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We are continuing to monitor key trends and significant updates that affect employers across a wide variety of industries. We want to make sure we touch upon issues that are of concern to you. We invite you to take a moment and let us know what you would like to hear more about in this newsletter. Click below to email our team of attorneys.
Updates
New PAGA Reforms Incentivize Proactive California Wage and Hour Compliance Efforts
On July 1, 2024, Governor Gavin Newsom signed two bills into law that significantly revamp the Private Attorneys General Act of 2004 (PAGA). These reforms follow a June 18 deal reached between California labor and business groups and Governor Newsom that will keep an initiative seeking to repeal PAGA off the November ballot. The revised statute ("New PAGA") brings a suite of changes that, among other things, will incentivize employers to take proactive efforts to remediate wage and hour violations before lawsuits are filed and cure any violations promptly after filing.
AI Hiring Tools: ACLU Warns Employers and AI Companies It Won't Stand for Deceptive "Bias-Free" Promises
We've all fallen victim to good marketing at some point. Just like all product and service providers, artificial intelligence (AI) companies are no fools when it comes to the benefits of good marketing. As we've previously written, use of AI in hiring has come under increasing scrutiny for its potential to screen out candidates based on characteristics protected by state, local, and federal discrimination laws, such as race, disability, and gender, among others.
SCOTUS Confirms NLRB Not Entitled to Deferential Standard for Preliminary Injunctions
In Starbucks Corp. v. McKinney, 602 U.S. ____ (2024) (hereafter, "Starbucks"), the U.S. Supreme Court (SCOTUS) recently resolved a circuit split to clarify that if the National Labor Relations Board (the Board) seeks a preliminary injunction to deter alleged unfair labor practices, the Board is not "automatically [] deserving" of an injunction and, instead, must satisfy the traditional four-part equitable standard for obtaining such relief.
Political Activity Policies: Keeping Calm on Campus During the 2024 Presidential Elections
As the 2024 presidential election cycle is in full swing, schools should prepare for debate, discussion, and expression of a wide range of political views and beliefs. While political discourse can be a valuable tool in the classroom, these conversations can become tense and easily spin out of control due to the increasingly polarized nature of U.S. politics. Independent school employees are often engaged in the political process and inspire students to think deeply about political and cultural issues, however, schools should be mindful that there are limits to the type of expression and support that employees should display for specific candidates or issues in the workplace.
Tip of the Month
Allison Gotfried: The landscape of federal employments laws is changing -- new exemption thresholds, a different contractor standard, and a broad prohibition of non-compete agreements. These changes will undoubtedly affect your relationships with your workers. Now is a good time to conduct a general audit of your employees’ exemption status, worker classifications, and existing restrictive covenant agreements to ensure that you are complying with these new mandates.
About the Labor and Employment Group
The national, 40-person Labor and Employment team at Venable provides guidance and support across the full spectrum of workplace dynamics – helping employers control costs, avoid disputes, and defend themselves when litigation arises. As co-editors of this newsletter, Michael Volpe and Doreen Martin invite you to share the content with your colleagues and reach out with any questions.