Workforce Bulletin

Is the developer of an AI resume-screening tool an “employment agency” or “agent” subject to liability under Title VII of the Civil Rights Act for its customers’ allegedly discriminatory employment decisions? According to the United States Equal Employment Opportunity Commission (“EEOC”), the answer is yes. On April 9, 2024, the EEOC filed a motion for leave to file a brief as amicus curiae, together with a brief, in Mobley v. Workday, Inc., Case No. 3:23-cv-00770-RFL, to support plaintiff Derek Mobley’s (“Mobley”) motion to dismiss.

The EEOC’s action is ...

This springtime, Washington, D.C. employers may want to spruce up their compliance checklists to stay ahead of new pay transparency obligations. On January 12, 2024, Mayor Bowser signed the Wage Transparency Omnibus Amendment Act of 2023 (the “Act”), which modifies the Wage Transparency Act of 2014. The Act imposes new pay disclosure requirements for job postings, prohibits employer inquiries into an applicant’s wage history, and directs employers to post a new notice in their workplaces. Like most legislation in D.C., the Act was subject to review for a period of 30 ...

On October 30, 2023, President Joe Biden signed his Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence (AI EO), which addresses artificial intelligence issues, including safety, security, privacy, civil rights, immigration, and health care.  The White House also released a companion Fact Sheet summarizing the AI EO (the “Fact Sheet”).  Later in the week, on November 1, 2023, the White House announced that the Office of Management and Budget will release for comment a new draft policy on Advancing Governance, Innovation, and ...

On August 9, 2023, the U.S. Equal Employment Opportunity Commission (“EEOC”) and iTutorGroup, Inc. and related companies (collectively, “iTutorGroup”) filed a joint notice of settlement  and a request for approval and execution of a consent decree, effectively settling claims that the EEOC brought last year against iTutorGroup regarding its application software.  The EEOC claimed in its lawsuit that iTutorGroup violated the Age Discrimination in Employment Act (“ADEA”) by programming its application software to automatically reject hundreds of female applicants age 55 or older and male applicants age 60 or older.

After releasing an initial two-page “fact sheet,” Congress publicly posted the bill text of the No Robot Bosses Act (the “Proposed Act”), detailing proposed federal guardrails for use of automated decision-making systems in the employment context. Robert Casey (D-PA), Brian Schatz (D-HI), John Fetterman (D-PA), and Bernie Sanders (I-VT) currently cosponsor the Proposed Act.

On July 20, 2023, U.S. Senators Bob Casey (D-PA) and Brian Schatz (D-HI) introduced the “No Robot Bosses Act.”  Other than bringing to mind a catchy title for a dystopic science fiction novel, the bill aims to regulate the use of “automated decision systems” throughout the employment life cycle and, as such, appears broader in scope than the New York City’s Local Law 144 of 2021, about which we have previously written, and which New York City recently began enforcing. Although the text of the proposed federal legislation has not yet been widely circulated, a two-page fact sheet released by the sponsoring Senators outlines the bill’s pertinent provisions regarding an employer’s use of automated decision systems affecting employees and would:

As we previously reported, on July 5, 2023, the New York City Department of Consumer and Worker Protection (DCWP) began enforcing Local Law 144 of 2021 (the “Law”) regulating the use of automated employment decision tools (AEDT).  In preparation for the July 5 enforcement date, last week, the DCWP published Frequently Asked Questions (FAQ) concerning the use of AEDTs on its fact page for the Law.  The FAQ contain an overview of the Law and general information and guidance regarding bias audit requirements, data requirements, independent auditors, responsibility for bias audits, notice requirements, and complaints.

As explained in the FAQ, the Law applies to employers and employment agencies that use AEDT:

On June 29, 2023, the Supreme Court of the United States issued three opinions. Of them, Groff v. DeJoy ("Groff”),in which the Court unanimously revised the standard for determining whether accommodating an employee’s religious beliefs would constitute an “undue hardship” under Title VII of the Civil Rights Act of 1964 (“Title VII”), will have the most immediate impact on employers. In Groff, the Court held that employers cannot deny a religious accommodation by demonstrating that it would result in only more than a de minimis cost, but rather must demonstrate that it would result in a substantial cost.

Since late October 2021, when the Equal Employment Opportunity Commission (EEOC) launched its Initiative on Artificial Intelligence (AI) and Algorithmic Fairness, the agency has taken several steps to ensure AI and other emerging tools used in hiring and other employment decisions comply with federal civil rights laws that the agency enforces, including Title VII of the Civil Rights Act of 1964 (Title VII), the Age Discrimination in Employment Act (ADEA), and the Americans with Disabilities Act (ADA). Among other things, the EEOC has hosted disability-focused listening and educational sessions, published technical assistance regarding the ADA and the use of AI and other technologies, and held a public hearing to examine the use of automated systems in employment decisions.

On May 3, 2023, Maryland Governor Wes Moore signed into law SB 828, which amends the state’s Family and Medical Leave Insurance Program (the “Program”) that was originally established in April 2022. As we previously reported, the Program generally provides eligible employees with 12 (but in some cases, 24) weeks of paid leave to be used for certain covered family and medical-related absences. The Program and SB 828’s amendments—which will take effect on June 1, 2023—are nuanced, so below are five significant updates from the new legislation for Maryland employers to consider.

When the COVID-19 pandemic began in 2020, employers found themselves in uncharted territory – a new virus, public health emergency declarations, and legislation. Against this onslaught of emerging circumstances, the Equal Employment Opportunity Commission (EEOC) published guidance on the application of existing federal equal employment opportunity laws to COVID-19 workplace issues. Since first releasing “What You Should Know About COVID-19 and the ADA, the Rehabilitation Act and Other EEO Laws” in March 2020, the agency has followed up with several revisions. The EEOC published its latest version of the guidance on May 15, 2023, just ten days after the World Health Organization declared an end to the COVID-19 global public health emergency and six days after the federal COVID-19 Public Health Emergency (PHE) technically concluded. Below, are the most significant updates in what the agency has called its “capstone” guidance (the “Revised Guidance”). 

