Under pressure to provide increasingly flexible work arrangements, leverage artificial intelligence (AI) tools, and wade into contentious social issues, how are European employers responding?

Littler’s sixth annual European Employer Survey – completed by 780 human resources executives, in-house attorneys and business leaders – investigates this critical question, exploring how today’s employers are responding to widespread shifts in workplace management, policy and culture.

Employers face numerous legal and workplace complexities in managing their inclusion, equity and diversity (IE&D) programs, from the repercussions of the U.S. Supreme Court’s affirmative action decisions to new anti-IE&D state laws and mounting calls for corporate leaders to take a stance on social issues.

How are employers responding to this critically important – and increasingly embattled – workplace issue?

This Annual Report on EEOC Developments—Fiscal Year 2023 (hereafter “Report”), our thirteenth annual publication, is designed as a comprehensive guide to significant Equal Employment Opportunity Commission (“EEOC” or “the Commission”) developments over the past fiscal year. The Report does not merely summarize case law and litigation statistics, but also analyzes the EEOC’s successes, setbacks, changes, and strategies. By focusing on key developments and anticipated trends, the Report provides employers with a roadmap to where the EEOC is headed in the year to come.

As part of an employer’s EEO compliance efforts, minimizing the risk of harassment claims should be a top priority. Recent statistics issued by the Equal Employment Opportunity Commission (EEOC) indicate that the number of harassment charges has continued to spike upward over the past several years, including the monetary recovery for such claims.

On May 15, 2024, the EEOC issued its annual statistics on charge activity, which indicated the following:

Balancing Risk and Opportunity in AI Decision-Making

As the adoption of artificial intelligence (AI) spreads across corporate America, the risks are growing in kind. The question on every business leader’s mind, then, is how to seize the opportunities created by AI – without exposing their organizations to new vulnerabilities. 

European businesses are navigating numerous changes impacting their workplaces, driven by factors that range from national election outcomes and the rapid adoption of AI to ESG initiatives and emerging compliance challenges.

Littler’s seventh annual European Employer Survey – completed by nearly 630 business leaders, in-house lawyers, and HR executives (57% of whom hold C-suite positions) – offers an in-depth look at how business leaders are responding to these issues and steps they are taking to prepare for what’s to come.

The Wisconsin Fair Employment Act (WFEA) prohibits employers from discriminating against applicants and employees on the basis of their arrest and conviction records.¹  Generally, an employer cannot make decisions on the basis of an arrest or conviction record unless the crimes “substantially relate” to the circumstances of the job at issue.²  For many years, the state agencies responsible for enforcing this law—the Wisconsin Department of Workforce Development (DWD) and the Labor and Industry Review Commission (LIRC)—have taken the view that crimes of domestic violen

The Fair Credit Reporting Act (FCRA) is a federal law that governs employment-related background checks.  Most lawsuits asserting federal claims proceed in federal court.¹  The FCRA is atypical in that FCRA claims can proceed in either federal or state court.  A new opinion from a California court of appeal in Hebert v.

Rod Fliegel talks about employee background screenings – the FCRA issues for employers to consider, the importance of providing a pre-adverse action notice and common mistakes employers make.

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It used to be that employers had the luxury of waiting until January 1 to be vigilant for new employment laws and compliance challenges.  For the past several years, we have reported on employment and labor laws taking effect mid-year.  The trend is increasing, with states and cities passing a multitude of new workplace regulations throughout the calendar year. 

California state and local governmental bodies—our state legislature, and counties and cities—were active again this year in their efforts to regulate the workplace. Littler Workplace Policy Institute has been tracking these bills as they worked their way through the legislature. Some were signed into law by Governor Newsom earlier this year and have already gone into effect.

A May 2021 court decision in California, All of Us or None v.

Rod Fliegel, William Simmons and Wendy Buckingham discuss the current limitations on the use of background checks for employment in California.

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Earlier this month, Governor Ned Lamont announced the long-awaited implementation of the state’s so-called “Clean Slate Act” – sort of.  According to a recent press release, January 1, 2023 will see the full or partial erasure in some 44,000 cases involving convictions for cannabis possession.  Individuals with eligible convictions for other crimes, including most misdemeanors and certain lesser felonies, will have to wait until the second half of 2023 as a result of implementation delays.

The Clean Slate Law & How it Works

Updated March 24, 2023: The CFPB has edited its updated Summary of Rights document to include the correct contact number. 

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Rod Fliegel discusses California’s proposed Fair Chance Act of 2023, which would further restrict how employers can use information about the criminal histories of job seekers and employees, and offers tips for complying with the current Fair Chance Act.

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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.

UPDATE: Governor Hochul signed this bill on November 16, 2023, which will take effect one year from signing.

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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.

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Rod Fliegel co-authors a report that explains negligent hiring, employers’ risks and how they can protect their company. 

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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.

Rod Fliegel says he's seeing an uptick in negligent hiring concerns because of the growth of gig work.

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Pennsylvania and Philadelphia recently enacted changes that impact employer criminal background screening.

State Law

Enacted on December 14, 2023, and effective February 12, 2024, Pennsylvania’s House Bill No. 689 amends Pennsylvania law relating to the expungement of certain criminal record information and employer immunity when hiring individuals with expunged records. 

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.

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

The Lehigh County Human Relations Ordinance was enacted February 26, 2024, establishing county-specific non-discrimination requirements for employment, housing, education, health care and public accommodations.  The ordinance also creates a Lehigh County Human Relations Commission charged with investigating and enforcing claims of discrimination.  The ordinance becomes effective June 1, 2024.

Expanded Protected Characteristics and Employer Coverage

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.

Starting after Labor Day, employers with jobs located in the unincorporated areas of the County of Los Angeles, including work-from-home and hybrid positions, must comply with the County’s fair chance hiring ordinance.  The ordinance, which imposes obligations well beyond existing federal and state law, and which extends to con

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

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

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Devjani Mishra discusses Littler’s Executive Employer survey, which found that most employers are planning to implement a hybrid work model.

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Michelle Barrett Falconer and Devjani Mishra discuss the findings of Littler’s Executive Employer survey.

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The pandemic seems not to have slowed down state and local lawmakers.  Indeed, over 100 new labor and employment laws and ordinances are scheduled to take effect between July 1, 2021 and November 1, 2021.

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.

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 November 10, 2021, the IRS released Revenue Procedure 2021-45, which contains its annual inflation adjustments for over 60 tax provisions, including not only individual income tax rates and deductions, but also many employer-provided benefits.

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:

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.

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On June 9, 2022, the Internal Revenue Service issued Announcement 2022-13, increasing the optional standard mileage rate for the final six months of 2022 from 58.5 cents per mile to 62.5 cents per mile.  The new rate will be effective for traveling beginning on July 1, 2022, through December 31, 2022.  The old rate of 58.5 cents per mile will remain in effective through June 30, 2022.

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:

In response to rising inflation, the French and UK governments have instituted various measures that affect employers.

France

During the presidential campaign, Macron’s Government promised to increase purchasing power. On August 18, 2022, a new law with several measures intended to mitigate the consequences of inflation entered into force. Outlined below are the main parts of the employment law measures of this “emergency law for the protection of the purchasing power.”

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.