This Employment Law This Week® Monthly Rundown discusses the most important developments for employers in July 2019. Both the video and the extended audio podcast are now available.
This episode includes:
- State Legislation Heats Up
- NLRB Overturns Another Long-Standing Precedent
- SCOTUS October Term 2018 Wraps Up
- Tip of the Week: How inclusion and trust can increase innovation in the workplace
See below to watch the full episode - click here for story details, the video, and the extended audio podcast.
Stay tuned: Sign-up for email notifications and subscribe to the ...
Many retail employers require their employees to agree to arbitrate employment-related disputes as a condition of employment. The United States Supreme Court has repeatedly emphasized that workplace arbitration agreements are enforceable according to their terms, and state law that restricts such enforcement is preempted by the Federal Arbitration Act (“FAA”). Notwithstanding those pronouncements, states, such as New York and New Jersey, have crafted legislation designed to nullify an employee’s agreement to arbitrate certain employment-related claims.
In response to the #MeToo movement, New York and New Jersey have enacted legislation banning workplace arbitration agreements covering sexual harassment and discrimination claims. On April 12, 2018, New York State, as part of its 2018-2019 budget, amended § 7515 of the New York Civil Practice Law and Rules (“CPLR”) to prohibit employers with four or more employees from incorporating mandatory, pre-dispute arbitration clauses in written employment contracts requiring the resolution of allegations of claims of sexual harassment. Additionally, any such clause in a contract entered into after the effective date of the law would be rendered null and void.
On June 19, 2019, the New York legislature passed a bill (which, as of the date of this post, has yet to be signed into law) that makes sweeping changes to New York’s harassment and discrimination laws. Among other things, the bill again amends § 7515 of the CPLR to ban mandatory pre-dispute arbitration clauses in written employment contracts requiring the resolution of allegations of claims of workplace discrimination generally, not just sexual harassment claims and renders any such clause null and void.
On March 18, 2019, New Jersey Governor Murphy signed legislation that declares unenforceable any “provision in any employment contract that waives any substantive or procedural right or remedy relating to a claim of discrimination, retaliation, or harassment.” N.J.S.A. 10:5-12.7(1)(a). The law further provides that “[n]o right or remedy under the [Law Against Discrimination], or any other statute or case law shall be prospectively waived.” N.J.S.A. 10:5-12.7(1)(b). Both provisions can be construed to prohibit the waiver of a right to a jury trial as required by an arbitration agreement.
Many observers have questioned whether these laws restricting arbitration would be preempted by the FAA. A recent decision in the Southern District of New York, Mahmoud Latif v. Morgan Stanley & Co. LLC, No. 18cv11528 (DLC), 2019 U.S. Dist. LEXIS 107020 (S.D.N.Y. June 26, 2019), confirms that state laws targeting enforcement of arbitration agreements are vulnerable to attack on FAA preemption grounds.
As discussed below, in Latif, the court held that New York’s ban on the arbitration of sexual harassment claims was unenforceable as preempted by the FAA. The court also stated, in a footnote, that the as yet unsigned June 19, 2019 New York legislation would be preempted by the FAA for the same reasons. Latif suggests that employers covered by the FAA can be more confident that their agreements seeking to arbitrate employment-related claims will be enforceable.
This edition of Take 5 highlights compliance with cutting-edge issues—such as pay equity, workplace violence, and artificial intelligence (“AI”)—that have a significant impact on retailers. We also provide an update on National Labor Relations Act (“NLRA”) compliance and New York City drug testing to assist you in navigating an increasingly complex legal landscape.
Watercooler (and Bathroom) Conversations Among Co-Workers About Work-Related Matters Are Not Always Protected Concerted Activity Under the NLRA
Historically, a conversation ...
Our colleagues
Following is an excerpt:
On July 2, 2019, New Jersey joined Illinois, Nevada, New Mexico, New York City, and Oklahoma in enacting employment protections for authorized users of medical cannabis. New Jersey’s new medical ...
On June 19, 2019, the New York State Senate and Assembly passed legislation that would, if signed into law, broaden the scope of last year’s ban on clauses requiring employees to arbitrate sexual harassment claims so as to prohibit such clauses with respect to all types of discrimination claims. As reported on this blog, this ban on mandatory arbitration clauses was deemed invalid, as contrary to federal law, by the June 26, 2019 decision of the U.S. District Court for the Southern District of New York in Latif v. Morgan Stanley & Co. LLC, et al. (S.D.N.Y. No. 18-11528). It is too early ...
Launched more than a decade ago, the #MeToo movement made its way into the national (and international) conversation in 2017, and, by 2018, the movement had such momentum that it spurred a cornucopia of new state laws. One of these new laws, which became effective July 11, 2018, is a New York State statute that prohibits employers from requiring employees to submit sexual harassment claims to mandatory arbitration. This new law is codified in Section 7515 of the Civil Practice Law & Rules of the State of New York (“C.P.L.R.”), entitled “Mandatory arbitration clauses; ...
As previously reported, last week the Massachusetts Department of Family and Medical Leave (“DFML”) announced several changes, both substantive and procedural, to the state’s Paid Family and Medical Leave program (“PFML”). This week, the DFML has provided further guidance on changes to the worker notice requirements, issued new workplace posters, and posted the final regulations.
Updates to Notice Requirement
As part of its June 14, 2019 announcement, the DFML changed the deadline for employers to provide required notices to workers for a second time, now setting ...
In an attempt to protect hotel employees such as housekeepers and room service attendants from violent acts by hotel guests, including sexual assault and harassment, New Jersey recently passed a novel law requiring New Jersey hotels with more than 100 guest rooms to arm hotel employees assigned to work in a guest room alone with a free panic button device. Under the law, hotel employees who activate the button on the reasonable belief there is an ongoing crime, immediate threat of assault or harassment, or other emergency, can immediately leave the guest’s room and await assistance ...
As we previously reported, the Massachusetts Department of Family and Medical Leave (“DFML”) recently extended the deadline for employers to provide notice to employees of their rights and obligations under the State’s Paid Family and Medical Leave (“PFML”) law. Subsequently, on June 11, 2019, Massachusetts Governor Charlie Baker, state Senate President Karen Spilka, and state House Speaker Robert DeLeo released a joint statement announcing that implementation of certain aspects of the PFML program are being pushed back, and that “technical changes” will be ...
In its new podcast series, Employment Law This Week has released an extended Monthly Rundown, discussing some of the most important developments for employers in June 2019.
This episode includes:
- Worker Classification in the Gig Economy
- NLRB Announces Rulemaking Agenda
- National Backlash Builds Against Non-Compete Agreements
- Tip of the Week: Compliance with New Jersey’s Equal Pay Act
Stay tuned: Listen to the latest episode on our website or on your preferred platform – iTunes, Google Play, Soundcloud, or Spotify – be sure to subscribe!
Blog Editors
Recent Updates
- The EEOC, DOJ, and DOL Amplify National Origin Discrimination as an Enforcement Priority
- Podcast: 2025 Non-Compete Year in Review – Employment Law This Week
- “Fair Chance” Updates: Philadelphia Employers Soon Face New Screening Restrictions
- EEOC Escalates Enforcement Against DEI Policies
- New York City Council to Mayor: Not So Fast!—Overrides Pay Equity Vetoes