The Sheppard Mullin Labor & Employment Law Blog
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The Sheppard Mullin Labor & Employment Law Blog is designed to provide employers breaking news, insights & legal analysis on issues facing employers today. Key topics covered are Antitrust, Cannabis Law, Corporate Governance, Employee Benefits, FEHA, Immigration, Retaliation, and Workers Compensation.
The Sheppard Mullin Labor & Employment Law Blog
5d ago
In 2022, the Maryland General Assembly passed the Time to Care Act of 2022 (the “Act”), setting up a paid family and medical leave program for Maryland employees. Through Family and Medical Leave Insurance (“FAMLI”), eligible Maryland employees may receive up to 12 weeks of paid family and medical leave for the various reasons detailed below. FAMLI will be funded by both employer and employee contributions. Though eligible employees are not able to draw from the fund until January 1, 2026, required contributions are currently scheduled to begin on October 1, 2024. Therefore, Maryland employers ..read more
The Sheppard Mullin Labor & Employment Law Blog
3w ago
As we previously reported here in March 2020, the implementation of remote work policies heightens the risk of misappropriation of trade secrets in remote work environments and could require businesses to take additional steps to ensure the security of their trade secrets and confidential information. In the last few years, the Securities and Exchange Commission (“SEC”) has charged several individuals with insider trading after they misappropriated material, nonpublic information obtained as a result of their remote work environment.[1] Most recently, a man was charged with insider tradin ..read more
The Sheppard Mullin Labor & Employment Law Blog
1M ago
Starting July 1, 2024, California employers across all industries must have a written Workplace Violence Prevention Plan (“WVPP”) in place. As previously reported, the recently enacted SB 553 established this new requirement, along with mandatory employee training, initial and periodic workplace violence hazard inspections, and maintenance of a violent incident log and other related records. On March 18, 2024, California’s Division of Occupational Safety and Health (“Cal/OSHA”), the agency responsible for enforcing the new law’s requirements, announced the creation of its Cal/OSHA Workpla ..read more
The Sheppard Mullin Labor & Employment Law Blog
1M ago
Tax season is here. As a result, many companies may be seeking to claim the increased tax credits and deductions available under the Inflation Reduction Act (the “IRA”). As we discussed in previous posts you can read here and here, many of the IRA’s tax credits and deductions for various clean energy projects are available only to taxpayers whose projects complied with nuanced and complex prevailing wage and apprenticeship requirements (the “PWA Requirements”). These requirements must be met before a taxpayer files a return claiming credits and deductions under the IRA.
While the Treasury Depa ..read more
The Sheppard Mullin Labor & Employment Law Blog
1M ago
On February 12, 2024, the Ninth Circuit in Johnson v. Lowe’s Home Centers, LLC, 93 F.4th 459 (9th Cir. 2024) vacated a district court’s dismissal of a former employee’s nonindividual PAGA claims and remanded the nonindividual claims to allow the district court to apply California law as interpreted in Adolph v. Uber Techs., Inc., 14 Cal. 5th 1104 (2023) (“Adolph”).
The plaintiff, a former employee of Lowe’s Home Centers, LLC, brought putative class claims for alleged violations of the California Labor Code on behalf of herself and other Lowe’s employees, as well as a claim under California’s P ..read more
The Sheppard Mullin Labor & Employment Law Blog
1M ago
Beginning on March 12, 2024, a new social media privacy law for employees and job applicants goes into effect in New York. The new law will amend the New York Labor Law (the “NYLL”) to restrict most employers from accessing the personal social media accounts of employees and job applicants. The new restrictions were approved when Governor Kathy Hochul signed into law two bills, Assembly Bill 836 (A836) and Senate Bill 2518A (S2518A), on September 14, 2023.
The New Rules for Employers
A836/S2518A amends the NYLL in several ways. First, the new law prohibits employers from requesting o ..read more
The Sheppard Mullin Labor & Employment Law Blog
2M ago
In Cantor Fitzgerald, L.P. v. Ainslie, No. 162, 2023, 2024 WL 315193 (Del. Jan. 29, 2024), the Delaware Supreme Court held enforceable a “forfeiture for competition” provision in a limited partnership agreement, upholding “the freedom of contract” and enforcing “as a matter of fundamental public policy the voluntary agreements of sophisticated parties.” Given Delaware’s recent shift from its typically non-compete friendly stance, the Delaware Supreme Court’s ruling is beneficial for employers.
In Cantor Fitzgerald, six plaintiffs (the “Former Partners”) challenged the enforceability of a “forf ..read more
The Sheppard Mullin Labor & Employment Law Blog
2M ago
In a landmark unanimous ruling late last week, Murray v. UBS Securities, LLC, et al. 601 U. S. ____ (2024), the U.S. Supreme Court held that whistleblowers do not need to prove their employer acted with “retaliatory intent” to be protected under the Sarbanes-Oxley Act. Instead, all whistleblower plaintiffs need to prove is that their protected activity was a “contributing factor” in the employer’s unfavorable personnel action.
Background
The Sarbanes-Oxley Act is a federal law that was passed in 2002 with the goal of improving auditing and public disclosure in response to several ac ..read more
The Sheppard Mullin Labor & Employment Law Blog
2M ago
For companies doing business in California, it’s important to be aware of the January 18, 2024 California Supreme Court decision in Estrada v. Royalty Carpet Mills, Inc.*, which examined whether trial courts can strike PAGA claims on manageability grounds. PAGA, or the Private Attorneys General Act of 2004, created new enforcement and procedural standards to the California Labor Code’s wage and hour provisions. While the law has been viewed as pro-plaintiff, the decision in Estrada can be seen as underscoring that point of view.
The underlying case in Estrada examined the conflicting decisions ..read more
The Sheppard Mullin Labor & Employment Law Blog
3M ago
The District of Columbia will soon require employers to disclose pay ranges in job postings after Mayor Muriel Bowser signed the Wage Transparency Omnibus Amendment Act of 2023 into law on Friday January 12, 2024. When it goes into effect on June 30, 2024, the District will join a growing number of states with wage transparency laws, including Illinois, California, New York, Colorado, Massachusetts, and Washington State.
New Obligations for D.C. Employers
The Act applies to employers of at least one employee in the District and imposes several new employee-friendly requirements, including the ..read more