Los Angeles County Fair Chance Ordinance – Summary of New Requirements

As of September 3, 2024, employers in the unincorporated areas of Los Angeles County must comply with the Los Angeles County Fair Chance Ordinance (FCO), which places restrictions on criminal background screening beyond those required by California’s Fair Chance Act (Fair Chance Act).

Background – the Fair Chance Act

The Fair Chance Act (also known as “Ban the Box” law) bans employers with five or more employees from including any question on a job application that asks about the applicant’s criminal conviction history. Covered employers also may not inquire about or consider an applicant’s criminal history until the applicant has received a conditional job offer. If an employer does conduct a lawful background check and decides to rescind an offer based on an applicant’s conviction history, the employer must (1) make an individualized assessment of whether the applicant’s conviction history relates to the specific job duties; (2) notify the applicant in writing of the preliminary decision; (3) grant the applicant at least five business days to respond before making a final decision; and (4) give the applicant an additional five business days to dispute the accuracy of their criminal history record and to seek evidence to support that contention. The Fair Chance Act also bans covered employers from considering certain convictions, including those that have been sealed, dismissed or expunged, and generally does not allow employers to consider arrests that did not result in convictions (subject to certain exceptions). Additional information published by the California Civil Rights Department regarding the Fair Chance Act can be found online.
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Texas Court Sets Aside FTC Noncompete Rule, With Nationwide Effect

On August 20, 2024, the U.S. District Court for the Northern District of Texas issued a memorandum opinion and order holding that the Federal Trade Commission rule banning post-employment noncompetes is “unlawful” and therefore must be “set aside.” This alert covers what employers need to know.

For the full alert, visit the Faegre Drinker website.

New UK Government Proposes Employment Legislation

After winning the general election last month, the new UK government has started to focus on the implementation of its manifesto pledges. The King’s Speech, which took place on 17 July 2024, sets out the legislative agenda for the new government. Our team dives into the two pieces of proposed employment legislation that were announced in the speech, along with two other developments in the UK employment landscape.

For the full alert, visit the Faegre Drinker website.

Another Federal Court Finds FTC Noncompete Rule Unenforceable

On August 15, another federal court weighed in on the question of whether the FTC exceeded its authority in issuing its rule banning post-employment noncompetes, scheduled to go into effect on September 4, 2024. In Properties of the Villages, Inc. v. Federal Trade Commission, Judge Timothy Corrigan (appointed by Pres. George W. Bush) of the Middle District of Florida enjoined the FTC from implementing or enforcing its noncompete ban against the plaintiff. Judge Corrigan declined to issue a more general, nationwide injunction.

For the full alert, visit the Faegre Drinker website.

The FTC’s Noncompete Ban: An Update on Legal Challenges and What Comes Next

While the FTC’s noncompete ban is still scheduled to go into effect on September 4, 2024, there are three ongoing legal challenges to it; and there are pending motions in all three cases that could enjoin it either nationwide or on some limited basis before then. In the meantime, employers may wonder what to do. We outline several options.

To view the full alert, visit the Faegre Drinker website.

Australia Set to Join Growing List of Countries Recognizing “Right to Disconnect” From the Workplace

The Law

Under amendments to the Fair Work Act 2009, employees in Australia are being given a new “right to disconnect” from the workplace outside of normal working hours. Under the new law, employees may refuse contact, including refusing to monitor, read or respond to contact from the employer or a third party outside of working hours unless the refusal would be “unreasonable.”

While “contact” is not defined in the legislation, it is likely to include any form of contact including email, text or social media messages (e.g., WhatsApp) and phone calls.

The law contains a nonexhaustive list of factors that should be considered when determining whether an employee’s refusal is “unreasonable,” including:

  • The reason for the contact
  • Whether the employee is compensated or paid extra for being available to be contacted to perform work within a specific period or working additional hours outside of their ordinary working hours
  • The nature of the employee’s role and level of his or her responsibility
  • The employee’s personal situation such as family or caring responsibilities

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