A properly structured and implemented Affinity Group (AKA Employee Resource Group) is a powerful tool in an employer’s Diversity Equity & Inclusion tool belt. But, unwary employers may risk violating the National Labor Relations Act if they bargain with an Affinity Group. In this month’s podcast, Alyesha Asghar Dotson discusses the do’s and don’ts of interacting with an active Affinity Group within your organization.
  

As the current economic crisis escalates and governmental plans to provide billions of dollars to intervene in the capital markets take shape, financial institutions and other businesses are being forced to restructure their operations through merger, acquisition or reductions in force. The tough economic climate will also, no doubt, lead companies to reassess their benefit plans and executive compensation packages. However, employers must evaluate their own responses to these developments to ensure that they are complying with legal requirements and proceeding cautiously.

"How Obama's Cap on Exec Salaries Could Cause as Many Problems as it Solves," The National Law Journal

In Schachter v. Citigroup, Inc.,¹ the California Supreme Court rejected claims that an incentive plan that conditioned the earning of restricted stock based on continued service was unlawful where the employee voluntarily elected to participate in the plan, and the employee quit before the date on which the incentive was earned. The plan was lawful even though the incentive plan was funded from wages that the employee would have otherwise received in cash.

The Securities and Exchange Commission (SEC) released proposed rules on March 2, 2011, in connection with provisions of the Dodd-Frank Act that prohibit "covered financial institutions" from providing incentive-based compensation that encourages inappropriate risks, by providing either excessive compensation or incentives that could lead to material financial loss to the institution.

A little more than a year ago, I wrote in this space about the "Heightened Standards" issued in 2014 by the Office of the Comptroller of the Currency for certain banks with $50 billion and more in assets.

It is essential for counsel and human resources executives advising banks to become familiar with these in more than a passing way.

Financial services firms regulated in the UK by both the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have long caused confusion, particularly in international financial services groups, with their complex regulatory pay structures and infamous bonus cap.

In a reassuring decision for employers, the UK High Court has confirmed that an employer’s use of a contractual provision to claw back an employee’s bonus was lawful. The ruling in Steel v Spencer Road LLP provides helpful guidance on the circumstances in which a bonus clawback will not constitute a restraint of trade, though employers should be mindful that not all such provisions will be enforceable.

Alexander MacDonald weighs in on the effects of U.S. DOL regulations that seek to expand organizing protections for farmworkers on temporary visas.

Bloomberg Law

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In February 2024, Poland’s government revealed that it is working on a comprehensive migration strategy for the years 2025-2030, advertised as a “responsible and safe” approach. The Ministry of Interior and Administration plans to spend the first half of 2024 conducting consultations to learn the preferences and expectations on migration and foreigners’ employment from various stakeholders, including the country’s biggest employers and their organizations, as well the trade unions.

Michael Lotito says captive audience meeting bans passed by more than half a dozen states are “intrusive” and “against fundamental First Amendment principles.”

Bloomberg Law

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Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

Download full Q2 2022 Global Guide Quarterly

Significant Tightening of the German Law on the Provision of Evidence

New Legislation Enacted

Author: Lioba Lamers, Associate – vangard | Littler

Counsel representing banks in employment litigation need to understand the special privileges and rules regarding access to bank records and disclosures to regulators.

By Philip M. Berkowitz | July 13, 2022

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

Download full Q3 2022 Global Guide Quarterly

Court of Appeal Confirms that Conduct of a Whistleblower is Separable from the Fact of Making a Protected Disclosure

Precedential Decision by Judiciary or Regulatory Agency

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

Download full Q1 2023 Global Guide Quarterly

Extensions of Laws

New Legislation Enacted

Authors: Carlo Majer, Partner, and Caterina Colombano, Associate – Littler Italy

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

Download full Q1 2023 Global Guide Quarterly

Whistleblower Protection Act Has Entered into Force

New Legislation Enacted

Authors: Dennis Veldhuizen, Partner, and Eric van Dam, Partner – Clint | Littler

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

Download full Q2 2023 Global Guide Quarterly

German Whistleblower Protection Act

New Legislation Enacted

Author: Matthias Pallentin, Partner – vangard | Littler

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

Download full Q2 2023 Global Guide Quarterly

New Whistleblowing Act

New Legislation Enacted

Author: Zoltán Csernus, Attorney-at-Law – VJT & Partners Law Firm

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

Download full Q2 2023 Global Guide Quarterly

Deadline for the Implementation of the Whistleblowing Reporting System

New Legislation Enacted

Authors: Sonia Cortés, Partner, and Isabel Herrero, Attorney-at-Law – Abdón Pedrajas | Littler

On October 11, 2021, Texas Governor Greg Abbott issued Executive Order GA-40, which states that no entity in Texas can “compel” any individual, including any employee or consumer, to receive a COVID-19 vaccination who objects “for any reason of personal conscience, based on a religious belief, or for medical reasons, including prior recovery from COVID-19.”  The order also establishes a maximum criminal penalty of $1,000 but expressly exclude

Alecia Winfield explains what diversity means in corporate America and says the ‘Black Lives Matter’ protests fueled a drive for change in corporate America, similar to that of the #MeToo movement. 

