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Chicago Enacts Amendments to and Expands Requirements of its Criminal History Screening Ordinance

For nearly a decade, Chicago has maintained a “ban-the-box” ordinance restricting employer’s use of criminal records in employment screening. This ordinance largely mirrored the requirements of Illinois’ state-wide Job Opportunities for Qualified Applicants Act (JOQAA), albeit with some important differences.




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New York Bans Consideration of Sealed Convictions in Employment Decisions

Michael Paglialonga and Stephen Fuchs discuss New York’s new Clean Slate Act, which will prohibit employers from inquiring about sealed records or discriminating against applicants or employees based on sealed records.

SHRM Online

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Changes in California’s Regulations Regarding Criminal Records Approved

The California Civil Rights Council previously issued draft revisions to the Fair Employment and Housing Act’s regulations governing inquiries into and consideration of a job applicant’s criminal history in making hiring decisions.  On July 24, 2023, the Office of Administrative Law approved the Council’s proposed modifications to the regulations. 




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California Laws Come into Effect Regarding Off-Duty Marijuana Use

Two new laws will take effect next year that restrict how employers may respond to worker off-duty cannabis use.  One law will restrict employers’ ability to ask about prior cannabis use in the hiring process, and the other will limit employer actions based on positive marijuana drug tests.




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The FDIC Proposes Revised Regulations Concerning Section 19 of the Federal Deposit Insurance Act to Conform to the Fair Hiring in Banking Act

  • The FDIC has proposed revised regulations implementing Section 19 of the Federal Deposit Insurance Act.
  • Section 19 generally prohibits individuals convicted of certain offenses from participating in the affairs of an FDIC-insured depository institution.
  • The rule would affect approximately 4,680 FDIC-insured depository institutions.
  • Comments to the rule are due by January 16, 2024.




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Continuing Privacy Headache for Ordering Criminal Background Checks in California

Companies that hire employees and engage independent contractors in California should brace themselves for an even greater slowdown in background checks that include criminal record searches in Los Angeles County.1 This will result from the drastic impact of the court of appeal’s 2021 opinion in All of Us or None v.




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County of Los Angeles Enacts a Sweeping Fair Chance Ordinance for the Unincorporated Areas of the County that Far Exceeds Federal and California Law

  • New Los Angeles County ordinance goes into effect September 3, 2024.
  • The ordinance, which has a private right of action, requires significant changes to job postings, conditional offer letters, procedures for adjudicating criminal history, and related notifications for the unincorporated areas of Los Angeles County.
  • The ordinance purports to cover relationships beyond traditional employment relationships, such as contract and freelance work.




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California Court of Appeal Thwarts Efforts to Conceal Important Driving History Information from Employers

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.




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FDIC Approves Final Rule to Update Its Section 19 Regulations – Insured Depository Institutions Have Until October 1, 2024 to Comply

  • The FDIC has approved a final rule, effective October 1, 2024, to update its Section 19 regulations to conform to the Fair Hiring in Banking Act.
  • While the FDIC made certain clarifying changes based on public comments received, as predicted, the final rule largely aligns with the proposed rule.
  • Insured banks and credit unions must undertake a “reasonable, documented inquiry” to verify that a person with a covered offense on their record is not hired.




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Prince George’s County, MD Amends Criminal Background Check Law

The Prince George’s, Maryland County Council recently enacted Bill CB-019-2024, amending the county's Fair Criminal Record Screening Standards. Effective September 16, 2024, the ordinance—renamed “Access to Employment for Returning Citizens”—significantly restricts employers' ability to conduct criminal background checks on job applicants. Changes to the law include a smaller threshold for employer coverage, expanded limitations on employer inquiries into applicant criminal histories, and expanded protections for employees.

Employer Coverage Threshold




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San Diego County Adds a New Layer to California’s Complex Web of Laws Regulating the Use of Criminal Records in the Hiring Process

  • Effective October 10, 2024, employers in San Diego County must assess compliance with new criminal record screening regulations.
  • The ordinance applies only in the unincorporated areas of San Diego County.




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The CFPB Cautions Employers About Using Technology to Track, Assess, and Evaluate Workers

  • Employers should be mindful of whether workforce tracking technology, including AI, may provide information, such as employee performance scores, that triggers FCRA compliance.
  • The FCRA protects both job applicants and employees.
  • Education about basics of the FCRA is key for all employers, including in-house counsel, due to the proliferation of such tracking and scoring technology.




