Category: HR compliance and policy design

“C” Is for Consent When It Comes to Arbitration in California: U.S. Supreme Court Holds that Representative Action Waivers Are Enforceable to Compel “Individual” PAGA Claims to Arbitration

Caroline Powell Donelan and Caitlin I. Sanders ●

Last week, the United States Supreme Court issued its long-awaited decision in Viking River Cruises, Inc. v. Moriana (US 20–1573 6/15/22) (“Moriana”). The singular question presented to the Court was whether the Federal Arbitration Act (“FAA”) requires enforcement of arbitration agreements waiving an employee’s right to assert “representative” claims under California’s Private Attorneys General Act (“PAGA”). In response, the Court provided two answers: (1) wholesale waivers of an employee’s right to bring any PAGA claims in any forum will not be enforced; yet (2) arbitration agreements can require an employee to arbitrate their own individual PAGA claims, leaving the absent employees’ claims subject to dismissal.

For context, PAGA is a decades-old law that allows private citizens to step into the shoes of the Labor Commissioner, essentially turning “aggrieved” employees into bounty-hunters for the State’s Labor and Workforce Development Agency (“LWDA”). Specifically, PAGA litigants are authorized to recover civil penalties on behalf of the State for certain Labor Code violations, which would otherwise be recoverable only by the Labor Commissioner. If successful, employees receive a 25 percent share of civil penalties recovered, with the remaining 75 percent going to the LWDA. And another thing, PAGA allows for the recovery of attorneys’ fees and costs, which are often exponentially larger than the underlying civil penalties and statutory damages recovered—leaving no surprise as to why PAGA has become such a popular vehicle for plaintiffs’ attorneys.

Continue reading ““C” Is for Consent When It Comes to Arbitration in California: U.S. Supreme Court Holds that Representative Action Waivers Are Enforceable to Compel “Individual” PAGA Claims to Arbitration”

Employer Alert: California Puts Another “Premium” on Meal Period Compliance

Caroline Powell Donelan and Howard M. Knee

California is infamous for its hostility towards employers. On May 23, the California Supreme Court continued on its unwavering mission to solidify that well-earned reputation by issuing a 45-page decision in Naranjo et al. v. Spectrum Security Services, Inc., a case we have been closely monitoring at Blank Rome.

For context, the failure to pay wages in California triggers not only an award of those unpaid wages, but potentially steep and costly statutory and civil penalties as well, including so-called: (1) “waiting time penalties”—up to 30 days’ wages for former employees; and (2) “wage statement penalties” when the unpaid wages render the employee’s pay stub inaccurate. Wage statement penalties start at $50 for the first violation and rise to $100 for subsequent violations. When claims are brought on a classwide basis, these penalties can become astronomical, as they are all assessed on a per-employee, per-pay-period basis.

Continue reading “Employer Alert: California Puts Another “Premium” on Meal Period Compliance”

New York City Clarifies Pay Transparency Timetable—Delays Effective Date

Mara B. Levin, Stephen E. Tisman, Anthony A. Mingione, and William J. Anthony

As previewed in our April 5, 2022, client alert (New York Employers, Take Note! Two New Laws Effective in May | Blank Rome LLP), New York City has rolled back to November 1, 2022, the effective date of its amendment to the New York City Human Rights Law (“NYCHRL”) that will require the City’s private employers to provide a minimum and maximum salary range for jobs when advertising employment opportunities.

The City delayed the effective date in order to give employers a six-month extension of time to come into compliance. The amendment will require employers that are advertising job openings for positions performed in New York City to include the salary range (both a minimum and maximum amount) being offered for the position in the advertisement.

Continue reading “New York City Clarifies Pay Transparency Timetable—Delays Effective Date”

New York Employers, Take Note! Two New Laws Effective in May

Mara B. Levin, Stephen E. Tisman, Anthony A. Mingione, and William J. Anthony

New York businesses face not one, but two new laws which significantly impact employers and take effect next month. The first requires employers in New York City to provide salary ranges when advertising employment opportunities (effective May 15, 2022). The second mandates that New York employers provide prior notice and posting if they intend to monitor employee telephone, e-mail, or Internet usage (effective May 7, 2022). Read below for important summaries of the new laws and their impact on your business.

Continue reading “New York Employers, Take Note! Two New Laws Effective in May”

Congress Passes Bipartisan Legislation Prohibiting Mandatory Arbitration of Sexual Harassment Claims

Alix L. Udelson

President Biden is expected to soon sign into law the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (the “Act”), which was recently passed by both houses of Congress. President Biden has long supported measures to limit mandatory arbitration clauses in general and specifically endorsed the Act, which received bipartisan support.

