Employment, Labor & Benefits

Read about the AB 5, a bill passed by the California legislature that effectively bans nearly all categories of independent contractors, not just gig economy workers.

We know August was exhausting for employers – New York, New Jersey, Maine, Colorado, and yes, even Alabama – all kept you on your toes with new and updated employment legislation that represents an array of new compliance obligations.  These new restrictions on employers run the gamut from prohibitions on certain non-competes in New Hampshire to equal pay legislation in Alabama to a Maine ban on salary history questions to medical marijuana protections in New Jersey to a Colorado ban-the-box law.

On Monday, Governor Cuomo signed into the law the last of four bills aimed at strengthening workplace protections for employees.  In mid-July, the Governor signed pay equity, salary history disclosure and hair discrimination laws into effect.  Now, the Governor has completed this effort by signing into the law a bill that makes significant changes to the New York Human Rights Law.

Federal law nowadays certainly favors enforcement of agreements to arbitrate.  But generally applicable state contract law determines contract formation – i.e., whether such an agreement has been made.

On June 18, 2019, Connecticut Governor Ned Lamont signed into law Public Act 19-16, “An Act Combatting Sexual Assault and Sexual Harassment,” also known as the “Time’s Up Act” (the “Act”). The Act involves several significant changes to Connecticut’s employment laws, with a particular focus on expanding sexual harassment prevention laws.

On June 13, 2019, the Department of Health and Human Services (HHS), the Department of Labor (DOL), the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) (collectively, the “Departments”) issued a coordinated set of final regulations (“final rules”). Entitled, “Health Reimbursement Arrangements and Other Account-Based Group Health Plans,” the final rules expand employers’ ability to offer health reimbursement arrangements (HRAs) to their employees to be used in conjunction with individual market coverage and recognize a new type of excepted benefit HRA that allows employees to pay for HIPAA excepted benefits and short-term coverage. This post summarizes the final rules.

In an Executive Order issued on June 24, 2019, President Trump directed several agencies to address a number of health care related matters through regulation.  This focuses on Section 6 which takes aim at Health Savings Accounts (HSAs), health care Flexible Spending Accounts (FSAs), and medical expenses generally.

On May 31, 2019, in Stein v. Blankfein, et. al., the Delaware Court of Chancery reaffirmed the Delaware Supreme Court’s holding in In re: Investors Bancorp, Inc. Stockholder Litigation (more information here) that the “entire fairness” standard applies with regard to director approval of director compensation. The Stein case builds on the precedent set in Investors Bancorp and provides additional insights.

Welcome to June! As we head into the summer, the employment law world continues to heat up! We have rounded up the most recent developments impacting employers for your summer reading pleasure here.