employment law overview usa 2019-2020 - Jackson Lewis...as well as the EEOC, mandates that employers...

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employment law overview usa 2019-2020Jackson Lewis P.C. / Proud Member of L&E GLOBAL

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table of contents.

i. General overview 01II. PRE-EMPLOYMENT CONSIDERATIONS 03III. EMPLOYMENT CONTRACTS 04IV. wORkINg CONDITIONS 06V. ANTI-DISCRIMINATION LAwS 08VI. SOCIAL MEDIA AND DATA PRIVACY 11VII. AuThORISATIONS fOR fOREIgN EMPLOYEES 13 VIII. TERMINATION Of EMPLOYMENT CONTRACTS 14IX. RESTRICTIVE COVENANTS 17X. TRANSfER Of uNDERTAkINgS 19XI. TRADE uNIONS AND EMPLOYERS ASSOCIATIONS 20XII. EMPLOYEE BENEfITS 22


i. general overview

2. Key Points•The laws governing employment relationshipsin the U.S. come from federal, state and localstatutes,agencyregulations,andcaselaw.

•UnderUnitedStateslaw,therearenominimumrequirementsforanemploymentcontract.

•Exceptincertainmassdismissalsorasprovidedfor in an employment contract or a collectivebargainingagreement,U.S.lawdoesnotimposeaformal“noticeperiod”toterminateanindividualemploymentrelationship.

•Employees employed on an “at-will” basismay be terminated, with or without cause orgrounds,provided it isnot foran illegal reason,notablydiscriminationongroundsofacategoryprotectedby laworprotected“whistleblowing”activity (reporting certain employer activitywhere the employee reasonably believes thatthe information he or she provided relates topotentialviolationsofspecificlaws).

•UnderU.S.laborlaw,ifamajorityoftheemployeesin the bargaining unit who cast their vote hadvotedinfavorofunionrepresentation,theunionobtainstherightof“exclusive”representationofalltheemployeesinthebargainingunit(notonlytheemployeeswhovotedinfavoroftheunion).

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3. legal frameworKAsacommonlawandfederalnation,withfifty(50)states and countless municipal governments, theUnitedStatesdoesnothaveasinglesetofcodifiedlabor and employment laws applicable to allemployers.Rather,thelawsgoverningemploymentrelationshipsarederivedfromavarietyofsources.Federal statutes: United States federal lawsapply to all employers who engage in interstatecommerceandsetforththeminimumemploymentstandardsandprotectionsgoverningemploymentrelationships. The federal statutes addresssuch issues as wage and hours, medical leavesof absence, discrimination, trade unions andbargaining with trade unions, mass layoffs andplant closings. In addition, immigration andworkpermitsareregulatedbyfederal lawandapplytoallemployersregardlessofthesizeorthenatureofthebusiness.

state statutes: Each state’s laws are enforceableonly within its own borders. State laws oftenproviderightsnotarticulatedinfederalprotectionsor mirror federal statutes while extending thefederally provided protections to individuals notcovered or protected or expanding the scope ofprotections afforded to employees. Further, statelaws regulate unemployment insurance benefitsand workers’ compensation (for work-relatedillnessandinjuries).

1. introductionThe employment relationship in the United States is subject to markedly less regulation than in othercountries.Withtheexceptionofsomeprotectionsonwageandhoursandaprohibitionondiscrimination,thepartiestoanemploymentrelationshipintheUnitedStatesaregenerallyfreetonegotiateandsetthetermsandconditionsoftheirrelationship.Moreover,thedefaultpositionisthatprivate-sectoremploymentrelationshipsareat-will:eithertheemployerortheemployeemayterminatetheemploymentrelationshipatanytime,forany(non-discriminatoryornon-retaliatory)reasonwithorwithoutnotice.


employment law overview2019-2020 / usa

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local statutes: Cities and municipalities oftenenact employment laws that can provide greaterprotection to employees than those provided bystate or federal statutes. For example, althoughfederallawdoesnotprohibitdiscriminationbasedon gender identity in theprivate sector, the lawsof numerous state and local governmentsoutlawsuchdiscrimination.(EmployeeswhoworkfortheU.S.federalgovernmentarealsoprotectedagainstdiscriminationongroundsofsexualidentityundertheCivilServicesReformActof1978.)

