Ninth Circuit Vacates Injunction Against California Ban on Businesses Which Forced Workers to Submit to Arbitration Agreements

A divided three-judge panel of the Ninth Circuit Court of Appeals vacated the January 2020 preliminary injunction against enforcement of Assembly Bill 51 (AB 51), and upheld portions of the law that prohibited employers from making arbitration agreements a condition of employment. As a result of this decision, the Ninth Circuit has resurrected California Labor Code § 432.6, that bars businesses from requiring workers to arbitrate job-related claims. However, the court invalidated portions of AB 51 imposing civil and criminal penalties for mandating arbitration in violation of § 432.6.

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Safer Federal Workforce Task Force Issues COVID-19 Workplace Safety Guidance for Federal Contractors and Subcontractors

The Safer Federal Workforce Task Force published guidance last week requiring certain federal contractors to implement COVID-19 safety measures. Most notably, the guidance directs federal contractors to ensure their employees are vaccinated and expands the directive to apply beyond employees directly or indirectly servicing federal contracts.

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Judge Extends Temporary Restraining Order on New York’s Vaccine Mandate for Health Care Workers Based on Lack of Religious Exemption

On August 26, 2021, the New York State Department of Health’s Public Health and Health Planning Council approved temporary emergency regulations implementing a COVID-19 vaccine mandate for personnel in all entities licensed under Article 28 of the Public Health Law (including nursing homes, hospitals, and diagnostic and treatment centers), home care agencies licensed or certified under Article 36, hospice programs licensed under Article 40 and adult care facilities licensed under Article 7 of the Social Services Law. Notably, the final version of the approved emergency regulations removed the religious exemption that was present in the initial proposed version. As a result, health care workers were required to receive their first dose of a COVID-19 vaccine by September 27 — and personnel at other covered entities to receive their first dose of a COVID-19 vaccine by October 7 — unless a medical exemption is granted. On September 13, 2021, several doctors and nurses who allege that their sincere religious beliefs compel them to refuse COVID-19 vaccination, filed suit (Dr. A, et al. v. Kathy Hochul, et al.) claiming the New York State Department of Health’s failure to recognize religious exemptions to the COVID-19 vaccine mandate is unconstitutional. Plaintiffs sought a temporary restraining order and preliminary injunction enjoining the Department of Health from enforcing the mandate.

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DOL Extends FLSA Final Joint Employment Rule Effective Date

The federal Fair Labor Standards Act (FLSA) requires employers to pay non-exempt employees at least minimum wage plus overtime compensation. If an employee is unpaid or underpaid — due to a calculation error or an employee’s unreported time worked, including remote work arrangements during the pandemic — the employee may recover back pay, liquidated damages, attorneys’ fees and litigation costs. If two or more employers have a relationship with an employee — for example, if an employee works for a staffing agency and is assigned to work at the agency’s customer or an employee performs work for two with common ownership or management — the law may deem the employers to be joint employers with joint and several liability, depending on the facts. If one joint employer fails to comply with the FLSA, both joint employers may be held liable. Different laws use different tests for joint employment.

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President Biden’s COVID-19 Action Plan Mandates Vaccines for Many Employees

On September 9, 2021, President Biden announced his six-pronged COVID-19 Action Plan, which will have a significant impact on employers across the country by mandating vaccinations for many employees. Many key details — including what exemptions may apply to mandatory vaccinations — remain unknown until additional federal guidance is provided in the upcoming weeks.”

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NJ Cannabis Regulatory Commission Presses Pause on Physical Evaluation Requirement for Drug Testing

As we discussed in a previous alert, the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA) brought new employment protections for job applicants and employees who lawfully use cannabis off-duty. In addition, CREAMMA preserved an employer’s right to conduct drug testing of its workforce, but added a new requirement: testing for suspected use of cannabis must be accompanied by a physical evaluation to determine the employee’s level of impairment while engaged in performing job duties, as conducted by an individual certified to opine on the employee’s state of impairment.

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