State & Local Employment Law Developments: Q1 2023

The trend of increasing workplace regulations by state and local governments continued throughout the first quarter of 2023. Although it is not possible to discuss all state and local laws, this update provides an overview of recent and upcoming legislative developments to help you and your organization stay in compliance. (Please note that developments related to issues such as minimum wage rates are not included.)

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OFCCP Federal Contractor Portal to Open March 31 for Second Annual Required Certification

On March 20, 2023, the Office of Federal Contract Compliance Programs (OFCCP) announced that it will open the certification period for its second annual certification cycle shortly on March 31, 2023. As previously reported, beginning in 2022, supply and service federal contractors and subcontractors (contractors) are required to annually certify the status of their annual affirmative action plans (AAPs). Like last year’s schedule, the OFCCP Contractor Portal is intended to be open until June 29, 2023.

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Ninth Circuit Rules California Employers Can Require Arbitration Agreements

Some good news for California employers: recently, the U.S. Court of Appeals for the Ninth Circuit ruled that California employers can require employees and applicants to sign arbitration agreements as a condition of employment, reversing its own prior decision which vacated U.S. District Court for the Eastern District of California’s grant of a preliminary injunction against enforcement of Assembly Bill 51 (AB 51).

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NLRB: Severance Pay Cannot Include Condition to Waive Rights Under NLRA

The decision of the National Labor Relations Board (the Board) in McLaren Macomb, 372 NLRB No. 58 ( Feb. 21, 2023), reinstates a limit on the confidentiality, non-disclosure, and non-disparagement clauses that employers may include in severance agreements with most of their lower-level employees. While the Board bills its decision as a return to the standard applied in earlier cases, this decision suggests that the Board will take a broader view of how such agreements infringe on employees’ rights under Section 7 of the National Labor Relations Act.

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NLRB Finds Secret Workplace Recordings to Be Protected Activity

On February 13, 2022, the National Labor Relations Board (NLRB) held that Starbucks violated federal labor law at multiple locations in Philadelphia in 2019 and 2020. The decision, issued by the NLRB’s three Democrats, found that Starbucks unlawfully threatened, surveilled, and interrogated employees, prohibited discussion of terms and conditions of employment, reduced the work hours of union supporters, and ultimately terminated two employees for engaging in protected activity.

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Illinois Department of Labor Publishes Final Rules Regarding Illinois Equal Pay Registration Certificates

The Illinois Department of Labor (IDOL) recently published its final rules regarding Illinois Equal Pay Registration Certificates (EPRC).  The final rules largely adopt the proposed rules issued last June, which was discussed here in a prior post.  However, the rules include a few notable changes.

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