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.
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.
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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Supreme Court Decides Viking River Cruises, Inc. v. Moriana
On June 15, 2022, the U.S. Supreme Court decided Viking River Cruises, Inc. v. Moriana, No. 20-1573, holding that the Federal Arbitration Act (FAA) preempts a rule of California law insofar as it precludes agreeing to arbitrate only an employee’s individual claims under California’s Labor Code Private Attorneys General Act (PAGA).
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Coming August 2022: Colorado Substantially Limits Noncompete Agreements
Beginning August 10, 2022, Colorado will drastically narrow the circumstances in which Colorado employers can seek to enforce noncompete and other restrictive employment agreements. Despite Colorado law already having a general restriction against the use of noncompete agreements, the Colorado General Assembly recently passed, and Gov. Jared Polis has now signed, HB 22-1317. With this bill, Colorado joins the growing number of states enacting increased employee protections against restrictive covenant agreements, including banning such agreements with workers earning below a certain threshold.
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U.K. Employment Law Update: Worker Status, Non-Compete Restrictions and COVID-19 Dismissal
Clarification on Worker Status
In Nursing and Midwifery Council v Somerville [2022] EWCA Civ 229, the Court of Appeal (CoA) considered whether an obligation on the part of a worker to perform a minimum amount of work was a prerequisite for worker status.