California Archives - Page 2 of 6 - EMPLOYEE BENEFITS BLOG

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 California Law Requires Open Payments Notice to Patients

by Ming Chuang | Nov 29, 2022 | Employee Benefits, Health and Welfare Plans

On September 29, 2022, California Governor Gavin Newsom signed Assembly Bill 1278, which requires physicians and their employers to provide patients with notices about the Open Payments database starting January 1, 2023.

The federal Open Payments program is designed to promote transparency by requiring applicable manufacturers of drugs, devices, and biological or medical supplies to annually report to the Centers for Medicare & Medicaid Services certain payments and other transfers of value made to physicians, certain advanced practice providers (e.g., nurse practitioners) and teaching hospitals. Currently, pharmaceutical companies in California must disclose their compliance program, including information related to the annual dollar limits on gifts, promotional materials or incentives provided to medical or health professionals (California Health & Safety Code § 119402). The enactment of this new legislation will impose new disclosure requirements specifically onto physicians and their employers regarding physicians’ financial relationships with pharmaceutical and medical device manufacturers.

Read more here.

Companies with 15 or More California-based Employees Must Start Disclosing Salary Ranges in All Job Postings

by Michelle S. Strowhiro | Oct 27, 2022 | Employee Benefits, Employment, Labor

California companies with more than 15 California-based employees will have to disclose hourly or annual salary ranges for all job postings by January 1, 2023. According to this HR Brew article, McDermott Partner Michelle Strowhiro said she recommends HR professionals review job descriptions with business leaders and legal counsel (preferably, under legal privilege). The goal is to identify and resolve overlap between rules and adjust salary bands accordingly.

Access the article.

California Governor Signs Landmark Legislation That Gives Bargaining Power to Nonunionized Fast-Food Workers

by Saniya Ahmed, Ludia Kwon and McDermott Will & Emery | Sep 13, 2022 | Employee Benefits, Labor

On September 5, 2022, California Governor Gavin Newsom signed landmark legislation aimed at further regulating the working conditions and wages of California’s fast- food workers. This bill has immediate impact on certain employers and franchisors doing business in the Golden State.

Assembly Bill (AB) 257, also known as the Fast Food Accountability and Standards Recovery Act or the FAST Recovery Act, authorizes the creation of a Fast Food Council (Council) that will be tasked with establishing minimum standards with respect to the minimum wage, maximum hours of work, the standard conditions of labor and other working conditions for fast-food workers throughout California.

Read more here.

State Law Privacy Video Series | Employee Exemptions

by Fran P. Forte | Aug 30, 2022 | Employee Benefits, Employment, Privacy and Data Security

California, Virginia and Colorado have new privacy laws coming into effect in 2023. But now is the time to start preparing your business or organization for compliance. Throughout the State Law Privacy video series, we examine the different aspects of these laws and provide you the knowledge and tools you need for proper compliance.

In the next video of the series, Associate Fran Forte explores one of the notable exemptions under California’s law as it relates to employee data and how employee data is handled under Virginia and Colorado’s privacy laws.

Watch here.

US Supreme Court to Review Whether PAGA Claim Can Be Arbitrated

by Chris Braham, Joseph K. Mulherin and McDermott Will & Emery | Jan 28, 2022 | Employment, Labor

California’s Private Attorneys General Act (PAGA) has so far evaded arbitration agreements. Now, the Supreme Court of the United States will take up Viking River Cruises, Inc. v. Moriana to determine whether the Federal Arbitration Act (FAA) “requires enforcement of a bilateral arbitration agreement providing that an employee cannot raise representative claims, including under PAGA.”

Read more here.

Passage of California Privacy Act Could Spur Similar New Regulations in Other States

by Laura Jehl | Dec 21, 2020 | Employee Benefits, Employment, Labor, Privacy and Data Security

On November 3, California citizens approved the California Privacy Rights and Enforcement Act (the CPRA), a comprehensive privacy law that amends another privacy law that went into effect in the state on January 1, the California Consumer Privacy Act (CCPA). The CPRA is intended to strengthen privacy regulations in California by creating new requirements for companies that collect and share sensitive personal information. It also creates a new agency, the California Privacy Protection Agency, that will be responsible for enforcing CPRA violations.

In a recent article in CSO, McDermott partner Laura Jehl discussed the impact of the CPRA on the future of privacy legislation in the United States.

Access the article.

Background Checks: The Advent of the New California Employment Class Action

by Yesenia M. Gallegos, Maria C. Rodriguez, Chris Braham and Marjorie C. Soto Garcia | Nov 6, 2020 | Employment, Privacy and Data Security

Class action litigation brought under the Fair Credit Reporting Act (FCRA) is on the rise—particularly in California—after the US Court of Appeals for the Ninth Circuit issued a 2017 decision applying a hypertechnical approach to the FCRA’s disclosure requirements. Background checks are an integral part of the hiring process, but they open employers up to lawsuits for noncompliance with disclosure or adverse action requirements. Plaintiffs’ firms are turning their attention to these cases because of the potential for statutory and actual damages, punitive damages, costs and attorneys’ fees. In our recent webinars, we discussed strategies to help employers avoid and defend these claims.

View Part I’s slide deck here.

View Part II’s slide deck here.

CCPA Amendment Update: California Legislature Approves Exceptions for HIPAA De-Identified Information and Other Health Data

by Daniel F. Gottlieb and Deepali Doddi | Oct 22, 2020 | Employee Benefits, Health and Welfare Plans, Privacy and Data Security

On September 25, 2020, California Governor Gavin Newsom signed into law California AB 713, which amends the California Consumer Privacy Act (CCPA) to except from its requirements certain health information, including information that has been de-identified in accordance with the Health Insurance Portability and Accountability Act of 1996 (HIPAA). The bill’s enactment eases some of the CCPA compliance challenges experienced by the health care and life sciences industries by more closely aligning the CCPA with HIPAA and other laws governing human subjects research. The new law also amends the CCPA to except all business associates to the extent that they maintain, use or disclose patient information in the same manner as protected health information under HIPAA.

Access the article.

Healthcare Employers: What You Need to Know about the New FFCRA “Health Care Provider” Exclusion and California COVID-19 Supplemental Paid Sick Leave

by Michelle S. Strowhiro | Oct 20, 2020 | Employee Benefits, Employment, Health and Welfare Plans

Healthcare employers are immediately impacted by two recent developments in federal and California COVID-19 paid leave laws: a Department of Labor revision to the Families First Coronavirus Response Act (FFCRA) and a new California supplemental paid sick leave legislation. For both changes in the law, quick action is required for compliance.

Access the article.

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