Clark Hill 2023 Automotive & Manufacturing Marketplace Outlook: Labor & Work Update | News & Gatherings

Federal Businesses and lawmakers will proceed to be pretty energetic all through 2023. Right here are our leading 5 recommendations for companies as we enter the next 50 % of 2023.

  1. Comply with the Expecting Personnel Fairness Act, which took outcome on June 27, 2023. Build and apply a procedure to follow when an personnel requests an lodging because of to being pregnant-connected restrictions, like techniques for requesting, assessing, and offering acceptable lodging. This may perhaps consist of basically enhancing your current approach for reviewing accommodation requests to involve requests associated to pregnancy, childbirth, and similar medical problems. For far more best practices, see Responding to New Federal Employment Protections for Pregnant and Nursing Staff.
  2. Realize the Pitfalls of AI @ Get the job done. Be guaranteed to steer clear of likely ADA violations when employing artificial intelligence (AI) to make selections about choosing, monitoring, compensation, and other conditions/situations of work. Inform applicants to your accommodation ask for course of action and coach employees to determine and course of action requests for accommodations in a legally compliant method.  To learn far more about the EEOC’s posture on AI, see EEOC Has Entered the AI Chat.
  3. Rethink Restrictive Covenants. Have an understanding of that in addition to getting on the radar of the Federal Trade Fee, your non-competes may possibly be the subject matter of an unfair labor practice demand with the Nationwide Labor Relations Board (NLRB). The NLRB’s Typical Counsel issued a memorandum proclaiming non-competes generally “unreasonably chill” an employee’s capability to physical exercise their legal rights under the Nationwide Labor Relations Act. The Memo notes that a non-compete agreement that is “narrowly tailored to unique situations justifying the infringement on personnel rights” may perhaps nonetheless be lawful. Nevertheless, the Memo states that “a desire to keep away from competitors from a former employee” and “business pursuits in retaining workforce or guarding distinctive investments in education employees” do not possible qualify. Whilst the General Counsel’s memo is not legislation, it is critical for businesses to look at whether non-competitiveness agreements are correct for every occupation classification.  Normally, non-competes for medium to small wage earners are also disfavored by courts. To master additional about the Typical Counsel’s place on non-compete agreements, see NLRB GC Chills Noncompetes.
  4. Audit Classification of Impartial Contractors. On June 9, 2023, the Division of Labor (DOL) announced that it will be publishing rulemaking on impartial contractors in Oct 2023 (at first slated for May perhaps 2023). While we won’t know for sure what is in the remaining rule till it is printed, we can be particular that it will be significantly less favorable to companies than the latest typical released through the Trump administration. Failure to correctly classify your staff as workers can outcome in violations of federal and state bare minimum wage and time beyond regulation guidelines. The DOL’s Simple fact Sheet 13 supplies details on the status of the rule and steering as to how it will probable interpret an work partnership likely ahead.
  5. Get Educated on Spiritual Lodging. When considering spiritual accommodation requests, know that on June 29, 2023, the U.S. Supreme Courtroom heightened the typical for employers. The Court docket turned down the de minimis conventional and adopted a a lot more arduous normal, ruling that Title VII necessitates an employer to exhibit that granting an lodging would final result in substantially greater prices in relation to a certain enterprise. When examining irrespective of whether an accommodation would be much too burdensome, employers should contemplate all related components, which include the accommodation(s) asked for and the useful influence in light of the employer’s mother nature, dimension, and functioning expense. Examine this e-inform to learn far more, Supreme Court Places the “Hard” Again in “Undue Hardship”.

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