On Thursday May 4, 2023, the Biden-Harris Administration announced its plan to implement artificial intelligence (“AI”) safeguards to “protect people’s rights and safety.” 

Given the rapid development of AI in workplaces, public health, education, and security, the Administration seeks to underscore related risks and opportunities.  Vice President Kamala Harris and senior Administration officials have met with leaders at the forefront of AI innovation to call attention to “responsible, trustworthy, and ethical innovation with safeguards that mitigate risk and potential harms to individuals and our society.”

On Tuesday, April 25, 2023, the Equal Employment Opportunity Commission (“EEOC”), Consumer Financial Protection Bureau (“CFPB”), Justice Department’s Civil Rights Division (“DOJ”), and the Federal Trade Commission (“FTC”) issued a “Joint Statement on Enforcement Efforts Against Discrimination and Bias in Automated System” (“Joint Statement”).  According to a press release from the EEOC, by the Joint Statement, the federal agencies pledged to uphold America’s commitment to the core principles of fairness, equality, and justice as emerging automated systems, including those sometimes marketed as “artificial intelligence,” or “AI,” become increasingly common in people’s daily lives – impacting civil rights, fair competition, consumer protection, and equal opportunity.

On April 6, 2023, the New York City Department of Consumer and Worker Protection (“DCWP”) issued a Notice of Adoption of Final Rule to implement Local Law 144 of 2021, legislation regarding automated employment decision tools (“AEDT Law”).  DCWP also announced that it will begin enforcement of the AEDT Law and Final Rule on July 5, 2023.   Pursuant to the AEDT Law, an employer or employment agency that uses an automated employment decision tool (“AEDT”) in NYC to screen a candidate or employee for an employment decision must subject the tool to a bias audit within one year of the tool’s use, make information about the bias audit publicly available, and provide notice of the use of the tool to employees or job candidates.

On January 26, 2023, the National Institute of Standards and Technology (“NIST”) released guidance entitled Artificial Intelligence Risk Management Framework (AI RMF 1.0) (the “AI RMF”), intended to help organizations and individuals in the design, development, deployment, and use of AI systems. The AI RMF, like the White House’s recently published Blueprint for an AI Bill of Rights, is not legally binding. Nevertheless, as state and local regulators begin enforcing rules governing the use of AI systems, industry professionals will likely turn to NIST’s voluntary guidance when performing risk assessments of AI systems, negotiating contracts with vendors, performing audits on AI systems, and monitoring the use AI systems.

As we recently reported, on December 9, 2022, the New York City Department of Consumer and Worker Production (“DCWP”) announced that it was postponing enforcement of the Automated Employment Decision Tools (“AEDT”) law, until April 15, 2023, due to the high volume of public comments it received regarding its proposed rules.

As we previously noted, New York City’s Automated Employment Decision Tools Law (“AEDT Law”), regulating employers’ use of automated employment decision tools, with the aim of curbing bias in hiring and promotions, had an effective date of January 1, 2023.  In late September 2022, we reported about the New York City Department of Consumer and Worker Protection (“DCWP”) issuing a Notice of Public Hearing and Opportunity to Comment on Proposed Rules related to the AEDT law.  The hearing subsequently took place on November 4, 2022, and dozens of organizations and individuals submitted comments, leaving many observers wondering whether the comments would impact the quickly approaching January 1, 2023 enforcement date and how the DCWP would interpret the law.

On October 31, 2022, the General Counsel of the National Labor Relations Board (“NLRB” or “Board”) released Memorandum GC 23-02 urging the Board to interpret existing Board law to adopt a new legal framework to find electronic monitoring and automated or algorithmic management practices illegal if such monitoring or management practices interfere with protected activities under Section 7 of the National Labor Relations Act (“Act”).  The Board’s General Counsel stated in the Memorandum that “[c]lose, constant surveillance and management through electronic means threaten employees’ basic ability to exercise their rights,” and urged the Board to find that an employer violates the Act where the employer’s electronic monitoring and management practices, when viewed as a whole, would tend to “interfere with or prevent a reasonable employee from engaging in activity protected by the Act.”  Given that position, it appears that the General Counsel believes that nearly all electronic monitoring and automated or algorithmic management practices violate the Act.

Employers with employees in the District of Columbia have until Monday, October 31, 2022, to comply with a specific notice provision contained in the D.C. Non-Compete Clarification Amendment Act of 2022 (B24-0256) (the “Amendment”).

On Tuesday October 4, 2022, the White House Office of Science and Technology Policy (“OSTP”) released a document entitled “Blueprint for an AI Bill of Rights: Making Automated Systems Work for the American People” (the “Blueprint”) together with a companion document “From Principles to Practice: A Technical Companion to the Blueprint for an AI Bill of Rights” (the “Technical Companion”).

On Friday, September 23, 2022, the New York City Department of Consumer and Worker Protection (“DCWP”) released a Notice of Public Hearing and Opportunity to Comment on Proposed Rules related to its Automated Employment Decision Tool law (the “AEDT Law”), which goes into effect on January 1, 2023. As we previously wrote, the City passed the AEDT Law to regulate employers’ use of automated employment decision tools, with the aim of curbing bias in hiring and promotions; as written, however, it contains many ambiguities, which has left covered employers with open questions about compliance.

UPDATE – On July 27, 2022, Mayor Bowser signed the Non-Compete Clarification Amendment Act of 2022.  The approved Act must now be sent to Congress for a period of 30 days before becoming effective as law.

Washington, D.C. employers will not need to scrap all their non-compete agreements after all.  On July 12, 2022, the D.C. Council (the “Council”) passed the Non-Compete Clarification Amendment Act of 2022 (B24-0256) (the “Amendment”), which among other things, tempers the District’s near-universal ban on non-compete provisions to permit restrictions for highly compensated employees.  For further analysis on the original D.C. Ban on Non-Compete Act, please see our previous articles here and here.

The Council delayed the initial ban several times in response to feedback from employer groups.  However, barring an unlikely veto or Congressional action during the mandatory review period, the amended ban will take effect as of October 1, 2022.  We detail the key revisions to the ban below.

