Top 3 Employee Mobility and Restrictive Covenant Issues to Watch For in 2021

With 2020 finally in our rearview mirror, we can begin to look ahead to a promising and prosperous 2021. As the cloud of COVID-19 starts to lift (thanks to several vaccines), we expect employers will slowly begin to reopen their offices, employees will travel more, and the job market may revert back to the low unemployment levels that predated the onset of COVID-19 in March 2020. The ever-changing landscape of restrictive covenants certainly could affect all of this employment-related activity, including non-competes and non-solicits. Here are our early predictions for the Top 3 hot-button issues to look out for in the coming year.

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Biden Proposes Nationwide Non-Compete Ban

President-Elect Biden recently released his “Plan for Strengthening Worker Organizing, Collective Bargaining, and Unions.” His Plan states that “Biden will work with Congress to eliminate all non-compete agreements, except the very few that are absolutely necessary to protect a narrowly defined category of trade secrets, and outright ban all no-poaching agreements,” which are common in franchisor/franchisee and other arrangements. The foregoing statement is consistent with Biden’s previous comments about eliminating non-compete restrictions and no-poaching agreements while on the campaign trail, as well as with the Obama administration’s call for states to ban non-compete agreements.

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Colorado Passes Paid Family and Medical Leave Law

Starting on January 1, 2024, Colorado employees will be entitled to take 12 weeks of paid family and medical leave as a result of the passage of Colorado Proposition 118, the Paid Medical and Family Leave Initiative. Employees will be able to take an additional four weeks of paid leave in connection with pregnancy or childbirth complications. The paid leave will be funded through a payroll tax shared equally by employers and employees, starting on January 1, 2023.

For the full alert, visit the Faegre Drinker website.

Colorado Employers: Prepare to Comply With Equal Pay for Equal Work Act Taking Effect January 1, 2021

Colorado employers should prepare to comply with the Equal Pay for Equal Work Act (EPEWA), which will become law in the state on January 1, 2021. The new law will prohibit employment discrimination on the basis of sex, which includes gender identity, or sex in combination with another protected status, by paying employees of different sexes differently for substantially similar work.

For the full alert, visit the Faegre Drinker website.

Colorado Adopts New Paid Sick Leave Requirements for Employers

Colorado Governor Jared Polis recently signed the Healthy Families and Workplaces Act, which will soon require Colorado employers to provide workers with up to six paid sick days per year. In addition, the new law immediately broadens the Families First Coronavirus Response Act, requiring Colorado employers to provide two weeks of paid sick leave to employees affected by COVID-19, regardless of the number of employees they have.

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Return to Work in the Time of COVID-19: Considerations for Retailers

In the latest update to our Q&A guide to returning to work in the time of COVID-19, we lay out considerations and action items for retailers — including bars and restaurants, personal health and beauty service providers, and clothing and big box stores — as they prepare to safely reopen their doors to customers.

For the full guide, visit the Faegre Drinker website.