The Act will amend the Federal Arbitration Act to limit every employer’s ability to mandate predispute arbitration of an employee’s claims of sexual harassment or sexual assault. The salient language provides:

Notwithstanding any other provision of this title, at the election of the person alleging conduct constituting a sexual harassment dispute or sexual assault dispute, or the named representative of a class or in a collective action alleging such conduct, no predispute arbitration agreement or predispute joint-action waiver shall be valid or enforceable with respect to a case which is filed under Federal, Tribal, or State law and relates to the sexual assault dispute or the sexual harassment dispute.

Continue reading “Congress Passes Bipartisan Legislation Prohibiting Mandatory Arbitration of Sexual Harassment Claims”

As Restrictions Are Lifted across the Country, California Reinstates Supplemental Paid Sick Leave for COVID-19

Caitlin I. Sanders and Alix L. Udelson

On February 9, 2022, California Governor Newsom signed into law Senate Bill (“SB”) 114.

The law reinstates the COVID-19 supplemental paid sick leave (“CSPSL”) requirement for companies with more than 26 employees. Like California’s prior CSPSL iteration, which expired on September 30, 2021, the new law provides up to 80 hours of CSPSL for full-time employees for certain COVID-19-related reasons. The law takes effect immediately, but the obligation to provide CSPSL does not begin until February 19, 2022. The law is currently set to remain in effect through September 30, 2022.

Here are the pertinent details that employers need to know:

Covered Employers: SB 114 covers all employers in California with more than 25 employees. Employers with 25 or fewer employees are not covered.

Covered Employees: SB 114 covers employees who are unable to work or telework due to any of the reasons that qualify for CSPSL (detailed below).

Amount of Leave: Full-time employees are entitled to up to 80 hours of CSPSL for qualifying reasons. Part-time employees are provided a prorated amount of this benefit. This leave is in addition to regular paid sick leave already required under California law.

Continue reading “As Restrictions Are Lifted across the Country, California Reinstates Supplemental Paid Sick Leave for COVID-19”

Supreme Court Blocks OSHA Vaccine-Or-Test Rule

Frederick G. Sandstrom 

In a much-anticipated decision, the United States Supreme Court has blocked the Occupational Safety and Health Administration’s (“OSHA”) “vaccinate or test” Emergency Temporary Standard (“ETS”). The Court’s January 13, 2022, decision means that the ETS is stayed pending a hearing on the merits of the challenges to its validity. However, in practical terms, it is likely a death-knell for the ETS, which was set to expire in May 2022.

The Court’s per curiam opinion, written on behalf of the six conservative-leaning justices, held that the ETS exceeded OSHA’s statutory power because it sought to broadly regulate “public health” and was not directed specifically at workplace safety. The Court explained: “It is telling that OSHA, in its half century of existence, has never before adopted a broad public health regulation of this kind—addressing a threat that is untethered, in any causal sense, from the workplace.”

In a concurring opinion joined by Justices Thomas and Alito, Justice Gorsuch elaborated that the “major questions doctrine” requires Congress to delegate clearly and specifically to an agency the authority to mandate Covid-19 vaccination or testing. Absent a clear and specific delegation, the Constitution reserves that power to “the states and Congress, not OSHA.”

The Court’s three liberal-leaning justices dissented. The dissenting opinion, co-authored by Justices Breyer, Sotomayor, and Kagan, asserted that the ETS fell squarely within OSHA’s emergency power because it was necessary to “protect employees” from a “grave danger” to workplace safety. The dissent argued further that, even if the merits of the ETS were reasonably in dispute, a stay would still be inappropriate because the “public interest” and “balance of harms” supported allowing the ETS to remain in effect. In conclusion, the dissent accused the majority’s decision of “undercut[ting] the capacity of the responsible federal officials, acting well within the scope of their authority, to protect American workers from grave danger.”

A final note: While fatal to the ETS, the Court’s decision likely is not the final word on broad workplace safety responses to the Covid-19 pandemic. Now that OSHA has been blocked from taking action, it is reasonable to expect that some state workplace safety agencies will become more active in adopting their own measures aimed at Covid-19 safety in the workplace. Stay tuned for more on the development of any new state-level rules and also on what happens with the ETS as it heads back to the United States Court of Appeals for the Sixth Circuit.

Employers Await Supreme Court Decision on OSHA ETS Appeal

Frederick G. Sandstrom and Nicole N. Wentworth

On Friday, January 7, 2022, the United States Supreme Court held oral argument on the Occupational Safety and Health Administration’s (“OSHA”) much-litigated “vaccinate or test” Emergency Temporary Standard (“ETS”). Absent action by the Court, compliance with the ETS is set to  commence today, Monday, January 10, though OSHA has said it will not issue citations to employers who have made a good faith attempt to comply with the testing requirements. The Court is expected to issue a decision promptly.