On June 7, 2022, the District of Columbia Council approved the Fiscal Year 2023 Budget Support Act of 2022 (“Act”), which includes an increase to the number of weeks of paid leave available to eligible employees through the Universal Paid Leave Act (“UPLA”) (also known as “Paid Family Leave,” or “PFL”).  Generally, as we previously explained, PFL-eligible employees are those who spend at least 50 percent of their work time – whether full time or part time – in D.C.

Over the past several years, workplace artificial intelligence (“AI”) tools have matured from novel to mainstream.  Whether facilitating attracting, screening, hiring, and onboarding job applicants or charting the career path or promotability of current employees, workplace AI tools will likely become more prevalent.  Legislators and administrative agencies have taken note and are in various stages of examining and regulating these tools, with the primary goal of ensuring that they do not violate federal and state laws prohibiting workplace discrimination.

Prompted by the widespread adoption and use of video-conferencing software following the COVID-19 pandemic, many employers have shifted toward video interviews to evaluate potential hires. Even as employers have begun to require in-office attendance, the widespread use of video interviewing has continued, because it is a convenient and efficient way to evaluate applicants. Some of the video interviewing tools used by employers incorporate the use of artificial intelligence (AI) in an effort to maximize the effectiveness of the interview process. Often, employers contract with third-party vendors to provide these AI-powered interviewing tools, as well as other tech-enhanced selection procedures.

Due to a surplus in the Universal Paid Leave Fund (the “Fund”), D.C. employees who are covered by the District’s Paid Family Leave (PFL”) program will soon be eligible for the maximum amount of paid family leave benefits permitted under the law.

As discussed in our previous Insight, starting in 2022, under the Universal Paid Leave Emergency Amendment Act of 2021 (“PLEAA”), the District’s Chief Financial Officer (“CFO”) may modify the maximum duration of leave available under the PFL program annually depending upon the projected balance of the Universal Paid Leave Fund.  On March 1, 2022, the Acting CFO certified that the Fund has enough money to increase the potential maximum duration of qualifying paid leave available to D.C. employees as follows:

On March 28, 2022, District of Columbia Mayor Muriel Bowser signed D.C. Act 24-350, postponing the applicability date of the Ban on Non-Compete Agreements Amendment Act of 2020 (D.C. Act 23-563) (the “Act”) until October 1, 2022.  As we previously reported, the D.C. Council will likely use the coming months to consider various amendments, which will hopefully offer clarity to employers.

Next month, New Jersey private employers will need to start informing drivers before using GPS tracking devices in the vehicles they operate. A new state law that becomes effective April 18, 2022, requires employers to provide written notice to employees before using “electronic or mechanical devices” that are “designed or intended to be used for the sole purpose of tracking the movement of a vehicle, person, or device.” The notification requirement applies to both employer-owned or -leased and personal vehicles.

While the fate of two COVID-19 vaccination rules by federal agencies were decided in January by the Supreme Court of the United States, millions of employees working for the federal government, whether directly or as a contractor, have been waiting for clarity in the wake of court orders halting Presidential efforts to promote vaccination.  Here is a brief update on the status of litigation challenging the extent of the President’s authority to command the Executive Branch.

The first state to implement workplace health and safety standards for COVID-19 is poised to roll back those requirements. Virginia’s Permanent COVID-19 Employee Health and Safety Requirements (the “Permanent Standard”) established requirements for employers to control, prevent, and mitigate the spread of COVID-19.  However, with the Omicron wave receding, Virginia Governor Glenn Youngkin says the Permanent Standard presents “a significant burden on businesses” and should be reconsidered.

Pursuant to Governor Youngkin’s Executive Order issued on January 15, 2022, the Virginia Safety and Health Codes Board (the “Board”) convened on February 16, 2022, to determine whether the Permanent Standard is still necessary.  Adopting the Virginia Department of Labor and Industry’s (“DOLI”) recommendation, the Board agreed that there is no continued need for the Permanent Standard because the virus, “based on emerging scientific and medical evidence, . . . no longer constitute[s] a grave danger to employees in the workplace.”

The D.C. Council (the “Council”) is poised to further postpone the Ban on Non-Compete Agreements Amendment Act of 2020 (D.C. Act 23-563) (the “Act”). On March 1, 2022, Councilmember Elissa Silverman introduced emergency legislation (B24-0683) that would push back the Act’s applicability date from April 1 to October 1, 2022. Councilmember Silverman simultaneously introduced and the D.C. Council adopted an emergency declaration resolution (PR24-0603) allowing the measure to proceed directly to Mayor Muriel Bowser’s desk for signing after a single reading.

As explained in greater detail by our colleague Stuart M. Gerson, the Supreme Court of the United States handed down two major, and quickly decided, rulings on January 13, 2022. After hearing oral arguments only six days earlier, the Court issued two unsigned decisions per curiam. A 5-4 decision in Biden v. Missouri dissolved a preliminary injunction against enforcement of an interim final rule (“Rule”) promulgated by the Centers for Medicare & Medicaid Services (CMS), requiring recipients of federal Medicare and Medicaid funding to ensure that their employees are vaccinated against COVID-19.

Important guidance regarding COVID-19 testing in the workplace was recently issued by the Centers for Medicare & Medicaid Services (“CMS”) in the form of Frequently Asked Questions regarding Over the Counter (“OTC”) Home Testing and CLIA Applicability.

CMS regulates clinical laboratory testing pursuant to the federal Clinical Laboratory Improvement Act (“CLIA”). Generally, a laboratory or clinical setting (such as a physician’s office) must obtain CLIA certification to perform laboratory testing. Some OTC tests, however, are approved by the Food and Drug Administration (“FDA”) for home use and the new FAQs address the use of OTC home tests in the workplace.

As we previously reported, President Biden issued Executive Order 14042 (the Order), which mandated that employees of contractors and subcontractors performing work on federal contracts be fully vaccinated against COVID-19 by January 18, 2022.  Challengers from seven states—Georgia, Alabama, Idaho, Kansas, South Carolina, Utah and West Virginia (the Plaintiff States)—and various state agencies, filed suit against President Biden and his Administration, seeking injunctive relief against enforcement of the Order.  On December 7, 2021, the United States District Court for the Southern District of Georgia granted the motion and issued a nationwide preliminary injunction against the enforcement of the vaccine mandate.

The Court’s Decision

As we previously reported, the Centers for Medicare and Medicaid Services’ (CMS) interim final rule (“the Rule”) requiring full COVID-19 vaccination for staff and others at Medicare- and Medicaid-certified providers and suppliers (i.e., the “vaccine mandate”) has been challenged in the U.S. District Courts for the Eastern District of Missouri (“the Missouri Court”) and the Western District of Louisiana, Monroe Division (“the Louisiana Court”).  As of the date of this writing, both Courts have granted preliminary injunctions placing the Rule on hold.

On November 29, 2021, the Missouri Court granted a preliminary injunction of the Rule, which applies to the coalition of ten states [1] that filed the challenge there. The following day, the Louisiana Court entered a similar injunction, which applies to the remaining forty states.

The Decisions

As of December 11, 2021, the Bill regulating employers’ use of automated employment decision tools has been enacted.  Compliance with the Bill’s requirements begins January 1, 2023.

***

Joining Illinois and Maryland, on November 10, 2021, the New York City Council approved a measure, Int. 1894-2020A (the “Bill”),  to regulate employers’ use of  “automated employment decision tools” with the aim of curbing bias in hiring and promotions.  The Bill, which is awaiting Mayor DeBlasio’s signature, is to take effect on January 1, 2023. Should the Mayor not sign the Bill within thirty days of the Council’s approval (i.e., by December 10), absent veto, it will become law.

On Friday, November 12, 2021, a panel of the U.S. Court of Appeals for the Fifth Circuit issued a strongly worded decision granting a motion to prevent the Occupational Safety and Health Administration (OSHA) from implementing or enforcing the Emergency Temporary Standard (ETS) that went into effect on November 5, 2021. Among other things, the ETS mandates that employers with 100 or more employees require that their workers be fully vaccinated against COVID-19 or submit to precautions like regular testing and using face coverings. However, the Fifth Circuit ordered OSHA to take no action to implement or enforce the ETS until further court order.

As we previously reported, effective November 5, 2021, the Occupational Safety & Health Administration (OSHA) issued an Emergency Temporary Standard (ETS) requiring employers with 100 or more employees to ensure that covered employees are fully vaccinated or provide a negative COVID-19 test at least weekly.

On November 6, 2021, just one day after the OSHA ETS became effective, the U.S. Court of Appeals for the Fifth Circuit temporarily stayed the regulation in a case captioned BST Holdings, LLC v. OSHA. Inasmuch as the OSHA rule’s first milestones are December 5, when most ...

*UPDATE, Nov. 11, 2021: Deadline for Compliance Extended to January 18, 2022, and Federal Guidance Updated. Stay tuned!

On November 1, 2021, the Safer Federal Workforce Task Force (“Task Force”) issued new FAQs for federal contractors and subcontractors (“covered contractors”) that are subject to Executive Order 14042, Ensuring Adequate COVID Safety Protocols for Federal Contractors (the “Order”), and its “COVID-19 Workplace Safety: Guidance for Federal Contractors and Subcontractors” (“Guidance”).  The Guidance is intended to ensure that COVID-19 ...

On October 8, 2021, the New York State Department of Labor (“NYSDOL”) issued guidance in the form of Frequently Asked Questions (“FAQs” or the “Guidance”) to assist employers in navigating the Marijuana Regulation and Taxation Act (“MRTA” or the “Act”) and in understanding what they can and cannot do. As we previously reported, the MTRA, enacted on March 31, 2021, legalized recreational cannabis in the State. Of particular importance to employers, the Act amended New York Labor Law Section 201-D (“Section 201-D”) to create new legal protections for ...

On Monday, October 25, 2021, the U.S. Equal Employment Opportunity Commission (“EEOC”) issued updates to its online technical assistance for employers, providing guidance for managing workplace issues arising from the ongoing COVID-19 pandemic in compliance with the panoply of federal anti-discrimination laws that it enforces.

The updated guidance now includes a new section “L” entitled Vaccinations – Title VII and Religious Objections to COVID-19 Vaccine Mandates. The new material includes links to federal regulations regarding religious discrimination as ...

*UPDATE, Nov. 11, 2021: Deadline for Compliance Extended to January 18, 2022, and Federal Guidance Updated. Stay tuned!

In response to the Path Out of the Pandemic: COVID-19 Action Plan announced by President Biden on September 9, and Executive Order 14042, Ensuring Adequate COVID Safety Protocols for Federal Contractors (the “Order”), signed by the President the same day, the Safer Federal Workforce Task Force (“Task Force”) issued “COVID-19 Workplace Safety: Guidance for Federal Contractors and Subcontractors” (“Guidance”) on September 24, 2021 ...

Since President Biden issued Executive Order 14042 (the “Order”), and the Safer Federal Workforce Task Force (the “Task Force”) issued companion Guidance interpreting the Order (our summary of which can be found here), there have been additional developments providing further clarity on the implementation of the required COVID-19 safety protocols for federal contractors.

On September 30, 2021, the Federal Acquisition Regulation (“FAR”) Council issued a Memorandum on Issuance of Agency Deviations to Implement Executive Order 14042.  Since that date, a number of ...

On September 24, 2021, in response to the Path Out of the Pandemic: COVID-19 Action Plan announced by President Biden on September 9, and Executive Order 14042, Ensuring Adequate COVID Safety Protocols for Federal Contractors (the “Order”), signed by the President the same day, the Safer Federal Workforce Task Force (“Task Force”) issued “COVID-19 Workplace Safety: Guidance for Federal Contractors and Subcontractors” (“Guidance”). The Guidance, which the Director of the Office of Management and Budget approved, is intended to ensure that COVID-19 ...

As we wrote in our last Marijuana Legalization Rundown, state legislatures across the country have been busy enacting cannabis legalization laws this year.  Along with those laws has come a number of recent court decisions interpreting the application of cannabis legalization laws.  This post summarizes some of the significant decisions issued this year.

California     

On April 28, 2021, the U.S. District Court for the Central District of California granted summary judgment to the defendant employer on claims brought under the Fair Employment and Housing Act ...

