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Top Three Labor Trends to Watch for in Q4 2023

by McDermott Will & Emery | Oct 10, 2023 | Labor

As we enter the last quarter of 2023, here are some of the key issues impacting employers:

1. New joint employer standard: More companies will be pulled into union organizing campaigns, contract negotiations and National Labor Relations Board (NLRB) proceedings involving their contractors when the NLRB issues a new joint employer rule.

2. Increased NLRB investigations and litigation: Union elections, activism and litigation at the NLRB are spiking. So far in 2023, there has been a 16% increase in unfair labor practice charges at the NLRB and high levels of union election petitions.

3. More aggressive union activity: More companies are facing pressure to accept terms, including adoption of union “neutrality agreements” which fast-track union organizing. There has been a 72% increase in strikes in 2023. Unions are expanding their ambitions, too. Physician groups are now targeted for major union organizing campaigns.

McDermott’s traditional labor subgroup advises companies and investors on union issues across industries in the United States and Europe. The team provides cross-disciplinary advising and works seamlessly with leading McDermott partners in employee benefits, antitrust, tax, corporate and healthcare practices, among others.

NLRB Undercuts Work Rules and Policies for Unionized and Nonunionized Employers

by David Beach, Marjorie C. Soto Garcia and Christopher Foster | Sep 27, 2023 | Employment, Labor

The National Labor Relations Board recently issued a decision that undercuts union and nonunion employers’ ability to enforce longstanding work policies. In general, this decision will lead to increased unfair labor practice charges, investigations and litigation.

Read more here.

Title VII, FLSA Amendments Expand Protections for Pregnant and Breastfeeding Workers

by Melis Solaksubasi and P. Kevin Connelly | Aug 1, 2023 | Labor

Recent amendments to Title VII and the Fair Labor Standards Act impact how employers address the needs of pregnant and breastfeeding employees. Employers will want to reset their approaches to navigate these expanded statutory protections.

Read more here.

UK Employment Rates and Compensation Increases Take Effect

by Paul McGrath, Katie Clark and Charlotte Moorhouse | Apr 27, 2023 | Employee Benefits, Employment, Labor, Payroll and Fringe Benefits

As summer approaches and the clocks are set forward, April marks an increase in the National Minimum Wage, compensation for unfair dismissal and other payments required by UK employment laws.

Read more here.

Illinois’ New Paid Leave Law: What Employers Need to Know

by Brian Mead, P. Kevin Connelly and Emily Starbuck | Apr 18, 2023 | Employment, Labor

The Paid Leave for All Workers Act (PLAWA) was signed into law by Governor J.B. Pritzker on March 13, 2023, ensuring that all workers in Illinois receive 40 hours of paid time off annually for any purpose. The law will become effective on January 1, 2024, requiring employers to utilize the remaining months of 2023 to ensure they are equipped to comply with the new legislation.

Illinois has joined Maine and Nevada as the third state to implement such a measure.

Read more here.

The Latest Court Ruling’s Impact On H-1B Spouses and Immigration

by Paul Hughes | Apr 12, 2023 | Employment, Labor

A federal judge recently ruled in favor of a Department of Homeland Security regulation that permits the spouses of H-1B visa holders to work. According to this Forbes article, McDermott Partner Paul Hughes drafted the amicus brief for more than 40 companies and organizations.

“This decision confirms that tens of thousands of H-4 employees—highly skilled and critical members of their teams—are lawfully employed,” said Hughes. “The court’s correct analysis follows decades of consistent practice and recognition that the Executive may determine categories of visa holders eligible for employment.”

Read more here.

Stryking Noncompete Preliminary Injunction

by Tessa Kroll | Apr 11, 2023 | Employment, Labor

The US Court of Appeals for the Sixth Circuit recently upheld a district court’s grant of a preliminary injunction restricting a former employee from working for conflicting organizations or communicating with a competitor’s counsel. Stryker Emp. Co., LLC v. Abbas, Case No. 22-1563 (6th Cir. Feb. 16, 2023) (Clay, Bush, JJ.; Sutton, C.J.) The Court found that the preliminary injunction was an appropriate measure to protect the plaintiff’s confidential information that was consistent with the employee’s noncompete agreement.

Read more here.

A Win for Employers: Ninth Circuit Holds That California AB 51 Prohibiting Mandatory Arbitration Is Pre-empted by the Federal Arbitration Act

by Maria C. Rodriguez, Laurie Baddon and Paulina Chau | Mar 28, 2023 | Employment, Labor

On February 15, 2023, employers in California regained the ability to enforce mandatory arbitration as the US Court of Appeals for the Ninth Circuit ruled that Assembly Bill 51 (AB 51), which prohibited “forced arbitration” as a condition of employment, was pre-empted by the Federal Arbitration Act (FAA).

After years of litigation, the Ninth Circuit’s ruling upholds a federal district court’s preliminary injunction that temporarily blocked California from enforcing AB 51 and all but guarantees that AB 51 will never be enforceable. While California could seek review from the Ninth Circuit (en banc) or the Supreme Court of the United States, given the Supreme Court’s line of cases upholding FAA pre-emption, we think this decision will stand.

That said, US President Joe Biden’s Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (HR 4445) must not be ignored. Employers may include sexual harassment and sexual assault claims in a voluntary arbitration agreement, but an employee may choose to file these particular claims in court.

Read more here.

New Jersey Healthcare Transactions Now Face Onerous Employment Requirements

by Lindsay Ditlow, Michelle S. Strowhiro and Cristell Fortune | Mar 23, 2023 | Employment, Labor

As of November 16, 2022, New Jersey Senate Bill No. 315 (S-315) has come into effect. The bill introduces fresh employment protections for qualifying employees of select private healthcare organizations that experience a “change in control.” The legislation mandates several obligations, such as giving prior notice, extending job offers to eligible employees, and providing improved job security against termination for a minimum of four months post-transaction. To avoid employment-related lawsuits and penalties, healthcare employers and investors in New Jersey must ensure compliance with these regulations.

Read more here.

The Bosses May Be Back in Charge (but Not as Much as They Think)

by Michael W. Peregrine | Mar 16, 2023 | Employment, Labor

CEOs may think they are fully in control of their workforces, but this belief may be more of an illusion than reality. In this Forbes article, McDermott Partner Michael Peregrine says certain pandemic-era changes to their authority may be more lasting than they realize–especially as it relates to their dynamic with the board of directors.

Read more here.

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