Ogletree Deakins

Quick Hits The Colorado legislature passed a bill to ban noncompete agreements with doctors, physician assistants, dentists, nurses, and midwives. The bill clarifies when noncompetes can be used in the purchase or sale of a business, including the sale of direct and indirect ownership interests. If signed by the governor, the bill will take effect on August 6, 2025. State law permits noncompete agreements and nonsolicitation agreements with certain highly…

Quick Hits New Jersey Assembly Bill A5433 proposes a five-year phase-out of the tip credit, spanning from 2026 to 2030. The bill would mandate employers pay the full state minimum wage to tipped employees before the addition of tips. Potential consequences include increased labor expenses for businesses, higher prices for consumers, and uncertain effects on the overall income of tipped workers. The tip credit is a legal provision allowing employers…

Quick Hits The Wisconsin Supreme Court interpreted the phrase “any … other offense” in the WFEA to include noncriminal offenses. The court’s interpretation is the final chapter in extended, seesaw litigation resulting from a school district’s decision to fire two employees who allegedly stole scrap metal from the district, pocketing the money they received from recycling the stolen material. The district elected to dismiss the brothers after they were cited…

Quick Hits Under SSB 55408, which amends the Equal Pay and Opportunities Act, Washington employers may now list a fixed pay amount instead of a wage range if only one amount is offered, including for internal transfers; postings that are replicated without employer consent are not considered official job postings. Between the law’s effective date and July 27, 2027, employers have five business days to correct a noncompliant posting after…

Quick Hits The Sixth Circuit upheld a jury verdict against a school psychologist who alleged Equal Pay Act violations after she was offered a lower salary than the salary paid to a male psychologist two years earlier. The court upheld the jury verdict, determining that a reasonable juror could conclude, based on the evidence of budget constraints and market forces, that the pay differential was based on a legitimate business…

Quick Hits Utah, West Virginia, and Wyoming lawmakers recently enacted state laws recognizing only two genders, male and female. The state legislators acted after President Donald Trump issued an executive order establishing that the federal government’s new policy is to recognize only two sexes, male and female, despite contravening federal law. The three states restrict transgender and nonbinary individuals from using public school bathrooms and locker rooms that align with…

Quick Hits State attorneys general from California, Colorado, Connecticut, Delaware, Indiana, New Jersey, and Oregon, as well as the California Privacy Protection Agency, announced the formation of the “Consortium of Privacy Regulators.” While the creation of the Consortium does not reflect a closer alignment in the contents of the actual consumer privacy laws themselves, it will likely heighten regulators’ abilities to enforce those elements of consumer privacy law that are…

Quick Hits A group of forty lawmakers from the U.S. Senate and U.S. House of Representatives sent a letter to the U.S. Secretary of Labor urging her to abandon proposed plans to drastically reduce and restructure OFCCP. The lawmakers raised concerns that the cuts could leave federal contractor workers vulnerable to potential discrimination. The letter comes amidst other OFCCP-related efforts by lawmakers, including the introduction of legislation to codify now-revoked…

Quick Hits The German Federal Labor Court ruled on March 19, 2025, that certain forfeiture clauses in General Terms and Conditions of Business regarding the expiration of virtual stock options upon termination of employment are invalid. The court found that such forfeiture clauses unreasonably disadvantage employees by not adequately considering the work already performed and the associated entitlement to the options. International companies might benefit from decoupling employee ownership at…

Quick Hits Proposition A requires Missouri employers to provide notice by April 15, 2025, summarizing employees’ entitlement to earned paid sick time, starting May 1, 2025. The Supreme Court of Missouri is reviewing a legal challenge to Proposition A that seeks to invalidate the law because it allegedly violates the Missouri Constitution. The Missouri General Assembly—Missouri’s state legislature—is considering multiple bills that would affect the paid sick time benefits provided…

