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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

Special thanks to co-presenters Elizabeth Ebersole, Barbara Klementz, Dionna Shear, Amanda Cohen, Benjamin Ho, Jennifer Bernardo, Kaitlin Thompson, Marredia Crawford (Director, ID&E, Americas), Goli Rahimi, Paul Evans, Monica Kurnatowska and Blair Robinson.

Our team is busy advising multinational companies on employment law issues surrounding workplace

This summer the US Supreme Court will rule on the legality of using race as an affirmative action measure in admissions at Harvard and at the University of North Carolina. The legal framework for evaluating affirmative action programs in higher education is definitively different than for inclusion, diversity and equity (ID&E) programs in the employment context. Notwithstanding this distinction, the decision will signal how courts review workplace ID&E practices and policies, and may encourage legal challenges regarding the same.

The timing of this case coincides with a growing trend of state and local legislation seeking to restrict workplace ID&E efforts, increasing claims of reverse discrimination, continued shareholder action in the ID&E space, including some actions challenging the devotion of resources to ID&E as not in the interest of shareholders, and attacks on laws mandating diversity on corporate boards.

Case Background

In 2014, Students for Fair Admissions (a nonprofit group of “students, parents and others who believe that racial classifications and preferences in college admissions are unfair, unnecessary, and unconstitutional”) sued both Harvard and UNC in federal court alleging that race-conscious admissions programs are unlawful. Both universities won at the trial court level. Now, SFFA has asked the Supreme Court to overrule its prior decisions and hold that the consideration of race as part of a holistic college admissions process in order to achieve a diverse student body violates Title VI of the Civil Rights Act of 1964 and the Equal Protection Clause of the Fourteenth Amendment to the US Constitution.Continue Reading How the Supreme Court’s Upcoming Affirmative Action Decision May Impact US Employers

Special thanks to co-authors, Brad Newman and Julia Wilson.

Amid recent hype around ChatGPT and generative artificial intelligence (AI), many are eager to harness the technology’s increasingly sophisticated potential.

However, findings from Baker McKenzie’s 2022 North America AI survey indicate that business leaders may currently underappreciate AI-related risks to their organization. Only 4% of

An updated New York State Sexual Harassment Prevention Model Policy (the “Model Policy”) is out. On April 11, 2023, Governor Kathy Hochul announced that the New York State Department of Labor (“NYSDOL”) finalized updates to the Model Policy, a template document New York State provides to help employers comply with state law. The updated guidance (the result of a collaboration between the NYSDOL and the New York State Division of Human Rights), addresses, among other topics, remote workers, gender discrimination, and retaliation–and provides a new interactive training video, a slide deck and other resources to help employers (and employees) comply with the State’s mandatory training requirements.

Though New York State employers aren’t required to use to the Model Policy (see more below), they may want to review their sexual harassment prevention policies and training in light of the updates and work with counsel to ensure their policies and training are still in compliance.Continue Reading New York State Updates Its Model Sexual Harassment Prevention Policy: Is Yours Still in Compliance?

Special thanks to co-presenter, Jennifer Bernardo.

With a surge in layoffs taking place over the past year, many of those originally hired to diversify the workplace have been impacted, and studies show that inclusion, diversity and equity (ID&E) professionals have been affected by layoffs at a higher rate than others. The harm? Other than

March 14, 2023, is recognized as Equal Pay Day in the US. This date symbolizes how far into the year women must work to earn the same amount that men earned in the previous year. Because women earn less, on average, than men (according to the US Census Bureau), they must work longer for

In 2023, uncertainty is the new certainty, with the economic cycle replacing Covid-19 as the main driver of instability. Experience, along with the insights we’ve gathered from more than 600 senior lawyers at large corporations across the globe, point to an anticipated rise in employment disputes. Organizations should proactively identify risk and involve dispute practitioners

It’s been a demanding year in New York for employers. New York employers have had to continuously pivot to meet obligations under new laws and requirements in 2022, with no end in sight as we step into 2023. From New York’s new electronic monitoring law, to New York City’s salary and pay range disclosure requirements, to the newly-delayed enforcement of NYC’s automated employment decision tools law (a brief sigh of relief for employers), new laws are certain to make for a busy 2023 for New York employers. Here are 10 changes employers should know now as we get the ball rolling in 2023.

1. NYC Employers Using Automated Employment Decision Tools Now Have Until April 15, 2023 to Meet New Obligations  

The New York City Department of Consumer and Worker Protection (DCWP) granted New York City employers a happy holiday by announcing a delay of enforcement of its automated employment decision tools law (Local Law 144 of 2021) until April 15, 2023.

Until the announcement, New York City employers who use artificial intelligence in employment decision-making were faced with new requirements beginning January 1, 2023–including a prohibition against using automated employment decision tools (AEDTs) unless they took a number of specific steps prior to doing so, not the least of which would be conducting a bias audit of their AEDTs.