Federal, state and agency regulations: Rulespromulgatedbyfederal,stateandlocalEmploymentOpportunities Commission (“EEOC”), the InternalRevenueServices,ortheDepartmentofHomelandSecurity set forth procedures for implementingfederal,stateorlocalstatutes.

court decisions: Through their decisions, UnitedStates courts interpret federal, state, and localstatutes and regulations and apply them to factspresentedineachparticularcase.Pastdecisionsoftheappellatecourtsserveasbindingprecedentonthelowercourts.

4. new develoPments

A. SEX DISCRIMINATION

OnOctober4,2017,AttorneyGeneralJeffSessionsreversed the Department of Justice’s positionthat gender identity is protected as part of TitleVII of the Civil Rights Act’s prohibition againstsex discrimination. The Department’s position iscontrary to the current guidance from the EEOC,whichhasstateddefinitivelythatitinterprets,andwill enforce accordingly, Title VII’s prohibition onsex discrimination as encompassing employmentdiscriminationbasedongenderidentityandsexualorientation.

TheOccupationalSafetyandHealthAdministration,as well as the EEOC, mandates that employersallowtransgenderemployeestousethebathroomthat corresponds to that employee’s genderidentity. Employersmay choose to offer a single-stall, separatebathroom facility toall employees,including those individuals who identify astransgenderorareintheprocessoftransitioning.

However, employers may not mandate thattransgender employees use separate bathroomfacilities.

Additionally, gender identity is included as aprotectedclassunder19stateandseveralhundredlocal anti-discrimination laws. TheDepartmentofJustice’spositionleavestheselawsunchanged.

B. CLASS ACTIONS

The U.S. Supreme Court recently ruled thatclass action waivers in employment arbitrationagreements do not violate the National LaborRelationsAct (NLRA).EpicSystemsCorp.v.Lewis,No. 16-285; Ernst& Young LLP et al. v.Morris etal.,No.16-300;National LaborRelationsBoardv.MurphyOilUSA, Inc.,etal.,No.16-307 (May21,2018). The Court explained that Section 7 of theNLRA is focusedonemployees’ rights tounionizeandengageincollectivebargainingandthatSection7 does not extend to protecting an employee’sright to participate in a class or collective action.Section7provides thatemployeeshave the rightto form, join, or assist unions, and to engage inother concerted activities for their mutual aidand protection. The Court held that class actionwaiversinemploymentarbitrationagreementsareenforceableundertheFederalArbitrationAct.


ii. PRE-EMPLOYMENT considerations 1. does a foreign emPloyer need to establish or worK through a local entity to hire an emPloyee? Asamatteroftax,statecorporate law,andotherregulatory requirements, it may be necessary toeitherestablisha localentityorregistera foreignentity locally,dependingonthenatureandscopeofthebusinessactivityassociatedwiththehiring.Thisneedstobeinvestigatedwithtaxandcorporatelawadvisorsonacase-by-casebasis.Independentof these requirements, the foreign employermay be subject to federal and state income taxwithholding obligations as well as payment ofsocialsecurity,disability,unemploymentandotherpayrollcontributionswithrespecttoemploymentofindividualswithintheUS.

2. limitations on bacKground checKsIt is illegal in certain U.S. states (and cities) toask about an applicant’s criminal history on anemploymentapplication.Suchlawstypicallymakeexceptionsforcertainpositionsforwhichcriminalhistory informationmay be required by law. Thebest practiceunderU.S. law is generally to avoidaskingaboutarrestsand/orconvictionsonthejobapplication and, instead, wait until the employerhas made a conditional offer of employment.In the case of a conviction revealed later in theapplicationprocess,thebestpracticeistoconductanindividualizedassessmentofthejob-relatednessoftheconvictiontothejobtowhichthecandidateapplied.

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Anotherconsiderationintheapplicationprocessiscompliancewith the federal FairCreditReportingAct (“FCRA”), which governs the collection,assemblyanduseofinformationaboutconsumersby consumer reporting agencies, including creditinformation, criminal background, motor vehiclereports, and other public record information.ThoughFCRAappliesonly to “consumer reports,”employers must ensure they comply with anyrelevant requirements if theyseek toobtainsuchinformation.Certainstatesandcitiesalsoprohibittheuseofcredit-relatedinformationwhenmakingemploymentdecisions.

