Reforms to Puerto Rican Labor Law Reinstate Employee-Friendly Measures

On June 20, 2022, Puerto Rico’s governor signed into law Act No. 41-2022 (“the Act”). The Act rolls back certain changes brought about by the Labor Transformation and Flexibility Act (“LTFA”). The LTFA was enacted in 2017 in an effort to reenergize the island’s economy following its effective bankruptcy.

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NLRB General Counsel Seeks to Increase Remedies in Refusal to Bargain Cases

On June 28, 2022, Jennifer Abruzzo, the General Counsel for the National Labor Relations Board (NLRB or the Board), announced via Twitter that she petitioned the Board to adopt a compensatory make-whole remedy in refusal to bargain cases. In August 2021, Abruzzo issued an internal memorandum detailing potential changes she sought to effectuate during her tenure. The make-whole remedy, which was briefly mentioned in the General Counsel’s memorandum, would disincentivize employers from refusing to bargain with unions and is consistent with this administration’s policy goal of facilitating and increasing collective bargaining.

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State & Local Employment Law Developments: Q2 2022

Alabama

Leave Benefits for Adoption: Alabama’s Adoption Promotion Act (the Act) takes effect on July 1, 2022 and requires employers with 50 or more employees to provide eligible employees with up to 12 weeks of unpaid family leave for the birth or adoption of a child. The Act also mandates that employers who provide paid leave benefits and additional leave considerations for the birth of a child provide similar benefits for adoption.

Marketplace Contractors: Effective July 1, 2022, marketplace contractors are not considered employees under workers’ compensation and unemployment insurance laws (if certain conditions are met). Marketplace contractors are persons/entities who enter into agreements with marketplace platforms to be connected with third parties seeking services — such as drivers for Uber and Lyft.

Arizona

Expansion of Employer Definition under Sexual Harassment Discrimination: Arizona enacted a change to the sexual harassment provisions of existing employment discrimination law, so that the law applies to any employers or their agents who commit sexual harassment or retaliate against someone for reporting it.

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Supreme Court Clarifies Transportation Worker Exception to Federal Arbitration Act

The Supreme Court unanimously held on June 6, 2022 that airline workers who load and unload cargo from airplanes are exempt from the coverage provided under the Federal Arbitration Act (FAA). Employers commonly use the FAA to compel arbitration where disputes arise under employment agreements containing arbitration provisions. However, Section 1 of the FAA exempts “seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce” from the FAA’s coverage. According to the Supreme Court, workers who load and unload cargo onto airplanes fall within that exemption.

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Southwest Airlines Files Challenge to the Colorado Healthy Families and Workplaces Act

Southwest Airlines Co. has filed a complaint for declaratory judgment in the U.S. District Court for the District of Colorado challenging the application of the Colorado Healthy Families and Workplaces Act (HFWA) to its Colorado employees.

The complaint, which names Scott Moss in his capacity as the director of the Colorado Department of Labor and Employment’s Division of Labor and Statistics, along with Philip J. Weiser in his capacity as the attorney general of Colorado, alleges that the application of the HFWA to Southwest employees is preempted by the federal Airline Deregulation Act and the federal Railway Labor Act, and that it violates the Commerce Clause of the U.S. Constitution.

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Workers Wanted: Proposed Legislation to Address Immigration Backlogs

Several bills have been recently proposed in Congress to address some of the challenges employers and employees face in terms of high-skilled immigration. Backlogs in the permanent residence (green card) process and difficulties procuring work visas for professional employees create significant stress and uncertainty for U.S. businesses in a competitive labor market.

One critical challenge is the significant backlog in the permanent residence process, which continues to grow. There are 140,000 immigrant visas available for employment-based applicants each year. However, these 140,000 visas are subject to a country cap that states no more than seven percent of the 140,000 available immigrant visas may go to immigrants from any one country. This cap does not consider the fact that demand from each country for employment-based visas is not equal. Largely because of the cap, individuals from countries for which demand for employment-based immigrant visas is higher — such as India and China — face extreme backlogs when seeking to become permanent residents in the U.S. These backlogs not only impact individuals and their families, but also impact their employers who are sponsoring them through the permanent residence process. There are currently over one million people affected by this backlog, putting strain on employers who must continue to sponsor and extend the temporary work authorization of individuals who cannot finalize their permanent residence processes due to the delays caused by the backlog.

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