Hunton Employment & Labor Perspectives

Less than two months ago, on July 29, 2014, the National Labor Relations (NLRB) made an announcement that it intends to hold franchisors legally responsible for unfair labor practices committed by its franchisees.  A recent Fifth Circuit opinion follows this trend by potentially expanding the number of discrimination and harassment suits corporate parent franchisors may face for discrimination and harassment committed by franchisees. EEOC v. Simbaki, Ltd.

The IRS recently issued draft versions of the new Forms 1094-B, 1094-C, 1095-B and 1095-C (the “Forms”) along with related draft Instructions.

Federal contractors and subcontractors may soon be prohibited by the OFCCP from having polices that prohibit employees from talking about their pay and from discriminating against those who do.  On September 17, the Labor Department’s Office of Federal Contract Compliance Programs (OFCCP) published a notice of proposed rule-making (NPRM) concerning pay secrecy policies. The proposed rule, which applies to  federal contractors and subcontractors, prohibits pay secrecy policies and bars companies from discriminating against job applicants and all levels of employees who ask about, disclose, or discuss compensation-related information.  This will not be a surprise to those who follow the rulings under the National Labor Relations Act (NLRA), which provides similar protections.

The proposed rule will likely increase the cost of defending against equal pay cases for all employers, not just government contractors and subcontractors.

First appeared in the September 23, 2014, edition of InsideCounsel

On the morning of September 10, in a signing ceremony held in Los Angeles, Governor Jerry Brown officially signed AB 1522 into law.  This law makes California the second state to guarantee paid sick leave to employees. Statewide studies reported that 44% of employees in the state of California did not have access to paid sick leave. This will change under the new law for the vast majority of these approximately 6.5 million employees.

Discover how the use of criminal background checks in the hiring process is creating an increasing exposure to liability. The Equal Employment Opportunity Commission (EEOC) is aggressively pursuing this issue to ensure the practice does not have a disparate impact on minority applicants. Additionally, plaintiffs' class action attorneys are pursuing employers nationwide for failing to conform their background check process with the dictates and protections of the federal Fair Credit Reporting Act. This webinar will highlight lessons learned in the trenches, and give insights on how to properly handle the sensitive use of criminal background check information.

The OFCCP (Office of Federal Contract Compliance Programs), an agency in the Department of Labor, continues its focus on “steering” claims during audits of federal contractors.  “Steering” claims examine whether women or minorities are discriminatorily assigned to less desirable jobs —  typically those with lower pay, less prestige, and/or fewer opportunities for advancement.  Steering claims are a hot topic of late for the federal contractor community. Central Parking Systems of Louisiana Inc. is the latest to pay out a six-figure settlement in this area.

The EEOC and the Mexican Ministry of Foreign Affairs recently signed a National Memorandum of Understanding (MOU). The purpose of the MOU, according to an EEOC press release, is to strengthen the collaborative efforts of the United States and Mexico to inform immigrant, migrant and Mexican workers of their rights under the EEOC’s non-discrimination laws. The MOU is also directed at employers, aiming to provide guidance on their responsibilities under the same laws.  The MOU was signed in both English and Spanish by EEOC Chair Jacqueline A. Berrien and Ambassador Eduardo Medina Mora, at the EEOC headquarters in Washington, D.C.

Executive Order 13672 went into effect on July 21, 2014 and amended Executive Order 11246 by adding sexual orientation and gender identity to the list of protected classes.  Executive Order 13672, however, applies only to contracts entered on or after July 21, 2014.  The Office of Federal Contract Compliance Programs (OFCCP) has now issued Directive 2014-02, which interprets the prohibition against sex discrimination in Executive Order 11246 to include discrimination on the basis of gender identity and transgender status.  This means that contractors and subcontractors with contracts that predate July 21 can still be held liable for discrimination on the basis of gender identity and transgender status.