Washington, D.C. employers have more time to get their non-compete ducks in a row. On August 23, 2021, Mayor Bowser signed the Fiscal Year 2022 Budget Support Act of 2021 (B24-0373) (the “Support Act”), which includes various statutory changes necessary to implement the D.C. FY 2022 budget. As expected, the Support Act postpones the applicability date of the Ban on Non-Compete Agreements Amendment Act of 2020 (the “Non-Compete Act”) until April 1, 2022. The postponement not only provides more time for employers to prepare for the non-compete ban—it also permits the D.C ...

There has been a recent flurry of movement – both in the courts and in state legislatures – on the marijuana law front across several states.  As we previously reported, on February 22, 2021, New Jersey Governor Phil Murphy signed three separate cannabis reform bills into law (NJ A21, NJ A 1897, and NJ A5342/NJ S3454), formally legalizing the use and possession of recreational marijuana in the Garden State.  The new laws contain express workplace-related provisions that impact New Jersey employers by establishing non-discrimination rules for recreational cannabis users or ...

Just as Washington, D.C. employers begin navigating the District’s recently enacted non-compete ban, changes to the law are already in the works. As we previously reported, earlier this year D.C. enacted the Ban on Non-Compete Agreements Amendment Act of 2020 (D.C. Act 23-563) (the “Act”), which prohibits employers from requiring or requesting that an employee sign any agreement containing a non-compete provision. For a more detailed summary and analysis of the Act, please refer to our December 22, 2020 article.

In response to concerns raised by the employer community

Recruiting qualified applicants and hiring top talent have always been time-consuming endeavors that come with constant worry about making a wrong hire. Added to this, the COVID-19 pandemic effectively put a halt to employers’ ability to evaluate applicants in-person. These factors, and others, have led many employers to adopt or to, consider adopting, artificial intelligence (AI) tools to optimize recruitment by introducing efficiencies, reaching a broader pool of applicants, increasing consistency and uniformity in the evaluation of applicants, and, in some cases, helping employers meet diversity, equity, and inclusion goals. Typically, employers opting to use AI, contract with third-party vendors that offer AI-powered algorithms, which perform a variety of functions, such as cognitive assessments, personality tests, and video interviews.

On February 22, 2021, Governor Murphy signed three separate cannabis reform bills into law that formally legalize the use and possession of recreational marijuana in the Garden state: (1) the “New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act” (the “Cannabis Act”) (NJ A21), which legalizes the recreational use and possession of cannabis or cannabis products (collectively “cannabis items”) for adults; (2) a  decriminalization law (NJ A1897), which legalizes the possession of up to six ounces of cannabis and provides for ...

On October 1, 2020, numerous laws in Maryland providing expanded protections for both existing employees and job applicants addressing race and sex discrimination, pay equity, and wage transparency went into effect.  As we begin a new year, employers should review these new laws to ensure compliance.

Expansion of Employers’ Notification and Reporting Obligations for Workforce Layoffs

Maryland has instituted its own version of the federal Worker Adjustment and Retraining Notification (“WARN”) Act with the passage of H.B. 1018/S.B. 780. This “mini” WARN Act revises ...

As the first wave of COVID-19 vaccinations are being administered across the United States, employers are considering whether to mandate and/or administer the COVID-19 vaccine to employees.  On December 16, 2020, the U.S. Equal Employment Opportunity Commission (“EEOC” or “Commission”) released updates to “What You Should Know About COVID-19 and the ADA, the Rehabilitation Act, and Other EEO Laws,” its Technical Assistance Questions and Answers publication, addressing potential concerns with vaccine administration and anti-discrimination laws the EEOC ...

Just one week after ordering new business restrictions to combat the recent surge of COVID-19, Governor Larry Hogan announced further mitigation measures in Maryland that will dial back business operations.

On November 17, 2020, Governor Hogan issued Executive Order 20-11-17-01, which amends and restates Executive Order 20-11-10-01 (which we previously summarized here).  The amended order goes into effect at 5:00 p.m. on Friday, November 20, 2020.

The amended order, titled “Regulating Certain Businesses and Facilities and Generally Requiring Use of Face Coverings,” has ...

As COVID-19 cases continue to rise across the nation, the District of Columbia, Maryland, and Virginia all recently have implemented additional mitigation measures that impact business operations.  Below is a summary of the key restrictions of which businesses within the DMV should be aware.

District of Columbia

The District of Columbia maintains a compilation of Phase Two Guidance to assist all businesses in reopening (or staying open) responsibly.  Recently, on November 6, 2020, Mayor Muriel Bowser issued Mayor’s Order 2020-110, which modifies previous quarantine ...

Take a deep breath. Now exhale. While the country awaits the results of the presidential race and many others that are still too close to call, the 2020 election made one thing clear: the march toward 50-state legalization of marijuana (and now perhaps other drugs) continues. On Tuesday, voters in five states decided to legalize recreational or medical marijuana, while Oregon voted to decriminalize most hard drugs, including heroin and cocaine. We summarize each ballot initiative and its outcome below.

Arizona

Ballot Summary: Although a similar initiative was narrowly defeated at ...

Although cannabis (marijuana) remains an illegal substance under federal law, companies in the cannabis industry are not exempt from complying with federal laws in general. A recent flurry of complaints filed in federal courts and with federal administrative agencies have highlighted the obligation of companies in the cannabis industry to comply with Title VII of the Civil Rights Act of 1964 (“Title VII”), the Age Discrimination in Employment Act of 1967 (the “ADEA”), and the Americans with Disabilities Act (the “ADA”). These employers must also remain compliant ...

As COVID-19 cases once again surge across the country, Washington, D.C. employers must remember to provide both paid and unpaid leave under the new District of Columbia Coronavirus Support Temporary Amendment Act of 2020 (D.C. Law 23-130) (the “Act”).  Although passed in July 2020, the Act formally became effective on October 9, 2020 and will remain in effect through the end of the declared COVID-19 public health emergency—currently December 31, 2021.  The law repeals the emergency laws that we previously blogged about, but carries over the additional obligations to provide ...

