In April 2021, President Biden issued Executive Order 14026, which increased the minimum wage for federal contractors to $15.00 per hour for contracts under the Service Contract Act and Davis-Bacon Act. The U.S. Department of Labor subsequently issued a final rule implementing the Executive Order, and the new $15.00 minimum wage for federal contractors took effect in January 2022, with annual increases thereafter.Continue Reading Federal Contractor Minimum Wage in Flux
The National Labor Relations Board (“NLRB”) recently adopted a Final Rule regarding representation-case procedures (“2023 Rule”). The 2023 Rule substantially rescinds the 2019 amendments to the representation-case procedures (“2019 Rule”), and returns to the 2014 procedures (“2014 Rule”). The 2023 Rule is effective for all representation case petitions filed on or after December 26, 2023.Continue Reading NLRB Returns to Ambush Representation Election Rules
On August 29, 2023, the California Court of Appeal issued a new opinion that, once again, changes how parties litigate and settle claims brought under California’s Private Attorneys’ General Act (“PAGA”). See Robert Lacour v. Marshalls of California, LLC, et al., 94 Cal.App.5th 1172, 313 Cal.Rptr.3d 77.Continue Reading California Court of Appeal Reminds Parties that a Plaintiff’s Pre-Litigation Notice to the LWDA Controls the Scope of PAGA Settlements
Courts have repeatedly upheld California’s “strong public policy” prohibiting agreements that restrain individuals from “engaging in a lawful profession, trade, or business of any kind.” Indeed, under Section 16600 of the California Business and Professions Code, these agreements—generally referred to as noncompete agreements—are generally void. California now seeks to enshrine additional laws strengthening its prohibition on noncompete agreements.Continue Reading California Seeks to Strengthen Its Policy Invalidating Noncompete Agreements
The Occupational Safety and Health Administration (“OSHA”) recently announced a Notice of Proposed Rulemaking that would make it easier for non-employee representatives to participate in worksite inspections.
OSHA compliance safety and health officers (CSHOs) regularly conduct worksite inspections, colloquially known as “walk-arounds,” as part of their investigation of safety complaints or pursuant to OSHA emphasis programs. Current regulations allow employees to select a representative of their choosing to accompany the CSHOs on such inspections, as long as the representative is also an employee of the relevant employer. If employees want to select a third-party to represent them on a walk-around, the regulations suggest that person must normally have specialized safety knowledge, like an industrial hygienist or safety engineer. See 29 CFR 1903.8(c).
Under OSHA’s new proposal, employees could select any third-party to represent them on a walk-around inspection, as long as the CSHO determines the third party’s participation is reasonably necessary to the conduct of a thorough inspection. The proposal removes the limiting language from the regulation related to industrial hygienists and safety engineers, and replaces it with language that indicates a third-party representative may be helpful to the CSHO based on their relevant knowledge, skills or experience with hazards or conditions in the workplace or similar workplaces, or based on their language skills.
If adopted, the proposal will open the door for outside, non-employees without any safety expertise to access sensitive workplace inspections. For instance, the Notice of Proposed Rulemaking suggests employees at a workplace may designate a union official to serve as their walkaround representative, even if the union does not represent the relevant employees in collective bargaining. It further suggests that CSHOs may determine that bilingual community organizers or advocates with no relevant safety experience may access an employer’s worksite during an inspection solely because of their language skills.
And while the current proposed regulation maintains the requirement that a CSHO determine the presence of a third-party is “reasonably necessary,” OSHA’s request for public comments suggests it may scrap that requirement completely. OSHA has specifically asked for feedback on whether it should “defer to the employees’ selection of a representative” without consideration of whether that representative would actually aid in the conduct of the inspection. Alternatively, OSHA sought comments on whether it should establish a presumption in favor of the necessity of the third party representative.
The Department of Labor will receive comments from stakeholders on the proposed regulation until October 30, 2023. It is likely that a revised rule will be released sometime in 2024.
If OSHA adopts the proposed rule, it presents several risks for employers. First, it could compel employers to allow non-employee third-parties into sensitive areas of their workplace. While employers can require OSHA to obtain a warrant to conduct an inspection, that process imposes additional costs on employers and may lead OSHA to view them as uncooperative. Thus, employers typically do not require a warrant and simply consent to inspection of the relevant areas of their establishment. Under the new rules, consenting to an inspection could open up an employer’s worksite to scrutiny by not only OSHA, but also outsiders who would otherwise have no right to access the employer’s property.
Second, the proposed rule provides a clear opportunity for union organizers to use OSHA inspections as a backdoor to campaign for employee support. Since the rule would apply to both union and non-union workplaces, it is reasonable to expect unions to monitor OSHA complaint filings, contact employees and attempt to receive authorization to attend walkarounds so they can use the site access to solicit for employee support. Pro-union employees attempting to organize their co-workers could also weaponize the process by filing OSHA complaints and selecting union representatives to accompany CSHOs on walkarounds as a way to provide additional site access to these outside organizers and attempt to show their value by taking credit for any subsequent OSHA citations. In essence, it could allow employees to pervert the purpose of the OSH Act to further their union organizing interests.
The proposed rule provides extra incentives for employers to avoid safety complaints and workplace inspections altogether. Employers should review their workplace safety policies and conduct regular audits or self-checks of their safety programs to reduce the risk of employee complaints and decrease the likelihood that OSHA has reason to show up with an undesired tag-along to explore their workplace.
A recent opinion out of the Texas 14th Court of Appeals has raised the bar for employers trying to enforce arbitration agreements electronically signed by employees. See Houston ANUSA, LLC d/b/a AutoNation USA Houston v. Shattenkirk, No. 14-20-00446-CV, 2023 WL 5437714 (Tex. App.—Houston [14th Dist.] Aug. 24, 2023, no pet. h.).Continue Reading Employee E-Signatures in Arbitration Agreements Under Scrutiny
On August 25, the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) announced an updated Scheduling Letter and Itemized Listing that places a more onerous information disclosure burden on federal contractors in responding to a Supply and Service compliance audit. In particular the updated Scheduling Letter, OMB No. 1250-0003, now requires federal contractors to produce more documentation for a variety of Items and increases both the scope and breadth of requested compensation data.Continue Reading New OFCCP Scheduling Letter and Itemized Listing Increases Burden on Federal Contractors
On June 14, 2023, Texas Governor Greg Abbott signed HB 2127, the Texas Regulatory Consistency Act (“TRCA”), into law. Once the TRCA goes into effect on September 1, 2023, it will preclude all municipalities and counties in Texas from adopting or enforcing ordinances regulating conduct with respect to certain subject matters, including labor.Continue Reading Texas Legislation Provides Employers Regulatory Uniformity
On August 25, 2023, in response to concerns regarding the timely implementation of SECURE 2.0’s Roth catch-up contribution requirement, the IRS issued Notice 2023-62, which provides that 401(k), 403(b) and 457(b) plans now have until December 31, 2025 to comply.Continue Reading SECURE 2.0 Act: Hip, Hip Delay! IRS Establishes a Two-Year Transition on the Roth Catch-Up Contribution Requirement
California employers: take notice. On July 24, 2023, the Office of Administrative Law approved changes to the Fair Employment and Housing Act (FEHA) regulations governing how California employers can use and consider criminal history in employment decisions. These new changes, modifying Cal. Code Regs. Tit. 2, § 11017.1, go into effect on October 1, 2023.Continue Reading California Employers: Updated Regulations for Use of Criminal History in Hiring Decisions Go into Effect October 1, 2023