Beginning August 10, 2022, Colorado will drastically narrow the circumstances in which Colorado employers can seek to enforce noncompete and other restrictive employment agreements. Despite Colorado law already having a general restriction against the use of noncompete agreements, the Colorado General Assembly recently passed, and Gov. Jared Polis has now signed, HB 22-1317. With this bill, Colorado joins the growing number of states enacting increased employee protections against restrictive covenant agreements, including banning such agreements with workers earning below a certain threshold.
The Colorado Department of Labor and Employment (CDLE) has adopted the Colorado Overtime and Minimum Pay Standards (COMPS) Order #38 and new Wage Protection Rules as well as the 2022 Publication and Yearly Calculation of Adjusted Labor Compensation (PAY CALC) Order, which became effective January 1, 2022. Below is a summary of notable changes in the new rules.
Following the passage of Colorado’s Equal Pay for Equal Work Act (CEPEWA), employers were faced with a stricter disclosure regime, including new provisions aimed at redressing gender-based pay inequity. At the close of 2020, the Rocky Mountain Association of Recruiters (Rocky Mountain) brought a lawsuit challenging those provisions and framing the CEPEWA as an undue burden. On May 27, 2021, the U.S. District Court for the District of Colorado weighed in, with Judge William Martínez rejecting Rocky Mountain’s request for a preliminary injunction that would have prohibited enforcement of the CEPEWA.
On March 19, 2021, California Governor Gavin Newsom signed Senate Bill (SB) 95, which extends and expands employer requirements to provide supplemental paid sick leave (SPSL) to employees impacted by COVID-19. SB 95 goes into effect on March 29, 2021, (i.e., 10 days after being signed by Gov. Newsom) and adds sections 248.2 and 248.3 to the California Labor Code.
With the issuance of the D.C. Ban on Non-Compete Agreements Amendment Act of 2020 (the Act), the District joins the growing list of jurisdictions subjecting noncompetes to intense scrutiny. D.C.’s Act goes much further though, and once in effect will be one of the broadest limitations on such agreements in the country. While the Act’s precise effective date remains unclear, employers should begin reviewing their existing policies and form agreements now to ensure compliance with the sweeping prohibitions.
For the full alert, visit the Faegre Drinker website.
Exclusion from work, paid time off and rigorous testing requirements. These issues and more came to a head for California employers on November 30, 2020, after the California Office of Administrative Law adopted the California Department of Industrial Relations’ Division of Occupational Safety and Health’s (Cal/OSHA) emergency temporary standards. While many California employers have already implemented COVID-19 plans fulfilling previous requirements for reopening under state and local government orders, the new Cal/OSHA standards vary significantly from what businesses have likely executed to date. We examine the highlights as well as which internal policies and processes affected employers should revisit.