On April 4, 2022, the U.S. Court of Appeals for the Eighth Circuit joined the Ninth Circuit in holding that a plaintiff lacked Article III standing to prosecute her statutory claims under the Fair Credit Reporting Act (FCRA) in federal court. The Eighth Circuit’s opinion in Schumacher v. SC Data Center, Inc. deepens the split between the circuit courts on standing and increases the chances that the U.S. Supreme Court eventually will have to weigh in on the issue again.

Background: Spokeo and Ramirez

On March 14, 2024, the Massachusetts House of Representatives passed legislation that would add a new provision to the Massachusetts Consumer Protection law and would bar the use of true credit reports for employment purposes, i.e., for the purpose of evaluating an individual for employment, promotion, reassignment, or retention as an employee.  The legislation, entitled An Act Reducing Barriers to Employment Through Credit Discrimination (H.1434), is expected to be adopted by the Massachusetts Senate and promptly signed into law by Governor Maura Healy.  Once adopted, th

Employers with operations in California are all too familiar with how state and local officials continue to restrict the access employers have to public records, including criminal history information.¹ For example, lengthy delays in completing standard criminal background checks are now routine in California.² Apart from criminal background checks, many employers rely on motor vehicle record checks (MVRs) to vet candidates for positions that require driving as part of the job.  In Doe v. California Dept.

The federal Internal Revenue Service (IRS) has announced that certain employers can claim federal tax credits when employees use emergency paid leave to accompany an individual to obtain a COVID-19 vaccination and/or to care for an individual recovering from an injury, disability, illness, or condition related to the vaccine.

On January 14, 2022, the Puerto Rico Department of the Treasury issued Internal Revenue Circular Letter No. 22-01 (CL IR 22-01) announcing the applicable 2022 limits for Puerto Rico qualified retirement plans.

On June 30, 2022, the governor of Puerto Rico signed into law Act No. 52 (Act 52-2022), which amended the concept of “engaged in trade or business” under the Puerto Rico Internal Revenue Code of 2011, to address the pandemic-related issue of employees working remotely from the Island for “out-of-state” employers with no business nexus to Puerto Rico.

Pursuant to Act 52-2022, for taxable years commencing after December 31, 2021, businesses with employees working remotely from Puerto Rico will not be deemed “engaged in trade or business,” provided the following conditions are met:

On September 17, 2022, Puerto Rico Governor Hon. Pedro Pierluisi issued Executive Order No. OE-2022-045, declaring a state of emergency due to the passing of Hurricane Fiona through the Island. Likewise, on September 21, 2022, President Joseph Biden authorized a disaster declaration for Puerto Rico, opening up additional relief and assistance for Puerto Rico's recovery process after the devastation left by the hurricane.

On December 14, 2022, the U.S. Department of Labor (DOL) and the Internal Revenue Service (IRS) signed and published a Memorandum of Understanding for Employment Tax Referrals (the “MOU”). The MOU establishes a system for referrals from the DOL’s Wage & Hour Division (WHD) to the Small Business/Self Employed Specialty Employment Tax unit (“SB/SE”).

The Puerto Rico Department of the Treasury recently issued Internal Revenue Circular Letter No. 23-01 (CL IR 23-01) announcing the applicable 2023 limits for Puerto Rico qualified retirement plans.

The U.S. Department of the Treasury has released a document to explain the revenue proposals included in President Biden’s FY 2023 proposed Budget.

In an opinion issued on June 20, 2023, the United States Court of Federal Claims reminded taxpayers that they must obtain a certificate of coverage in order to claim an exemption from Social Security and Medicare taxes (FICA) under a totalization agreement.

On July 1, 2023, after a long delay, mandatory withholdings for the WA Cares Fund finally took effect. The WA Cares Fund is a state-run, long-term-care insurance program requiring employers to pay premiums through a mandatory payroll deduction from all employees who have not provided proof of an exemption.

Three new rules will take effect this year that alter the overtime wages subject to Alabama withholding tax and employers’ requirements in reporting those newly exempt wages. On October 31, 2023, the Alabama Department of Revenue’s Income Tax Administration issued three final rules that take effect December 3, 2023, and will cover all tax years beginning after December 31, 2023, and ending prior to June 30, 2025.  Notably, the entirety of overtime wages paid to full-time hourly employees will be excluded from Alabama withholding tax.