Quick Hits Illinois Governor Pritzker signed several new labor and employment–related laws into effect, such as “E-Verify Limits Under Right to Privacy in Workplace Act” and the “Worker Freedom of Speech Act.” Amendments to current laws, such as the Illinois Human Rights Act, the Illinois Personnel Review Act, and the Illinois Wage Payment and Collections Act, expand the rights of employees. Most notably, the statute of limitations for actions brought…

Quick Hits On March 6, 2025, the UK government announced amendments to the Employment Rights Bill, which outlined updates to the bill relating to zero-hours and agency workers, changes to statutory sick pay (SSP), and expanded bereavement leave entitlements. The amended Employment Rights Bill proposes the establishment of a Fair Work Agency with the authority to enforce employment rights and issue underpayment notices, potentially imposing penalties for unpaid wages, holiday…

Quick Hits FERPA is a federal law that sets out a number of requirements educational institutions that receive federal funding must meet for the protection of student educational records. A recent Executive Order diminishes the federal government’s power to enforce FERPA, heightening concerns that EdTech vendors could use student education data in prohibited ways. However, vendors would do so at their own risk, as the legal landscape surrounding student education…

Quick Hits Senate Bill 36, known as the Georgia Religious Freedom Restoration Act, aims to protect the free exercise of religion by imposing a “compelling interest” test for government actions that may burden religious practices. The bill has significant implications for Georgia schools, including state higher education institutions, as Georgia lawmakers seek to align the state with broader federal policies pushed by the Trump administration. Despite being advanced by the…

Quick Hits The Maryland General Assembly passed legislation delaying the implementation of the paid family and medical leave insurance (FAMLI) program, with contributions starting on January 1, 2027, and benefits beginning by January 3, 2028. The Employment and Insurance Equality for Service Members Act would expand employment protections to include all uniformed services and reserve components, effective October 1, 2025. Legislation amending the Parental Leave Act to clarify that employers…

Quick Hits The California Civil Rights Department finalized modified regulations for employers’ use of AI and automated decision-making systems. The regulations confirm that the use of such technology to make employment decisions may violate the state’s anti-discrimination laws and clarify limits on such technology, including in conducting criminal background checks and medical/psychological inquiries. On March 21, 2025, the Civil Rights Council, a branch of the California Civil Rights Department (CRD),…

Quick Hits USCIS announced that the second half of the H-2B cap was met for FY 2025 on March 5, 2025. The announcement stated that cap-subject H-2B petitions received on or after March 6, 2025, would be rejected. The agency will continue to accept properly filed cap-exempt petitions and petitions for workers qualifying under the supplemental allocation. The H-2B program allows employers to hire foreign national workers to meet their…

Quick Hits On March 31, 2025, a U.S. district court judge issued an order temporarily reinstating Venezuela’s TPS pending further litigation.  Shortly after taking office, Secretary of Homeland Security Noem canceled the extension of the 2021 and 2023 TPS designations for Venezuela and the overall 2023 TPS program for Venezuelans. This court order ensures that Venezuelan TPS holders retain their legal status and employment authorization through October 2, 2026, while…

Quick Hits The Minnesota Legislature’s party divide creates uncertainty for employers, with amendments to key labor laws like Paid Family and Medical Leave and Earned Sick and Safe Time potentially facing delays or requiring bipartisan compromise. Proposed amendments to Minnesota’s Earned Sick and Safe Time Law include delaying penalties for violations before January 1, 2026, making Earned Sick and Safe Time permissive, and changes to leave notice requirements and documentation…

Quick Hits Several states have proposed legislation in 2025 to enhance workplace violence prevention. An OSHRC administrative law judge vacated an OSHA citation against a private security company, ruling that the fatal shooting of a mall security officer was unforeseeable and that the company had adequate workplace violence policies and training. Cal/OSHA will propose a detailed workplace violence prevention standard by December 31, 2025. Proposed State Laws on Workplace Violence…