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Cal/OSHA Issues Guidance on Fully Vaccinated Employees

Eric Compere, William Kim, Melissa Peters, Kennell Sambour and Krystal Weaver provide insight on Cal/OSHA’s new FAQs.

SHRM Online

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Small Fleet Summit: Dealing with AB5 in California

Damon Ott discusses some options that trucking companies in the state may pursue when the old way of doing business is no longer open to them. 

FreightWaves

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Federal Tax Credits Now Available When Certain Employees Use Emergency Paid Leave to Help Others Obtain or Recover from COVID-19 Vaccine

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.




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México: Incremento al valor de la Unidad de Medida y Actualización (UMA) para el 2022

El 7 de enero de 2022, el Instituto Nacional de Estadística y Geografía (INEGI) publicó los nuevos valores para la Unidad de Medida y Actualización (en adelante “UMA”) que entrará en vigor el 1 de febrero de 2022, de acuerdo con lo establecido en el Artículo 5 de la Ley para Determinar la Unidad de Medida y Actualización.

Los valores de la UMA para el 2022 serán los siguientes:

Año




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Mexico: Increase to the UMA Value Announced for 2022

On January 7, 2022, Mexico’s National Institute of Statistics and Geography (INEGI by its acronym in Spanish) published the new values for the Updated Metric Unit (Unidad de Medida y Actualización or UMA) that will take effect on February 1, 2022, as provided by Article 5 of the Law to determine the value of the UMA. The UMA serves as the basis for calculating the payments, obligations, or penalties that are owed to the government, whether under federal or state law. Its updated value is published on an annual basis.

The values of the UMA for 2022 will be as follows:




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Puerto Rico Department of the Treasury Announces 2022 Limits on Qualified Retirement Plans

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.




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Settled a Lawsuit with a Government Agency Last Year? Form 1098-F Reporting of Fines and Penalties is Coming Due

  • 2017 Tax Cuts and Jobs Act changed rules relating to when penalties/fines paid to or at the direction of a government agency can be deducted as a business expense.
  • Certain payments to government agencies, such as the EEOC, as part of employment lawsuit settlements, are affected.
  • To this end, Agencies will start issuing information returns, IRS Form 1098-F, to affected employers.




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Puerto Rico Department of the Treasury Announces 2023 Limits on Qualified Retirement Plans

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.




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Certificates of Coverage Necessary for Expatriate Workers to Claim FICA Exemption under Totalization Agreements

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.




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Maine Poised to Enact Sweeping Paid Family and Medical Leave Law

  • Maine is expected to join 13 other states and Washington, D.C. in implementing a paid family and medical leave program.
  • Maine’s program, which will provide up to 12 weeks of paid leave per year, covers all eligible employees of private and public employers, except employees of the federal government, in the state regardless of employer size.
  • Employers and employees will split a 1% payroll tax to fund the paid family and medical leave program.




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Changes to Alabama Tax Laws Impose New Reporting Requirements on Employers

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.




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Changes to Alabama Tax Laws Impose New Reporting Requirements on Employers

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.

SHRM Online

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Dear Littler: Do I really need to reimburse my remote employee’s phone bill, internet, and home office equipment?

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!




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Puerto Rico Department of the Treasury Announces 2024 Limits on Qualified Retirement Plans

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.




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April Roundup: Key Changes to Rates, Pensions and Employment Law in England and Wales

The new tax year is swiftly approaching, along with new statutory rates, limits and changes to employment law in England and Wales that HR practitioners should be aware of. 

Annual rates and limits increases

The usual annual updates to the statutory rates and limits will come into effect in early April 2024.

Here are the key changes:

Update

Effective date




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IRS Issues FAQs on Educational Assistance Programs

The IRS has issued a new fact sheet (FS-2024-22) to address frequently asked questions about educational assistance programs (EAPs), also known as Section 127 plans.1 EAP plans have been an effective recruitment and retention tool for many employers over the past two decades and remain popular with employees because the payments are tax exempt to employees and tax deductible to employers.




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Employer Tab for Exiting Pensions at Stake in High Court Appeal

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.”

Bloomberg Law

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What's Next For Calif. Employers After AI Bias Bill's Failure

Joy Rosenquist discusses what California employers should watch for after the state’s AI bias bill failed and its Civil Rights Department continues work on proposed regulations that could be game-changing.

