Laborsphere

Florida Extends E-Verify Requirement to Private Employers

The Department of Homeland Security’s E-Verify program is a free web-based verification tool for employers to confirm newly hired employees’ work authorization in the United States. Although participation in E-Verify is generally voluntary for employers, some states require employers to use E-Verify in certain contexts. Florida is the most recent state to update its E-Verify laws with Gov. Ron DeSantis signing Senate Bill 1718 on May 10, 2023.

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Minnesota Legislature Agrees to Complete Ban on Noncompetes

On May 11, 2023, the Minnesota Legislature agreed to a new law rendering void and unenforceable all future covenants not to compete, with limited exceptions for agreements entered into in connection with the sale or dissolution of a business. Following a final vote in the House and Senate, the law will be sent by Gov. Tim Walz for his signature. The law is written to take effect July 1, 2023, and to apply to contracts and agreements entered into on or after that date. With enactment, Minnesota will become the fourth state to impose a complete ban on employment-related noncompetes (joining California, Oklahoma and North Dakota).

The law prohibits any noncompete agreement with an employee or independent contractor that restricts the person from working for another business after termination of employment or independent contractor engagement regardless of a person’s income, with only two very limited carveouts for noncompetes agreed upon (1) during the sale of a business where the agreement prohibits the seller from carrying on a similar business within a reasonable geographical area for a reasonable period of time, or (2) in anticipation of the dissolution of a business where the dissolving partnership or entity agrees that all or any number of the partners, members, or shareholders will not carry on a similar business in a reasonable geographical area for a reasonable period of time. Subject to those limited exceptions, the law provides that any “covenant not to compete” contained in a contract is void and unenforceable. Importantly, a “covenant not to compete” does not include nondisclosure, confidentiality, trade secret, or non-solicitation agreements (including specifically those restricting the ability to use client or contact lists or restricting the solicitation of customers). Also, because “covenant not to compete” is defined in terms of prohibiting conduct “after termination of the employment,” the new law will not prohibit agreements that restrict an employee or independent contractor from working for another business while performing services for a business.

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California Pay Data Reports Due May 10, 2023

On May 10, 2023, employers must submit their pay data reports to the California Civil Rights Department (CRD). As previously reported here, Senate Bill 1162 amended Labor Code section 432.3 and Government Code section 12999 as part of California’s ongoing efforts to promote workplace pay transparency as a means to combat pay discrimination. Employers are required to comply annually with the obligation to not only report data for their W-2 employees, but also the new obligation to compile and report data for workers supplied by their labor contractors that are either working at, or assigned to, California locations.

Which employers must report?

Private employers with 100 or more employees (with at least one employee based in California) must file a “Payroll Employee Report.” New in 2023, all private employers with 100 or more workers hired through labor contractors in the prior calendar year (with at least one worker based in California) must file a “Labor Contactor Employee Report.”

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OFCCP Updates Form to Invite Voluntary Self-Identification of Disability Status

On April 25, 2023, the Office of Management and Budget (OMB) approved the Office of Federal Contractor Compliance Program’s (OFCCP) updated Voluntary Self-Identification of Disability Form. The OFCCP explained that the form was revised to “update the preferred language for disabilities and to include additional examples of disabilities.” According to OFCCP guidance, federal contractors and subcontractors (contractors) must begin using the updated Voluntary Self-Identification of Disability Form no later than July 25, 2023.

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NLRB Adds Enhanced Penalties for Repeat Offenders

On April 20, 2023, the National Labor Relations Board (NLRB or the Board) added a new set of penalties to its remedial arsenal for employers who repeatedly or egregiously violate federal labor law. The new remedies supplement the expanded make-whole remedies and consequential damages established by the Board in its December 13, 2022, decision, Thryve, Inc.

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UK Immigration: Innovator Founder Visa

On 13 April 2023, the Home Office launched the Innovator Founder visa route. This visa route is designed for entrepreneurs who intend to establish a business in the UK and replaces the Innovator visa and Start-Up visa routes. The main difference between the Innovator Founder and Innovator routes is that the new route will not require individuals to demonstrate they have access to funds of at least £50,000 to invest in the business, albeit the applicants will still be required to show they have sufficient funds to operate the proposed business.

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