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Caroline Burnett is a Knowledge Lawyer in Baker McKenzie’s North America Employment & Compensation Group. Caroline is passionate about analyzing trends in US and global employment law and developing innovative solutions to help multinationals stay ahead of the curve. Prior to joining Baker McKenzie in 2016, she had a broad employment law practice at a full-service, national firm. Caroline holds a J.D. from the University of San Francisco School of Law (2008) and a B.A. from Brown University (2002).

In Raines v. U.S. Healthworks Medical Group, the California Supreme Court expanded the definition of an “employer” under the state’s discrimination statute to include certain third-party business entities that perform employment-related functions on behalf of employers. These agents may now be deemed “employers” such that they can be directly liable for employment discrimination under the Fair Employment and Housing Act for certain activities that they carry out on behalf of employers.

Overview of Raines

The Raines‘ plaintiffs were job applicants who received offers of employment that were conditioned on the successful completion of pre-employment medical screenings conducted by a third-party company that used automated decision-making. Plaintiffs alleged that the screening form contained intrusive questions regarding their medical history that violated FEHA. They brought claims against their employers, as well as the third-party provider that conducted the medical screening. The question for the Court was whether business entities acting as agents of an employer, can be considered “employers” under FEHA and held directly liable for FEHA violations caused by their actions.

The Court examined the plain language in FEHA’s definition of “employer” and concluded that the definition did indeed encompass third-party corporate agents like the medical provider in his case. FEHA defines an employer as “any person regularly employing five or more persons, or any person acting as an agent of an employer, directly or indirectly.” Here, the Court reasoned, recognizing the medical provider as an agent of the employer extended liability to the company most directly responsible for the FEHA violation.Continue Reading Automated Decision-Making and AI: California Expands FEHA Liability to Include Third-Party Business Agents of Employers

Effective September 17, employers with four or more employees in New York state must include a compensation range in all advertisements for new jobs, promotions and transfer opportunities. A pay transparency fact sheet and FAQ document are available on the NYSDOL website with additional information and guidance on the new law. 

Overlap and City

On September 8, 2023, the Department of Labor announced publication of a Notice of Proposed Rulemaking Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees.

The DOL’s Wage and Hour Division is proposing to update and revise the Fair Labor Standards Act regulations implementing the minimum wage and overtime

Our colleagues in Latin America prepared a succinct briefing of the most impactful recent employment law changes in Mexico, Brazil, Argentina, Chile, Colombia, Venezuela and Peru. From changes to teleworking rules to greater obligations related to family leave, outsourcing and more, there’s a lot to keep up with.

Click here to access our heat map

The EEOC just announced an updated filing deadline for US employers to submit their demographic data. The EEO-1 Component 1 data collection for 2022 begins October 31 and the deadline to file is December 5. The federal agency posted instructions and other information (here), and will post the data file specifications on

New York may soon restrict employers and employment agencies from using fully-automated decision making tools to screen job candidates or make other employment decisions that impact the compensation, benefits, work schedule, performance evaluations, or other terms of employment of employees or independent contractors. Draft Senate Bill 7623, introduced August 4, aims to limit the use of such tools and requires human oversight of certain final decisions regarding hiring, promotion, termination, disciplinary, or compensation decisions. Senate Bill 7623 also significantly regulates the use of certain workplace monitoring technologies, going beyond the notice requirements for workplace monitoring operative in New York since May 2022 and introducing data minimization and proportionality requirements that are becoming increasingly common in US state privacy laws.

While there is not yet a federal law focused on AI (the Biden administration and federal agencies have issued guidance documents on AI use and are actively studying the issue), a number of cities and states have introduced bills or resolutions relating to AI in the workplace. These state and local efforts are all at different stages of the legislative process, with some paving the path for others. For example, New York City’s Local Law 144 took effect on July 5, prohibiting employers and employment agencies from using certain automated employment decision tools unless the tools have undergone a bias audit within one year of the use of the tools, information about the bias audit is publicly available, and certain notices have been provided to employees or job candidates (read more here).

If enacted, Senate Bill 7623 would take things much further. Here are some of the most significant implications of the draft legislation:Continue Reading Check Yourself Before You Wreck Yourself: New York and Other States Have Big Plans For Employer Use of AI and Other Workplace Monitoring Tools

While the US Supreme Court’s June 27 decision striking down race-conscious admissions programs at Harvard and the University of North Carolina does not directly apply to private employers, the decision will reverberate and impact corporate ID&E programs as a practical matter.

The Decision Ends Systematic Consideration of Race in the Admissions Process

Striking down the affirmative action programs at Harvard and UNC, the Court ruled that both programs violate the Equal Protection Clause of the Fourteenth Amendment. In so doing, the Court effectively overturned the 2003 ruling in Grutter v. Bollinger, in which it said race could be considered as a factor in the admissions process because universities had a compelling interest in maintaining diverse campuses.

In his concurring opinion, Justice Clarence Thomas called the programs “rudderless, race-based preferences designed to ensure a particular racial mix in the entering classes.” Both policies “fly in the face of our colorblind Constitution and our nation’s equality ideal,” he added.

In a dissenting opinion, Justice Ketanji Brown Jackson, the Court’s first Black female justice, said: “With let-them-eat-cake obliviousness, today, the majority pulls the ripcord and announces ‘colorblindness for all’ by legal fiat. But deeming race irrelevant in law does not make it so in life.”Continue Reading ID&E in the Workplace After the Supreme Court Guts Affirmative Action in Higher Education

On Tuesday, June 27, US antitrust agencies announced proposed changes to the premerger notification form and associated instructions and rules that implement the Hart-Scott-Rodino Act. Among other things, the proposed amendments require a labor market analysis including workforce categories, geographic information, and details on labor and workplace safety violations.

The proposed amendments are intended

Effective June 27, a new federal law strengthens the rights of pregnant workers (and those who are postpartum or have a related medical condition) to reasonable accommodations at work. As discussed here, the Pregnant Worker Fairness Act fills the gap between Title VII (the federal law that outlaws sex discrimination) and the ADA (the federal statute that protects disabled applicants and employees), ensuring that pregnant workers are able to continue in their jobs with reasonable accommodations for physical or mental conditions related to pregnancy and childbirth, so long as the accommodations do not “impose undue hardship on the operation of the business.”

The PWFA does not displace federal, state or local laws that are more protective of workers affected by pregnancy, childbirth or related medical conditions. For instance, since the 1980s, California employees who are pregnant, give birth, or have pregnancy-related medical conditions are guaranteed time off from work while disabled, without having to show that the time off would not impose an “undue hardship”  on the employer’s business.Continue Reading New Pregnant Workers Fairness Act Expands Accommodations Options for Millions of Americans

Employers can be liable for sexual harassment under federal law (Title VII of the 1964 Civil Rights Act) if “sexually explicit” or “aggressive” music is played in the workplace, the Ninth Circuit recently ruled in Sharp v S&S Activewear, L.L.C, 9th Cir. (June 2023).

The Ninth Circuit’s ruling directly applies to employers in Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Washington, Guam, and the Northern Mariana Islands. However, given the federal Equal Employment Opportunity Commission’s amici brief in support of the plaintiffs’ position and the Court’s reliance on opinions from the Second, Fourth, and Sixth Circuits that held that sights and sounds that pervade the work environment may constitute sex discrimination, it is likely other circuits may follow suit.Continue Reading When Harmony Becomes Hostile: The Ninth Circuit Notes that Offensive Music in the Workplace Can Constitute Harassment