Minnesota Legislative Update 2024, Part III: Entering the Homestretch—Legislators’ Time to Make It or Break It

Quick Hits Minnesota lawmakers are attempting to secure enough votes ahead of this year’s legislative session deadline to place numerous bills on the governor’s desk, many of which, if enacted, will affect employers. Bills address drug testing, earned sick and safe time, pay transparency in job postings, wage deductions for credit card charges for tipped employees, restrictive employment covenants in service contracts, and employee misclassification. Senate Democrats have a one-vote…

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Illinois Lawmakers Nearing Passage of Bill to Stop ‘Per-Scan’ Damages for Privacy Act Violations

On April 11, 2024, the Illinois Senate passed Senate Bill (SB) 2979, which would stop statutory damages under the Privacy Act from accruing for each unlawful collection or dissemination of an individual’s biometric information. Quick Hits The Illinois legislature is considering a bill that would amend the Privacy Act to prohibit statutory damages per violation from accruing per scan. The bill comes in response to an Illinois Supreme Court decision…

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DOJ Launches New Pilot Program to Allow Whistleblowers Who Report Financial Crimes, Corruption to Avoid Prosecution

The pilot program, entitled “Pilot Program on Voluntary Self-Disclosures for Individuals,” increases transparency regarding the circumstances under which prosecutors will offer leniency to cooperating witnesses and other individuals through use of a non-prosecution agreement (NPA) when they report potential criminal misconduct involving corporations. Quick Hits The DOJ launched a new pilot program that will allow individuals who report certain criminal conduct to federal authorities to avoid prosecution under certain circumstances.…

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HIPAA Privacy Rules Get a Post-Dobbs Refresh on Reproductive Health Care

Quick Hits Final privacy rules under the Health Insurance Portability and Accountability Act of 1996 (HIPAA) set basic limitations on the use or disclosure by covered entities (such as employer health benefit plans) and their business associates of reproductive health care information. The final rules state that reproductive care is, for HIPAA purposes, presumed to be legal unless the employer health benefit plan or its business associate has “actual knowledge”…

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OSH Law Primer, Part V: Recordkeeping Requirements

The first article in this series provided a general overview of the OSH Act and OSHA; the second article examined OSHA’s rulemaking process; the third article reviewed an employer’s duty to comply with standards; and the fourth article discussed the general duty clause. This article addresses OSHA’s recordkeeping requirements. Quick Hits The OSH Act’s recordkeeping provisions require employers to “make, keep and preserve, and make available” any records OSHA may…

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USCIS Announces Receipt Notice Delays From Lockbox Locations

Quick Hits Beginning April 1, 2024, USCIS service centers stopped accepting paper-filed I-129 petitions requesting H-1B and H-1B1 classification, instead requiring petitioners to file at designated lockbox facilities. As a result, the filing volume at USCIS lockboxes has increased, and USCIS has now confirmed that it is experiencing delays in issuing receipt notices. Employers may wish to consider these delays when preparing time-sensitive filings that require a receipt notice for…

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2024 Title IX Regulation Update, Part III: Section 106.44—Recipients’ Duty to Address Sex Discrimination

Quick Hits Restrictions on contact have been modified to eliminate mutual no-contact orders as the default. Supportive measure decisions are appealable. Procedures for emergency removal of a student respondent and placement of an employee respondent on administrative leave have been clarified. The final regulations take effect on August 1, 2024. § 106.44—Recipients’ Duty to Address Sex Discrimination Knowledge and Notice Section 106.44 provides specific requirements for the institution’s response to…

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EEOC Publishes Long-Awaited Final Guidance on Workplace Harassment

Quick Hits The EEOC issued a final version of new guidance for employers clarifying its positions on the applications of federal laws prohibiting harassment and retaliation. The new guidance is the first update to the EEOC’s workplace harassment guidance since 1999 and incorporates several new developments in the law and modern workforces. Key to the new guidance is that it recognizes unlawful harassment against LGBTQ+ individuals and addresses workplace protections…

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DHS Relaxes Employment Authorization Rules for Ethiopian and Palestinian F-1 Students

Quick Hits DHS announced relaxed employment authorization standards for Ethiopian and Palestinian F-1 students who are eligible for work authorization. During the school year, work-authorized Ethiopian and Palestinian F-1 students may increase the number of hours worked and reduce their school course load. Students who utilize this benefit will still be maintaining their status despite not having a “full course of study.” On April 12, 2024, Secretary of Homeland Security…

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Massachusetts Supreme Judicial Court Rejects Compensation Plan Allocating Commissions to Overtime and Premium Pay

Quick Hits The Massachusetts Supreme Judicial Court upheld a lower court’s ruling that a retailer’s commission-based compensation plan violated the Massachusetts Wage Act by paying commission-based sales employees their overtime and Sunday premium pay out of their earned commissions. The retailer used a compensation plan that functioned like an advance on sales employees’ future commissions, with sales employees being paid three different types of advances and charged with a “negative…

