The New York City Council passed the Earned Sick Time Act (“the Act”) on May 8, 2013. The Act requires that New York City businesses provide all employees with protected sick leave for their own or a family member’s illness, but its effective date was contingent on the performance of New York City’s economy. City Council member Gale Brewer, the sponsor of the Act, has announced that, based on economic indicators, the Act will go into effect on April 1, 2014.
Articles Discussing Labor And Employment Law In All Fifty Us States And Puerto Rico.
Employer Properly Terminated Employee for Falsifying Prescription Records, Alaska High Court Rules
An employer did not breach the implied covenant of good faith and fair dealing under Alaska law for terminating an employee for allegedly falsifying prescription drug records, the Alaska Supreme Court has ruled. Beach v. Handforth-Kome, No. 6845 (Alaska Nov. 29, 2013). Although the employee argued that the employer’s investigation was unfair, the Court found the implied covenant of good faith and fair dealing did not require the employer to provide her with additional protections, beyond that in the employee handbook. The Court also rejected the employee’s claim for retaliatory discharge.
After-Acquired Evidence of Prior Conviction Disqualified Applicant from Position, California Court Finds
Evidence of a prior narcotics conviction could be used to show that the employee was not qualified for a union organizer position, even though the employer did not learn of the conviction until after it made the decision not to hire the plaintiff, the California Court of Appeal has ruled. Horne v. Int’l Union of Painters and Allied Trades, Dist. Council 16, No. A135470 (Cal. Ct. App. Dec. 3, 2013). Although the after-acquired evidence doctrine would bar the use of the conviction to prove the employer’s motive for refusing to hire the employee, the Court stated the conviction could be used to show the employee failed to satisfy a prima facie racial discrimination case under the California Fair Employment and Housing Act. Accordingly, the Court affirmed summary judgment in favor of the employer.
Managers’ Class Action for Unpaid Overtime May Proceed, California Court Rules
Announcing that “class-wide relief remains the preferred method of resolving wage and hour claims, even those in which the facts appear to present difficult issues of proof,” the California Court of Appeal reversed an order denying certification of a class of restaurant managers who claimed they were misclassified as exempt employees and denied overtime pay in violation of California law. Martinez et al. v. Joe’s Crab Shack et al., No. B242807 (Cal. Ct. App. Dec. 4, 2013). The Court found that the trial court incorrectly focused on factual disputes regarding how the managers spent their time, rather than on the employer’s policies the managers alleged resulted in their misclassification. In so doing, the trial court improperly shifted the burden of proving the exemption to the employees, the Court noted.
Pennsylvania Supreme Court Changes Labor Market Survey Rules
The Pennsylvania Supreme Court recently issued a decision that may significantly change the ability of an employer to modify or suspend Pennsylvania Workers’ Compensation benefits based on a Labor Market Survey. In Phoenixville Hospital v. WCAB (Shoap), the court ruled that evidence that a claimant applied for, but was ultimately not hired for, positions identified in the Labor Market Survey is allowable to show the positions are “not available” under Section 306 (b)(2) of the Pennsylvania Workers Compensation Act (the Act). Thus, the claimant’s application for the jobs and the availability of the positions is now an issue that must be addressed.
New Jersey’s Mandatory Gender Discrimination Notice Available
The New Jersey Department of Labor has issued a new mandatory gender equity notification form. Employers with at least 50 employees, whether working inside or outside of New Jersey, must conspicuously post the notice, as well as distribute it to employees (P.L. 2012, c.57). The notification serves to put employees on notice of their rights to be free from gender inequity or bias in pay, compensation, benefits, or other employment terms and conditions under the New Jersey Law Against Discrimination, Title VII of the Civil Rights Act of 1964, and the Equal Pay Act of 1963. Governor Chris Christie signed the anti-discrimination notice requirements in September 2012, after the bill received final legislative approval in June. The proposed form of notice was originally published and opened for public comment on January 7, 2013.
New Year Means New Employment Laws in Oregon
Employers with operations in Oregon should ensure their policies and practices are in compliance with the state’s new employment laws going into effect on January 1, 2014. The new laws will affect the day-to-day operations of many businesses.
Federal Court Potentially Loosens Rules for Arbitrating Wage Claims in Massachusetts
In a recent decision, Judge Young of the U.S. District Court for the District of Massachusetts held that an arbitration agreement does not need to specifically reference the Massachusetts Payment of Wages Law in order for claims under that statute to be subject to arbitration. Specifically, the district court held that any such requirement would be preempted by the Federal Arbitration Act (FAA).
