The Office of Federal Contract Compliance Programs (OFCCP) has published a revised directive regarding the use of Functional Affirmative Action Plans (FAAPs). A FAAP requires specific OFCCP approval and is a departure from the typical “establishment-based” AAP structure for multi-establishment facilities, using an AAP structure that is more in line with the business functions or business units of the contractor. A functional or business unit refers to a component within an organization that operates autonomously in the ordinary course of the organization’s business. To be considered suitable for a FAAP, the functional or business unit must: 1) currently exist and operate autonomously; 2) include at least 50 employees; 3) have its own managing official; 4) have the ability to track and maintain its own personnel activity.
Starting July 1, 2016, Employees in Los Angeles Get Three Additional Days of Paid Sick Leave and $10.50 Per Hour
Executive Summary: On April 19, 2016, the Los Angeles City Council voted overwhelmingly in favor of a proposed ordinance that would permit Los Angeles workers to earn at least six paid sick leave days annually. That is double the mandatory minimum under California’s state-wide paid sick leave law.
New Federal Law May Be Employers’ Strongest Weapon Against Trade Secret Theft
Executive Summary: Until now, employers with trade secrets stolen by former employees had to rely upon uneven, hit-or-miss state laws to protect their intellectual property and confidential information. Enter the Defend Trade Secrets Law of 2016, designed to provide a new, uniform federal civil remedy to trade secret owners whose intellectual property has been stolenβwithout preempting state law or disrupting fair competition. Now that the Act is finally on its way to President Obama’s desk for signing, the Act’s signature developments are worth highlighting.
The New Fiduciary Rule: Are you Prepared?
The Department of Labor recently announced its new Fiduciary Rule β aka the βconflicts of interest rule.β This new rule expands the definition of fiduciary and alters how investment advice is delivered in retirement accounts. It wonβt go into effect for at least another year, but itβs not too early to start thinking about how the changes will affect the professionals who render this advice.
The UK Continues to Take Aim at the Gender Pay Gap
More than 35 years after the United Kingdom’s Equal Pay Act was introduced, recently released statistics show a 19.2 percent gap in average full time salaries between men and women.
Russia’s New Personal Data Localization Requirements
Executive Summary: Employers in Russia and companies doing business in Russia should be prepared to comply with recently enacted requirements governing storage and processing of the personal data of Russian citizens, which are designed to provide additional protection for this data.
DOL Issues Long-Awaited New Rule Governing Retirement Investment Advisors
Executive Summary: On April 6, 2016, the U. S. Department of Labor (DOL) released a long-awaited final rule expanding the definition of “fiduciary” under ERISA as well as the duties of investment advisors who qualify as fiduciaries thereunder. In addition, the DOL issued two related prohibited transaction exemptions that have the effect of minimizing the compliance burden imposed on investment advisors who now, under the final rule, qualify as fiduciaries, by (1) permitting firms to receive certain common types of compensation if they contractually commit to putting their clients’ best interests first, and (2) permitting certain principal transactions between those fiduciary-advisors and their customers.
New York Enacts Paid Family Leave Law and Increases Minimum Wage Rate
Executive Summary: On March 31, 2016, New York State lawmakers finalized a budget deal that included: (1) a bill mandating paid family leave for most employees (the “Paid Family Leave Law”) and (2) a statewide incremental increase to a $15 per hour minimum wage.
San Francisco Becomes First U.S. City to Approve Fully Paid Leave for New Parents
On April 5, 2016, San Francisco, California’s Board of Supervisors approved a measure mandating that San Francisco employers provide six weeks of fully paid leave during a calendar year for new parents, including mothers, fathers, and same-sex couples, who either bear or adopt a child. It is another in a long line of employee-friendly laws recently passed both in California and around the country.
California Supreme Court Tells Both Sides to Sit Down
Executive Summary: The California Supreme Court’s recent decision in Kilby v. CVS Pharmacy/Henderson v. JPMorgan Chase has clarified the state’s standards concerning when employers must provide suitable seating to their employees. While the holding will permit employees to sit on the job under certain circumstances based on the nature of work actually performed (rather than an abstract, such as a job description), the state high court validated a reasonable interpretation of the requirement that permits employers to use their business judgment (including customer service considerations) and the physical layout of workspaces when determining whether seating is required.
Labor Department Unveils Final “Persuader Rule”
Executive Summary: On March 23, 2016, the U.S. Department of Labor (DOL) issued the final version of its “persuader rule,” which requires employers, third-party lawyers and other labor consultants to disclose to the DOL any arrangement to persuade employees directly or indirectly concerning the right to organize or bargain collectively. These reports must be filed electronically and, once filed, become publicly available records.
Lack of Time Records? There’s an Expert for That β U.S. Supreme Court Reinforces Use of Time Study Experts in Class Certification
Executive Summary: Today, the U.S. Supreme Court held that when an employer fails to create accurate time records, courts may rely on expert time studies not only to determine unpaid hours of work, but also to determine the underlying issue of predominance necessary to certify a class. The Court’s opinion declined to restrict the use of damage calculations based on statistical evidence, and said the use of such methods in litigation can be reviewed by courts on a case-by-case basis.
More Businesses Face Lawsuits Challenging Website Accessibility
Executive Summary: Despite the recent explosion of lawsuits challenging the accessibility of websites under Title III of the Americans with Disabilities Act (ADA), the Department of Justice (DOJ) has announced that it will not publish proposed revisions to the Title III regulations to address website accessibility until 2018. However, businesses should not view this as a reprieve or anticipate a slowdown in litigation. In fact, the DOJ continues to conduct investigations of website accessibility under both Title III and Title II (applicable to public entities, such as public universities). Additionally, plaintiffs’ lawyers have filed class actions against a variety of businesses including on-line entertainment providers, retailers, providers of e-books, financial institutions, credit reporting agencies, public universities, and even the NBA and NCAA, alleging violations of Title III based on inaccessible websites. The DOJ has intervened in many of these lawsuits.
Get Ready: USDOL Sends Final White Collar Exemption Rule to OMB β Could be Published in 30 to 60 Days
Executive Summary: On Tuesday, March 15th, the US Department of Labor (DOL) sent to the White House’s Office of Management and Budget (OMB) its Final Rule revising the White Collar Exemption Regulations, which will likely expand overtime eligibility for millions of workers. Typically, the OMB review takes anywhere from 30 to 60 days. Therefore, the Final Rule could be published at any time in the next couple of months.
Fifth Circuit Decision May Endanger Many Texas Arbitration Agreements
Executive Summary: The Fifth Circuit has issued a decision which may affect Texas employers who utilize employment arbitration agreements. In Nelson v. Watch House Int’l, L.L.C., No. 15-10531 (5th Cir. Mar. 2, 2016), the court found an employment arbitration agreement unenforceable where the “savings clause” did not expressly require advance notice to employees of amendments and/or termination of the arbitration agreement.