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The New Jersey Mini-WARN Act Amendments—One Year Later

Quick Hits A surge in NJ WARN notices issued in the months prior to the April 10, 2023, effective date of the amendments suggests employers expedited terminations to avoid the new mandatory severance requirements of the amended law. At least three significant NJ WARN lawsuits are pending that may resolve open questions addressing remote work, statewide aggregation, technical terminations in the sale of business context, and other uncertainties. NJ DOL…

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Supreme Court Questions Whether FAA Allows Courts to Dismiss Lawsuits Sent to Arbitration

Quick Hits The Supreme Court heard oral arguments in a case over whether federal courts have discretion to dismiss lawsuits once the claims are compelled to arbitration. The decision could resolve a 6-4 circuit split with the majority holding that district courts must stay lawsuits pending arbitration, and a minority holding that district courts may dismiss. The Supreme Court held oral arguments in Smith v. Spizzirri, a case asking the…

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Washington State’s New Warehouse Employee Protections Begin on July 1, 2024

Quick Hits Washington State enacted a law that regulates employers’ use of production quotas or standards for workers at warehouse distribution centers. The law applies to employers that employ or otherwise engage, whether directly or indirectly, more than (1) 100 or more nonexempt employees in a single warehouse distribution center, or (2) 1,000 or more nonexempt employees in one or more warehouse distribution centers in Washington. The law takes effect…

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Reeducating Educators on Discrimination Processes: the U.S. Department of Education Issues New Title IX Sex and Gender Nondiscrimination Regulations

The final regulations amend § 34 C.F.R. 106.1, et seq. According to a statement from the Department announcing the final rule, “The unofficial version of the final regulations is available here. In addition, the Department has released a fact sheet, a summary of the major provisions of the 2024 Title IX final rule, and a resource for drafting Title IX nondiscrimination policies, notices of nondiscrimination, and grievance procedures.” The final…

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Illinois District Court Enjoins Equal Benefits for Equal Work Provision of Illinois Day and Temporary Labor Services Act

Quick Hits A judge of the U.S. District Court for the Northern District of Illinois entered a preliminary injunction enjoining actions to enforce the “equivalent benefits” provisions of DTLSA. The equal pay provisions of Section 42 of the DTLSA were not subject to the injunction and went into effect on April 1, 2024. On April 3, 2024, the district court stayed any further proceedings pending the appeal. On November 22,…

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New Jersey Appellate Division Addresses Employers’ Obligation to Reimburse Employee Business Expenses

Quick Hits The Superior Court of New Jersey, Appellate Division, held that a former employee had “a viable claim” that his employer had “diverted a portion of his wages in violation of the [NJ]WPL by requiring he use his personal vehicle and not reimbursing him for costs associated with that use.” Prior decisions by the U.S. District Court for the District of New Jersey have taken seemingly inconsistent positions on…

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Maine Paid Leave Insurance Fund Contributions to Begin in 2025, Rulemaking Process Imminent

Quick Hits Employer contributions to Maine’s Paid Family and Medical Leave Insurance Fund are set to begin on January 1, 2025. The Maine Department of Labor is expected to begin the rulemaking process in spring 2024. The state has given itself a deadline of January 1, 2025, to adopt final rules implementing the program. Maine’s PFML program, which was established in October 2023, will entitle qualified, eligible employees to up…

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FTC Announces Open Commission Meeting to Vote to Issue Final Rule Banning Noncompetes

Quick Hits The FTC will hold an Open Commission Meeting on April 23, 2024, on its proposed rule that would ban noncompetes. The proposed rule would prohibit the use of noncompete clauses and preempt all state laws providing lesser protection than the proposed rule. The proposed rule would apply to any contractual term that functions to prevent a worker from seeking or accepting employment or operating a business, after leaving…

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Minnesota Legislative Update 2024, Part II: Don’t Miss the Omnibus—Legislators’ Last Chance to Pass Employment Law Bills

Quick Hits Minnesota lawmakers are working on bills addressing drug testing, earned sick and safe time, pay transparency in job postings, restrictive employment covenants in service contracts, and unemployment benefits for striking workers. The legislative session adjourns on May 20, 2024. In our March 27, 2024, legislative update article, several key bills were previewed, many of which have made it to an omnibus bills, along with other articles that may…

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SEC, Federal Regulators Target Employees’ Use of Text Messages, Off-Channel Communications

Quick Hits Federal financial regulators are targeting employers for employees’ use of personal text messages or off-channel communications to discuss business, alleging it may violate recordkeeping rules. The actions raise concerns for financial employers given the increased use of personal electronic communications platforms and of the popularity of bring-your-own-device policies. The actions further highlight federal regulators’ push to incentivize employers to self-report potential legal violations by providing leniency in penalties. …