3. restrictions on aPPlication/interview QuestionsIn general, federal prohibitions on employmentdiscrimination(seeSectionVbelow)alsoapplytohiringdecisions.Inotherwords,justasyoucannotterminateanemployeebecauseheorshebelongstoaprotectedcategory,youcannotrefusetohirean applicant on account of his or her protectedstatus. For this reason, employers should avoidasking questions on a job application or in aninterview,whicharelikelytorevealtheapplicant’smembership in a protected group. Similarly, tocomply with background check laws mentionedabove,employersshouldavoidaskingaboutarrestsand/orconvictionsonthejobapplicationorduringaninterview.



iii. emPloyment contracts1. minimum reQuirementsUnder the laws of the United States, there areno minimum requirements for an employmentcontract. Also, in most states, no writtenmemorialization of any terms is required. Anemployment relationship in the United States ispresumedtobe“at-will,”i.e.,terminablebyeitherparty, with or without cause or notice. Indeed,a majority of employees in the United State areemployedonan“at-will”basis,withoutawrittenemployment contract, and only with a writtenofferofemploymentthatoutlinesthebasictermsand conditions of their employment. There areno requirements as to theminimum contents ofanoffer letter. In some states, suchasNewYork,employersmustbylawnotifyemployeesinwritingof someof the termsofemployment (butnotasextensiveasisrequiredunderthelawofEUMembercountries). Under New York law, employersmustnotifyemployeesinwritingatthetimeofhiringoftheirregularrateofpay,paydayandovertimerate,if applicable, as well as the method of payment(i.e.,whetheremployeeswillbepaidbythehour,shift,day,week,salary,pieceorcommission)andanyallowancesthatwillbeclaimedaspartoftheminimumwage(fortips,mealsorlodging),amongotherrequirements.

Highly-skilled and compensated employees (e.g.,high-level executives) are traditionally employedpursuanttowrittenemploymentcontracts.Thesecontractsspecifythebasictermsandconditionsofemployment,suchasposition,jobresponsibilities,salary, compensation, incentive pay, and stockoptions.Thesealsodefinewhatconductwilljustifytermination for cause and provide for severancepayincaseofterminationwithoutcause.

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Whether theemployment relationship is “at-will”or pursuant to a written employment contract,partiesarefreetonegotiateandsetthetermsandconditionsoftheirrelationship,solongasnoneoftheprovisionsviolateanyfederal,stateorlocallaw,rules or regulations governing the employmentrelationship (e.g., thepaypracticesestablished inthe Fair Labor Standards Act, the prohibition ofdiscriminationunderthefederalCivilRightsActof1964,andthelike).

2. FixEd-TERM/OPEN-ended contractsNolegalprovisiongovernsfixedorunlimitedtermcontracts.Unlikemanyother countries,Americanlaw does not limit the duration of a fixed-termemployment contract or the circumstancesunder which the parties may enter into a fixed-term employment contract. In the absence of anemployment contract, employment relationshipsarepresumedtobe“at-will,”terminablebyeitherpartyatanytime,withorwithoutcause.

3. trial PeriodNolegalprovisiongovernsaformal“trialperiod.”However,manyemployershavean internalpolicyontrialperiods,oftenreferredtoas“introductoryperiods”or“probationaryperiods.”Theseinternalpolicies are crafted based on the needs of aparticular employer. They generally provide fora formal performance evaluation after an initialstated period of employment (often ninety (90)days).Employersgenerallyconditionanemployee’sparticipation in their individually establishedemployee benefits programs on a successfulcompletionofthe“probationary”or“introductory”




period.Iftheemployeesarerepresentedbyalaborunion, the provisions of the collective bargainingagreement protecting the employees againstdischarge without cause frequently do not applyto employees during their probation period ofemployment.

