The California Supreme Court adopted a new test Monday for determining whether workers are employees—rejecting the court’s previous multi-factor test. The decision in Dynamex Operations West Inc. v. The Superior Court of Los Angeles County, S222732 (Cal. Apr. 30, 2018), has immediate ramifications for employers in California who hire or utilize independent contractors. In short, the bar for establishing “independent contractor” status has been raised, and California companies will have to assess their practices in order to conform to this new reality. Continue Reading California Supreme Court Raises Bar on Independent Contractor Status
The Ninth Circuit U.S. Court of Appeals held Monday, on the eve of National Equal Pay Day, that it violates the Equal Pay Act to use pay history to justify wage gaps between male and female employees for the same or substantially similar work. The decision in Rizo v. Yovino, No. 16-15372 (9th Cir. Apr. 9, 2018) has immediate ramifications for employers in the Ninth Circuit in evaluating employee compensation. Continue Reading Consideration of Pay History to Justify Gender Wage Gaps Held Unlawful by Ninth Circuit on Eve of National Equal Pay Day
As we had previously reported, in 2015 the then-Democrat controlled National Labor Relations Board (NLRB) in the Browning-Ferris case ruled that a joint employer relationship could be found if an entity had mere indirect or potential control over individuals employed by another entity. This decision reversed decades of precedent in which the NLRB held that a joint employer relationship would only be found if one entity had “direct and immediate control” over individuals employed by another entity. Continue Reading Ping-Pong Anyone? NLRB Vacates <em>Hy-Brand</em> and Reinstates – For the Moment – <em>Browning-Ferris</em>
Board Member Philip Miscimarra’s term on the National Labor Relations Board (NLRB) expired last week with a bang rather than a whimper. In the final days of his tenure, the Board reversed four controversial Obama-era decisions addressing joint employers, workplace policies, micro-units, and the duty to bargain. These decisions, summarized below, will impact all employers, not just those with unionized workforces. Although the Board now returns to a 2-2 Republican to Democrat split as a result of Miscimarra’s departure, once his Republican replacement is confirmed employers should expect to see more decisions on the chopping block. Continue Reading NLRB Reverses Four Obama-Era Decisions
Pay Data Requirement for EEO-1 Form Stayed
Earlier this week, the U.S. Office of Management and Budget (OMB) initiated an immediate stay of the Equal Employment Opportunity Commission’s revamped Employer Information Report, or EEO-1. As discussed here, an expanded EEO-1 was issued in September 2016, and required employers to submit information on employee pay and hours by job category, in addition to demographic information. The new EEO-1 requirement was to take effect beginning with the next EEO-1 date of March 31, 2018 (changed from previous September 30 submission deadlines.) Continue Reading Important EEO-1 and I-9 Updates
In a major victory for the business community, Judge Sam R. Cummings of the U. S. District Court for the Northern District of Texas issued a permanent nationwide injunction blocking the Department of Labor (DOL) from enforcing its new “persuader” rule. National Federation of Independent Business, et al. v. Perez, et al., Case No. 5:16-cv-00066. The rule attempted to expand disclosure requirements by employers and their consultants (including attorneys) related to union-organizing campaigns. Continue Reading Judge Not Persuaded, Permanently Enjoins DOL’s New Reporting Rule
Employers, along with tricks and treats, the holiday could bring risk of religious discrimination and harassment lawsuits. Employers should review discrimination policies and dress codes and rid themselves of any skeletons lurking in the closet. Continue Reading Employment Tricks For Halloween
Last week, the EEOC issued its final rule regarding pay data to be collected with the annual EEO-1 reports. Covered employers will now need to submit pay data sorted by job group and demographic data in their annual EEO-1 reports. The final rule was implemented with no material changes from the proposed rule first issued earlier this year, despite significant response and feedback from industry and employer groups citing concerns. For more information on the rule, see You Pay Your Employees What??? Employers Might Have to Share Hours and Pay Data in Proposed EEO-1 Form. The new EEO-1 form can be found here. Continue Reading EEOC and DOL Active Last Week: EEO-1 Pay Data Rule and Federal Contractor Paid Sick Leave Rule to Take Effect
Another federal court of appeals has weighed in on the question of whether requiring employees to waive the right to bring a class action against their employer in arbitration or court as a condition of employment violates employees’ rights under Section 7 of the National Labor Relations Act (NLRA). Continue Reading Is the Tide Turning Against Class Action Waivers in Arbitration Agreements?
The current National Labor Relations Board (NLRB or Board) has done it again, once more overturning existing precedent. In a decision issued July 11, 2016, the Board abandoned its 2004 Oakwood Care Center decision (343 NLRB 659) which stood for the proposition that a unit comprising the employees of a “supplier” employer (such as a leasing or temporary agency) and those of a “user” employer was not an appropriate unit for collective bargaining purposes, absent the consent of both employers. Miller & Anderson, Inc. and Tradesman International and Sheet Metal Workers International Association, Local Union No. 19, AFL-CIO, 364 NLRB No. 39. Continue Reading Temporary Employees—Or Long-Term Bargaining Obligation?