On August 23, 2024, in Restaurant Law Center v. U.S. Department of Labor, the U.S. Court of Appeals for the Fifth Circuit vacated the U.S. Department of Labor’s so-called “80/20/30 Rule” that governed how tipped employees must be paid under the Fair Labor Standards Act (FLSA). The Fifth Circuit found the Rule was inconsistent with the text of the FLSA, and was arbitrary and capricious. 

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.

David Jordan discusses the framework of the 80/20 tip-credit rule and its current impact on employers after the Fifth Circuit’s recent decision leaves a version of the rule up for questioning.

Bloomberg Law

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This Littler Lightbulb highlights some of the more significant employment law developments in federal courts of appeal in the last month.

Fifth Circuit Vacates DOL Tip Credit Rule

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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Dan Boatright discusses the Fifth Circuit Court of Appeal’s decision to strike down the 80/20 labor rule and what that decision means for employers. 

Nation’s Restaurant News

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Sarah Bryan Fask says the dispute over retired miners’ health benefits is notable because the decision "could impact whether unions could try to use a dispute resolution procedure within a collective bargaining agreement as a venue to dispute anticipated post-collective bargaining agreement changes."

Law360 

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Raoul Parekh talks about current workplace issues reflected in Littler’s 2023 European Employer Survey Report, including remote work and a four-day work week.

Law360

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In France, profit-sharing is the new black. After years of statutory value-sharing bonuses (starting in 2018) and the introduction of compulsory profit-sharing schemes in companies with at least 50 employees (since 2020), the government encouraged trade unions to finalize a national and intersectoral collective bargaining agreement (CBA) on the subject of profit-sharing. This led to a CBA signed in February 2023. The new Profit-Sharing Act of November 19, 2023 transposes this CBA into law and adds some new provisions.

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.

Sarah Bryan Fask says a long-awaited final rule from the Pension Benefit Guaranty Corp. describing interest rate assumption requirements for employers who pull out of multiemployer pension plans would be “very significant.”

Law360

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Mark Callaghan says the new UK government should increase Statutory Paternity Pay “in excess of inflation,” because it would benefit businesses and families alike.

People Management

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Mikayla Almeida, Kimberly Doud and Anne Sanchez LaWer explain to employers about how implementing benefits related to women’s health and fertility could reduce turnover and retain talent.

ACC Central Florida

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Anne C. Sanchez and Briana M. Swift explain what employers need to know about the San Francisco Health Care Security Ordinance (HCSO), a local ordinance that requires employers to make certain healthcare expenditures on behalf of their San Francisco-based employees.

SHRM

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Ellen Donovan McCann says post-employment benefits are often the first to be amended when businesses experience budget challenges, but employers may have to take more care in changing them if SCOTUS decides that former employees can sue over those benefits.

SHRM

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Erin Webber explains how a remote environment requires more leadership responsibility, skills and choices.

The American Lawyer

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Largely overshadowed by the rise in COVID-19 deaths and the January 6, 2021, siege on the Capitol, the Criminal Antitrust Anti-Retaliation Act of 2019 (“the Act”) became law on December 23, 2020. See 15 U.S.C. § 7a-3. The Act, which Senator Chuck Grassley sponsored, prohibits employers from retaliating against individuals who report criminal antitrust violations to their employer or the federal government, or who participate in a federal governmental criminal antitrust investigation or proceeding.  

Background

Joon Hwang advises employers to review and scope the terms of their restrictive covenants and confidentiality agreements to ensure they are well defined to meet their business interests.

Pit & Quarry

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Natasha Adom discusses proposals from the FCA, PRA and Bank of England that would require financial services firms to provide more detailed monitoring and report of diversity and inclusion. 

IFA Magazine

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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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Compliance or internal audit departments frequently carry out audits intended to assure that business partners in an organization, such as human resources or legal departments, have in place policies and procedures that are effective for maintaining corporate compliance and consistent with the myriad laws with which the organization must comply, including employment, whistleblower, and anti-bribery and corruption.  These reviews are often not confined to policies but may also seek review of actual compliance events and sensitive contemporaneous records.  For example, in the case of an inte

Kyle Roseman and Lori Alexander examine a new law in Connecticut, Public Act 21-69, which bans employers from inquiring into the ages of prospective employees "on an initial employment application."

SHRM Online

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Raoul Parekh and Natasha Adom write in support of updating laws to help give employers more freedom to create the real change that so many want and promote more diversity and equality in workplaces.

