Special thanks to Scott McMillen.
Looking Ahead: Exploring the Key Themes and Recommendations for US and Global Employers in 2023
Between maintaining business continuity and keeping your workforce safe, we know there’s been little time to track the rapidly changing employment, compensation and mobility law landscape — in Illinois, across the US, and globally.
Special thanks to Mark Hamer, Creighton Macy, Nandu Machiraju, Jeffrey Martino, Darley Maw, Kayleigh Golish, Will Woods, Abhishek Dube, Bradford Newman and Nicholas Kennedy.
Over the past week, the Federal Trade Commission (“FTC”) took a major step to expand competition policy deeper into labor markets.
On
Studies show that as many as 98% of CEOs are anticipating a global recession in the next 12-18 months, which means that companies have already started focusing on cutting costs and redistributing resources to best position themselves to survive. One of the largest cost centers on any company’s balance sheet is its workforce. As such, layoffs or other reductions-in-force (RIF) have already started to hit, and will likely continue. What’s different this time around? Because of the ups and downs in the market, and phenomena like the “great resignation” and remote work on a scale never seen before, there is a greater likelihood that more employers will find themselves potentially triggering the Worker Adjustment and Retraining Notification Act of 1988 (WARN Act) (and analogous state laws, known as state “mini-WARN acts”) statutes. These statutes impose notice and information obligations, which can be tricky to keep track of, and carry potentially heavy penalties for noncompliance.
What to do? Employers who see a layoff on the horizon — and even those who may have already undertaken layoffs — should revisit the requirements of WARN (and state mini-WARNs) now, and keep the following “WARN-ings” and practice tips in mind as they work with counsel.
In short, WARN requires employers to give advanced notice to affected employees in the event of a covered mass layoff or plant closing. Under the federal WARN, employers must provide 60 days’ notice of termination to the impacted employees, union representatives (if applicable), and certain government authorities. Under some state mini-WARN acts, 90 days’ notice is required.
Under the federal WARN Act, covered employers are employers with:
WARN-ing: State mini-WARN acts often have lower thresholds for covered employers.
Under WARN, covered employers need to provide notice if a triggering event–a “mass layoff” or “plant closing”–occurs.
Mass layoff: A mass layoff is a reduction in force that (i) does not result from a plant closing, and (ii) results in an employment loss at the single site of employment during any 30-day period for:
Plant closing: A plant closing is the permanent or temporary shutdown of a single place of employment or one or more facilities/operating units resulting in an employment loss during a 30-day period for 50 or more covered employees.
WARN always requires aggregating the employment losses that occur over a 30-day period.
WARN also requires aggregation of the employment losses that occur over a 90-day period that did not, on their own, trigger WARN notice, unless the employer can show that the layoffs were the result of separate and distinct causes and are not an attempt to evade WARN.
WARN-ing: Therefore, employers should look ahead and behind 90 days and add up layoffs that have occurred and any planned layoffs to determine whether separate layoffs may trigger notice requirements under WARN.
Continue Reading Employer WARN-ing: Layoffs Could Trigger WARN Notice Requirements this Time Around
Labor unions seem to be having a resurgence after being on the decline for many years. Employers are concerned with this shift, and are wondering what they can do within the bounds of the law to keep a direct relationship with their workforce.
In this Quick Chat video, our Labor & Employment lawyers discuss the
Summer in Chicago always brings welcome change, but the end of the Illinois legislative session in the spring can mean a flurry of new obligations in the summer for Illinois employers. This year is no exception. We highlight five changes Illinois employers should be aware of as they prepare their workforce for this summer and beyond.
On June 29, 2022, Governor Pritzker signed the Create a Respectful and Open Workplace for Natural Hair Act (“CROWN Act”) into law, banning race-based hair discrimination by employers in Illinois. Specifically, the CROWN Act, which is effective January 1, 2023, expands the definition of “race” under the Illinois Human Rights Act (IHRA) to include “traits associated with race, including, but not limited to, hair texture and protective hairstyles such as braids, locks, and twists.” Though a similar law, Illinois SB 817, was signed into law in August 2021, it only prohibited schools from issuing policies on hairstyles historically associated with race or ethnicity. The CROWN Act, expands the protection by prohibiting race-based hair discrimination in employment, housing, financial transactions and public accommodations.
