Ogletree Deakins

Quick Hits The Delaware Supreme Court is reviewing a case on whether noncompete and nonsolicitation agreements remain enforceable after the forfeiture of equity units due to violations of the noncompete agreement by a former executive. The Delaware Court of Chancery ruled that because the executive’s equity units were automatically forfeited under the agreement when he was terminated for cause, the restrictive covenants lacked the necessary consideration at the time the…

Quick Hits Generally, employers aren’t required to cover weight loss drugs in their health plans. More employers are voluntarily covering weight loss medications to recruit and retain talent. Demand for weight loss drugs is growing among workers. The medications are expensive—typically about $617 to $766 per month, according to the Employee Benefits Research Institute. In most cases, employers are not legally required to cover GLP-1 drugs in their health plans.…

Quick Hits Workers who are Christian, Jewish, Hindu, and Buddhist will mark religious celebrations in December 2025. Employers must grant valid religious accommodation requests unless it would impose a substantial burden on the business. In considering time off requests, employers balance business demands with legal obligations. Employees might ask for time off or breaks for religious observances or to complete prayers at designated times. Typical religious accommodations during the holiday…

Quick Hits The comment period on the Education Department’s proposed Admissions and Consumer Transparency Supplement (ACTS) to IPEDS closed on October 14, 2025, drawing thousands of comments by universities, higher education associations, community and technical colleges, career schools, graduate and professional programs, civil rights and policy organizations, researchers, and individual citizens. Commenters recommended limiting ACTS to truly selective institutions and treating graduate/professional programs separately. Institutions anticipate risk-based reviews tied to…

Quick Hits A federal judge transferred a lawsuit by a former cancer center employee from a New Jersey federal court to a federal court in Pennsylvania, ruling that the case belonged in the employer’s home state rather than where the employee remotely worked.  The court determined that the employee’s claims under the ADA had minimal connection to New Jersey, emphasizing that key decisions about her employment were made in Pennsylvania.…

Quick Hits A new analysis indicated that October 2025 marked a significant increase in reductions in force, highlighting the legal complexities employers must navigate in compliance with federal and state regulations. As companies consider mass layoffs influenced mainly by the integration of AI, it is crucial to address potential discrimination claims and explore alternatives like voluntary separation plans to mitigate risks. Employers announced RIFs affecting more than 153,00 in October,…

Quick Hits On October 25, 2025, New York City adopted a measure that amends the ESSTA to incorporate the requirements under New York City’s Temporary Schedule Change Law. The law expands covered reasons to take ESSTA. The law adds a separate bank of thirty-two hours of unpaid ESSTA in addition to the forty or fifty-six hours already provided under the ESSTA. The law goes into effect on February 22, 2026.…

Quick Hits In an attempt to provide clarity to amendments to the National Housing Fund Institute for Workers issued in February 2025, INFONAVIT has issued criteria and extensions to employers’ obligations, but these criteria were neither mandatory nor obligatory to anyone. On November 4, 2025, Mexico’s Supreme Court of Justice of the Nation issued criteria interpreting the obligations imposed on employers under the latest amendment. INFONAVIT and Mexican Supreme Court…

Quick Hits On June 12, 2025, the New York Legislature passed the “Trapped at Work Act” to nullify promissory notes that require employees to repay employers for certain costs if they leave their jobs within a set time period. The bill has not been sent to Governor Kathy Hochul yet. If enacted, Assembly Bill A584C, known as the “Trapped at Work Act,” would generally prohibit promissory notes, which, as a…

Quick Hits The DOL is proposing modifications of the VEVRAA regulations to reflect the rescission of Executive Order 11246 while maintaining existing affirmative action obligations for federal contractors to support protected veterans. Despite these proposed changes in enforcement, federal contractors must continue to prepare affirmative action plans, engage in outreach and recruitment for protected veterans, and adhere to recordkeeping requirements. Employers may want to ensure that AAPs are up-to-date and…

