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By: Sheppard, Mullin, Richter & Hampton LLP

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Latest from Labor & Employment Law Blog

While arbitration as a form of alternative dispute resolution (“ADR”) has long had a presence in American jurisprudence, a recent Supreme Court decision —coupled with significant cultural trends —have left many employers and legislators wondering about the continued viability of mandatory pre-dispute arbitration for all employment disputes. Is the FAIR Act Fundamentally Unfair to Employers? On February 28, 2019, U.S. Representative Hank Johnson (D-GA) and U.S. Senator Richard Blumenthal (D-CT) introduced “The Forced Arbitration Injustice …
Tax-exempt employers have a special opportunity to fix compliance concerns with their 403(b) retirement plans. They have through March 31, 2020 – the “Remedial Amendment Period” (RAP) – to retroactively self-correct compliance issues with their 403(b) plan documents, without going through the IRS’ more costly and time-consuming process that would normally be required. An overview of this opportunity is below.…
On March 7, 2019, the United States Department of Labor (“USDOL”) issued its long-awaited proposed rule that would increase the minimum salary threshold to qualify for exemption from the overtime provisions of the Fair Labor Standards Act (“FLSA”) from their current level of $455 per week ($23,660 annually) to $679 per week ($35,308 annually). The proposed rule would also raise the threshold for “highly-compensated employees” from $100,000 annually to $147,414 per year. It is anticipated…
On March 1, 2019, the National Labor Relations Board (“Board”), in a 3-1 decision, ruled that Beck objectors cannot be required to financially support the lobbying efforts of unions because lobbying costs are not chargeable as incurred during a union’s performance of statutory duties as the objectors’ exclusive bargaining agent. United Nurses & Allied Professionals (Kent Hospital), 367 NLRB No. 94 (2019). This decision comes six years after the Board’s first ruling in this…
In Wadler v. Bio-Rad Laboratories, Inc., No. 17-16193, 2019 WL 924827 (9th Cir. Feb. 26, 2019), the United States Court of Appeals for the Ninth Circuit held that statutes, including the Foreign Corrupt Practices Act (“FCPA”), do not constitute “rule[s] or regulation[s] of the Securities and Exchange Commission” (“SEC”) for purposes of determining whether an employee engaged in protected activity in a whistleblower claim under Section 806 of the Sarbanes-Oxley Act of 2002 (“SOX”). …
On February 18, 2019, the New York City Commission on Human Rights (the “NYCCHR”) released new legal enforcement guidance (the “Guidance”) regarding discrimination on the basis of natural hair and hairstyles. In the Guidance, the NYCCHR advised employers that “[t]he New York City Human Rights Law (“NYCHRL”) protects the rights of New Yorkers to maintain natural hair or hairstyles that are closely associated with their race or identities.” While the NYCCHR made clear that “hair-based…
Sauce for the goose is sauce for the gander? Not necessarily. The Ninth Circuit and California Court of Appeals recently decided two cases that substantially limit the scope and application of freedom of religion rights rooted in the U.S. Constitution. Together, these cases narrow the definition of the term “minister,” and expand the spectrum of employment law claims which may be brought against a religious employer. This new interpretation of freedom of religion rights may…
On January 25, 2019, New York Governor Andrew Cuomo signed into law the Gender Expression Non-Discrimination Act (GENDA), which prohibits discrimination based on gender identity or expression. Under the law, “gender identity or expression” is defined as a “person’s actual or perceived gender-related identity, appearance, behavior, expression or other gender-related characteristic regardless of the sex assigned to that person at birth, including, but not limited to, the status of being transgender.” …
Last week, the California State Supreme Court struck a decisive victory in favor of payroll companies, issuing a unanimous opinion that an employee is not a third-party beneficiary of the contract between her employer and its payroll service provider. The court held that an employee-plaintiff has no standing to sue her employer’s payroll company for an alleged failure to pay wages under California’s employee-friendly labor laws.…
On February 4, 2019, New Jersey Governor Phil Murphy signed into law legislation, available here, which gradually raises the minimum wage in New Jersey to $15 per hour by the year 2024 for many workers in New Jersey. Under this law, for employers with more than six employees, the current New Jersey statewide minimum wage of $8.85 will incrementally rise to $15 per hour as follows: Date of Increase Minimum Wage Amount July 1,…