Littler's Bruce McNeil explains the “rabbi trust" and how it has evolved as a way for employers to provide employees with a higher level of security with respect to nonqualified deferred compensation payment. He discusses further how it is beneficial for both employers and employees.

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Dear Littler,

In the first major action of 2024, the Department of Justice (DOJ) announced it had entered into a three-year deferred prosecution agreement (DPA) with a publicly traded global software company for alleged violations of the Foreign Corrupt Practices Act (FCPA). The January 10, 2024 announcement described the company’s agreement to pay more than $220 million in connection with the investigation, consisting of just under $120 million in criminal penalties.  While significant, these fines were reduced based on the pilot program announced by the DOJ last spring, as described below.

Michael Lotito says the U.S. Supreme Court’s decision to nix Chevron deference sends a message to federal agencies that the days of administrative overreach are over.

Law360 Employment Authority

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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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This Littler Lightbulb highlights some of the more significant employment law developments in federal courts of appeal in the last month.

Fifth Circuit Vacates DOL Tip Credit Rule

There have been significant recent developments to the rules on annual leave, with a decision from the Supreme Court of the United Kingdom followed by the publication of the draft Employment Rights (Amendment, Revocation and Transitional Provision) Regulations 2023 (the Employment Rights Regulations).

Largely overshadowed by the rise in COVID-19 deaths and the January 6, 2021, siege on the Capitol, the Criminal Antitrust Anti-Retaliation Act of 2019 (“the Act”) became law on December 23, 2020. See 15 U.S.C. § 7a-3. The Act, which Senator Chuck Grassley sponsored, prohibits employers from retaliating against individuals who report criminal antitrust violations to their employer or the federal government, or who participate in a federal governmental criminal antitrust investigation or proceeding.  

Background

On June 29, 2024, Governor Newsom signed into law an amendment to California Code 1770, clarifying the scope of SB 478. Under SB 478 and previously published guidance from the attorney general, California restaurants were effectively prohibited from charging service fees or other surcharges, which many restaurants have implemented to offset rising costs, unless the amount of the service fee was specifically identified as part of the listed prices.

On November 10, 2021, the IRS released Revenue Procedure 2021-45, which contains its annual inflation adjustments for over 60 tax provisions, including not only individual income tax rates and deductions, but also many employer-provided benefits.

Bradford Kelley and Britney Torres predict politics in the workplace will remain an issue beyond the election and so California employers need a long-term plan measures for issues that include voter intimidation and discrimination and employees taking time off to vote.

Law360

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On May 3, Governor Ron DeSantis signed into law SB 2006 (codified as Section 381.00316, Florida Statutes).  The law prevents business entities from requiring that patrons or customers provide documentation certifying COVID-19 vaccination or post-infection recovery to enter or obtain service from a business in Florida. It also prohibits educational institutions from requiring students or residents, and governmental entities from requiring persons, to provide vaccination passports or proof of post-infection recovery.

In a joint “Dear Colleague” letter (DCL) released May 19, 2023, the U.S. Department of Education’s Office of Civil Rights teamed up with the U.S.

Grant Goerke and Jennifer Chierek Znosko discuss a recent federal court decision that agreed an Illinois employer had the right to enforce a zero-tolerance policy on marijuana use.

Westlaw Today

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Connecticut and Rhode Island construction industry employers are facing a significant increase in government scrutiny of their labor and employment practices over the next several years. On November 30, 2011, the Hartford office of the U.S Department of Labor's Wage and Hour Division ("U.S. DOL") issued a press release announcing a "multiyear enforcement initiative" aimed at improving what it sees as "widespread noncompliance with minimum wage, overtime and record-keeping provisions of the Fair Labor Standards Act" in the construction industry in both Connecticut and Rhode Island.

(October 14, 2020) – Littler, the world’s largest employment and labor law practice representing management, has announced a number of leadership changes throughout its various practice and industry groups.

“We congratulate this talented and diverse group of co-chairs,” said Tom Bender and Jeremy Roth, Littler co-managing directors, in a joint statement. “Their deep knowledge and extensive experience in their respective practice areas will continue to enhance the firm’s ability to advise and defend clients on myriad employment and labor law matters across all industries.”

Rhonda B. Levy and George Vassos discuss an Ontario Court of Appeal decision that puts employers on notice that their discretion in awarding bonuses is not unconstrained and must be exercised fairly and reasonably.

Human Resources Director Canada

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AUSTIN, Texas (January 16, 2024) – Littler, the world’s largest employment and labor law practice representing management, has added Tara Porterfield as senior counsel in its Austin office. Porterfield joins from Vinson & Elkins and brings more than 20 years of employment litigation experience.

TORONTO (June 17, 2024) – Littler, the world’s largest employment and labour law practice representing management, continues its hiring streak in Toronto today with the addition of Matthew Badrov as a partner. Badrov, who joins from Sherrard Kuzz, marks Littler’s third partner addition in Toronto in recent months, following the arrivals of Shana French and Stephen Shore.

New Additions Follow Arrival of Three Partners in Recent Months

Stacey James and Jamie L. Santos discuss a California amendment that seeks to allow restaurants to support higher wages and benefits while clearly disclosing service fees to consumers upfront.

Wolters Kluwer

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Australia’s Senate on Thursday, February 8, 2024, passed a bill that would prevent an employer from contacting employees outside of work hours. The bill gives the employee the right to refuse to monitor, read or respond to contact, or attempted contact, from an employer outside of the employee’s working hours without fear of being penalized, unless the employee’s refusal is unreasonable.

Stephen Shore discusses a new law in Saskatchewan, Canada, that requires employers to create workplace violence prevention programs and inform employees about other workers who have a history of violent behavior.

International Employment Lawyer

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Marko Mrkonich says it’s important for companies to establish their AI compliance framework at the beginning, instead of after employees have already gotten used to deploying AI in certain ways.

Corporate Counsel

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Alex MacDonald says a California assembly bill unlawfully targets certain companies or groups of companies.

Law360 Employment Authority

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Ben Smith discusses a UK proposal to abolish the two-year qualifying period for employees to bring an unfair dismissal claim against their employer.

Law 360

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