Quick Hits OSHA has proposed changes to the General Duty Clause to limit its application in inherently risky professional activities. The proposal would clarify that the GDC does not require employers to eliminate hazards that are integral to certain professional activities if doing so would fundamentally alter or prohibit the activities. The proposed rule emphasizes that OSHA will focus on employers’ “reasonable efforts” and measures to reduce risks without changing…

Quick Hits Employers may want to prepare for 2026 by mapping exempt roles in Alaska, California, Maine, New York, and Washington to new salary thresholds and implementing adjustments aligned with effective dates. To avoid salary compression, employers may want to reconcile pay bands in the thirty-one states with higher minimum wages than federal law and ensure that any threshold multipliers are captured in exempt pay. Employers may also want to…

Quick Hits New guidance from the Treasury Department and IRS provides penalty relief to employers for tax year 2025 for failing to satisfy the new requirements for reporting cash tips and overtime compensation under 2025’s comprehensive budget bill. The guidance gives employers relief with respect to the transition period of the 2025 tax year to gather the correct information without penalty. The grace period does not extend beyond the 2025…

Quick Hits Beginning on January 1, 2026, employers and labor contractors will be required to separately collect and store any demographic information for California pay reporting so that the information is separate from employees’ personnel records. As of January 1, 2026, when requested by California’s Civil Rights Department, courts will be required to impose civil penalties of $100 per employee for the first failure and $200 per employee for a…

Quick Hits The ECJ issued two decisions finding dismissals are invalid if prior mass dismissal notification requirements under EU Directive 98/59/EC and national law are not met. In the two German cases involving collective redundancies, the ECJ found that insufficient or incomplete mass dismissal notifications to the competent public authority led to the invalidity of dismissals. The ECJ ruled that proper mass dismissal notifications and compliance with the consultation requirements…

Quick Hits On October 22, 2025, the Massachusetts Supreme Judicial Court concluded that a retention bonus is not a “wage” for purposes of the Massachusetts Wage Act, and that such bonuses are instead a form of additional, contingent compensation outside the ambit of the Wage Act. The court reasoned that the purpose of a retention agreement is to benefit the employer by securing the services of an employee through a…

Quick Hits The U.S. District Court for the Western District of Washington rejected federal agency positions that treat DEI-oriented, race-neutral, and transgender facility access as presumptively unlawful, noting that those interpretations conflicted with established precedent. The court criticized EO 14173’s “materiality” clause, which declared global compliance with all anti-discrimination laws per se material to False Claims Act payment, as boilerplate adopted without reasoned analysis, tailoring, or consideration of reliance interests.…

Quick Hits The legislative goal in Poland mirrors the European Union’s Pay Transparency Directive’s core objectives: reducing gender‑based pay discrimination by making pay systems more transparent and comparable. Further measures covering employee information rights and gender pay gap reporting are expected by 7 June 2026 in line with the Directive’s implementation deadline. While legislation is still to be finalised, it is likely that noncompliance will result in administrative fines. New…

Quick Hits The EU AI Act took effect on August 1, 2024, and carries extraterritorial reach. U.S. employers can be covered even without a physical EU presence if AI outputs are intended to be used in the EU—e.g., recruiting EU candidates, evaluating EU-based workers or contractors, or deploying global HR tools used by EU teams. Several obligations have begun to take effect, with more phasing in through 2026–27. The European…

Quick Hits The Federal Labor Court of Germany ruled on October 23, 2025, that gender-based discrimination is presumed if a woman earns less than a comparable male colleague, even if he is a top earner. The court clarified that the presumption of gender-based discrimination does not require a “preponderant probability” and that the size of the male comparator group and median pay levels are irrelevant; the employer must rebut the…

Quick Hits The partial government shutdown in 2025 has curtailed OSHA’s routine operations, but this is unlikely to cause a dramatic near-term deterioration in worker safety. During the shutdown, OSHA’s contingency plan focuses on preserving essential functions that protect human life and property, such as responding to reports of imminent danger, investigating fatalities, and maintaining a minimal supervisory structure. This ensures that the most severe hazards are still addressed, even…