4. notice PeriodExcept in certain mass dismissals or as providedfor in an employment contract or a collectivebargainingagreement,U.S.lawdoesnotimposeaformal “noticeperiod” to terminate an individualemployment relationship. Most employees areemployed“at-will”andeitherpartycanterminatethe employment relationship without notice. Insome states, where payout of unused vacationtime isnot requiredby law,employers frequentlywill pay an employee for unused vacation days,providedtheemployeegavesomeadvancednoticeofresignation.

Under the Worker Adjustment and RetrainingNotification Act (“WARN Act”), employers mustgive60days’advancenoticetoaffectedemployeesin advance of plant closings or covered masslayoffs.AfurtherdiscussionoftherequirementsoftheWARNActcanbefoundbelow.


iv. worKing conditions 1. minimum worKing conditionsThe federal Fair Labor Standards Act (“FLSA”),regulateswages,workinghoursandovertimepayforcoveredemployees.Certainemployeesemployedin “executive, administrative or professional”positionsarenotcoveredundertheFLSAandaredeemed “exempt” from its requirements. Othercategoriesofemployeesarealso“exempt”undertheFLSA.Theseinclude,amongothers,outsidesalesemployees,certainskilledcomputerprofessionals,employees of certain seasonal amusement andrecreational businesses, causal babysitters andpersonsemployedascompanionstotheelderlyorinfirm.OthercategoriesofemployeesareexemptfromtheFLSA’sovertimepayrequirementsonly.

2. salaryThe FLSA sets forth a (national) minimum wagefor all non-exempt employees of $7.25 per hour.As directed by former President Barack Obamain Executive Order 13658, the U.S Departmentof Labor (“DOL”) released a Notice of ProposedRulemakinginJune2014toincreasetheminimumwage for all workers on new federal contracts.Effective January1, 2018, theminimumwage forfederal contractors working on or in connectionwith contracts coveredby ExecutiveOrder 13658willbe$10.35perhour.

Statesarefreetolegislateahigherminimumwage.The majority of U.S. states have minimum wagerates above the federal standard. Some citiesimposehigherminimumwageratesforemployeesthat work for employers in the municipal areasof thosecities.Forexample, inSanFrancisco, theminimumwageis$15perhourasofJuly2018.

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3. maximum worKing weeKAmericanworkplacelawdoesnotimposemaximumworking hours. However, many state statutesmandatedailyrestperiodsaswellasaone-dayrestperiodeachweek.Forexample,anumberofstates(includingCalifornia, Colorado, Kentucky,Nevada,Oregon and Washington) generally require thatemployees who work more than four hours perdayreceiveabreakofatleast10minutesforeveryhourworked.Also,manystatesrequireanunpaidmealbreakofatleast30minutesafteremployeesworked a set number of hours per day (whichthreshold working hours generally ranging fromfivetoeight,dependingonthespecificstatelaw).Furthermore, several states (including California,Illinois, Massachusetts and New York) mandatethatemployeereceiveatleastonedayoffineachseven-dayperiod.

4. overtimeUnder the FLSA, non-exempt employees mustreceiveone-and-one-halftimes(1.5X)theirregularrateofpayforallhoursworkedinexcessof40hoursperweek. Generally, non-working time, includingleaves of absence, rest periods, holidays andvacationtime,isnotcountedtowardthe40-hour-a-weekovertimethreshold.



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5. health and safety in the worKPlace

A. EMPLOYER’S OBLIgATION TO PROVIDE A hEALThY AND SAfE wORkPLACE

TheOccupationalSafetyandHealthAct (“OSHA”)requires employers to provide employees with asafeandhealthyplaceofemployment,whichisfreefromrecognizedhazards(deathorseriousphysicalharm).TheOSHAregulationsgovernawidevarietyof workplace conditions, and require employers:a)toremedyknownworkplacehazards;b)tolimitthe amount of hazardous chemicals workers canbeexposedto;c)tousecertainsafepracticesandequipment; and d) to monitor hazards and keeprecordsofworkplaceinjuriesandillnesses.

B. INVESTIgATIVE PROCEDuRES

ThereareseveralwaysthattheOccupationalSafetyandHealthAdministration,thegovernmentagencyresponsibleforenforcingtheOSHAct,mayinitiateaninspectionofanemployer’sfacilityorworksite:

•imminent danger:TheseinspectionsareinitiateduponOSHAlearningofa

hazard that could potentially cause death orseriousbodilyharmataworksite.