The Law Society Gazette

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Kimberly J. Dowd, Chelsea Lewis and Kameron Miller explain the meaning of “allyship” and how it can be applied in the workplace. 

ACC North Florida

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On December 23, 2021, President Joe Biden signed into law the Uyghur Forced Labor Prevention Act (the “Act”),¹ which bars the importation into the United States of products made from forced labor in the Xinjiang region of China.  This Act will significantly impact many multinational employers’ supply chains because raw materials from this region – such as cotton, coal, chemicals, sugar, tomatoes and polysilicon (a component in solar panels) – have found their way into many global supply chains.  Indeed, these materials arrive on U.S.

On April 1, 2022, a Los Angeles County Superior Court ruled that California Assembly Bill 979—a bill designed to increase diversity and improve the persistently low number of underrepresented groups on corporate boards—violated the Equal Protection Clause of the California Constitution and was therefore unenforceable. In its ruling, the court acknowledged the pitfalls of homogeneity in business and communities, but it cautioned against quotas and specific number requirements.

Miguel Arberas explains that those who lie about their training and training to get a job can be dismissed even if there is no damage. 

EL PAÍS

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On June 1, 2023, in United States ex rel.

In 2017, companies in Brazil welcomed changes to its labor code that introduced the option for securing enforceable releases to employment law claims. The changes to the labor code included allowing parties to seek a ratification of a private settlement with the labor courts. The rationale behind the new law was to permit parties to settle matters in an amicable way, thereby reducing judicial disputes.

On September 18, 2024, Canada announced that it would impose new language and field of study eligibility requirements on its Post-Graduation Work Permit (PGWP) Program.

This Littler Lightbulb highlights some of the more significant employment law developments in federal courts of appeal in the last month.

Fourth Circuit Rejects ADA Claim of Employee Who Tested Positive for Illegal Drugs to Treat Anxiety and Muscle Spasms

The Euless, Texas Fair Overtime and Scheduling Standards Ordinance that imposed predictive scheduling obligations on covered employers is no more.   

The Unusual Origin of the Ordinance 

The latest binge watch for many of us at GQ|Littler was the Netflix hit, “America’s Sweethearts: Dallas Cowboys Cheerleaders,” which follows a year in the life of NFL’s Dallas Cowboys cheerleading team.

Attorneys Sarah Coats, Carly Compton, Christina Cordoza, Chris Johlie and Mark Flores share more about the nonpartisan election activities they have assisted with on a pro bono basis with Pro Bono Committee Member Breanne Martell.

As part of the annual National Celebration of Pro Bono hosted by the American Bar Association, Littler is highlighting various pro bono efforts from around the firm. Our attorneys and professional staff demonstrate their commitment to pro bono by providing significant efforts to organizations in their communities.
   

On June 29, 2024, Governor Newsom signed into law an amendment to California Code 1770, clarifying the scope of SB 478. Under SB 478 and previously published guidance from the attorney general, California restaurants were effectively prohibited from charging service fees or other surcharges, which many restaurants have implemented to offset rising costs, unless the amount of the service fee was specifically identified as part of the listed prices.

Marshall v. Mercantile Exchange Corporation, 2024 CanLII 71128  (ONSC), is an action for wrongful dismissal where the employee claimed he could not mitigate his damages by seeking alternative employment indefinitely because of a mental health condition (i.e., stress and depression) allegedly arising out of his termination. He claimed a 26-month notice period. The employer sought an independent medical examination (IME) of the employee pursuant to s.

European companies are navigating a variety of social and equality-related issues impacting their workplaces and, according to Littler’s second annual European Employer Survey, are increasingly channeling their concerns into concrete actions.

The novel coronavirus (COVID-19) has created a host of challenges for employers while accelerating fundamental shifts already underway in the workplace. As the pandemic’s many lasting implications for the workplace and the way we work begin to emerge, Littler surveyed more than 900 employers, based in North America and with operations around the world, on their concerns and the actions they have taken in response.

With stay-at-home orders across the country being lifted, employers are navigating a host of legal and operational issues in bringing employees back to the workplace in the wake of COVID-19.

In Littler’s survey of more than 1,000 in-house counsel, HR professionals and C-suite executives, we gathered insights about when employers will reopen their workplaces (if at all), how they plan on doing so safely, what accommodations they will make for remote work, and their top liability concerns.