Quick Hits USCIS will end its practice of automatically extending EADs for foreign nationals who file renewal applications—including for adjustments of status and H-4 EAD renewals—based on certain employment authorization categories. The new policy will not affect automatic extensions granted for EAD applications filed before October 30, 2025. If an EAD renewal application (Form I-765) was timely filed before the EAD expiration and before October 30, 2025, then it is…

Quick Hits In Galarza v. One Call Claims, LLC, No. 23-13205 (October 16, 2025), a three-judge panel of the Eleventh Circuit Court of Appeals unanimously reversed a federal district court’s 2023 ruling that insurance adjusters were independent contractors for One Call Claims and the Texas Windstorm Insurance Association. The court concluded that the employers managed the adjusters’ work schedules, controlled their pay rates, directed work tasks, and limited their ability…

Quick Hits Recent case law has indicated a gradual shift toward holding employers liable for employees’ sexual misconduct. To expand this liability for employers while acknowledging the risk of creating too much liability, the rule only applies to sexual assault that meets specific criteria, including only applying in circumstances where the victim is “particularly vulnerable.” This rule only applies to employer-employee relationships and does not create any liability for actions…

Quick Hits Discrimination claims often hinge on the motive behind employment decisions, leading to extensive scrutiny of the decision-maker’s comments, knowledge, and timing, with plaintiffs’ lawyers seeking to expand the field of scrutiny and defense lawyers aiming to limit it to a single, unbiased decision-maker. Involving multiple people in employment decisions can increase the risk of unhelpful evidence and bias claims, as seen in scenarios where delayed communication and additional…

Quick Hits Requests for personal information are increasing across Canada, and timelines are tight. HR teams that plan ahead can avoid last-minute scrambles and compliance headaches. Whether federal, provincial, public, or private, every regime expects careful handling of personal data and specific timelines and exemptions to consider. A clear playbook, trained staff, and mapped data make access requests manageable. The organizations that invest in readiness protect privacy, reduce risk, and…

Quick Hits Legal and operational expectations require employers to protect workers from recognized hazards, respond promptly and proportionately, respect medical privacy, and communicate accurately without stigma in response to mpox cases in the workplace. Mpox spreads primarily through close, personal contact with lesions, scabs, or body fluids, and via contaminated materials, necessitating prompt isolation, targeted cleaning, and practical source control in the workplace. OSHA expects employers to follow established safety…

Quick Hits Cal/OSHA’s High Hazard Unit inspects employers with the highest incidences of occupational injuries and illnesses, using an annual list based on “Days Away, Restricted or Transferred” (DART) rates to target high-risk industries. The 2025-26 High Hazard Industry List, effective October 1, includes new industry groups and shows generally lower DART rates, with the High Hazard Unit conducting 268 targeted inspections last fiscal year. The annual High Hazard Industry…

BillSummaryCurrent StatusAB 250Window to reactivate sexual assault claims. This law establishes a two-year window, from January 1, 2026, to December 31, 2027, to revive civil claims for damages suffered as a result of sexual assault, even if the statute of limitations has expired.Signed into law on October 13, 2025AB 288Labor organization and unfair practices. This law empowers the California Public Employment Relations Board (PERB) to oversee and certify union elections…

Quick Hits A federal court largely dismissed challenges to the NCAA’s former transgender-participation policies but allowed a narrow Title IX claim against the NCAA to proceed to targeted discovery focused on whether the NCAA is a federal funding recipient. The court rejected constitutional claims against the NCAA, reaffirming that the NCAA is not a state actor, and found many claims against Georgia public institutions moot in light of Georgia’s new…

Quick Hits Litigation remains steady and costly. Hundreds of lawsuits and arbitration demands continue to allege that website-tracking technologies—such as pixels, analytics tools, and chat features—violate the California Invasion of Privacy Act and related privacy laws. Despite mixed judicial outcomes, the volume of filings has not slowed. Courts are deeply divided. Some judges have dismissed cases on standing or “contents” grounds, while others allow claims to proceed where third-party vendors…