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May 2024 Visa Bulletin Shows No Advancement in Final Action Dates for EB-1, EB-2, and EB-3 Categories

Quick Hits The EB-1, EB-2, and EB-3 final action dates will remain unchanged for all countries of chargeability. USCIS has confirmed it will accept employment-based adjustment of status applications based on the final action dates chart for the May 2024 Visa Bulletin. The EB-4 Certain Religious Workers category is extended until September 29, 2024. The May 2024 Visa Bulletin does not show any advancement in final action dates and dates…

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USCIS Schedule A Update: Faster Green Card Sponsorship for ‘Sciences or Arts’ High Achievers?

Quick Hits USCIS recently announced that it has updated its definition for “Schedule A, Group II” occupations. USCIS has now clarified that Schedule A, Group II “Sciences or Arts” occupations include occupations in any field of knowledge and/or skill for which colleges and universities commonly offer courses leading to a degree. This clarification aligns USCIS’s policy with DOL regulations. In connection with the current administration’s push to retain STEM talent,…

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USCIS’s New Rule Increases Automatic EAD Extensions from 180 to 540 Days

Quick Hits USCIS extended the automatic extension period for eligible EADs from up to 180 days to up to 540 days for applicants who timely and properly filed their Form I-765 applications. The eligible applicants are those who filed their Form I-765 1) on or after October 27, 2023 and if the application is still pending, on April 8, 2024; or 2) on or after April 8, 2024 and on…

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NCAA Athletes as Employees Could Raise Immigration Concerns for International Students

Quick Hits Momentum to classify NCAA athletes as employees may impact international athletes’ immigration status and jeopardize their participation in NCAA sports. Most student visas limit holders’ ability to work while studying in the United States. Changes to U.S. immigration law may be necessary to allow international athletes to continue to participate in NCAA sports moving forward. In the Dartmouth College case, an NLRB regional director found that the players…

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Washington State: 2024 Spring Legislative Roundup

Quick Hits Washington’s legislature recently concluded a productive 2024 legislative session with approximately 340 bills receiving passage by both houses and moving on to the governor’s desk. Notable newly enacted pieces of legislation include a measure that restricts employers’ ability to speak to employees on political or religious matters, a statutory expansion of the classes protected by Washington’s Equal Pay and Opportunities Act, and amendments to the state’s paid sick…

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USCIS Announces H-1B Cap Lottery Results for Fiscal Year 2025

The release of selections occurred less than a week after the conclusion of the H-1B cap registration period. This year’s H-1B lottery selections were conducted over a span of five days and concluded on April 1, 2024, when USCIS announced that it had received enough electronic registrations for unique beneficiaries during the initial registration period. Quick Hits USCIS has yet to disclose the total number of H-1B registrations received for…

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Reminder: Dependent Care Assistance Is Now Excludable in Pennsylvania, Retroactive to 2023 Tax Year

Quick Hits Pennsylvania amended its tax law to make amounts contributed to dependent care assistance excludable for income tax purposes. The change aligns Pennsylvania with the federal treatment and is retroactive for the 2023 tax year. Employers may have withheld taxes on dependent care assistance contributions and may have issued Forms W-2 that overstated income. On December 13, 2023, Pennsylvania enacted House Bill (HB) 1300, which changed the state’s treatment…

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Florida Governor Signs Law Easing Hourly Work Restrictions on Minors

Quick Hits Florida enacted legislation that will ease employment restrictions for minors sixteen and seventeen years old. The law gives parents and school superintendents the ability to waive the limitation on minors working only thirty hours per week while school is in session. The changes take effect on July 1, 2024. The enacted legislation, House Bill (HB) 49, amends Florida’s Child Labor Law to ease some of the restrictions on…

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Washington State and Seattle Paid Sick and Safe Leave Updates

Quick Hits The respective paid sick leave laws of the State of Washington and the City of Seattle have recently been clarified and updated. Under Washington’s paid sick and safe leave law, only construction workers who are directly engaged in construction work by performing “service, maintenance, or construction work on a jobsite, in the field or in a fabrication shop using tools of the worker’s trade or craft” are eligible…

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FDIC Seeks to Restrict Noncompete Agreements in Bank Mergers

Quick Hits The FDIC released proposed revisions to its guidelines for reviewing bank mergers. The proposed revisions include a prohibition on banks using noncompete agreements with employees of units that are divested as part of the merger. The FDIC is seeking comments on the proposed revisions. On March 21, 2024, the FDIC unveiled proposed revisions to its Statement of Policy (SOP) on Bank Merger Transactions, which was last amended in…

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Weed at Work: Can Georgia Employers Still Drug Test?

