Effective October 1, 2021, the New Jersey Division of Taxation (the “NJDT”) ended the temporary relief period with regard to employers’ obligation to withhold income taxes for teleworking employees who work in New Jersey.¹  Employers must therefore stop basing their obligation to withhold and remit income taxes on the employer’s jurisdiction, and instead should do so based on where the employee’s service or employment is performed. If that location is New Jersey, employers should withhold New Jersey taxes from such wages.

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.

In Mexico, the fiscal authority has dramatically strengthened all the strategies that allow for better control and collection of employment taxes, and Jorge Sales Boyoli explains what that means for employers.

Forbes Mexico

View

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:

Dear Littler: Considering the recent passage of the federal Speak Out Act limiting the use of pre-dispute nondisclosure and non-disparagement clauses involving sexual assault and sexual harassment claims, what impact will this have on our template releases, separation agreements, and litigation settlement agreements? How do you recommend we revise those documents?

                                         —Revising Releases

Dear Revising,

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.

Dear Littler,

We are a small company based in Milwaukee, Wisconsin that allowed some of our employees to work remotely during the pandemic. When we recently announced our plans to call employees back to home base in Milwaukee, we received feedback that some employees did not plan to come back—they want to continue working remotely. We anticipated this, and we’re working with them to navigate their individual situations, but we were surprised to learn that some of our employees have actually relocated to different states!

All Canadian employers other than those in Quebec¹ are required to:

• Deduct Canada Pension Plan (CPP) contributions from their employees’ pensionable earnings if the employee meets certain conditions;
• Contribute an amount equal to the CPP contributions that were deducted; and
• Remit both amounts.

These obligations end when the employee reaches the maximum contribution for the year.

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.

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.

Thomson Reuters

View

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.

International Employment Lawyer

View (Subscription required)

Kerry E. Notestine, Chad J. Kaldor, Shawn Matthew Clark and Garrick D. Josephs compare and contrast the Maryland WARN Act and its federal counterpart, the Worker Adjustment and Retraining Notification (WARN) Act.

SHRM

View (Subscription required)

Adam Joshua Fiss and Sebastian Chilco discuss a new California law that will eliminate employers’ ability to require employees to use up to two weeks of company-provided vacation before they start receiving paid family leave benefits.

SHRM

View (Subscription required)

Kerry Notestine, Chad Kaldor, Shawn Matthew Clark and Garrick Josephs discuss the Maryland WARN Act and compares and contrasts it with its federal counterpart, the Worker Adjustment and Retraining Notification (WARN) Act.

Wolters Kluwer

View (Subscription required)

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

Over the years, attempts to arbitrate breach of fiduciary duty claims under the Employee Retirement Income Security Act (ERISA) Section 502(a)(2) have had varying results.¹  One court recently recognized that “whether any benefits plan may agree to submit to arbitration and/or whether an individual employment agreement may compel claims on behalf of a benefits plan to proceed to arbitration are not issues of clearly settled law.”²  This issue is before two circuit courts of appeal this year.  So far, the court rulings in the cases seem to provide some guidance while a

Pamela Reynolds’ article discusses whether employers can enforce arbitration of breach of fiduciary duty claims under the Employee Retirement Income Security Act (ERISA) Section 502(a)(2).

Benefits Pro

View (Subscription required.)

Libby Henninger weighs in on several wage and hour bills that will be prevalent in the next six months.

Law360 Employment Authority

View (Subscription required.)

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.

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.

SHRM Online

View (Subscription required.)

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.

Bloomberg Law

View (Subscription required.) 

Angel Valverde presents issues for development of international arbitration in the U.S., as there are no visas that specifically allow a foreign national to be employed as an arbitrator, attorney or expert witness in an arbitration proceeding.

International Law Quarterly

View

Rhonda B. Levy and Barry Kuretzky discuss a case in which an arbitrator issued the first award in Ontario to address and uphold the reasonableness of a hospital vaccination policy that allows employers to terminate employees for non-compliance.

Human Resources Director Canada

View (Subscription required.)

Traditionally, January 1 has been the key date for which employers must prepare to implement new labor and employment compliance obligations for new laws passed within the previous year.  For the past several years, we have reported on employment and labor laws taking effect mid-year. Increasingly, new compliance challenges are not taking a summer vacation.

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.

Alexander MacDonald discusses a case in which the ACLU, sharp critic of arbitration, is arguing that individual arbitration plays a “fundamental role” in protecting labor rights.

The Federalist Society

View

William H. Foster and Katie E. Towery examine the impact President Biden’s “America’s Jobs Plan” might have on South Carolina’s growing businesses and workforce. 

Association of Corporate Counsel South Carolina

View 

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.

The National Collegiate Athletic Association (NCAA) recently issued new guidance regarding name, image, and likeness (NIL) endorsement deals with college athletes. The NCAA’s most recent guidance aims to provide clarity on NIL rules and is important for all businesses entering NIL deals with collegiate athletes, as well as colleges and universities subject to NCAA rules.   

The NCAA’s Past Guidance

In a joint “Dear Colleague” letter (DCL) released May 19, 2023, the U.S. Department of Education’s Office of Civil Rights teamed up with the U.S.

PORTLAND, Maine (May 24, 2023) – Littler, the world’s largest employment and labor law practice representing management, has added James Thelen as of counsel in its Portland, Maine office. Prior to joining Littler, Thelen was a higher education consultant, as well as general counsel and chief legal officer at the University of Maine System, a statewide system of seven public universities. While there, he also served as vice chancellor for strategic initiatives and chief of staff.

Tyler A. Sims disagrees with a National Labor Relations Board (NLRB) regional director’s ruling that men’s college basketball players at Dartmouth College are employees for National Labor Relations Act (NLRA) purposes.

SHRM Online

View (Subscription required.)

On April 29, 2024, The Honourable Marc Miller, Minister of Immigration, Refugees and Citizenship, announced that effective the fall semester 2024, international students holding a valid study permit will be permitted to work up to 24 hours per week off campus during the school term. The current policy permits international students to work up to only 20 hours per week off campus during the school term.

This change is designed to not only help students gain work experience and offset expenses, but also to address ongoing Canadian labour shortage needs.

In R. v. Greater Sudbury (City), 2024 ONSC 3959, the Ontario Superior Court of Justice (OSCJ) dismissed an appeal of the trial judge’s decision in which she acquitted the City of Sudbury (City) of various charges under the Occupational Health and Safety Act (OHSA).