Supreme Court Decides Badgerow v. Walters

On March 31, 2022, the U.S. Supreme Court decided Badgerow v. Walters, No. 20-1143, reversing the Fifth Circuit, and holding that federal courts may only look to the application to confirm or vacate an arbitral decision in assessing jurisdiction.

Denise Badgerow initiated an arbitration action against Greg Walters, Thomas Meyer, and Ray Trosclair (collectively, Walters) alleging unlawful termination under federal and state law. The arbitrators sided with the employer and dismissed Badgerow’s claims. Badgerow then sued Walters to vacate the arbitral decision in state court. Walters removed the lawsuit to federal court and applied to confirm the arbitral award. The district court determined that it had jurisdiction over the pending applications using a look-through approach that considered the substance of the parties’ underlying substantive dispute, which raised federal-law claims. The United States Court of Appeals for the Fifth Circuit affirmed.

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Multinational Companies Operating in Russia Must Be Aware of Recent Restrictions on Disseminating Certain Information

Following Russia’s invasion of Ukraine on February 24, 2022, the Russian government has imposed several restrictions that may affect employers with operations in Russia. The restrictions prohibit:

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New EEOC Technical Assistance Addresses Caregiver Discrimination

On March 14, 2022, the U.S. Equal Employment Opportunity Commission (EEOC) released a technical assistance document, the COVID-19 Pandemic and Caregiver Discrimination Under Federal Employment Discrimination Laws, which explains how discrimination against applicants and employees with caregiving responsibilities can violate federal equal employment opportunity (EEO) laws. Although EEO laws do not prohibit discrimination against caregivers specifically, there are some circumstances in which discrimination against caregivers may be unlawful. Because the COVID-19 pandemic has created — and exacerbated — competing job and caregiving demands for individuals as they navigate hybrid work schedules, unexpected closures of school and care facilities, and potential COVID-19 exposure, the EEOC’s updated information may inform employer decisions and actions as they adapt their workplaces to the evolving COVID-19 pandemic.

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Colorado Issues New Guidance on Prohibition Against Forfeiture of Earned Vacation or PTO

A series of recent developments in Colorado law have made it clear that employers are prohibited from causing employees to forfeit earned vacation time. A compilation of recent developments and the Colorado Department of Labor and Employment’s current position are contained in Interpretive Notice & Formal Opinion (INFO) #14, which explains that:

  1. Employees must be paid all earned vacation pay when their job ends.
  2. No employment policy or agreement can waive or forfeit earned vacation at any time.
  3. All paid leave which can be used at the discretion of the employee is considered “vacation pay” subject to the non-forfeiture rules.

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New Law Prohibiting the Mandatory Arbitration of Sexual Harassment and Assault Claims Goes Into Effect

On March 3, 2022, President Joe Biden signed the “Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021” (the Act) into law. Upon signing the bill, which had bipartisan Congressional support, President Biden proclaimed, “[w]hen it comes to sexual harassment and assault, forced arbitration shielded perpetrators, silenced survivors, enabled employers to sweep episodes of sexual assault harassment under the rug and it kept survivors from knowing if others have experienced the same thing in the same workplace, at the hands of the same person.”

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DOJ Encourages State Court to Consider Antitrust Principles to Invalidate Non-Compete Agreements

Non-compete agreements between employers and their employees traditionally are governed by state law. But that did not stop the Antitrust Division of the Department of Justice (DOJ) from recently filing a statement of interest encouraging a Nevada state court to consider federal antitrust principles to invalidate non-compete agreements between a large medical group and its physician-employees. Taken together with other recent actions by the president and federal enforcement agencies, the DOJ’s decision to file this statement signals a more aggressive approach to non-compete enforcement at the federal level.

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