Los Angeles County Fair Chance Ordinance – Summary of New Requirements

As of September 3, 2024, employers in the unincorporated areas of Los Angeles County must comply with the Los Angeles County Fair Chance Ordinance (FCO), which places restrictions on criminal background screening beyond those required by California’s Fair Chance Act (Fair Chance Act).

Background – the Fair Chance Act

The Fair Chance Act (also known as “Ban the Box” law) bans employers with five or more employees from including any question on a job application that asks about the applicant’s criminal conviction history. Covered employers also may not inquire about or consider an applicant’s criminal history until the applicant has received a conditional job offer. If an employer does conduct a lawful background check and decides to rescind an offer based on an applicant’s conviction history, the employer must (1) make an individualized assessment of whether the applicant’s conviction history relates to the specific job duties; (2) notify the applicant in writing of the preliminary decision; (3) grant the applicant at least five business days to respond before making a final decision; and (4) give the applicant an additional five business days to dispute the accuracy of their criminal history record and to seek evidence to support that contention. The Fair Chance Act also bans covered employers from considering certain convictions, including those that have been sealed, dismissed or expunged, and generally does not allow employers to consider arrests that did not result in convictions (subject to certain exceptions). Additional information published by the California Civil Rights Department regarding the Fair Chance Act can be found online.
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The FTC’s Noncompete Ban: An Update on Legal Challenges and What Comes Next

While the FTC’s noncompete ban is still scheduled to go into effect on September 4, 2024, there are three ongoing legal challenges to it; and there are pending motions in all three cases that could enjoin it either nationwide or on some limited basis before then. In the meantime, employers may wonder what to do. We outline several options.

To view the full alert, visit the Faegre Drinker website.

Michigan Supreme Court Reinstates Voter-Initiated Sick Leave Law

The Michigan Supreme Court’s re-institution of the Earned Sick Time Act (ESTA) significantly expands Michigan’s sick leave requirements. Effective February 21, 2025, Michigan employers not previously covered by the Paid Medical Leave Act (PMLA) should implement a sick leave policy in accordance with the ESTA, and employers who currently follow the PMLA should review their policies and revise them to comply with the ESTA. The supreme court also reinstated the accelerated adoption of a $12 minimum wage in Michigan initiated by voters through the Improved Workforce Opportunity Wage Act.

To view the full alert, visit the Faegre Drinker website.

Court Blocks FTC Rule Banning Employment Noncompete Agreements on a Limited Basis

The FTC’s Rule banning noncompete agreements against the plaintiffs in Ryan LLC v. Federal Trade Commission has been enjoined. The court’s order signals a tough road ahead for the FTC’s Rule on a nationwide scale, although a second order is due by the end of July in a separate case. Nevertheless, employers should be aware of increasing judicial scrutiny and legislative limitations of restrictive covenants.

To view the full alert, visit the Faegre Drinker website.

Paving the Way for California PAGA Reform: AB 2288 and SB 92

The legislation, which was negotiated among Gov. Newsom, legislators, and labor and business groups, provides employers with new and powerful tools for addressing and defending PAGA claims. As a result of this new law, the initiative to repeal and replace PAGA, which was scheduled to appear on the November ballot in California, has been withdrawn. We summarize the key provisions of the reform legislation.

For the full alert, visit the Faegre Drinker website.

New California Laws for 2024 and Beyond: What Employers Should Know

California Gov. Gavin Newsom signed several laws impacting California employers in 2023. Some of the new laws became effective immediately and others, including some that were signed into law just weeks ago, take effect January 1, 2024, or later. These new laws address several topics, including expanding paid sick leave, leave of absence for reproductive loss, minimum wage increases for fast-food restaurant employees and health care workers, restraint on trade, and workplace violence prevention standards.

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