South Carolina has joined the growing number of states requiring employers to use the federal E-Verify program exclusively to confirm new workers’ employment authorization. Governor Nikki Haley signed into law amendments to the South Carolina Illegal Immigration Reform Act (“Act†or “SCIIRAâ€) and other state laws addressing immigration on June 27, 2011.
Unlicensed Accountants May be Entitled to Overtime under California Law, Federal Court Rules
Reversing summary judgment for more than 2,000 unlicensed junior accountants in a class action lawsuit, the U.S. Court of Appeals for the Ninth Circuit (San Francisco) has held that the plaintiff-accountants were not “categorically ineligible†to be exempt from overtime under California’s professional and administrative exemptions. Campbell v. PricewaterhouseCoopers, LLP, No. 09-16370 (9th Cir. June 15, 2011). The Court ruled the district court erred in determining the unlicensed accountants, who were required by law to work under the supervision of a licensed accountant, could never meet the requirements for exempt employees. The Court warned against categorically excluding entire classes of employees from overtime exemption analyses.
North Carolina Governor Signs Mandatory E-Verify Bill
North Carolina Governor Beverly Perdue has signed into law HB 36, requiring private employers with at least 25 employees and all counties and cities to use E-Verify to verify the work authorization of newly hired employees. E-Verify is an Internet-based system that allows employers to determine the work eligibility of employees by verifying employees’ information against federal databases.
Federal Judge Grants Preliminary Injunction to Block Parts of Georgia Immigration Law
Determining parts of Georgia’s new immigration law (HB 87) were preempted by federal law, Judge Thomas W. Thrash, Jr., issued a preliminary injunction against sections of the state law that allow police to question individuals about their immigration status and mandate sanctions for those who harbor or transport undocumented migrants. Georgia Latino Alliance for Human Rights, et al. v. Deal, et al., No. 1:11-CV-1804-TWT (N.D. Ga. June 27, 2011). These sections were to take effect on July 1, 2011. The rest of the law’s provisions remain intact. Georgia Governor Nathan Deal has vowed to appeal the ruling.
What Employers Need to Know about Connecticut’s Paid Sick Leave Law
Connecticut Governor Dannel P. Malloy has pledged to sign the Connecticut Paid Sick Leave legislation, which passed in the legislature on June 3, 2011. Upon its January 1, 2012, effective date, Connecticut will become the first state in the country to mandate paid sick leave. Although the legislation (Public Act 11-52) provides a safe harbor for covered employers that already offer other types of paid leave, such employers nonetheless may need to modify their policies and practices to ensure compliance with the legislation. The extent of such modifications, however, is uncertain as we await guidance or regulations interpreting certain aspects of P.A. 11-52.
North Carolina Legislature Passes Mandatory E-Verify Bill
The North Carolina Legislature has passed a bill that requires private employers with more than 25 employees, all counties, and all cities to use the federal E-Verify program to verify the work authorization of newly hired employees. The bill, HB 36, passed on Saturday, June 18, 2011, now goes to Governor Bev Perdue for signature.
Alabama Employers Must Use E-Verify under Controversial New Immigration Law
Alabama has passed the strictest state immigration legislation to date. The Beason-Hammon Alabama Taxpayer and Citizen Protection Act (HB 56) was signed into law by Governor Robert Bentley (R) on June 9, 2011. The new law, which becomes effective September 1, 2011, requires employers in the state to use the federal E-Verify system to confirm the work status of new workers. Businesses that knowingly employ an individual without work authorization could have their business licenses suspended or revoked. The new law also makes the knowing transport, trafficking or harboring of an undocumented alien a state crime.
Virginia Supreme Court Refuses to Relax Standard for Tortious Interference with Employment Contract
An at-will employee must show a customer used “improper methods†beyond merely “actions solely motivated by spite, ill will and malice†to prove her employer’s primary customer tortiously interfered with her employment contract, the Virginia Supreme Court has ruled. The Court reversed a jury verdict awarding $900,000 in damages to a doctor for tortious interference, finding the pressure inherent in her employer’s relationship with its customer and primary source of revenue cannot rise to the level of “improper methods†needed for an at-will employee to show that the third party tortiously interfered with her employment contract.
Washington’s Medical Marijuana Law Does Not Support a Wrongful Termination Claim
Rejecting an employee’s claims for wrongful termination, the Washington Supreme Court has held that the state Medical Use of Marijuana Act (“MUMAâ€) does not provide a civil cause of action for wrongful termination based on the employee’s authorized medical marijuana use. Roe v. TeleTech Customer Care Mgmt. (Colorado) LLC, No. 83768-6 (Wash. June 9, 2011). The Court further held that MUMA does not create a clear public policy supporting a tort claim for public policy wrongful discharge.
Tennessee Adopts Worker-Verification Law
Tennessee has joined the increasing number of states attempting to curtail the employment of unauthorized aliens by passing its own employment eligibility verification law. The Tennessee Lawful Employment Act (SB 1669, HB 1378), signed by Governor Bill Haslam on June 7, 2011, requires employers to use the E-verify program, with exceptions, as soon as January 1, 2012.
Colorado Supreme Court Rules Continued Employment Is Sufficient Consideration For Restrictive Covenant
Reversing a state court of appeals’ decision, the Colorado Supreme Court has held that an employer’s continued employment of a current at-will employee provides sufficient consideration for a non-competition agreement entered into after the inception of employment. Lucht’s Concrete Pumping, Inc. v. Horner, 09SC627 (Colo. May 31, 2011). The ruling will impact Colorado employers’ decision about how and when to implement non-competition agreements.
Nevada’s Ban on Discrimination Based on Gender Identity to Take Effect October 1
A new Nevada law prohibits employers in the state from discriminating against their employees based on “gender identity or expression.†While state law already prohibits employment discrimination based on an individual’s color, race, sex, religion, age, disability, national origin, and sexual orientation, the new law expands protection to gender identity or expression. “Gender identity or expression†is defined as “gender-related identity, appearance, expression or behavior of a person, regardless of the person’s assigned sex at birth.â€
Georgia Governor Signs Sweeping Immigration Bill
Fulfilling a campaign promise, Georgia Governor Nathan Deal has signed into law a sweeping immigration bill that will affect companies in Georgia that employ more than 10 full-time employees. The law, HB87, requires companies to register with the federal E-Verify program and check the legal status of new hires. It also creates the offense of “aggravated identity theft†for the use of false information. In addition, it allows the police to question individuals about their immigration status and mandates sanctions for those who harbor or transport undocumented migrants.
The Second Time is the Charm: Georgia Governor Signs New Restrictive Covenant Law
Last November, voters in Georgia approved a constitutional amendment to allow a new restrictive covenant law to take effect. There were several uncertainties regarding the enforcement and application of the new law. When the Georgia legislature opened in January 2011, new restrictive covenant legislation was introduced to fix these problems. That legislation was passed by the House and the Senate, and signed by Governor Nathan Deal on May 11, 2011. It governs restrictive covenant agreements signed after that date. An updated summary of the new law follows.
New Jersey Passes Law Prohibiting Exclusion of Unemployed Individuals for Job Vacancies
A new New Jersey law prohibits employers in the state from publishing job advertisements, in print or on the Internet, that exclude unemployed individuals from applying. This makes New Jersey the first state to enact an explicit prohibition against such limiting language. The legislation, effective June 1, 2011, provides a penalty for employers that “knowingly and purposefully†publish advertisements excluding unemployed individuals from consideration for a position.