
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
1w ago
On September 15, 2023, New York Governor Kathy Hochul signed a law that made dramatic changes to the enforceability of invention assignment provisions in employment agreements and likely in related agreements including offer letters and Confidentiality, Information and Invention Assignment Agreements (CIIAAs). The law took effect immediately and adds New York to a growing list of states with laws placing limits on invention assignment provisions.
What Is an Invention Assignment Agreement?
An invention assignment agreement is a contract between an employer and employee that defines the rig ..read more
The Sheppard Mullin Labor & Employment Law Blog
1w ago
On October 8, 2023, California Governor Gavin Newsom signed into law Senate Bill No. 497, the “Equal Pay and Anti-Retaliation Protection Act.” The new law amends California Labor Code sections 98.6, 1102.5, and 1197.5 to create a “rebuttable presumption of retaliation” if an employee experiences an adverse employment action within 90 days of engaging in any protected activity covered by the specified sections. This new law, which will become effective on January 1, 2024, also entitles a prevailing plaintiff civil penalties for each violation.
Section 98.6 concerns the exercise of employee ..read more
The Sheppard Mullin Labor & Employment Law Blog
1w ago
In Harstein v. Hyatt Corp., the Ninth Circuit Court of Appeals held that Hyatt Corporation (“Hyatt”) violated California law, which requires the payment of all wages at separation, when one of its hotels failed to pay employees their accrued vacation pay after furloughing them in the early days of the COVID-19 pandemic.
In March 2020, the director of human resources for the Hyatt Regency Huntington Beach told employees that they “will be furloughed/temporarily laid off from their employment on March 24, 2020,” and expressed hope that the hotel’s business would return to normal in eight to twel ..read more
The Sheppard Mullin Labor & Employment Law Blog
1w ago
President Joe Biden recently issued an executive order devised to establish minimum risk practices for use of generative artificial intelligence (“AI”) with focus on rights and safety of people, with many consequences for employers. Businesses should be aware of these directives to agencies, especially as they may result in new regulations, agency guidance and enforcements that apply to their workers.
Executive Order Requirements Impacting Employers
Specifically, the executive order requires the Department of Justice and federal civil rights offices to coordinate on ‘best practices’ for ..read more
The Sheppard Mullin Labor & Employment Law Blog
1w ago
On October 26, 2023, the National Labor Relations Board (the “Board”) released a final rule which vastly broadens the standard for determining joint-employer status under the National Labor Relations Act (“NLRA”) and makes it easier for the Board to find a joint employer relationship. This updated standard rescinds and replaces the prior standard under the 2020 final rule, discussed in our blogs here and here. The new final rule makes three key changes:
Entities are considered joint employers if the two share or codetermine the employee’s essential terms and conditions of employment ..read more
The Sheppard Mullin Labor & Employment Law Blog
2w ago
Beginning on January 1, 2024, pursuant to House Bill 2068, Illinois employers located across thirty-eight (38) counties and townships will be required to provide employees with a “pre-tax commuter benefit.” This is one of a number of new Illinois laws impacting employers going into effect at the start of the new year.
House Bill 2068 covers employees who work an average of at least thirty-five (35) hours per week for compensation on a full-time basis. An Illinois employer must provide the necessary “pre-tax commuter benefit” if it: (1) is located in either Cook County, Warren Townshi ..read more
The Sheppard Mullin Labor & Employment Law Blog
2w ago
On September 6, 2023, New York Governor Kathy Hochul signed a law that prohibits employers from requiring employees to attend employer-sponsored meetings the “primary purpose” of which is to communicate the employer’s opinions on religious or political matters, including relating to joining a labor organization. The law became effective immediately, and is another step in the small, but growing number of states, that are campaigning against so-called “captive audience” meetings.
Protections
The new law, Senate Bill (S) 4982 and Assembly Bill (A) 6604, modifies New York Labor Law Section ..read more
The Sheppard Mullin Labor & Employment Law Blog
3w ago
California has passed two new items of legislation, Senate Bill 699 and Assembly Bill 1076, which will further regulate and restrict the enforcement of employment non-compete agreements in California, and expand the scope of remedies for those affected by them. These new laws will become effective on January 1, 2024, and now is the time for employers to assess and revise their employment-related agreements and restrictive covenants accordingly. As detailed below, they also require employers to notify employees and certain former employees by February 15, 2024 that certain non-compete ..read more
The Sheppard Mullin Labor & Employment Law Blog
1M ago
On October 7, 2023, Governor Gavin Newsom signed SB 700 into law, amending the California Fair Employment and Housing Act (FEHA). SB 700, effective January 1, 2024, expressly prohibits employers from requesting information from job applicants relating to their prior cannabis use.
This latest amendment to the FEHA follows prior changes to the law that were enacted last year. As we noted in our initial post, on September 18, 2022, California enacted Assembly Bill 2188 (AB 2188), which established Section 12954, prohibiting employers from penalizing employees or applicants for off-duty canna ..read more
The Sheppard Mullin Labor & Employment Law Blog
1M ago
In a recent 2-1 decision in Quickway Transportation, Inc., 372 NLRB No. 127 (2023), the National Labor Relations Board (the “Board”) reversed the Administrative Law Judge and ordered a trucking company to re-open its terminal and restore the status quo ante when it held that the company’s decision to terminate all of its recently unionized truck drivers and close the terminal violated sections 8(a)(3) and 8(a)(5) of the National Labor Relations Act (the “Act”). While this decision does not overturn existing Board precedent, as might be expected given the spate of recent decisions that we ..read more