•Fatalities or Catastrophes: These types ofinspectionswillbeinitiatedfollowinganemployerreport of a work-related fatality or in-patienthospitalizationofoneormoreemployees.

•Complaints: Complaint inspections are initiatedas a result of employees contacting the agencyto raise safety and health concerns. Complaintinspectionsareincreasinglycommon.Employeesareofferedanonymityforthesecomplaintsandcan nowmake themwith the click of a buttonovertheinternet.

•referrals: Referral inspections are similar tocomplaint inspections, except the safety andhealth concerns come from other agencies orindividualsoutsideofthecompany.

•Programmed inspections: These inspectionsare aimed at specific high-hazard industries orworkplaces that have exhibited high rates ofinjuriesorillnesses.

C. PROTECTION fROM RETALIATION

Any employee who believes that he or she hasbeen discharged or retaliated against as a resultofengaginginprotectedactivity,suchasreportingpotentially unsafe working conditions, may file awhistleblower complaint with the OccupationalSafetyandHealthAdministration. The complaintdoesnothavetobefiledinwritingorbeparticularlydetailedorspecificinnature.Thecomplaintmustbefiled,however,within30daysofthedischargeorotherretaliatoryconduct. Thus, inadditiontoensuringoverallcompliancewithOSHAsafetyandhealth standards, employers need to ensure thatthey have strong internal programs to encourageemployees to voice safety and health complaintsanddosowithoutfearofretaliation.



V. ANTi-diSCRiMiNATiON laws1. brief descriPtion of ANTi-diSCRiMiNATiON lawsIt is illegal underU.S. federal law to discriminateagainstanemployee,eitherintentionallyorthroughadisparate impact,onaccountofhisorherrace,color, religion, sex (includingpregnancy),nationalorigin, age (40 or older), disability or geneticinformation.Itisalsoillegaltoharassanemployeeonaccountoftheseprotectedcharacteristicsortoretaliate against an employee because he or shecomplainedaboutdiscrimination,filedachargeofdiscrimination, or participated in an employmentdiscrimination investigation or lawsuit. Mostemployerswithatleast15employeesarecoveredbythisbodyoffederallaw,asaremostlaborunionsandemploymentagencies.

2. extent of ProtectionTitle Vii and Title ii of the Civil Rights Act of 1964: TitleVIIprohibitsdiscriminationagainstemployeesand applicants on the basis of race, color, sex(includingpregnancy),nationalorigin,andreligion.TitleVIIandotherfederaldiscriminationlawsalsoprotectemployeesfromretaliationforcomplainingofdiscrimination,filingacharge,orassistinginaninvestigationofdiscrimination.

Age discrimination in Employment Act (“AdEA”): The ADEA prohibits employment discriminationagainstpeople40yearsofageandolder.

Americans with disabilities Act (“AdA”): TheADAis a federal lawprohibiting discrimination againstindividuals (employees, applicants, and guests)with a disability and requires the provision of areasonable accommodation to someone who islegally disabled. The ADA Amendments Act of

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2008,whichexpresslyoverturnedseverallandmarkSupremeCourtdecisionsnarrowlyinterpretingthedefinition of “disability,” significantly expandedthe protections afforded to disabled individuals.Asaresult,manymorehealthconditionsarenowconsidered“disabilities”undertheADA,forwhichreasonableaccommodationmayberequired.

Equal Pay Act (“EPA”): The Equal Pay Act is anamendment to the Fair Labor Standards Act thatprohibits paying differentwages to employees ofdifferent sexes who perform equal work undersimilarconditions.

Pregnancy discrimination Act (“PdA”): ThePDA is an amendment to Title VII that prohibitsdiscrimination against an employee because ofpregnancy.