Law360 Employment Authority

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The artificial intelligence angle: Loper Bright's impact on federal and state AI legislation, regulations, and guidance

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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New York, California Take Lead to Shape Workplace Violence Laws

Rebecca Goldstein talks about new workplace violence prevention laws in California and New York.

Bloomberg Law

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Under half of US firms have AI policies, report finds

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

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Politics in a California Workplace

  • California law provides robust protections for employees’ political activity, including anti-discrimination and retaliation protections.
  • California law also provides employees broad protections for lawful off-duty conduct.
  • California employers are required to provide employees with time off to vote and post a notice explaining those rights. For the upcoming election, this notice must be posted by October 26, 2024.




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California Eliminates Employers’ Ability to Require Employees to Use Vacation Before They Receive State Paid Family Leave Benefits

  • Employers will no longer be able to require employees to use up to two weeks of vacation before they receive paid family leave insurance benefits.
  • Employees will have access sooner to paid family leave insurance benefits.
  • Changes can have a knock-on effect concerning substitution of paid leave under federal FMLA and California CFRA, but should not impact San Francisco PPLO compliance.




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California Limits the Discretion Employers Have to Insist on a Driver’s License Even for Jobs that Require Driving for Work

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.




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California Eliminates Employers' Ability to Require Employees to Use Vacation Before They Receive State Paid Family Leave Benefits

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

Wolters Kluwer

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Politics In California Workplaces: What Employers Must Know

Bradford Kelley and Britney Torres predict politics in the workplace will remain an issue beyond the election and so California employers need a long-term plan measures for issues that include voter intimidation and discrimination and employees taking time off to vote.

Law360

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California Eliminates Employers’ Ability to Require Vacation Use Before Receipt of State Paid Family Leave Benefits

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

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California Limits Employers’ Discretion to Insist on a Driver’s License

Rod M. Fliegel discusses California legislation that further amends the Fair Employment and Housing Act to prohibit discrimination in the hiring process based on the applicant’s lack of a driver’s license.

SHRM

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Write It Down: California’s Freelance Worker Protection Act Imposes New Requirements for Engaging Independent Contractors

Following other states and cities across the nation, California Governor Gavin Newsom signed Senate Bill 988, the Freelance Worker Protection Act (FWPA), into law on September 28, 2024. This new law aims to provide greater protections to freelance workers (e.g., “independent contractors”).




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This Legal Change Could "Severely Disrupt" Franchising. Learn About the PRO Act's Joint-Employer Standard

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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4 W&H Bills to Watch for in the Second Half of 2021

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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Congressional Democrats Want to Weaponize Federal Labor Law

Michael Lotito writes about unions and their allies’ attempts to sneak parts of the Protecting the Right to Organize (PRO) Act into the budget bill.

The Wall Street Journal

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Supreme Court of Puerto Rico Validates Implicit Consent for Arbitration Agreements in the Employment Context

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.




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Supreme Court finds exclusive arbitral jurisdiction in Manitoba human rights disputes

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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Supreme Court Permits Arbitration of Individual PAGA Claims

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.




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Ontario, Canada Human Rights Tribunal Finds it Has Concurrent Jurisdiction with Labour Arbitrators to Decide Human Rights Claims in Unionized Workplaces

The Human Rights Tribunal of Ontario recently held a preliminary hearing to determine whether allegations made under the Human Rights Code (Code) fell within the exclusive jurisdiction of a labour arbitrator, or whether the Tribunal had concurrent jurisdiction over employment-related human rights matters in a unionized workplace.  




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Regulatory Update: New Law Ends Sexual Harassment NDAs

In light of President Biden signing the Speak Out Act, Elizabeth A. Lalik, Lauren M. Bridenbaugh and Jim Paretti say this is a good time for employers to review their policies and practices for handling sexual harassment incidents that fall under all applicable federal and state statutes.

EHS Today

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Ninth Circuit Eliminates Obstacles to Enforcement of Employment Arbitration Agreements in California

  • Ninth Circuit holds the Federal Arbitration Act (FAA) preempts AB 51, which attempted to prohibit employers from requiring employees to waive, as a condition of employment, the right to litigate claims under the FEHA and the California Labor Code.
  • Arbitration agreements are on an equal footing as other contracts and will be analyzed in the Ninth Circuit in accordance with FAA principles of “equal protection treatment.”