While the country remains focused on the COVID-19 pandemic, U.S. employers cannot ignore the ongoing opioid epidemic or how it may affect their workforces.  On August 5, 2020, the Equal Employment Opportunity Commission (“EEOC”) released new guidance addressing the rights of opioid users in the workplace under the Americans with Disabilities Act (“ADA”).[1]  The two question-and-answer documents clarify that while current illegal drug use is not protected, employees who “are using opioids, are addicted to opioids, or were addicted to opioids in the past, but are not ...

On July 27, 2020, Virginia became the first state in the nation to implement workplace safety and health standards for COVID-19.  The Safety and Health Codes Board adopted § 16VAC25-220, an Emergency Temporary Standard for Infectious Disease Prevention: SARS-CoV-2 Virus That Causes COVID-19 (the “Temporary Standard”), which is designed to supplement and enhance existing Virginia Occupational Safety and Health (“VOSH”) laws, rules, and regulations that may apply to the prevention and control of COVID-19 in the workplace.  Virginia imposed these standards because ...

In a recent Bloomberg Law article, we reported on legislative developments regulating the use of artificial intelligence (“AI”) in employment law decisions.  On May 11, 2020, one of the pieces of proposed legislation we discussed, Maryland’s H.B. 1202, became law without Governor Larry Hogan’s signature.  As we reported, H.B. 1202 prohibits employers from using facial recognition technology during pre-employment job interviews without the applicant’s consent.  To use facial recognition services in interviewing employees, an employer must obtain an applicant’s ...

July 1, 2020 represents a milestone for Virginia employers.  As we previously reported, nearly two dozen new employment laws take effect, including the Virginia Values Act.  In addition, all of Virginia enters Phase Three of Governor Ralph Northam’s Safer at Home plan to reopen the economy in light of the COVID-19 pandemic.

Changes to Virginia Employment Law

Employers with Virginia operations should take note of the following important changes:

1. Sexual Orientation, Gender Identity, Military Status, and Pregnancy: The Virginia Values Act amended the Virginia Human Rights Act

On June 9, 2020, Governor Ralph Northam announced that Northern Virginia and Richmond will join the rest of the state in entering Phase Two on June 12, 2020, taking the next step to reopening the region.  Governor Northam’s Executive Order 65 further eased temporary restrictions throughout most of the Commonwealth of Virginia, initiating the “Safer at Home: Phase Two” strategy on June 5, 2020.

As we previously wrote, the Northern Virginia Region and Richmond entered Phase One on May 29, 2020.  In Phase Two, most of the restrictions remain fairly similar to Phase One reopening ...

On May 27, 2020, D.C. Mayor Muriel Bowser issued Order 0202-067, which details the Phase One limited reopening of non-essential businesses in Washington, D.C., to begin on Friday, May 29, 2020.  The Mayor’s decision to begin to reopen D.C. follows on the heels of prior orders of Governors Larry Hogan and Ralph Northam to reopen neighboring Maryland and Virginia, respectively.  Governor Hogan allowed certain nonessential businesses in Maryland to reopen on May 15, 2020, and on May 27, 2020, he issued Order 20-05-27-01, expanding its phase one reopening.  Governor Northam’s ...

On April 10, 2020, the District of Columbia enacted the COVID-19 Response Supplemental Emergency Amendment Act of 2020 (D.C. Act 23-286) (the “Emergency Act”).  Among other things, Section 103 of the Emergency Act amends the Accrued Sick and Safe Leave Act of 2008 (“ASSLA”) to require employers with between 50-499 employees to provide paid declared emergency leave (“DOE Paid Leave”) for any reason allowed by the federal Families First Coronavirus Response Act (“FFCRA”). The Emergency Act is effective immediately and will remain in effect through July 9, 2020 ...

The U.S. Department of Labor has again updated its compliance assistance for the Families First Coronavirus Response Act (“FFCRA”), in the form of “Questions and Answers.”  This post summarizes the most recent Questions and Answers.  Previous summaries can be found here and here.

Some of the newest answers include the following:

• Question 60: Clarifies that shelter-in-place and stay-at-home orders can qualify as federal, state, or local quarantine or isolation orders for purposes of leave under FFCRA.
• Question 61: Clarifies that an individual is eligible for paid sick ...

The U.S. Department of Labor (“DOL”) continues to update its compliance assistance for the Families First Coronavirus Response Act (“FFCRA”), in the form of “Questions and Answers.”  The DOL posted a temporary rule issuing regulations pursuant to the FFCRA on April 1, 2020; while we are digesting the temporary rule and preparing a forthcoming advisory, we wanted to highlight some of the important insights of the updated FAQs. The DOL published its initial guidance on March 24, 2020, summarized in a previous post, covering the FFCRA’s paid sick and paid family leave ...

On March 24, 2020, the Wage and Hour Division (“WHD”) of the U.S. Department of Labor (“DOL”) issued initial guidance (“Guidance”) on the Families First Coronavirus Response Act (“FFCRA” or the “Act”), which we detailed in a previous Advisory.  In short, the Act requires private employers with fewer than 500 employees (“covered employers”) to provide paid sick and family leave for certain COVID-19 related absences and includes a tax credit for employers for the cost of the paid leave.

The Guidance comprises (i)  a Fact Sheet for Employers, (ii) a Fact Sheet ...

On March 17, 2020, the District of Columbia passed the COVID-19 Response Emergency Amendment Act of 2020 (the “Act”), which extends additional benefits under the District’s unemployment insurance (“UI”) law and the D.C. Family and Medical Leave Act (“DCFMLA”), and among other things also provides various forms of business relief. The Act is effective immediately.

DCFMLA Expansion

The Act expands the reach of the DCFMLA to provide “declaration-of-emergency” (“DOE”) leave to employees unable to work as the result of the circumstances giving rise to a ...

First of Many Anticipated Employment Changes in Virginia, Including Expanded Coverage and Remedies for the Virginia Human Right Act and Minimum Wage Increases

On March 4, 2020, Virginia Governor Ralph Northam signed into law House Bill 1514, which amends the Virginia Human Rights Act (“VHRA”) to prohibit discrimination, “because of or on the basis of traits historically associated with race, including hair texture, hair type, and protective hairstyles such as braids, locks and twists.”  Under the law, which takes effect on July 1, 2020, covered employers may enforce ...