Genetic information Non-discrimination Act (“GiNA”): GINA prohibits employers fromdiscriminating against employees because of anemployee’s “genetic information.” The law alsoprohibitsemployers fromrequesting, requiringorpurchasing genetic information of an employee,subject to a small number of limited exceptions.Under GINA, “genetic information” meansinformation about the “genetic tests” of anindividualorhisfamilymembers,andinformationaboutthemanifestationofadiseaseordisorderinfamilymembers of such individual.Medical testssuch as blood counts, cholesterol screenings, orliverfunctiontestsarenot“genetictests.”

state laws: State lawsonlyapply to thestates inwhichtheyareenacted.Manystateshavepassedlaws that prohibit discrimination. Often theselaws mirror federal statutes. However, in somecases these laws provide additional or increasedprotections not required by federal laws, suchas prohibiting discrimination based on maritalstatus or sexual orientation. In states with more





expansive employee protections, state law willoftenpredominateasabasisforemploymentlawclaims.

3. Protections against harassment TheprohibitionsondiscriminationunderTitleVII,the ADEA and the ADA discussed above includeharassment, which is unwelcome conduct, basedon one of these protected characteristics, that a“reasonableperson”wouldconsider“intimidating,hostile,orabusive”(EEOCwebsite).Itisalsoillegaltoharass individuals in retaliation forengaging inprotected conduct, such as filing a discriminationcharge or participating in an investigation ofalleged discriminatory conduct. In general, theperson engaging in harassing conduct does notneed to be the victim’s supervisor and can beany agent of the employer, a co-worker, or anon-employee. However, the employer will onlybe liable for harassment by a non-supervisoryemployee or non-employee if it has control overtheharasser and it knew, or should have known,about the harassment and failed to take promptandappropriatecorrectiveaction.

4. emPloyer’s obligation to Provide reasonable accommodations The ADA defines “discrimination” as includingthe failure to make reasonable accommodationsto theknownphysicalormental limitationsofanotherwisequalified individualwho isanapplicantor employee, unless such covered entity candemonstrate that the accommodation wouldimposeanunduehardshipontheoperationofthebusiness of such covered entity. Undue hardshipmeans that the accommodation would be toodifficultortooexpensivetoprovide,inlightofanemployer’ssize,financialresources,andtheneedsofthebusiness.Ifmorethanoneaccommodationiseffective,theemployermaychoosewhichonetoprovideandneednotprovidetheaccommodationrequestedbytheemployee.

Some examples of a reasonable accommodationinclude part-time or modified work schedulesand job restructuring. The EEOC’s EnforcementGuidancealsoprovidesthatunpaidleaveisaformof reasonableaccommodationwhennecessitatedbyanemployee’sdisability.Becauseanemployer’sreasonable accommodation obligations continueaslongasanemployeeisdisabled,theobligationtoprovidejob-protectedleaveundertheADAmayrequirethatemployersprovidejob-protectedleaveforperiodsbeyondthatrequiredbyotherfederalorapplicablestatelaw.

TheEEOChasalsotakenthepositionthatemployersmust accommodate an employee’s reasonablerequest for modification of dress and uniformpolicies on sincerely held religious beliefs unlessthere is an undue hardship. For this purpose,undueburdeniseasierforemployerstoprovethanundertheADA,thoughstillsubstantial.

5. remediesU.S.employeeswhobelievetheyhavebeenunfairlydiscriminatedagainstmayseek redress invariousfederal,stateandlocaladministrativeagencies,andtheU.S. federal and statecourts. Individualswhoassertfederaldiscriminationclaims(andsomestateclaims)mustfirstfileachargeofdiscriminationwiththefederalEEOCortherelevantlocalagencybeforebringingalawsuitagainsttheemployerincourt.Inthefederalsystem,theagencywilltheninvestigateanddeterminewhetherornotthereisreasonablecause to believe that discrimination occurred. Iftheagencyfindsthatthereisreasonablecause,itwillattempt to reachavoluntarysettlementwiththeemployer.Insomecases,theagencywillfilealawsuit in federalcourtontheemployee’sbehalf.Theemployeecanonlysuetheemployerincourtif the agency does not find reasonable cause orcannotobtainrecoveryfortheindividual.

IntheU.S.,ifthecourtfindsthataterminationwastheresultofunlawfuldiscrimination,theemployeemaybeentitledtoreinstatement(rarelygranted),monetarydamagesandattorneys’fees.Monetarydamages include compensation for wages andbenefits lost as a result of the termination, and,in some cases, for emotional or physical distresssuffered as a result of the employer’s actions. Incases involving an egregious violation of the law,



theemployermaybeliableforpunitivedamages.Federal law imposes caps on compensatory andpunitivedamages;manystatesdonot.