Quick Hits Georgia allows patients with specific health conditions to use low-THC oil-based products that may contain up to 5 percent THC; meanwhile, over-the-counter CBD oil is limited to a maximum of 0.3 percent THC. Georgia law does not limit the methods or means of drug testing available to employers, nor does Georgia law infringe on an employer’s ability to take adverse action against an employee who fails a drug…

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European Parliament Adopts Artificial Intelligence Act

Quick Hits The AI Act’s risk-based approach subjects AI applications to four different levels of restrictions and requirements, including “unacceptable risk,” which are banned; “high risk”; “limited risk”; and “minimal risk.” The AI Act treats the use of AI in the workplace as potentially high-risk. The AI Act is expected to be published soon and go into effect in spring or early summer this year. While the AI Act does…

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License Renewal Process for Providers of Outsourced Specialized Services in Mexico: 7 Frequently Asked Questions

Quick Hits Mexico’s Ministry of Labor and Social Welfare (Secretaría del Trabajo y Previsión Social) (SLSW) recently enabled a module on the REPSE website in order to renew licenses for providers of outsourced specialized services. REPSE license holders have three months to complete the renewal process, with the start date depending on the year and month that a holder started the prior REPSE enrollment. The SLSW has published a chart…

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Minnesota Legislative Update 2024: Employment Law Bills Cover ESST, Human Rights Act, Pay Disclosure, and Restrictive Covenants

Quick Hits The Minnesota Legislature is considering competing bills that would amend the statewide earned sick and safe time law. The legislature has also introduced bills that would hike punitive damages for violations of the Minnesota Human Rights Act and require employers with thirty or more employees to include salary ranges in job postings. Additional legislation would bar staffing agencies from restricting their employees from working directly for their customers,…

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Cal/OSHA Standards Board Makes Last-Minute Change and the Proposed Indoor Heat Regulation Is Approved With Questionable Vote

Quick Hits On December 22, 2023, the Cal/OSHA Standards Board published additional modifications of the draft indoor heat illness prevention standard. The Standards Board’s agenda items showed that the Standards Board had planned to consider a version of the regulation that was essentially unchanged from a December 22, 2023, draft. The Cal/OSHA Standards Board announced at the start of the meeting that the agenda item was pulled. After protests by…

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After a Long Warm-Up, OSHA’s Proposed ‘Walkaround Rule’ Gets OIRA’s Final Approval to Run (in the Federal Register)

Quick Hits OSHA’s “walkaround rule” has been approved by OIRA for finalization. The rule allows third parties, potentially not connected with the workplace, to accompany a CSHO during the inspection process/facility walkaround, if the CSHO considers such parties “reasonably necessary to the conduct of an effective and thorough physical inspection of the workplace.” The rule will take effect thirty days after its publication in the Federal Register. The rule (more…

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DOJ Increases Civil Monetary Penalties for Immigration-Related Violations to Adjust for Inflation

Quick Hits Effective February 13, 2024, the DOJ increased civil monetary penalties, including those related to immigration-related violations. While these increases are not as substantial as the immigration benefit request fees increase announced in January 2024, employers may still want to be aware of them. The increase adjusts for inflation, in accordance with the Bipartisan Budget Act of 2015. U.S. employers that employ a foreign worker or workforce are subject…

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March Madness—a Sports Fan’s Dream, a Nightmare for Employee Productivity

Quick Hits The NCAA March Madness men’s and women’s college basketball tournaments can be a distraction for employees that harms overall productivity. The rise of online sports betting has the potential to further increase the distraction of March Madness and raise concerns with gambling regulations and employer policies. From office pools to streaming games at work, employers are tasked with navigating the legal landscape to ensure compliance and maintain a…

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OSHA’s Proposed Emergency Response Standard: A Closer Look and an Analysis for Covered Employers

Quick Hits OSHA’s proposed Emergency Response Standard—an overhaul of the decades-old Fire Brigades Standard—would apply to firefighting, emergency medical services, and technical search and rescue. The proposed standard’s lack of specific definitions, action levels, and exposure limits makes its compliance expectations less than clear for covered employers. The proposed standard’s framework may impose additional compliance, implementation, and operational challenges on ESOs and WEREs/WERTs while impacting their ability to recruit and…

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DEI Under Scrutiny, Part VIII: Eleventh Circuit Strikes Down Florida Ban On Workplace DEI Training Under First Amendment

Quick Hits The Eleventh Circuit ruled a Florida law that would prohibit employers from holding mandatory workplace training programs that discuss certain DEI-related topics was unconstitutional under the First Amendment. The restriction was part of a broader law known as the “Stop WOKE Act” signed by Governor Ron DeSantis in April 2022 to limit DEI in education and employment. The Eleventh Circuit rejected arguments that the law sought to stop…

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