As we have previously blogged, use of third-party digital hiring platforms to select job applicants using video interviews can present an array of potential legal issues. A recent Complaint filed with the Federal Trade Commission (“FTC”) by a consumer advocacy organization, Electronic Privacy Information Center (“EPIC”), illustrates some of those potential pitfalls. EPIC asks the FTC to investigate the recruiting technology company HireVue for alleged discriminatory screening of job applicants through its face-scanning software. HireVue asks job applicants to ...

We have long counseled employers using or contemplating using artificial intelligence (“AI”) algorithms in their employee selection processes to validate the AI-based selection procedure using an appropriate validation strategy approved by the Uniform Guidelines on Employee Selection Procedures (“Uniform Guidelines”).  Our advice has been primarily based on minimizing legal risk and complying with best practices.  A recently updated Frequently Asked Questions (“FAQ”) from the Office of Federal Contract Compliance Programs (“OFCCP”) provides further ...

Increasingly companies are using third-party digital hiring platforms to recruit and select job applicants.  These products, explicitly or implicitly, promise to reduce or eliminate the bias of hiring managers in making selection decisions.  Instead, the platforms grade applicants based on a variety of purportedly objective factors.  For example, a platform may scan thousands of resumes and select applicants based on education level, work experience, or interests, or rank applicants based on their performance on an aptitude test – whatever data point(s) the platform has been ...

With warmer weather quickly approaching, many employers are beginning to schedule happy hours, parties, softball games, and other off-site events that employees (and interns) look forward to attending. However, at offsite work events, employees might forget—or might not realize in the first place—that they are still in a workplace setting. This could result in unwelcome behavior, such as sexual harassment, which could leave an employer open to liability.

Under federal law, as well as the law of many states, cities, and municipalities, sexual harassment is considered a type ...

As we previously reported, since 2017 employees have filed dozens of employment class actions claiming violations of Illinois’ 2008 Biometric Information Privacy Act (“BIPA”). In short, BIPA protects the privacy rights of employees, customers, and others in Illinois against the improper collection, usage, storage, transmission, and destruction of biometric information, including biometric identifiers, such as retina or iris scans, fingerprints, voiceprints, and scans of face or hand geometry. Before collecting such biometric information, BIPA requires an ...

Employers continue to incorporate the use of biometric information for several employee management purposes, such as in systems managing time keeping and security access that use fingerprints, handprints, or facial scans.  Recently, Illinois state courts have encountered a substantial increase in the amount of privacy class action complaints under the Illinois Biometric Information Privacy Act (“BIPA”), which requires employers to provide written notice and obtain consent from employees (as well as customers) prior to collecting and storing any biometric data.  Under ...

In a decision that will be celebrated by employers in the Seventh Circuit struggling with employee requests for post-Family Medical Leave Act (“FMLA”) leave as an accommodation under the American with Disabilities Act (“ADA”), the Seventh Circuit in Severson v. Heartland Woodcraft, Inc., 2017 U.S. App. LEXIS 18197 (7th Cir. Sept. 20, 2017), recently held that an employer did not violate the ADA by firing an employee instead of extending his leave after he exhausted all leave under the FMLA.  This holding – finding that extended long-term leave is not a reasonable ...

In the latest HR headline from the start-up world, the offending executive doesn’t fit the typical mold, but the lesson remains the same: don’t ignore human resources.

Miki Agrawal, the self-proclaimed “SHE-eo” of THINX, and her “boundary pushing” workplace demeanor are the focus of a New York City Commission on Human Rights complaint by the former head of public relations, Chelsea Leibow. Leibow alleges that Agrawal created a hostile work environment through her constant discussion of sex, nudity around employees, and inappropriate touching of employees’ ...

How, and to what extent, should “big data” analytics play a role in workforce recruitment, development, and retention?  These were some of the questions asked on October 13, 2016  at a meeting convened by the U.S. Equal Employment Opportunity Commission on the use of big data analytics in the workplace.  Based on the exchange with the panel of seven experts, it is clear that the EEOC is cautiously approaching companies’ use of big data in informing employment decisions, and is beginning to think about its role in overseeing big data analytics as applied to the workforce.

Big data ...

On March 23, 2016, the North Carolina Legislature passed House Bill 2, the “Public Facilities Privacy and Security Act” (“HB2”), that overturned a Charlotte ordinance extending anti-discrimination protections to lesbian, gay, bisexual, and transgender (“LGBT”) individuals and allowing transgender persons to use the bathroom of their choice. Instead, HB2 requires individuals to use public bathrooms that match the gender listed on their birth certificates. A swift public outcry followed, with many celebrities denouncing the law and canceling appearances in ...

On May 31, 2016, the Fourth Circuit Court of Appeals denied en banc review of an April decision permitting transgender students to use sex-segregated facilities that are consistent with their gender identity.  The Fourth Circuit encompasses North Carolina; thus, the case G.G. v. Gloucester County Public School Board (“Gloucester County”), although it arose in Virginia, creates a conflict between federal law and North Carolina’s House Bill 2 (“HB2”), which requires transgender individuals to use public bathrooms that match the gender listed on their birth ...

Whether time spent in training is compensable time under the Fair Labor Standards Act (“FLSA”) is an issue that the courts have addressed in a variety of contexts. A new Fourth Circuit decision – Harbourt v. PPE Casino Resorts Maryland, LLC – addressed that issue in the context of pre-hire training provided to some casino workers in Maryland and concluded that the casino workers alleged sufficient facts to proceed with their claims that they should have been paid for pre-hire training.

After Maryland legalized full-fledged casino gambling in November 2012, the state had a ...

Employers in the technology industry should take note of last week’s decision by the U.S. Court of Appeals for the Sixth Circuit in EEOC v. New Breed Logistics (PDF).  The court declined to reconsider a panel holding that, in the context of a retaliation claim, “a demand that a supervisor cease his/her harassing conduct constitutes protected activity under Title VII.”

Three former employees of New Breed Logistics, a supply-chain logistics company, asserted that they had engaged in protected activity by telling their supervisor to stop making advances and sexual comments.  The ...

