A number of new employment bills making significant changes in California employment law and requiring review of employer human resources policies and employee handbooks has been signed by California Governor Jerry Brown. The new laws are effective January 1, 2012, unless otherwise indicated. We highlight what we believe to be the most significant below.
Articles Discussing Labor And Employment Law In All Fifty Us States And Puerto Rico.
Illinois Supreme Court Expands Scope of Covenants Not to Compete
On December 1, 2011, the Supreme Court of Illinois issued its opinion in Reliable Fire Equipment Company v. Arrendondo, Case No. 2011 IL 111871, addressing and clarifying several issues relating to the enforceability of noncompetition agreements in Illinois and setting forth a standard that may result in employers facing a lighter burden to enforce such agreements against former employees.
California Supply Chain Law Affects Large Retailers and Manufacturers Doing Business in California
Responding to a stated concern over human trafficking and goods that are produced by forced or child labor, the California Legislature passed the California Transparency in Supply Chains Act of 2010 with the goal of “ensur[ing] large retailers and manufacturers provide consumers with information regarding their efforts to eradicate slavery and human trafficking from their supply chains.”1 This is the first state or federal law of its kind. Beginning January 1, 2012, every retailer and manufacturer doing business in California with annual worldwide gross receipts exceeding $100 million must conspicuously disclose on its website the extent to which it does the following:
New Jersey Appellate Court Defers to State Wage and Hour Division’s Longstanding Interpretation of Exemption
On November 16, 2011, the New Jersey Appellate Division affirmed a finding that registered nurses who were paid on an hourly basis were exempt from the overtime requirements of the New Jersey Wage and Hour Law (“NJWHLâ€), even though the regulation applicable at the time only extended the “professional†exemption to employees compensated on a “salary or fee basis.â€
Massachusetts Passes Legislation Protecting Transgender Employees in the Workplace
On November 23, 2011, Massachusetts Governor Deval Patrick signed into law the “Gender Identity Bill.” This makes Massachusetts the 16th state – along with California, Colorado, Connecticut, Hawaii, Iowa, Illinois, Maine, Minnesota, Oregon, Nevada, New Jersey, New Mexico, Rhode Island, Vermont, Washington, and the District of Columbia – to provide some level of protection to employees based on gender identity and/or expression.
Verdict for Employee in California Sexual Harassment Case Affirmed Despite Inconsistent Testimony
Minor inconsistencies in witness testimony need not render a plaintiff-employee’s account of sexual harassment so “inherently improbable†as to require reversal of the jury’s verdict, the California Court of Appeal has held. The Court thus affirmed judgment in favor of the employee in a sexual harassment case.
New Jersey Issues Proposed Regulations to Restore Its Exemption for Commissioned Sales Employees
In an ASAP published on October 17th, Littler reported that, in recent amendments to its overtime regulations, New Jersey had inadvertently eliminated the exemption for sales employees paid on commission, which closely tracked an exemption in Section 7(i) of the Fair Labor Standards Act (sometimes known as the “inside sales” exemption).
Guidance on Connecticut Paid Sick Leave Law Now Available.
The Connecticut Department of Labor has issued guidance on the new Connecticut Paid Sick Leave Law. The law goes into effect on January 1, 2012. The guidance is available from the Department’s website, at http://www.ctdol.state.ct.us/wgwkstnd/SickLeaveGuidance.pdf. (See our article, What Employers Need to Know about Connecticut’s Paid Sick Leave Law, for more information on the new law.)
New Nevada Law Bans Cell Phone Use While Driving
Nevada’s new cell phone law (SB 140) prohibits a person from manually typing or entering text into a cell phone or similar device, and from sending or reading data using a cell phone or other device, while operating a motor vehicle. The law also prohibits the use of cell phones for voice communication unless the phone is used with an accessory that allows for hands-free use. Global positioning systems (GPS) are not covered.
California Court of Appeal Declines to Hold Individual Supervisors Liable for Discrimination or Retaliation Under California Military and Veterans Code
In a case of first impression, the California Court of Appeal for the Second Appellate District ruled that there is no individual liability for discrimination or retaliation under California Military and Veterans Code section 394, which protects from discrimination employees who are called to active duty. Haligowski v. Superior Court of Los Angeles County, No. B231310 (Nov. 11, 2011).
A California Federal Court Reinvigorates the Growing Tension over the Preemptive Scope of California’s Uniform Trade Secrets Act
In the latest twist in the developing law regarding the preemptive scope of California’s Uniform Trade Secrets Act (UTSA)1 a California federal court in Amron International Diving Supply, Inc. v. Hydrolinx Diving Communication, Inc.2 (“Amron”) recently issued a decision reinvigorating the growing tension between courts addressing the issue of UTSA preemption – a tension that, unfortunately, is likely to continue into the foreseeable future.
Washington Court Finds State Public Policy Violated by CBA Arbitration Award Reinstating Worker who Hung Noose at Work
A labor arbitrator’s award reinstating an employee who was terminated for hanging a noose in his workplace violated Washington’s public policy against discrimination where the arbitrator’s lesser discipline (only a 20-day suspension) prevented the employer from effectively discharging its state law duty of eradicating racial discrimination from the workplace. Thus, a Washington Court of Appeals panel has vacated the award. Int’l Union of Operating Eng’rs, Local 286 v. Port of Seattle, No. 65037-8 (Wash. Ct. App. Oct. 17, 2011). However, because the trial court exceeded its authority in making its own decision about the appropriate employee discipline, the Court remanded the case for further proceedings.
Make Room on Your Bulletin Board for New Jersey Labor Department’s New Notice
The New Jersey Department of Labor and Workforce Development (“NJDOLâ€) has placed new burdens on employers. A newly issued notice entitled, “Employer Obligation to Maintain and Report Records,†requires employers to (1) post this notice immediately in the workplace; (2) provide each employee hired prior to November 7, 2011, a written copy of the notice no later than December 7, 2011; and (3) provide employees hired after November 7, 2011, a written copy of the notice at the time of hire. A copy of the Notice is available here.
Despite Legal Challenge, Effective Date Approaches for Key Provisions of Alabama Immigration Legislation
Alabama gained notoriety in June when Governor Robert Bentley signed into law HB 56, the Beason-Hammon Alabama Taxpayer and Citizen Protection Act. HB 56 quickly gained a reputation as the most aggressive in a long line of state immigration legislation and attracted interest (and ire) from the federal government, immigrant rights groups, and others. A recent federal court decision has halted implementation of certain provisions of the Act, but the central requirement that employers use E-Verify remains intact and on schedule.
Federal District Court Holds Motor Carriers Are Not Subject to California’s Meal and Rest Break Laws
A federal district court in California recently issued a decision, in Dilts v. Penske Logistics, LLC, 2011 U.S. Dist. LEXIS 122421 (S.D. Cal. Oct. 19, 2011), holding that motor carriers that transport property are not subject to California’s meal and rest break laws because such laws are preempted by the Federal Aviation Administration Authorization Act (FAAA Act).
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