Wage-Hour Class Action Challenging Employer’s Policy on Pre-Shift Work May Proceed, California Court Rules
As common issues predominated regarding whether the employer had a policy of denying compensation for certain pre-shift work in violation of California’s wage and hour laws, denial of class certification is not appropriate, the California Court of Appeal has ruled, reversing the lower court. Jones et al. v. Farmers Ins. Exchange, No. B237765 (Cal. Ct. App. Nov. 26, 2013). However, the Court also ruled that the named plaintiff was not an adequate class representative and allowed the employees to amend their complaint to name a new class representative.
Employees May Proceed with Fraud Suit for Unpaid Bonus, California Court Rules
Employees who alleged they remained in their jobs after the employer made oral promises of a bonus upon completion of the sale of the company, which bonus was never paid, had adequately pled claims for promissory fraud (concealment), breach of contract and promissory estoppel, the California Court of Appeal has ruled, reversing dismissal of those causes of action. Moncada et al. v. West Coast Quartz Corp. et al., No. H036728 (Cal. Ct. App. Nov. 22, 2013). However, the Court affirmed the dismissal of the employees’ claims for intentional infliction of emotional distress, negligent misrepresentation, and equitable estoppel.
Ohio Appellate Court Sporks Plaintiff in Plastic Cutlery Non-Compete Dispute
An Ohio appeals court recently held that an employee did not breach his non-competition agreement by creating his own business in the same industry as his former employer, despite the fact that the former employee contacted clients of his former employer and began compiling an inventory during his restricted period.
Tennessee Whistleblower Must Report Illegal Conduct to Third Party, Tennessee Court Rules
An employee “whistleblower” suing for retaliatory discharge under Tennessee law must have reported the alleged misconduct to someone other than the person engaging in the alleged misconduct, the Tennessee Court of Appeals has ruled. Haynes v. Formac Stables, Inc., No. W2013-00535-COA-R3-CV (Tenn. Ct. App. Dec. 4, 2013). Where the plaintiff-employee’s complaint was to the owner of the company, who was a participant in the allegedly illegal activity, the Court found the employee failed to establish a claim and affirmed dismissal. Further, the intermediate appellate court declined to recognize an exception to the reporting requirement where the person engaged in the misconduct is the owner or manager of the employer.
Colorado Announces 2014 Minimum Wage Rates
The Colorado Department of Labor and Employment announced that it has adopted Minimum Wage Order 30, which will govern minimum wages in 2014. Effective January 1, 2014, the state’s minimum wage will increase from $7.78 to $8.00 per hour. For tipped employees, the minimum cash wage will increase from $4.76 to $4.98 per hour, whereas the maximum tip credit an employer may apply towards meeting its minimum wage obligation will remain $3.02 per hour.
California Law Extends Workplace Discrimination Prohibition to Stalking Victims and Imposes New Reasonable Accommodation Requirement
California Governor Jerry Brown recently signed into law Senate Bill No. 400 (SB 400), which expands the state’s current employment discrimination protections to victims of stalking. Effective January 1, 2014, SB 400 amends California Labor Code sections 230 and 230.1 to extend the prohibitions against discharging, discriminating against, or retaliating against employees who are known or suspected victims of domestic violence or sexual assault, to employees who are victims of stalking. SB 400 also adds a provision to Labor Code section 230 that requires employers to provide reasonable accommodations to victims of domestic violence, sexual assault, and stalking.
Non-Compete Agreements Enforceable against Two Former Executives, Tennessee Court Rules
Non-compete agreements are enforceable against former employees, according to Tennessee law, as long as the agreements are reasonable and necessary to protect the employer’s legitimate interests, the Court of Appeals of Tennessee has ruled. James F. Dill Jr. et al. v. Continental Car Club, Inc. et al., No. E2013-00170-COA-R3-CV (Tenn. Ct. App. Oct. 31, 2013). While the Tennessee court held the agreements restricting two former executives from competing throughout the United States against their former employer were enforceable, it declined to enforce the Florida choice-of-law provision in the agreements, finding the provision incompatible with Tennessee’s public policy. Such a provision identifies the state’s law which will apply if any dispute arises over the interpretation of an agreement.