Apparel Resources

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On August 24, 2023, the Office of Management and Budget approved a request from the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) to revise the “Itemized Listing” that OFCCP uses to collect information from federal contractors that are selected for supply or service audits. Among the changes that have been approved is a new requirement that audited contractors:

Alexander MacDonald says most of the rules, regulations, decisions and doctrines employment lawyers deal with each day are first developed by agencies.

Bloomberg

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Alex MacDonald says that federal agencies will have to look for new ways to advance their policy positions in the wake of SCOTUS overturning Chevron. 

Corporate Compliance Insights

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On June 3, 2024, the U.S. Court of Appeals for the Eleventh Circuit granted a preliminary injunction prohibiting a venture capital fund from awarding grants based on race and gender. In reversal of the district court, the majority found the grant contest “substantially likely to violate” 42 USC Section 1981, a federal statute enacted as part of the Civil Rights Act of 1866 prohibiting private parties from racial discrimination in contracts.

Melissa McDonagh said employers should continue to be thoughtful with their approach to noncompete agreements, ensuring compliance with existing state laws and monitoring the status of the FTC noncompete rule as it winds its way through the appellate process.

McKnights Senior Living

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David Jordan discusses the framework of the 80/20 tip-credit rule and its current impact on employers after the Fifth Circuit’s recent decision leaves a version of the rule up for questioning.

Bloomberg Law

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Joy Rosenquist talks about the impact of an executive order banning the use of salary history in hiring by federal agencies and contractors.

WorldatWork

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Anne C. Sanchez and Briana M. Swift explain what employers need to know about the San Francisco Health Care Security Ordinance (HCSO), a local ordinance that requires employers to make certain healthcare expenditures on behalf of their San Francisco-based employees.

SHRM

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Stephanie Chavez offers advice to employers who are considering hiring individuals who have a criminal record.

Law360 Employment Authority

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This year has seen a number of international and regional legislative efforts imposing human rights due diligence and transparency obligations on multinational employers. 

On December 23, 2021, President Joe Biden signed into law the Uyghur Forced Labor Prevention Act (the “Act”),¹ which bars the importation into the United States of products made from forced labor in the Xinjiang region of China.  This Act will significantly impact many multinational employers’ supply chains because raw materials from this region – such as cotton, coal, chemicals, sugar, tomatoes and polysilicon (a component in solar panels) – have found their way into many global supply chains.  Indeed, these materials arrive on U.S.

The Global Guide Quarterly (GGQ) is a newsletter published by Littler on a quarterly basis to provide high-level and concise coverage of global labor and employment (L&E) law developments in key countries across the Americas, the Asia-Pacific (APAC) region, and Europe, the Middle East, and Africa (EMEA).

Voters in several states will decide whether marijuana or, in one case, psychedelic substances should be legal in the upcoming November 5, 2024 general election. Employers should keep their eyes on these ballot measures and prepare for questions regarding changes to workplace policies if some or all of them pass. A rundown of the ballot measures in these jurisdictions follows.

Technology facilitates remote work in ways that, years ago, just were not possible. Take telecommuting. These days, all kinds of jobs that had to be performed at an employer site are now performed remotely. Some call center workers, for example, now work from home using home telephones — no brick-and-mortar call center needed. Some secretaries now telecommute using laptops and the internet. Some teachers now teach remotely using laptops and video links.

The COVID-19 pandemic required nearly every employer around the globe to take stock of its workforce, policies and practices, and adapt to a rapidly changing and unpredictable environment.  COVID-19 will eventually pass, but transformative issues laid bare by the pandemic—which were already in motion—will remain, likely at an accelerated pace.

The Firm’s International Practice Group has once again updated its COVID-19 Vaccination: A Littler Global Guide on Legal & Practical Implications in the Workplace. Two years into the pandemic, experts agree that – in the absence of newly emerging and highly transmissible variants – COVID-19 might lose its pandemic status before the end of 2022 due to the development of various COVID-19 vaccines and increasing global vaccination rates.

The United States is not the only country currently debating reform to the law on non-competes. Notably, the UK Government has announced legislation that would limit the duration of non-competes to a period of three months after the termination of employment.

The United States is not the only country currently debating a reform to the law on non-competes. Notably, the UK Government has announced legislation that would limit the duration of non-competes to a period of 3 months after termination of employment.

Background check industry groups have mounted a full-court press to remedy the recent slowdown in criminal record searches in California state courts caused by last year’s court of appeal decision in All of Us or None v.

Rod Fliegel talks about employee background screenings – the FCRA issues for employers to consider, the importance of providing a pre-adverse action notice and common mistakes employers make.

Workest by Zenefits

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A May 2021 court decision in California, All of Us or None v.

Rod Fliegel, William Simmons and Wendy Buckingham discuss the current limitations on the use of background checks for employment in California.

SHRM Online

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Updated July 31, 2023: The Council’s Modifications to Employment Regulations Regarding Criminal History discussed in this Insight have just been approved by the Office of Administrative Law, and the modified regulations will go into effect on October 1, 2023. Key changes from the initial proposal include: