For those larger Illinois employers who have not yet reported payroll and diversity data to the Illinois Department of Labor (the “IDOL”), now may be the time. The IDOL recently issued guidance to help employers navigate their reporting requirements (the “Guidance”).
On July 13, 2022, San Francisco’s amended Family Friendly Workplace Ordinance (FFWO) goes into effect. All employers who conduct business and have employees working in the City and County of San Francisco or employees who telework, will need to comply with the FFWO. It gives employees the right to request “flexible or predictable work arrangements” to assist with caregiving responsibilities. The amendment creates significant changes to the existing FFWO – it enlarges the scope of an employer’s obligation under the ordinance, while also making it easier for employees to obtain modified schedule arrangements so they can effectively work and perform their caregiving responsibilities with relative ease. Covered employers should take note of these changes to avoid scrutiny from the San Francisco Office of Labor Standards Enforcement (OLSE) and costlier penalties.
On May 23, 2022, in Naranjo v. Spectrum Security Services, Inc., P.3d (2022), the California Supreme Court issued an important wage-and-hour decision. In Naranjo, the Court held that meal break premiums that an employer pays to an employee for missed, late, or short meal breaks constitute wages. Consequently, an employer must report those premium payments on an employee’s wage statement pursuant to Labor Code section 226 and must promptly pay any owed premiums when an employee terminates employment or face waiting time penalties under Labor Code section 203. Naranjo also concluded that the California Constitution’s default prejudgment interest rate of seven percent applies to calculating the prejudgment interest on claims for meal and rest break premiums.
On May 13, 2022, a law requiring publicly held corporations headquartered in California to have women on the board of directors was enjoined from being enforced and declared unconstitutional after a bench trial in Los Angeles Superior Court. In Crest v. Padilla, a judge ruled that the law violated the Equal Protection Clause of the California Constitution because it created a suspect gender classification without a compelling state interest, and the law was not necessary or narrowly tailored to achieve the State’s goals of remedying gender discrimination or benefiting the economy.
In March, U.S. Department of Treasury issued its annual General Explanations of the Administration’s Revenue Proposals, commonly known as the “Green Book.” Among other revenue proposals, the Treasury addressed the treatment of on-demand pay arrangements or earned wage access (EWA) programs, which have risen in popularity in recent years (previously discussed in our Labor and Employment Blog). EWA programs generally allow employees to access accrued wages before the end of their regular pay cycle.
Continue Reading Treasury Department Proposes Non-Loan Status for Earned Wage Access
Over the past two years, employee mobility seems to be at an all-time high. In fact, the labor market is so fluid that pundits and experts often refer to it as the “Great Resignation.” Although employee mobility can be a great opportunity for both employees and prospective employers, employers hiring new employees should always beware of potential problems such as restrictive covenants, which may follow an employee to a new job.
Continue Reading Void vs. Voidable: The Distinction That Can Make or Break a Tortious Interference Claim in Light of the Great Resignation
On May 2, 2022, the Supreme Court of the United States (“SCOTUS”) granted an employer’s petition for review to determine whether highly compensated employees are entitled to overtime compensation under the Fair Labor Standards Act (“FLSA”) if they are paid on a daily rate and not on a salary basis.
Continue Reading SCOTUS to Determine Whether Highly Compensated Employees Are Entitled to Overtime Pay
In a recent opinion in Hill v. Walmart Inc., the Ninth Circuit affirmed summary judgment in favor of Walmart on Hill’s claim for waiting time penalties under Labor Code section 203, finding there was a good-faith dispute about whether Hill was properly classified as an independent contractor of Walmart.
Continue Reading Good Faith Dispute Over Employment Relationship Allows Walmart to Escape Waiting Time Penalties
UPDATE: Mayor Adams signed Int. 134 into law on May 12, 2022. It is currently effective.
On April 28, 2022, the New York City Council (the “Council”) passed Int. 134, an amendment to New York City’s Salary Transparency Law (the “Salary Transparency Law” or “STL”) that finalized a number of significant changes to its requirements. As we previously reported, the Council has been considering Int. 134 in various forms since March 24, 2022. The original version of Int. 134, which provided more significant protections for employers, failed to gain traction. Following discussions with pay equity advocates and the small business community, Int. 134’s sponsors announced modifications to Int. 134 designed to represent a compromise proposal. That version of Int. 134 passed, and will be effective immediately if signed by Mayor Eric Adams.
Continue Reading UPDATED: New York City Council Approves Amendments to Salary Transparency Law; New Date for Compliance Now November 1, Among Other Changes
On April 21, 2022, the California Division of Occupational Safety and Health (“Cal/OSHA”) Standards Board adopted the fourth iteration of its COVID-19 Emergency Temporary Standards (“ETS”). Sheppard Mullin previously wrote about the proposed revisions to the current ETS here, which were adopted without substantive changes. The revised ETS will become effective once approved by the Office of Administrative Law, which should occur by May 5, 2022, and the revised ETS will remain in effect until December 31, 2022.
Continue Reading Cal/OSHA Adopts Fourth Iteration of COVID-19 Emergency Temporary Standards