of Fiduciary Duty Claims

  • Several appellate courts over the past year have applied Supreme Court precedent to determine whether complaints properly allege a breach of fiduciary duty under ERISA to warrant relief.
  • Trends useful for employers defending such lawsuits have emerged.

Lawsuits against employers offering retirement benefit plans have been on the rise.  Recent suits, discussed in this update, have provided some guidance for employers.