Illinois and 16 other states (including California, Colorado, Connecticut, Delaware, Louisiana, Maine, Maryland, Nebraska, Nevada, New Mexico, New Jersey, New York, Oregon, Tennessee, Virginia, and Washington) and several municipalities have enacted similar CROWN laws. In addition, the US House of Representatives passed a federal CROWN Act in March of this year which would make hair discrimination illegal in all 50 states if passed, but the bill has not yet been approved by the Senate.
What should Illinois employers do now?
Illinois employers should:
On April 27, 2022, the Chicago City Council passed Substitute Ordinance 2022-665, amending the Chicago Human Rights Ordinance and creating new obligations for Chicago employers relating to sexual harassment prevention. The amendments became effective July 1, 2022.
Here are the key changes Chicago employers need to know:
New written policy requirements
Employers must have a written policy prohibiting sexual harassment as of July 1, 2022. The written policy must include:
The written policy must be made available to employees within their first calendar week of starting employment, in the employee’s primary language.
The Chicago Commission on Human Relations (the “Commission”) has provided model sexual harassment policies in several languages on its website.
New training requirements
The written policy also must include a requirement that all employees participate in annual sexual harassment prevention training–and employers are required to mandate their employees participate in the trainings beginning July 1, 2022, meaning that by June 30, 2023 all employees must receive their first round of required annual training. Specifically:
The State of Illinois model sexual harassment prevention training program, which provides one hour of training, is sufficient for the sexual harassment prevention training for employees. In addition, training templates and materials for the additional hour of training (for supervisors / managers) and for the hour of bystander training have been made available to employers on the Commission’s website.
New notice requirements
Effective July 1, 2022, all employers are required to conspicuously display–in at least one location where employees commonly gather–posters, both in English and in Spanish, designed by the Commission about the prohibitions on sexual harassment. The posters are available for download on the Commission’s website.
Recordkeeping requirements
Employers must keep a record of the employer’s written policy prohibiting sexual harassment, trainings given to each employee, and records demonstrating compliance for at least five years–or for the duration of any claim, civil action, or pending investigation relating to the law, whichever is longer. If employers fail to maintain the records, a presumption is created that the employer is in violation of the law (rebuttable only by clear and convincing evidence).
Longer statute of limitations, longer notification period for the Commission, and penalties
Employees now have a 365 day statute of limitations (instead of 300 days) to report all forms of discrimination, including sexual harassment. In addition, after receiving a report of an alleged violation, the Commission has 30 days to notify a respondent (increased from 10 days)–which, according to outreach materials on the amendments, is intended to mitigate retaliation such as denial of a reasonable accommodation request.
Any employer who violates the written policy, training or notice requirements is subject to a fine of between $500-$1000 per day, per offense.
What should Chicago employers should do now?
Continue Reading Illinois Employer Summer Checklist: 5 Recent Changes You Should Know
Across the world, trade secrets are becoming increasingly important. As companies align workforce transformation, manage supply chain operations and balance the needs of their digital transformation journey, new strategies are required for the identification, protection and enforcement of their most valuable, complex and market-differentiating trade secrets.
In this series of bite-sized videos, hear from Baker
On March 24, 2022, Governor Jay Inslee signed into law Engrossed Substitute House Bill 1795, also known as the Silenced No More Act, which expands worker protection in Washington State. More specifically, it prohibits employers from requiring or requesting that workers sign agreements containing nondisclosure or non-disparagement provisions restricting their right to discuss factual information regarding illegal discrimination, harassment, sexual assault, retaliation, wage and hour violations, or any other conduct “that is recognized as against a clear mandate of public policy.” Washington State’s Silenced No More Act will go into effect on June 9, 2022.
While other states such as California, New York, and Illinois have enacted similar NDA-narrowing laws covering different forms of employment discrimination, Washington’s new law is arguably the most restrictive. For instance, New York, California, and Illinois prohibit nondisclosure provisions related to unlawful discrimination in settlement agreements unless an employee wants such confidentiality. Washington State, however, takes it a step further by barring confidentiality clauses even if requested by the employee (as defined by the Act). As another example, New York law still permits nondisclosure clauses in pre-employment and severance agreements, but Washington’s law applies broadly to any agreement between the employer and “employee” as defined in the Act, including independent contractors not typically protected by EEO laws.