6. other reQuirements Ingeneral,federalandstateanti-discriminationlawsprohibitracially-motivatedemploymentdecisions,eveniftheemployer’sgoalistopromotediversity.However,inextraordinarylimitedinstanceswhereneutralmeasureshave failed, the SupremeCourtand EEOC have authorized race/gender-consciousprograms and employment selection decisions—provided such actions are taken pursuant to acompliantVoluntaryAffirmativeActionPlan.

Some exceptions also exist with respect tocompanies thatdobusinesswith theU.S. federalgovernment. Specifically, government contractorsmust comply with additional equal employmentopportunity rules and regulations, including: (1)ExecutiveOrder11246,whichappliestominoritiesand women; (2) Section 503 of the VocationalRehabilitation Act of 1973, which applies toindividuals with disabilities; and (3) The VietnamEra Veterans’ Readjustment Assistance Act of1974,whichappliestocertaingroupsofprotectedveterans, including veterans with disabilities andrecentlyseparatedveterans.Theseobligationsareenforced by the Department of Labor’s Office ofFederalContractCompliancePrograms.

vi. social media and data Privacy 1. restrictions in the worKPlaceWhilethereisnospecificruleprohibitingemployersfrom restricting employees’ social media useduring working hours, there are certain laws,discussed below, that employers should consider,particularlywithrespecttoanytypeofmonitoringofemployees’socialmediause.

A. CAN ThE EMPLOYER MONITOR, ACCESS, REVIEw ThE EMPLOYEE’S ELECTRONIC COMMuNICATIONS?

TheStoredCommunicationsAct (“SCA”)generallyprohibitsaccessing theonlineaccountofanotherwithoutthatindividual’sconsent.Similarly,simplyasking employees for the passwords to accesstheir social media or online account generally isimpermissible inanumberofstates. Inaddition,employees have common law “privacy rights”which are enforced through tort claimsbasedoninvasionofprivacytheories.

Further, the National Labor Relations Board(“NLRB”)hasruledemployeeshavearighttousetheir employers’ email systems for nonbusinesspurposes, including communicating about unionorganizing.Specifically,theNLRBheld“employeeuseofemail forstatutorilyprotectedcommunicationson nonworking time must presumptively bepermitted,”PurpleCommunications,Inc.,361NLRBNo.126(Dec.11,2014)(emphasisadded).

Recently, the NLRB asked for briefs on whetherit should modify or overrule its rule in PurpleCommunications. Rio All-SuitesHotel and Casino,No. 28-CA-060841 (Aug. 1, 2018). The Boardalso asked whether its standard should apply tocomputerresourcesbeyondemailsystems,suchas

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instantmessages, textmessages,andpostingsonsocial media.

While different employers can reach differentconclusionsaboutwhethertomonitoremployees’social media use, in all cases, employers shouldavoid efforts to gain unauthorized access to anemployee’s social media account informationand should carefully consider any employmentdecisions it intends to implement on account ofinformationobtainedthroughsocialmedia.

2. emPloyee’s use of social media to disParage the emPloyer or divulge confidential informationEmployersmusttreadcarefullyinsituationswhereanemployeedisparagestheemployerordivulgesconfidentialinformationusingsocialmedia.

First,theemployeemaybeprotectedunderafederalorstatewhistleblowerlaw,whichgenerallyprotectsemployeeswho complain about certain companyactivitiesorconditionsaffectingpublichealthandsafetyorviolatingpublicpolicystandards,aswellasemployeeswhoreportpotentialsecuritiesfraudviolations.Forexample,theSarbanes-OxleyActof2002(“SOX”)prohibitsemployersfromterminatingemployees for “provid[ing] information, caus[ing]informationtobeprovided,orotherwiseassist[ing]in an investigation regarding any conduct whichthe employee reasonably believes constitutes aviolationof…anyruleorregulationoftheSecuritiesand Exchange Commission, or any provision ofFederallawrelatingtofraudagainstshareholders.”





