Most Employers Can Require Arbitration Agreements As A Condition Of Employment

In a victory for American employers, the United States Supreme Court has just ruled that class action waivers in arbitration agreements required as a condition of employment do not violate the National Labor Relations Act, the 1930s law that applies to all base level employees, even absent a union.

Most private California employers will now be able to require as a condition of employment that employees agree in advance to arbitrate employment disputes. A well-crafted arbitration agreement developed with the help of experienced employment counsel familiar with this case presents the possibility of reducing the time, expense, disruption to your business, and potential negative publicity of litigating class action employment disputes in court. As well, it eliminates exposure to a runaway jury verdict.

The case is Epic Systems Corp. v. Lewis, Ernst & Young LLP v. Morris, and NLRB v. Murphy Oil USA, Inc.

JULY 1: NEW NATIONAL ORIGIN REGULATIONS

REMINDER: California has approved new regulations addressing national origin protections for applicants and employees, including individuals who are undocumented. Even though California already has strict rules prohibiting harassment and discrimination based on protected classes, including national origin, California has approved new regulations which expand on those rules. These new regulations also reiterate the Fair Employment and Housing Act’s prohibitions against harassment and retaliation based on national origin.

Should you have any questions regarding the new regulations, contact the Employment and Labor attorneys at SBEMP.

NEW RULES SET FOR DETERMINING
EMPLOYEE VERSUS CONTRACTOR

In a decision likely to make it much harder for businesses to classify workers as contractors, the California Supreme Court has set aside a multi-factor standard California courts used for 30 years to determine whether a worker was an independent contractor or an employee under California’s various Wage Orders.

The Court ruled on April 30th in Dynamex Operations West v. Superior Court of Los Angeles County that from now on businesses must use a three-factor, or ABC, test when making that determination. The test presumes the worker is an employee and not an independent contractor unless each of three conditions is satisfied.

For additional information, contact our office or continue reading on SBEMP Facebook Page.

Employment & Labor Law Attorneys of SBEMP

thomas_s_slovak lena_d_wade vee_b_sotelo
 Thomas S. Slovak  Lena D. Wade   Vee B. Sotelo

SBEMP’S Labor and Employment Department is comprised of attorneys with decades of experience in a broad range of labor and employment matters from day-to-day counseling to labor negotiations and litigation. Our team is prepared to guide our clients through the complex myriad of employment laws affecting California employers. We assist our clients with day-to-day personnel management issues, such as drafting employment policies, managing leaves of absence, identifying potential problems in hiring and firing practices, and ensuring wage and hour compliance. Our attorneys are also experienced litigators who regularly represent clients in all types of employment litigation, including defending wage and hour class actions as well as lawsuits alleging discrimination, harassment, and retaliation. Additionally, we regularly represent clients in administrative proceedings, such as Labor Commissioner claims, CalOSHA citations, DFEH and EEOC investigations, and DLSE complaints. Our labor and employment practice is also prepared to assist clients with labor negotiations and disputes. Our labor attorneys are experienced in negotiating labor agreements as well as representing clients before the NLRB.

DISCLAIMER: This blog post does not constitute legal advice, and no attorney-client relationship is formed by reading it. This blog post may be considered ATTORNEY ADVERTISING in some states. Prior results do not guarantee a similar outcome. Additional facts or future developments may affect subjects contained within this blog post. Before acting or relying upon any information within this newsletter, seek the advice of an attorney.