Janell Ahnert and Tucker Crain discuss new rules in Alabama that change the overtime pay exemption calculation and impart new reporting requirements on Alabama employers through at least June 30, 2025.

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In Escano v. Innovative Financial Partners, LLC,¹ a magistrate judge held that the defendants’ decision to withhold funds from a payment required under a settlement agreement when the plaintiff refused to provide a Form W-9 did not violate the agreement.

On January 31, 2024, the Puerto Rico Department of the Treasury issued Internal Revenue Circular Letter No. 24-01 (CL IR 24-01) announcing the applicable 2024 limits for Puerto Rico qualified retirement plans.

Sarah Bryan Fask says a decision clarifying when employers can exit union-brokered pension plans “potentially opens up the floodgates for a lot of employer uncertainty.”

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James A. Paretti Jr. and Melissa McDonagh offer insights into the implications of the court’s rejection of the Federal Trade Commission’s (FTC) proposed nationwide ban on noncompete agreements.

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Bradford Kelley and Mike Paglialonga explain the basics of wage and hour laws and why it’s critical for business owners to ensure their business complies with federal, state and local laws and regulations.

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Bradford J. Kelley and Maria Malaver-Reyes discuss how Loper Bright will impact federal and state administration of AI statutes, regulations and guidance.

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To support personnel transitioning from the military to the civilian workforce, the U.S. Department of Defense (DOD) in 2011 instituted the SkillBridge internship program, which provides service members with valuable civilian work experience through unpaid internships during their last 180 days of service, while the military continues to pay their wages and full benefits.

Bradford Kelley says the U.S. still lacks comprehensive AI legislation, but C-suite executives are taking note of a sharp rise in regulatory activity to address AI use in the workplace.

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Bradford J. Kelley and James A. McGehee discuss mandates for employers involved in the SkillBridge internship program, which provides military members with civilian work experience.

Westlaw Today

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Employers concerned about the risks and expenses associated with employment litigation have increasingly required their employees to agree to arbitration in the event of a dispute.  Even upon the issuance of the arbitrator’s final decision, however, a court’s intervention may still be necessary.  At the very least, the court can actually enforce an arbitration award, whereas the arbitrator cannot.  Moreover, the losing party in the arbitration may seek to vacate the arbitrator’s decision on limited grounds, or seek further review of the district court’s decision by filing an appeal with th

Robert F. Millman has been representing employers in collective bargaining and regulatory
proceedings with unions for 46 years. Daily Journal talks about a few of his big wins.

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In Aponte Valentín v. Pfizer Pharmaceuticals, CC-2018-748,¹ the Puerto Rico Supreme Court reinforced the strong public policy favoring arbitration agreements in Puerto Rico, validating continued employment as implicit consent for such agreements.

Rhonda B. Levy and Douglas Sanderson examine Northern Regional Health Authority v. Horrocks, in which the Supreme Court of Canada decided that in Manitoba, human rights disputes arising from the interpretation, application or alleged violation of a collective agreement fall within the exclusive jurisdiction of a labour arbitrator.

Human Resources Director Canada

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Update: This bill was signed into law on March 3, 2022.

Since late fall 2021, we have seen a steady flow of arbitration awards emerge in Ontario and British Columbia that consider issues relating to mandatory COVID-19 vaccination policies in the unionized workplace. In this Insight, we provide an overview of key trends in these awards.

Rhonda B. Levy and Barry Kuretzky provide an overview of key trends in arbitration awards in Ontario and British Columbia since fall 2021 that have considered issues relating to mandatory COVID-19 vaccination policies in the unionized workplace.

Human Resources Director Canada

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The United States Supreme Court’s decision in Viking River Cruises v. Moriana will dramatically impact employers’ rights to enforce arbitration agreements related to claims under California’s Private Attorneys General Act (PAGA).¹  This decision, which is a significant win for employers with interests in California, will allow employers to compel arbitration of a PAGA plaintiff’s individual PAGA claims.