Proposed Rules

On December 15, 2022, DCWP published revised proposed rules for Local Law 144, making several changes to initial proposed rules published by DCWP September 23, 2022.

The initial proposed rules defined or clarified some terms (including “independent auditor,” “candidate for employment,” and “AEDT”), set forth the form and requirements of the bias audit, and provided guidance on notice requirements. 

After comments from the public on the initial proposed rules, and after a November 4, 2022 public hearing, the DCWP modified the proposed rules, with changes including:

  • Modifying the definition of AEDT (according to DCWP, “to ensure it is focused”);
  • Clarifying that an “independent auditor” may not be employed or have a financial interest in an employer or employment agency seeking to use or continue to use an AEDT, or in a vendor that developed or distributed the AEDT;
  • Revising the required calculation to be performed where an AEDT scores candidates;
  • Clarifying that the required “impact ratio” must be calculated separately to compare sex categories, race/ethnicity categories, and intersectional categories;
  • Clarifying the types of data that may be used to conduct a bias audit;
  • Clarifying that multiple employers using the same AEDT can rely upon the same bias audit as long as they provide historical data (if available) for the independent auditor to consider in such bias audit; and
  • Clarifying that an AEDT may not be used if its most recent bias audit is more than one year old.

DCWP will hold a second public hearing on the proposed rules on January 23, 2022.

For more on the law, see our recent blog Happy Holidays! Enforcement of New York City’s Automated Employment Decision Tools Law Delayed to April 15, 2023.

2. New York Employers with “No Fault” Attendance Policies Subject to Penalties for Disciplining Employees Who Take Protected Leave

Beginning February 20, 2023, New York employers with absence control policies who discipline employees for taking protected leave under any federal, state or local law will be subject to penalties.

Signed by Governor Kathy Hochul on November 21, 2022, S1958A (which amends Section 215 of the New York Labor Law (NYLL)) targets employer policies that attempt to control employee absences by assessing points or “demerits” or docking time from a leave bank when an employee is absent, regardless of whether or not the absence is permissible under applicable law. The amendment prohibits employers in New York from taking these actions when employees take a legally protected absence. Though the law does not prohibit attendance policies that include a penalty point system, legally protected absences cannot be used to deduct from these point systems.

Employers are prohibited from retaliating or discriminating against any employee that makes a complaint that the employer violated the law, and violations can come with sizable penalties. In addition to enforcement by the New York State Department of Labor (NYSDOL), NYLL Section 215 provides a private cause of action for current and former employees to recover monetary damages from employers who have violated Section 215. Monetary damages include back pay, liquidated damages and attorneys’ fees in addition to civil penalties that can be issued by NYSDOL of up to $10,000 for the first violation and $20,000 for repeat violations.

Employer Takeaways

  • Employers who currently have policies that assess points or demerits against employees for taking absences under applicable law should review and update the policies to be compliant with the law.
  • Employers should train HR professionals, managers and supervisors on the new law.

3. Employers Must Provide Pay Ranges in Job Postings under New York City Pay Transparency Law Now–and under New York State Pay Transparency Law Beginning September 17, 2023

New York City employers are already feeling the impact of having to meet the requirements of New York City’s new pay transparency law (Local Law 32 and its amendment), which went into effect on November 1, 2022. Now, employers all across New York State will also have to comply with salary transparency requirements. Governor Hochul signed New York State’s salary transparency bill (S9427A) into law on December 21, 2022. Employers should begin to prepare now for the law’s September 17, 2023 effective date.

Covered employers

New York City’s law requires New York City employers with four or more employees (with at least one working in New York City) to disclose salary and hourly ranges in any advertisements for jobs, promotions, or transfer opportunities. (See our prior blogs here and here–and for a deeper look at salary and pay range disclosure requirements in job postings across the US, watch our video Employers: All Eyes on Salary and Pay Range Disclosure in US Job Postings).

Similar to New York City’s law, New York State’s law also requires employers with four or more employees to include a compensation range in all advertisements for new jobs, promotions and transfer opportunities. It’s not clear at this time whether all four employees must be employed within New York State, or whether an employer is covered even if employees are located elsewhere. The New York Department of Labor (NYDOL) is authorized to promulgate regulations to clarify the law, and it is anticipated that guidance will be issued before the law’s effective date.

Employment agencies and recruiters–but not temporary employment agencies–are also covered by each law.

Continue Reading Top 10 New York Employment Law Updates: Closing Out 2022 and Heading Into 2023

Join us for our webinar series, “2023: Discussion on The New Legal Restructuring Landscape in Europe,” providing an overview of the regulatory and commercial issues to consider when contemplating restructuring across multiple jurisdictions against the backdrop of today’s political and economic climate, both locally and globally.

In our three-part webinar series, UK and