New York’s highest court has ruled that a business seller may solicit and regain former clients for his new employer without incurring liability for improperly soliciting business under certain circumstances. Bessemer Trust Co., N.A. v. Branin, No. 63, 2011 NY Slip Op. 3307, 2011 N.Y. LEXIS 602 (Apr. 28, 2011).
South Carolina Shuts Down Restaurant after Immigration Audit
South Carolina has shut down a restaurant for 10 days after finding that the restaurant employed persons not authorized to work. This move by the South Carolina Department of Labor, Licensing and Regulation arises out of a plan to audit 4,000 employers in 2011 for compliance with the South Carolina Illegal Immigration Reform Act. Employers found in violation of the Act face stiff civil fines and negative publicity and may be reported to U.S. Immigration and Customs Enforcement or, as in this case, even shut down. LLR has hired 21 investigators to support its aggressive investigation strategy.
What Approaching Limitations on Use of Credit Reports Mean for Maryland Employers
In a dramatic change for Maryland employers, the state’s new Job Applicant Fairness Act will significantly limit their use of an individual’s credit history report for hiring and making other employment-related decisions. No previous state restrictions existed on employers’ obtaining and using this information. The Act was signed by the Governor on April 12 and will become effective on October 1, 2011.
Georgia’s Sweeping Immigration Bill Goes to Governor
The Georgia state legislature passed immigrant legislation (HB87) on April 14, the final day of its 2011 session. Governor Nathan Deal is expected to sign the sweeping immigration bill into law as early as today. HB87 mandates that companies with more than 10 full-time employees register with the federal E-Verify program to check the legal status of new hires and 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.
New York Wage Theft Prevention Act Update: State DOL Issues Model Forms and Guidance
The Wage Theft Prevention Act, effective April 9, 2011, applies to all New York employers. It modifies current new hire notification requirements that have been in effect since late 2009, imposes an annual notification requirement, and modifies the information required to be included on pay stubs.
Spring Forward: New Jersey May Adopt Federal Regulations on Overtime Exemptions
New Jersey has taken the first step towards bringing the State’s regulations on overtime exemptions in line with federal law. The New Jersey Department of Labor and Workforce Development (“NJDOLâ€) on March 21, 2011, proposed to adopt the federal regulations regarding overtime exemptions and repeal the existing State regulations. The move would eliminate needless inconsistencies between the two regulatory schemes and provide greater certainty to employers and employees regarding appropriate worker classifications. The current proposal comes on the heels of the NJDOL’s adoption of federal regulations regarding practices in rounding employees’ wages.
Calif.’s Canary In The Employment Mine Shaft
California Department of Fair Employment and Housing (DFEH) Director Phyllis W. Cheng, speaking at the Jackson Lewis LLP-sponsored Association of Corporate Counsel (ACC) Labor and Employment Committee Meeting on Feb. 22, 2011, told the gathering of business lawyers that the agency would continue to pursue high-impact cases of “systemic discrimination†in the workplace as a means of leveraging its resources in a time of government austerity.
How Illinois’ Civil Union Act Will Affect the Workplace
The Illinois Religious Freedom Protection and Civil Union Act (“Civil Union Actâ€) extends state law protections and responsibilities currently afforded to married, heterosexual couples to all committed couples in Illinois, including same-sex couples, by allowing same-sex couples to enter into a civil union. The Act will become effective on June 1, 2011.
Breaks Required under Maryland’s “Healthy Retail Employee Act,†Effective March 1
Under Maryland’s Healthy Retail Employee Act, Maryland employers who operate “retail establishments†must provide non-exempt retail employees with break periods based on the length of the shifts the employees work. Employers in violation of the Act will face a fine.
California Court Rules Employer Not Required to Pay Overtime under Explicit Mutual Wage Agreement
A California employer did not owe overtime to an employee because it had entered into an explicit mutual wage agreement that provided for base compensation and overtime in one lump sum, the California Court of Appeal has ruled. Arechiga v. Dolores Press, Inc., No. B218171 (Cal. Ct. App. Feb. 7, 2011). Affirming the dismissal of the employee’s claim, the Court upheld the validity of explicit mutual wage agreements for non-exempt employees under California law.
Punitive Damages May be Awarded for Harassment Claim Despite Employee’s Failure to Succeed on Emotional Distress Claim, New Jersey Court Rules
In a groundbreaking decision on an issue of first impression, the New Jersey appellate court has held that a plaintiff may proceed with a punitive damages claim against her former employer despite the fact that a jury found that she failed in proving the common law tort of intentional infliction of emotional distress under New Jersey law. Rusak v. Ryan Automotive, L.L.C., No. A-2002-09T1 (N.J. Super. Ct. App. Div. Feb. 8, 2011).
Washington State Legislature Targets Bullying in the Workplace
Responding to findings that approximately one in five employees “directly experience health-endangering workplace bullying, abuse, and harassment†and that “abusive work environments can have serious effects on targeted employees and serious consequences for employers,†a new bill has been introduced in both houses of Washington’s state legislature that will provide a legal remedy for employees and legal incentives for employers to address workplace bullying.
ICE to Issue Form I-9 Audit Notices to Employers in Denver
Jackson Lewis has learned that the United States Immigration and Customs Enforcement (“ICEâ€) will be issuing notices of inspection to review the hiring records of some employers based in Denver on February 14, 2011. The employers will have three days to produce I-9 forms or fines will be assessed. ICE will inspect and review hiring records to determine whether they comply with employment eligibility verification laws and regulations.
New California Law Allows Agents’ Presumption of a Serious Workplace Safety Violation
A new California law makes it easier for the California Division of Occupational Safety and Health (“Cal/OSHA”) to classify workplace safety violations as “serious” for purposes of issuing citations and proposed penalties to employers. Assembly Bill 2774, signed by Governor Arnold Schwarzenegger in September 2010, broadens the definition of “serious violation” and establishes specific procedures for Cal/OSHA to create a rebuttable presumption that a “serious violation” exists at a worksite. According to Cal/OSHA, the law will “help strengthen the Cal/OSHA program, improve enforcement efforts and better protect California’s workers.”
New York Wage Theft Act Increases Employer Obligations and Penalties for Labor Law Violations.
New York Governor David Paterson has signed into law the Wage Theft Prevention Act. The new law amends the New York Labor Law, creates new recordkeeping obligations for employers and allows employees to recover significantly greater damages for violations of the law. The new law will become effective on or about April 12, 2011.