In the wake of the U.S. Supreme Court’s decision in Young v. UPS, [1]  the EEOC has modified those aspects of its Enforcement Guidance on Pregnancy Discrimination and Related Issues (“Guidance”) that deal with disparate treatment and light duty.

Under the prior guidance, issued in 2014, the EEOC asserted that a pregnant worker could prove a violation of the Pregnancy Discrimination Act (“PDA”) simply by showing that she was “treated differently than a non-pregnant worker similar in his/her ability or inability to work.”  The 2014 guidance also took the position that an ...

In a decision emphasizing the need for employers to focus on data security, on June 15, 2015, the U.S. District Court for the Central District of California refused to dismiss a lawsuit filed by nine former employees of Sony Pictures Entertainment who allege the company’s negligence caused a massive data breach.  Corona v. Sony Pictures Entm’t, Inc., Case No. 2:14-cv-09600 (C.D. Ca. June 15, 2015).

In November 2014, Sony was the victim of a cyber-attack, which has widely been reported as perpetrated by North Korean hackers in relation for “The Interview,” a Sony comedy ...

One day before the U.S. Department of Labor’s Family & Medical Leave Act (“FMLA”) same-sex spouse final rule took effect on March 27, 2015, the U.S. District Court for the Northern District of Texas ordered a preliminary injunction in Texas v. U.S., staying the application of the Final Rule for the states of Texas, Arkansas, Louisiana, and Nebraska. This ruling directly impacts employers within the technology, media, and telecommunications industries who are located or have employees living in these four states.

Background

In United States v. Windsor, the U.S. Supreme Court ...

One day before the U.S. Department of Labor’s Family & Medical Leave Act (“FMLA”) same-sex spouse final rule took effect on March 27, 2015, the U.S. District Court for the Northern District of Texas ordered a preliminary injunction in Texas v. U.S., staying the application of the Final Rule for the states of Texas, Arkansas, Louisiana, and Nebraska.  This ruling directly impacts employers within the financial industry who are located or have employees living in these four states.

Background

In United States v. Windsor, the U.S. Supreme Court struck down Section 3 of the Defense ...

One day before the U.S. Department of Labor’s Family & Medical Leave Act (“FMLA”) same-sex spouse final rule took effect on March 27, 2015, the U.S. District Court for the Northern District of Texas ordered a preliminary injunction in Texas v. U.S., staying the application of the Final Rule for the states of Texas, Arkansas, Louisiana, and Nebraska.  This ruling directly impacts employers within the retail industry who are located or have employees living in these four states.

Background

In United States v. Windsor, the U.S. Supreme Court struck down Section 3 of the Defense of ...

One day before the U.S. Department of Labor’s Family & Medical Leave Act (“FMLA”) same-sex spouse final rule took effect on March 27, 2015, the U.S. District Court for the Northern District of Texas ordered a preliminary injunction in Texas v. U.S., staying the application of the Final Rule for the states of Texas, Arkansas, Louisiana, and Nebraska.  This ruling directly impacts employers within the hospitality industry who are located or have employees living in these four states.

Background

In United States v. Windsor, the U.S. Supreme Court struck down Section 3 of the ...

In a case that has strategic implications for employers’ use of arbitration agreements in response to collective claims brought under the Fair Labor Standards Act (“FLSA”), the Eighth Circuit has held that former servers at an Arkansas pizzeria chain lack standing to challenge the pizzeria’s enforcement of an arbitration agreement that bars current employees from joining the FLSA collective action.  Conners v. Gusano’s Chi. Style Pizzeria, No. 14-1829 (8th Cir. Mar. 9, 2015).

In Conners, the plaintiff filed a proposed collective action lawsuit on behalf of herself and ...

Virginia has now joined the chorus of jurisdictions that ban social media snooping by employers.  As we previously reported here and here, in a growing trend a number of states prohibit employers from requiring prospective or current employees to provide access to their social media accounts during the hiring process.  On March 7, 2015, the Virginia legislature passed H. 2081, a law prohibiting employers from asking or requiring employees or applicants (1) to disclose the username and password to their social media accounts, and (2) to add an employer to the list of contacts ...

No software company wants to lose its best programmer for an extended period.  But employers should take heed of the recent decision by the District of Columbia Circuit Court of Appeals when considering employee requests for leave under the Family and Medical Leave Act.  In Gordon v. United States Capitol Police, No. 13-5072 (D.C. Cir. Feb. 20, 2015), the D.C. Circuit held that an employer who discourages an employee from taking FMLA leave may be liable for an interference claim, even if that discouragement was “ineffective.”  In other words, don’t bully, discourage, or make ...

Scheduling around employees taking frequent or extended leaves of absences can be complicated for retail companies looking to staff the floor during peak shopping periods.  But retail employers considering requests for leave under the Family and Medical Leave Act should be aware of a recent decision from the District of Columbia Circuit Court of Appeals finding that an employee can pursue an FMLA interference claim even though she received the leave requested.  In Gordon v. United States Capitol Police, No. 13-5072 (D.C. Cir. Feb. 20, 2015), the D.C. Circuit held that an employer who ...

Client service is paramount in the hospitality industry, and frequent or extended leaves of absences by employees may make providing the same level of consistent service difficult.  But employers should take heed of the recent decision by the District of Columbia Circuit Court of Appeals when considering employee requests for leave under the Family and Medical Leave Act.  In Gordon v United States Capitol Police, No. 13-5072 (D.C. Cir. Feb. 20, 2015), the D.C. Circuit held that an employer who discourages an employee from taking FMLA leave may be liable for an interference claim, even ...

In a case emphasizing the importance of acting in good faith in the interactive process and how an employer can do it right, on February 13, 2015, the First Circuit denied the EEOC’s petition for a rehearing en banc of the court’s decision to dismiss a lawsuit brought against Kohl’s Department Stores, Inc. by a diabetic former employee who claimed that her erratic working hours were exacerbating her condition.  EEOC v. Kohl’s Dep’t Stores, Inc., 774 F.3d 127 (1st Cir. 2014), reh’g en banc denied (Feb. 13, 2015).

Pamela Manning, a former sales associate at Kohl’s, had type I ...