Quick Hits Wyoming enacted legislation that will void noncompete agreements with employees with limited exceptions. Noncompete agreements will remain permissible in certain contexts, such as the sale of a business, the protection of trade secrets, the recovery of employers’ costs to relocate or train employees, and to restrict post-employment activity of executive or managerial personnel and their key staff. The law also prohibits noncompete clauses in agreements involving physicians and…

Quick Hits The D.C. Circuit Court ruled that President Trump likely has the authority to remove NLRB member Gwynne Wilcox and MSPB member Cathy Harris without cause, staying previous reinstatement orders from lower courts. The ruling leaves the NLRB and MSPB without enough members to hear cases. The decision addresses significant constitutional questions regarding the president’s power to remove members of independent agencies, boards, and commissions and Congress’s authority to…

Quick Hits Catherine Eschbach has been named director of OFCCP to “oversee its transition to its new scope of mission.” OFCCP will enforce EO 14173’s revocation of EO 11246, Eschbach said, stating that EO 11246 “had facilitated federal contractors adopting [diversity, equity, and inclusion (DEI)] practices out of step with the requirements” of civil rights laws. Contractors must unwind their EO 11246 compliance within ninety days of the issuance of…

Quick Hits U.S. at-will employment is not common internationally; other countries require valid reasons and advance notice for termination. Statutory severance pay is mandatory in many countries, calculated based on length of service and salary, and non-negotiable. Additional benefits include accrued but unused vacation, pro-rata thirteenth-month salary, earned bonuses, and seniority premiums. Good cause termination requires specific procedures and evidence, making it challenging to avoid severance payments. Employers may want…

Quick Hits In March 2025, the UK government announced amendments to the Employment Rights Bill following a series of consultations. The penalty “protective award” payable to employees when an employer fails to consult properly in a collective redundancy situation would be doubled from 90 to 180 days’ pay. Collective redundancy consultation obligations (which apply when twenty or more redundancies are proposed) would continue to be determined separately for each “establishment”…

Quick Hits The proposed rule would require a plan that incorporates control measures, acclimatization, emergency medical care, and training. The proposed rule would apply to both indoor and outdoor locations. There will be narrow exemptions for incidental heat exposures of fifteen minutes or less within a one-hour period, emergency response operations, telework, and environments where mechanical ventilation systems maintain a heat index below 80 degrees Fahrenheit. The New Mexico Environment…

Quick Hits California legislators have proposed bills in the 2025 legislative session that address pay transparency, automated decision systems, workplace surveillance, paid family leave, and employee training. The legislative session in California will end on September 12, 2025. The governor will have until October 12, 2025, to sign or veto bills passed by the state legislature. California legislators have introduced the following employment law-related bills this session: SB 642 would…

Quick Hits On February 26, 2025, a Wisconsin appellate court ruled that a taxpayer-funded educational grant program for minority students is unconstitutional, citing the U.S. Supreme Court’s decision in Students for Fair Admissions, Inc. v. President and Fellows of Harvard College (SFFA). The court’s decision to halt the Minority Undergraduate Retention Program underscores the broader implications of the SFFA ruling, suggesting that race-based considerations in state-funded educational assistance programs may…

Quick Hits Covered entities in New York must submit their annual cybersecurity compliance forms to the NYDFS by April 15, 2025, either certifying material compliance or acknowledging material noncompliance. Starting May 1, 2025, new requirements will be implemented, including enhanced access management protocols, vulnerability management through automated scans, and improved monitoring measures to protect against cybersecurity threats. In November 2023, NYDFS amended its comprehensive cybersecurity regulations with the changes set…

Quick Hits The April 2025 final action dates in the EB-1 categories are unchanged for all countries except India, which has moved ahead by two weeks. The April 2025 final action dates in the EB-2 and EB-3 categories for all countries have moved forward. USCIS has confirmed it will accept adjustment of status applications based on the final action dates chart in April 2025. Source: US Department of State, April…

