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,

LaToi Mayo, Kellan Coffey and Amanda Combs discuss the new Kentucky laws that focus on measures to attract businesses, increase workforce participation and increase economic growth.

The Lane Report

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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.

In March, the UK government announced changes to the tax regime surrounding pensions as part of the annual Budget.

In this piece, we take a deep dive into what these changes are, who they affect, what employers should be doing in response and ask: is this really a big deal?

What is changing?

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.

The IRS recently updated its guidance for completing Form 1099-K, used primarily by “gig” companies providing compensation using payment apps or online marketplaces and for individuals selling goods on online marketplaces such as Etsy. As background, in order to promote greater tax transparency and compliance, in 2008 Congress enacted Internal Revenue Code section 6050W to require that certain “third party network transactions” be reported on the then-new Form 1099-K.

We recently reported on the saga that followed the Constitutional Court's ruling of February 8, 2024 on the conditions for applying the partial exemption from payment of withholding tax for employers organizing shift work (CIR/92, art. 275/5). 

The ruling of February 8, 2024, had given rise to fears among many employers whose successive shifts fluctuate in size that they would simply lose the tax advantage, which can represent a reduction of 10 to 15% in the wage costs associated with shift workers. 

The Massachusetts Department of Family and Medical Leave (Department) just announced the 2025 weekly benefit amount and contribution rates for both employers and employees under the state’s Paid Family and Medical Leave benefit program, which is funded through a payroll tax.

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

Westlaw Today

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Starting in January 2025, California’s Fair Employment & Housing Act (FEHA) will prohibit employers from including a statement in a job advertisement, posting, application, or other material that an applicant must have a driver’s license unless the employer “reasonably” anticipates driving to be an essential job function that cannot be comparably performed by alternative means. The stated purpose of the new FEHA amendment is to help facilitate employment for non-drivers who rely on ride hails, public transportation, biking, and walking as their primary means of transportation.

Adam Fiss and Sebastian Chilco review updates to California’s paid leave law.

Wolters Kluwer

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Michael Lotito offers insight on the Protecting the Right to Organize Act (or PRO Act), which includes a change to a standard known as “joint employer.”

Entrepreneur

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

Law360 Employment Authority

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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.

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

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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.

California’s legislature covered a wide array of labor and employment law topics this legislative session. The laws discussed below were signed into law by Governor Newsom and will become effective on January 1, 2024 unless otherwise noted.  This Insight includes highlights of new laws affecting employers and is not intended to cover every new state and local law that was enacted this session.

Employers should begin reviewing these requirements to help ensure compliance with these new laws. Time to update those Employee Handbooks and train the management team!

Theodora Lee said overall case filings in the San Francisco state trial court have been down significantly compared to pre-pandemic levels, but she’s seeing an uptick in labor and employment law cases.

The Recorder

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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

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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”).

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

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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.

Alyesha Dotson says the Supreme Court’s upcoming decision on whether to overrule a 2003 decision that upheld affirmative action in student admissions won’t set new precedent for employers, but may have repercussions in how diversity, equity and inclusion programming is conducted moving forward.

Law360 Employment Authority

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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.

Jim Thelen says the Supreme Court’s Harvard/UNC decision does not directly impact employment law but may impact the way the public, employees, the judiciary, government agencies and opposition groups looking for ways to legally challenge such programs and evaluate them going forward.

University Business

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Jim Paretti says two U.S. Supreme Court rulings on discrimination law that changed how employers evaluate religious accommodation requests and ended affirmative action in higher education will affect employers for years to come.

Law360 Employment Authority

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On October 31, 2023, the National Labor Relations Board (NLRB) and the Occupational Safety and Health Administration (OSHA) announced that the agencies have executed a Memorandum of Understanding (MOU) “to strengthen the agencies’ partnership to promote safe and healthy workplaces through protecting worker voice.”  The

The federal government, states, counties, and cities were active again this year passing workplace legislation intended for the most part to protect employees, creating new compliance obligations for employers. Littler’s Workplace Policy Institute (WPI) has been tracking these laws as they worked their way through the legislative and regulatory processes required for these changes to go into effect. Below is our annual summary of new laws and regulations employers will have to take into account in the first quarter of 2024.

James McGehee and Bradford Kelley provide insight into the potential impact of AI on the construction industry. 

For Construction Pros

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Commenting on a SCOTUS decision, Alka Ramchandani-Raj said a type of OSHA matter that could see a future change in venue may be those involving certain General Duty Clause citations. 

Safety+Health

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On June 28, 2024, the U.S. Supreme Court in Loper Bright Enterprises v. Raimondo, Secretary of Commerce, overturned its four-decade long Chevron doctrine announced by the Court in its landmark decision of Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc.

Jamie Spataro discusses what’s next for OSHA rulemaking and interpretive authority after SCOTUS overturned “Chevron deference.”

Industry Today

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