State and local governments continue to increase workplace regulations. Although it is not feasible to discuss all laws, this update provides an overview of significant recent and upcoming legislative and regulatory developments to help you and your organization stay in compliance with local and state employment laws.
To view the full alert, visit the Faegre Drinker website.
The 2023 rule, which was set to take effect on March 11, would have expanded the joint employer test to include reserved and indirect control — potentially exposing franchisors to claims that their franchise agreements and brand standards make them joint employers of their franchisee’s employees for purposes of collective bargaining and labor disputes. The federal district court concluded that the 2023 rule is unlawful because it would expand joint employment beyond the outer limits set by the common-law definition of employment. Other courts are likely to weigh in. The NLRB may appeal to the Fifth Circuit. A parallel suit brought by the Service Employees International Union regarding the scope of the 2023 rule is currently pending before the D.C. Circuit. Either or both of those cases may ultimately go to the U.S. Supreme Court. We conclude with two relevant handouts that identify franchisors’ best practices.
To view the full alert, visit the Faegre Drinker website.
In August 2023, Illinois Governor Pritzker signed sweeping amendments to the Illinois Day and Temporary Labor Services Act (DTLSA) that imposed new obligations on both the day and temporary labor service agencies employing covered laborers and the clients to whom those agencies contract for temporary labor. Recently, one of those amendments (indeed the key amendment) was temporarily enjoined by an Illinois federal court, calling into question the future impact such amendments will have on the temporary labor market.
As way of background, the 2023 amendments to the DTLSA included, most significantly, a requirement that laborers assigned to a client for more than 90 calendar days (in any 12-month period, whether consecutively or intermittently) must be paid, by the temporary agency, at least the rate of pay and equivalent benefits as the lowest-paid directly hired employee of the client with the same level of seniority at the client and performing the same or substantially similar work. Agencies may alternatively pay “the hourly cash equivalent of the actual cost benefits” in lieu of providing equivalent benefits. The Illinois Department of Labor (IDOL) defined benefits as including health care, vision, dental, life insurance, retirement, leave, other similar employee benefits, and other employee benefits as required by State and federal law. The pay and equivalent benefits obligation was one of several obligations placed on covered agencies and the clients with whom they contract. These amendments were due to take effect immediately and the IDOL passed emergency rules to provide guidance to employers on compliance. However, in September 2023 the Joint Committee on Administrative Rules (JCAR) objected to those rules. And then in November 2023, Governor Pritzker signed a new amendment to the DTLSA to delay the effective date of these new obligations until April 1, 2024.
Since January 31, 2024, individuals traveling to the United Kingdom have been allowed to work remotely while visiting. Visitors are prohibited from engaging with the local market, working for organizations in the UK, or directly providing goods and services to the public. These rules prohibit visitors from traveling to the UK with the primary purpose of remote working, which is a significant difference compared to the ‘digital nomad’ visas offered by other countries. We offer a table of many countries with so-called digital nomad visas, including current fees and minimum income requirements. This type of visa can allow workers, freelancers and self-employed individuals to live in one country whilst working remotely for a company located in a different country.
To view the full alert, visit the Faegre Drinker website.
The decision held that the basketball players were employees of Dartmouth because the college had the right to control their work by scheduling practice times, strictly managing away-game travel, and issuing a handbook of rules, which players must follow; and because the college compensated the players for their work. The decision dismisses Dartmouth’s contention that athletic clothing and equipment, which the school provides equally to all team members free of charge, is not salary because the college does not provide more of these items to its starters compared to nonstarters. While the Board rejected Dartmouth’s request to stay the election pending appeal, a full appeal of the merits of the regional directors will soon see the Board members weigh in on this extraordinary extension of the agency’s jurisdiction into amateur athletics.
To view the full alert, visit the Faegre Drinker website.
Earlier this week, Canada introduced Bill C-63, also referred to as the Online Harms Act (the “Act”), which would require online content providers to act responsibly with regard to the platforms they operate and to remove harmful online content. The Act further establishes a Digital Safety Commission of Canada to administer and enforce the legislation, as well as ensure that operators of social media services are held accountable under the requirements of the Act.
The Act is aimed to promote online safety and protect children from harmful online content. The Act requires content providers to swiftly remove all harmful content, defined under the Act to include:
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