Quick Hits The Department of Education announced a RIF for nearly 50 percent of its workforce. Impacted staff will be placed on administrative leave starting March 21, 2025. Affected employees will receive full pay and benefits until June 9, 2025. Employees are not expected to work during the deferred resignation, voluntary buyout, or RIF periods. The impact of the RIF on the overall operations and responsibilities of the department is…

Quick Hits The Minnesota Department of Labor and Industry issued proposed rules stating that employees anticipated to work over 50 percent in Minnesota in an accrual year would accrue earned sick and safe time leave (ESST) for all hours worked despite location. The proposed rules would allow employers to “advance” ESST hours. The proposed rules also clarify that employees have a choice to use paid ESST or take unpaid and…

Quick Hits Employers considering hosting NCAA bracket pools should be aware of state gambling laws, as the structure of these pools could potentially classify them as illegal gambling. Sweepstakes, as free-to-enter contests, may face fewer legal concerns, but businesses must still comply with specific state regulations that govern such promotional activities. Millions of Americans will fill out brackets for the NCAA Division I Men’s and Women’s college basketball tournaments, often…

Quick Hits The new NLRB acting general counsel tapped by President Donald Trump rescinded twenty-nine prior general counsel memoranda, most of which were issued by his predecessor who served during the Biden administration. The rescinded memoranda included guidance on major labor issues, such as remedies, the legality of noncompete agreements and other restrictive covenants, mandatory employer meetings, and the status of college athletes. In Memorandum GC 25-05, issued on February…

Quick Hits Florida employers are facing a complex landscape of evolving workplace policies and legal requirements in 2025, including updates in discrimination prevention, leave laws, and medical marijuana protections. Employers may want to regularly review and update their workplace policies to ensure compliance with changing laws, particularly in areas like discrimination, harassment, leave policies, and wage disputes. Key updates for Florida employee handbooks in 2025 include removing references to outdated…

Quick Hits The 2025 session of the North Carolina General Assembly is considering employment-related bills related to union organizing and collective bargaining, nondiscrimination in the workplace, noncompete and nonpoaching agreements, and DEI. Senate Bill 120 / House Bill 207 aim to prohibit employers from restricting labor organizations and requiring employees to refrain from union membership as a condition of employment. Senate Bill 154 / House Bill 168 seek to prevent…

Quick Hits Numerous states are introducing or expanding workplace violence prevention laws, particularly in healthcare settings, to enhance employee safety amid rising concerns. Specific legislative proposals, such as Alaska’s SB 49 and Massachusetts’s HD.1856, require employers to implement risk assessments, create violence prevention plans, and provide training to protect employees from workplace violence. In recent years, workplace violence has garnered significant attention from lawmakers across the United States, particularly regarding…

Quick Hits The Trump administration is seeking to pause the FTC’s pursuit of appeals of two district court decisions that blocked the FTC’s rule banning noncompetes, suggesting an expected shift in the government’s approach to the rule. Despite the motions to stay, and though the FTC may not pursue any further formal rulemaking on the issue, FTC Chairman Andrew N. Ferguson is continuing to emphasize his view that noncompete agreements…

Quick Hits An activist group has asked a federal district court to strike down an Illinois law requiring the disclosure of nonprofit organizations’ board demographics. The DOJ has intervened in the case, claiming that the law violates the Fourteenth Amendment. The intervention is part of the DOJ’s effort to eliminate DEI practices nationwide. On March 11, 2025, the U.S. District for the Northern District of Illinois granted the DOJ’s motion…

Quick Hits Companies in Mexico must file their tax returns by March 31 of each year. Annual corporate tax returns show the yearly financial results of any entity and whether there were gains or losses. Tax returns are the starting point for the obligations mandated by the FLL regarding profit sharing. General Content and Rules for the Annual Tax Return In the annual tax return, taxpayers file a report of…