The argument was originally scheduled for one hour but ran nearly two hours due to extensive questioning by the justices. The Court’s six conservative-leaning justices all appeared skeptical of the enforceability of the ETS, but their questions suggested a divide in the legal basis for their views. Justices Thomas, Alito, and Gorsuch’s questioning suggested that they viewed the mandate as clearly outside OSHA’s authority to regulate workplace safety. Justices Roberts, Kavanaugh, and Barrett suggested a narrower view in their questioning, indicating that they may see OSHA as having the authority to impose a narrower emergency mandate targeted at specific fields or industries that present unique safety risks. Justices Roberts, Kavanaugh, and Barrett also suggested that only Congress has the power to impose a broad federal vaccine mandate (like the current ETS) and that in the absence of congressional action, the power to impose an economy-wide mandate was reserved to the states. The Court’s liberal-leaning justices—Justices Breyer, Sotomayor, and Kagan—all expressed strong support for the ETS in their questioning.

During questioning, Justice Alito asked the Solicitor General (representing the federal government) if there was any objection to a brief administrative stay of the January 10 compliance deadline pending the Court’s decision on the appeal. The Solicitor General largely conceded that a brief stay would be appropriate.

We will post a prompt update when the Court issues a decision on the ETS appeal. In the meantime, covered employers should continue to proceed with good faith preparations to implement the requirements of the ETS.

New York City Jumps on the “Salary Transparency Bandwagon”


Jason E. Reisman and Valerie D. Ringel

New York City Council passed legislation on December 15, 2021, that would require employers in NYC (who have at least four employees) to include the minimum and maximum salary range for a position in any posting/advertisement for a job, promotion, or transfer opportunity. The bill will go into effect 120 days after it becomes law, unless the new mayor, Eric Adams, vetoes it by January 14, 2022.

The bill makes it a discriminatory practice under the NYC Human Rights Law (“NYCHRL”) to fail to include such salary information in a posting/advertisement. As set forth in the text of the bill:

It shall be an unlawful discriminatory practice for an employment agency, employer, employee or agent thereof to advertise a job, promotion or transfer opportunity without stating the minimum and maximum salary for such position in such advertisement. In stating the minimum and maximum salary for a position, the range may extend from the lowest to the highest salary the employer in good faith believes at the time of the posting it would pay for the advertised job, promotion or transfer opportunity.

The bill gives the NYC Commission on Human Rights the power to issue rules to implement (and hopefully further clarify) the new law. Among the issues that need clarity are the definition of “salary” and whether the requirement applies to all jobs advertised in New York City or only for postings for jobs physically located in NYC. While the “summary” of the bill on the NYC City Council website (here) references it applying to “any position located within New York City,” NYC guidance has in the past expanded on the interpretation of the law.

The Return of the OSHA ETS: What Now and What’s Next?

Frederick G. Sandstrom

On December 17, the U.S. Court of Appeals for the Sixth Circuit revived the federal Occupational Safety and Health Administration’s much-litigated “vaccinate or test” Emergency Temporary Standard (“ETS”). The Sixth Circuit’s divided decision lifted the nationwide stay on enforcement of the ETS that had previously been ordered by the U.S. Court of Appeals for the Fifth Circuit. The litigation will now move to the U.S. Supreme Court, which has already received eight separate petitions seeking to stay the Sixth Circuit’s decision. The Supreme Court has ordered the federal government to respond to the petitions by December 30.

OSHA has moved quickly to reinstate the ETS. On December 18, OSHA released new guidance on the timing for compliance with, and enforcement of, the ETS’s requirements. Broadly speaking, the guidance states that: (1) OSHA will not issue citations for noncompliance with the ETS prior to January 10, 2022; and (2) OSHA also will not issue citations for noncompliance with the ETS’s testing requirements prior to February 9, 2022, provided that an employer is “exercising reasonable, good faith efforts to come into compliance.”

OSHA has promised more detailed guidance. And there will likely be more twists and turns as the appeals from the Sixth Circuit’s decision proceed to the Supreme Court. For now, however, covered employers that paused their efforts to comply with the ETS in light of the stay, should take steps to resume their efforts to continue down the path to compliance. The December 18 guidance suggests strongly that OSHA expects covered employers to do the following by the initial January 10 compliance deadline: (1) adopt a written vaccination policy; (2) confirm each employee’s vaccination status, including proof of vaccination for vaccinated employees; (3) provide paid time off for unvaccinated or partially vaccinated employees to be vaccinated; and (4) require face coverings and other protective measures for unvaccinated employees working on-site. The ETS also contains informational requirements, including an obligation for covered employers to provide employees with a copy of the CDC’s publication on “Key Things to Know About COVID-19 Vaccines” (a copy of which can be obtained here).

We will continue to update you on further developments regarding the ETS as the appeals process continues before the Supreme Court.

%d bloggers like this: