On August 30, 2023, the U.S. Department of Labor announced its proposed new regulations on who can be treated as exempt from overtime pay. These proposals have been in the pipeline for nearly two years, with many in the business community anxious about what to expect. Some of that anxiety was somewhat undeserved, but some fears have been realized.
Continue Reading DOL Proposes New White Collar Exemption Regulations – Legal Issues Abound!
Over the last two years, the National Labor Relations Board (“NLRB”) has been aggressively trying to expand its coverage in a manner that has taken many employers of non-unionized employees by surprise. Many rules and concepts that have been in place for decades without challenge have been turned on their heads and are now construed to be illegal. One example is a decision by the NLRB earlier this year in McLaren Macomb ruling that common confidentiality and non-disparagement provisions in settlement and separation agreements are illegal, as a matter of law, because they could – at least theoretically – chill a worker’s right to engage in concerted activity protected under the National Labor Relations Act (“NLRA”). The takeaway from these actions by the NLRB and its General Counsel is that all policies and practices of every employer – unionized and non-unionized – will be scrutinized under the NLRB’s new highly powered microscope. In other words, employers watch out!
On March 21, 2023, and along party lines, the Michigan Legislature advanced a bill to the Governor’s desk to repeal the state’s 2013 right-to-work. The Governor signed the bill on March 23, 2023. The new law is expected to go into effect in April 2024.
In a case decided by the National Labor Relations Board (“NLRB” or “Board”) on February 23, 2023, provisions in separation and settlement agreements regarding non-disparagement and confidentiality may run afoul of the National Labor Relations Act (“NLRA” or “Act”). On March 22, 2023, in an effort to provide guidance as to the scope and impact of the decision, the NLRB’s General Counsel issued a Guidance for how its regional offices should evaluate these agreements going forward. The Guidance suggests that the decision has even broader ramifications than initially thought. As described below, the decision along with the Guidance should cause employers to pause before inserting many commonly used provisions in these types of agreements.
Dykema attorneys Robert Boonin and Sean Darke will be presenting the above entitled webinar for the Michigan Chamber of Commerce on January 18, 2023. They will address how the legal landscape for employers has changed since the pandemic, the 2020 election, and 2022 mid-term elections, which may surprise many employers and which may require major changes to their approaches to employment relations. The webinar, which will have interactive Q&A, will highlight the biggest developments and provide participants guidance on how to reduce their liability going forward, and to otherwise avoid unwittingly stepping on a legal land mines triggering significant liability.
Continue Reading What Employers Need to Know Now! The Top Legal Changes and Issues for 2023!
The U.S. Department of Labor on Tuesday unveiled a six-step “economic realities” test that looks to narrow the ability of employers to classify workers as independent contractors. The changes have broad implications as to whether, under federal law; workers are entitled to minimum wage and overtime pay; employers must comply with recordkeeping requirements for such employees; and payroll taxes such as FICA, workers’ compensation, and unemployment must be paid with respect to these workers. The misclassification of workers as independent contractors also can have dire consequences for employers based on the potential assessment of liquidated (double) damages and attorney’s fees under the Fair Labor Standards Act, particularly where such claims are brought as collective actions. The Department suggests that 10-30% of employers in the private sector are, per the proposed rule, misclassifying employees as contractors.
Continue Reading Employees in Disguise: Proposed Rule Would Roll Back Trump-era Independent Contractor Rule
On Thursday, July 28, 2022, the Michigan Supreme Court issued its opinion in Rouch World, LLC v. Department of Civil Rights, finding in a 5-2 decision that Michigan’s Elliott-Larsen Civil Rights Act (“ELCRA”) protects against discrimination based on gender identity and sexual orientation. While so holding, the Court overturned precedent set nearly 30 years ago by the Michigan Court of Appeals in Barbour v. Department of Social Services. That court had relied upon then analogous federal precedent in holding that the same statute did not extend protection on the basis of sexual orientation, as “sex” in the context of ELCRA meant only “gender discrimination, not discrimination based on sexual orientation.”
Continue Reading Michigan Supreme Court Recognizes Protection Under State Law Against Discrimination Based on Gender Identity and Sexual Orientation
All too often, employers find this out the hard way—they get audited by the U.S. Department of Labor or they get sued, and vis-à-vis a class action, to boot. On June 13 and 14, during the Society of Human Resource Management’s (SHRM) Annual Conference in New Orleans, I’ll address a number of compliance issues and also discuss recent initiatives on the wage and hour front from inside The Beltway. Among the issues that we’ll dive into are:
Continue Reading Wage and Hour Compliance: It’s Not as Simple as it May Look!
On January 13, 2022, the United States Supreme Court issued its opinion on the application for stay filed in National Federal of Independent Business v. Department of Labor. In that opinion, a six-member majority of the Court ruled that the Occupational Safety and Health Administration (OSHA) had exceeded its authority in issuing an emergency technical standard requiring the vaccination of employees of larger employers.
Continue Reading Off Again: United States Supreme Court Blocks OSHA COVID-19 ETS
As a new year approaches, one thing many have in common is wondering about what lies ahead. Here are just a few things employers should be considering. The overarching theme? Compliance.
Every year, laws change. For employers, these changes flag new compliance issues. This year, perhaps more than any in recent history, this exercise is more critical. Congress is primed to enact new laws in the pending infrastructure package which has, in part, set this in motion. The Biden Administration and the President’s appointments to various agencies have also dramatically made this concern even more important. These changes will require employers to review how they have been operating over the years, and how these statutory and other legal developments will require them to alter their practices going forward. This article highlights a few of these items.