Hunton Employment & Labor Perspectives

Recently, in Restaurant Law Center, et al. v. U.S. Dep’t of Labor, the U.S. District Court for the Western District of Texas affirmed the validity of a new Department of Labor (DOL) rule, known as the “80-20-30” or “dual jobs” rule, which limits the ability of employers to satisfy a portion of tipped employees’ wages with earned tips.

Federal contractors have had a flurry of headlines to keep up with over the last few months. Most prominent among them is the Federal Acquisition Regulatory Council’s interim rule barring federal agencies and contractors from using TikTok or any other ByteDance product (the “Covered Applications”). 

A National Labor Relations Board Administrative Law Judge dismissed the General Counsel’s allegation that the employer violated the National Labor Relations Act by not giving the union representing its employee notice and opportunity to bargain over the discharge of an employee it represented. Starbucks Corp., 02-CA-303077, et. al. (July 24, 2023). In doing so, the Administrative Law Judge teed up the issue for the Board to change the law on appeal. The law at issue is the Board’s prior precedent under Total Security Management Illinois 1, LLC, 364 NLRB 1532 (2016). The Board in Total Security created a new bargaining obligation which employers did not have prior to the case. Under Total Security, discretionary discipline is considered what is known as a “mandatory” subject of bargaining. Specifically, the Board held that prior to imposing serious discretionary discipline, such as a suspension or discharge, an employer must provide notice and opportunity to bargain with a union representing the employee at issue regarding what, if any, discipline to impose. Id. at 1536.

In Harris et. al. v. Medical Transportation Management, Inc. et. al., the D.C. Circuit Court of Appeals held that a putative class cannot be certified as an “issue” class under Rule 23(c)(4) without also satisfying the requirements in Rule 23(a) and (b).  This ruling is important because it prohibits putative classes from using the “issue” class mechanism of Rule 23(c)(4) to skirt the important procedural requirements in Rule 23(a) and (b) that are meant to protect both the litigants and absent parties.  The court also encouraged the use of the partial summary judgment mechanism, rather than Rule 23(c)(4), to resolve discrete legal issues common to many class members. 

Since the United States Supreme Court issued its decision in Viking River Cruises, Inc. v. Moriana in June 2022, trial courts in California have grappled with how to address the non-individual portion of a plaintiff’s PAGA claim that remains in court when a plaintiff’s individual PAGA claim is compelled to arbitration.[1]  Most trial courts have found it appropriate to stay the non-individual portion of the PAGA claim until the arbitration’s conclusion because that outcome would determine whether the employee retains standing to proceed in court.  On July 17, 2023, in the highly anticipated decision of Adolph v. Uber Technologies, the California Supreme Court addressed several questions in the post-Viking River landscape, including the propriety of staying non-individual PAGA claims pending the completion of arbitration. 

Several prominent business groups filed an amicus brief in the Supreme Court of the United States on July 24 urging the Court to reform its standard on agency deference and highlighting the unpredictability caused by the National Labor Relations Board’s (“NLRB”) current application of the lenient standard.

HuntonAK Labor and Employment partner Emily Burkhardt Vicente was honored as a finalist for Mentor of the Year by the Los Angeles Business Journal at their 2023 Women’s Leadership Symposium and Awards.

On June 30, 2023, the U.S. Supreme Court in 303 Creative, LLC v. Elenis held that the First Amendment prohibits Colorado from compelling a website designer to engage in expressive conduct that conflicts with her beliefs.

On June 29, 2023, the U.S. Supreme Court in Groff v. DeJoy clarified the “undue hardship” standard under which it can deny a religious accommodation under Title VII of the Civil Rights Act of 1964.  In a unanimous opinion authored by Justice Alito, the Court rejected a “de minimis cost” test, and held that an employer denying a religious accommodation must show that the burden of granting an accommodation “would result in substantial increased costs in relation to the conduct of its particular business.”

National Labor Relations Board (“NLRB”) General Counsel Jennifer Abruzzo recently issued a memorandum announcing her broad opposition to non-compete agreements.  In GC Memo 23-08, Abruzzo set forth her belief that, “the proffer, maintenance, and enforcement of [non-compete] agreements violate Section 8(a)(1) of the Act.”  According to Abruzzo, overbroad non-compete agreements chill employees’ abilities to exercise their Section 7 rights because the provisions interfere with employees' ability to:

• Concertedly threaten to resign to secure better working ...