On July 8, 2022, in Gist v. ZoAn Management, Inc., the Oregon Supreme Court affirmed the decisions of the trial court and court of appeals granting the defendants’ motion to compel arbitration.  The court concluded that because nothing in the arbitration agreement prohibited the plaintiff from being awarded any relief he might be entitled to under Oregon’s wage and hour statutes, the arbitration provision was not unconscionable and therefore enforceable.

Background

Christine Sargent writes about an Oregon Supreme Court case that affirmed the importance of implementing enforceable arbitration agreements.

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Jim Paretti says several new bipartisan laws focused on issues women experience in the workplace may move employers to work on preventing instances that would violate the new measures.

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On June 28, 2023, the California Second District Court of Appeal issued a decision interpreting the scope of California Code of Civil Procedure section 1281.98(a)(1), a recently amended California statute that requires employers to pay all arbitration costs and fees within 30 days of the due date, or risk being in material breach of the arbitration agreement.  In Cvejic v. Skyview Capital, the court held that an arbitrator cannot cure a missed or late arbitration fee payment.

On April 12, 2024, the U.S. Supreme Court addressed whether the Federal Arbitration Act’s (FAA) transportation exemption—meaning the FAA would not apply—only relates to workers within the transportation industry. In Bissonnette v. LePage Bakeries Park St., LLC,¹ the Supreme Court unanimously held Section 1 of the FAA exempts classes of workers who are actively engaged in interstate transportation, even if the individuals are not employed by a company in the transportation industry (the “Transportation Exemption”).

Two days before the United States Supreme Court ruled in Bissonnette v. LePage Bakeries Park St., LLC,¹ that the Federal Arbitration Act’s (FAA) transportation worker exemption (meaning the FAA would not apply) extends beyond the transportation industry, the U.S. Court of Appeals for the Ninth Circuit addressed whether the exemption applies to “contracts of employment” between business entities. In Fli-Lo Falcon, LLC v.

On May 3, Governor Ron DeSantis signed into law SB 2006 (codified as Section 381.00316, Florida Statutes).  The law prevents business entities from requiring that patrons or customers provide documentation certifying COVID-19 vaccination or post-infection recovery to enter or obtain service from a business in Florida. It also prohibits educational institutions from requiring students or residents, and governmental entities from requiring persons, to provide vaccination passports or proof of post-infection recovery.

On July 22, 2021 the Puerto Rico Department of Health (PRDOH) issued Administrative Order No. 2021-509 (AO) providing that, in order to physically attend school, post-school educational institutions, or universities, personnel and students age 12 and older must be vaccinated against COVID-19. According to the PRDOH, the vaccination requirement for in-person school attendance will play an essential role in controlling the pandemic and providing a safer educational environment for students.

On August 2, 2021, Denver, Colorado Mayor Michael B. Hancock announced that all city employees, as well as private-sector workers in certain “high-risk” settings, must be fully vaccinated against COVID-19 by September 30, 2021. After September 30, unvaccinated individuals covered by this mandate will not be permitted to work onsite or in the field. In order to meet this September 30 deadline, employees covered by this requirement must receive their final doses of the vaccine by September 15.

Who is Affected by the Vaccine Mandate?

David Gartenberg and Danielle Van Katwyk examine a new vaccine mandate in Denver and explain what it means for Colorado employers.

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Puerto Rico Governor Pedro R. Pierluisi recently issued back-to-back executive orders (EO) regarding COVID-19. It appears that the third EO was stuck in holiday traffic. This latest EO, like her sisters, amends November’s EO-2021-075 to curtail COVID-19 infections.

Anabel Rodríguez-Alonso and José L. Maymí-González examine Puerto Rico’s new back-to-back executive orders regarding COVID-19.

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In the midst of declining infection rates and increasing debate over mask and vaccine mandates, on February 7, 2022, Sangamon County Circuit Court Judge Raylene DeWitte Grischow temporarily enjoined COVID-19 mitigation measure mandates that had been imposed by order of Governor Pritzker and related administrative agency rules, affecting nearly 170 school districts. Echoing the concern expressed by the Eleventh Circuit, in its December 2021 Georgia v.

The National Institutes of Health (NIH) requires recipient institutions—i.e., any entity receiving funding from the NIH—to have policies that foster a harassment-free environment.