Quick Hits Data subject rights requests run on short clocks, so having a response strategy is critical for timely and complete compliance. Mistakes commonly occur when businesses contract with vendors, receive and triage data subject rights requests, and engage in recordkeeping exercises during and after responding to the data subject. An increase in regulatory power and inquiry is increasing the risks associated with improper handling of data subject rights requests.…

Quick Hits The November 2025 Visa Bulletin showsno change from last month’s bulletin for employment-based categories for both final action dates and dates for filing. USCIS will continue to accept adjustment of status filings based on the Dates for Filing Chart. The cutoff dates remain consistent with the dates listed in the October 2025 Visa Bulletin. Final Action Dates for Employment-Based Visa Applications Employment- BasedAll ChargeabilityAreas ExceptThose ListedCHINA-mainlandbornINDIAMEXICOPHILIPPINES1stC22DEC2215FEB22CC2nd01DEC2301APR2101APR1301DEC2301DEC233rd01APR2301MAR2122AUG1301APR2301APR23Other Workers15JUL2101DEC1722AUG1315JUL2115JUL214th01JUL2001JUL2001JUL2001JUL2001JUL20Certain Religious…

Quick Hits Chief Financial Officers Act agencies and the U.S. Equal Employment Opportunity Commission must now submit Action Plans on Race and Ethnicity Data to OMB by March 28, 2026, extending the September 28, 2025, deadline that had been imposed when OMB released the SPD 15 revisions in March of 2024. OMB also extended the deadline to update federal information collections of race and ethnicity data to be consistent with…

Quick Hits The Trump administration is scheduled to rescind the Biden-era independent contractor rule, months after the DOL stopped enforcing the current rule. The current independent contractor rule, issued in 2024, adopted the multifactor “totality of the circumstances” test that has been used by the courts for years, albeit with commentary signaling enforcement of various factors in a manner that was wrought with potential challenges for employers. This rule still…

Quick Hits Ohio WARN largely mirrors the federal Worker Adjustment and Retraining Notification (WARN) Act by requiring covered employers to provide sixty days’ advance notice before a plant closing or mass layoff. Ohio WARN includes ambiguities regarding its stated intent and which “mass layoffs” will trigger its notice requirements. Ohio WARN includes state-specific notice content requirements, including “[a] detailed statement explaining the reason” for the closure or mass layoff and…

Quick Hits Oregon’s HB 2957 ensures that Bureau of Labor and Industries resolutions do not shorten the statute of limitations for employment lawsuits. HB 2957 prohibits employers from shortening the statute of limitations in agreements with employees. Many individuals file a charge with BOLI prior to filing suit in court. BOLI will investigate and issue either a finding of substantial evidence, a finding of no cause, or no finding at…

Quick Hits On July 17, 2025, the California state auditor released a report identifying significant deficiencies in Cal/OSHA’s enforcement processes and staffing levels. The audit reviewed sixty case files from fiscal years 2019–20 through 2023–24 and found critical weaknesses in Cal/OSHA’s inspection and documentation practices. The report recommended that Cal/OSHA update its policies, improve inspection processes, enhance abatement verification, address staffing shortages, and modernize systems to better protect California’s workers.…

Quick Hits Employers can challenge OSHA’s findings through the administrative system and, if necessary, seek federal court intervention, though winning on appeal is difficult. Appeals from OSHRC decisions must be filed within sixty days in the appropriate U.S. court of appeals, with strict adherence to initial administrative procedures. Federal courts review OSHRC’s decisions with substantial deference, making it challenging for employers to overturn findings unless they are arbitrary, capricious, or…

Quick Hits An employer’s response to the overzealous union representative varies depending on whether the representative is an employee. While union speech enjoys considerable latitude, threats, intimidation, and persistent hostility that disrupt the workplace cross the line and lose protection. In the case of nonemployees, employers must avoid self-help remedies. They can file an employer grievance and seek interim relief from a neutral third party. Overview of the Cases The…