While Washington is the most recent state to pass a law on this subject, it may not be the last. The movement to prohibit secrecy covenants is gaining traction as workers’ advocates push for legislation at both the state and federal level banning the use of such covenants.
The newly-added section to Chapter 49.44 of the Revised Code of Washington provides that “a provision in an agreement between an employer and employee not to disclose or discuss conduct, or the existence of a settlement involving conduct, that the employee reasonably believed to be illegal discrimination, illegal harassment, illegal retaliation, a wage and hour violation, sexual assault, or against a clear mandate of public policy is void and unenforceable.” The Act broadly defines “employee” to include current, former, and prospective employees, as well as independent contractors; and encompasses all work-related conduct, whether occurring in the workplace or off-site.
Continue Reading Washington State Takes Aim At Workplace NDAs Under Its Silenced No More Act
Employers across the U.S. are requiring employees to return to the brick and-mortar workplace as COVID-19 cases drop, and they are looking forward to having employees work together again face to face.
But employers beware: employees have had little in-person interaction with their colleagues over the past two years, and some employees who were onboarded
Employers across the US are requiring employees to return to the brick and mortar workplace as COVID cases drop, and are looking forward to having employees work together again face-to-face. But employers beware: employees have had little in-person interaction with their colleagues over the past two years, and some employees who were onboarded during the pandemic have only met their coworkers virtually. Employees returning in-person may be rusty when it comes to interacting with others in the same physical space, increasing the risk that lines will be crossed into inappropriate or unlawful behavior. What should employers do as employees return to the office to try to keep claims of discrimination and harassment to a minimum?
With a focus on health and safety measures such as mask mandates and vaccine policies for the last two years, updating anti-discrimination and anti-harassment policies may not have been front of mind. But employers should review and update these policies now to ensure they comply with any newer laws in the jurisdictions where they have employees-such as Illinois’ Public Act 102-0419, effective January 1, 2022, which specifies that disability discrimination in Illinois now includes discrimination against an individual because of their association with a person with a disability. Updated policies should be distributed to employees, who should be required to acknowledge in writing that they have received and understand them.
Employers should also train employees on the company’s anti-discrimination and anti-harassment policies-especially before employees who have been working remotely for months or years return-to increase awareness of what is and is not appropriate workplace behavior. In one study, employees who received sexual harassment training were more likely to indicate that unwanted sexual gestures, touching, and pressure for dates are sexual harassment. Awareness of what is considered unacceptable behavior can help employees think twice before acting, and training showing specific examples of discrimination and harassment-such as actors portraying behavior that could be discrimination or harassment-may help employees understand behavioral boundaries.
Employers should ensure the training covers “to the moment issues” related to discrimination and harassment that may impact the workplace. For example, on March 18, 2021, the US House of Representatives passed the Creating a Respectful and Open World for Natural Hair Act (CROWN Act) which would prohibit discrimination based upon hairstyles in employment (as well as in public accommodations, housing, and other venues). Several states already have similar laws in place, including California, New York, Washington and Delaware. Even if the CROWN Act stalls at the federal level, training employees to respect each other-including each other’s hairstyles-can reduce complaints of discrimination.
Another example is microaggressions in the workplace. A recent Future Forum study indicated that only 3% of Black professional workers (compared with 21% of white professional workers) wanted to return to the office full time post-pandemic, after finding they faced fewer microaggressions from colleagues while working remotely. Aside from diversity and inclusion training (which many employers offer to employees), training all employees on the importance of respect in the workplace can keep all employees feeling welcome, included and valuable-whether they’re working remotely or in-person.
Employers should also ensure the training:
Some jurisdictions, including California, Connecticut, Illinois, Maine, New York State and New York City require employers to train employees on workplace harassment. But even if training is not required, employers should train employees before they return to the office-and regularly thereafter-to remind employees what inappropriate behavior looks like, how to report it, and the consequences for not following company policy.
As the Omicron wave recedes, a raft of states have announced plans to lift their mask mandates.
In the past few days alone, California, Connecticut, Delaware, Illinois, Massachusetts, Nevada, New Jersey, New York, Oregon, and Rhode Island have announced changes to their face covering rules. And if the number of Omicron cases continues to dwindle