The investigation, however, must be conductedby, among others, a person with supervisoryauthority over the employee. An employeewhoreportsallegedsecuritiesfraudonacompanyblogmonitored by management to detect improperactivitieswithintheworkplacecouldbeprotected,forexample,underSOX.

Second,theNationalLaborRelationsAct(“NLRA”)affords employees (even those who are notunionized) the right to engage in “concertedactivity,” including the right to discuss the termsand conditions of their employment—and evento criticize their employers—with co-workers andoutsiders.NotallconcertedactivitiesareprotectedbytheNLRA;onlythoseactivitiesthatareengagedin for the purpose of collective bargaining orother mutual aid or protection are covered. Ingeneral, employee’s concerted activity will beprotectedunderSection7oftheNLRAwhere,forexample,theemployee’sstatementsimplicatetheemployee’sworkingconditions,regardlessofhowthose statements are communicated. Anotherexample of protected activity under Section 7occurs when the employee protests supervisoryactions. However, these protections can be lostwheretheemployee’soutburstsaboutasupervisoraretoo“opprobrious”tomaintainprotectionunderSection7.Protectionalsocouldbelostwherethecommunication isdisloyalorhas the tendency todamageanemployer’sbusinessandaremadewithreckless disregard of the truth or aremaliciouslyuntrue. What exactly constitutes protectedconcerted activity requires further examinationandanalysisofthefactsatissueonacase-by-casebasis.

In 2012, theNLRBActingGeneral Counsel issueda reportfindingcertainpolicy language regardingemployee social media use to be problematic,includingthefollowing:

•Prohibitingpostsdiscussingtheemployer’snon-publicinformation,confidentialinformation,andlegalmatters(withoutfurtherclarificationofthemeaningoftheseterms);

•Prohibiting employees fromharming the imageandintegrityofthecompany,makingstatementsthataredetrimental,disparagingordefamatorytotheemployer,andprohibitingemployeesfromdiscussingworkplacedissatisfaction;and

•Prohibiting posts that are inaccurate ormisleadingorthatcontainoffensive,demeaningor inappropriate remarks, and instructingemployeestouseafriendlytoneandnotengageininflammatorydiscussions.

Ontheotherhand,theActingGeneralCounselfoundasocialmediapolicythatprevented“inappropriatepostingsthatmayincludediscriminatoryremarks,harassment and threats of violence or similarinappropriate or unlawful conduct” to be lawful“since it prohibit[ed] plainly egregious conduct,such as discrimination and threats of violence.”Additionally,theActingGeneralCounseldeterminedthatanemployer’ssocialmediapolicypreventingthedisseminationoftradesecretsandconfidentialinformationwaslawfulwherethepolicyprovidednumerous examples of what specifically shouldnotbedisseminated,suchassystemdevelopmentinformation, processes and internal reports.Though the NLRB is unlikely to rescind the 2012memorandum, NLRB interpretations may bemore favorable to employers now that there is aRepublicanmajorityontheBoard.

vii. authorisations for foreign emPloyees reQuirement for foreign emPloyees to worK Foreign nationals without permanent residentstatus or a work visa are not permitted to workin the United States. An employer seeking tohire a foreign national may file, on behalf of itsprospectiveemployee, apetitionwith theUnitedStatesDepartmentofHomeland Security/UnitedStates Citizenship and Immigration Services(“USCIS”)foranemploymentvisa.Ifthepetitionisapproved, the prospective employeemust obtaina “visa stamp” from a United States embassy orconsulate.Canadiancitizensareexemptfromthisrequirement.

Alternatively,anemployermaysponsorapotentialemployee’s application for permanent residentstatus, referred to as a “green card,” if they areable toestablish that thepotentialemployee isamultinational executive/manager transferee, hasuniqueskills,orisbeingofferedajobintheUnitedStates for which the employer has been unabletorecruitaU.S.workerwhomeets theminimumrequirements of the position. In most of theimmigrant visa categories, the processing delaysmakeitimpracticaltouseanimmigrantvisaasthevehicleforenteringtheUnitedStatesforaninitialassignment. The normal procedure is to obtain ashort-termworkvisainitiallyandseekanimmigrantvisaaftertheemployeehasstartedworkingintheUnitedStates.Allemployersareobligatedtoverifythatall individuals theyemployareauthorized toworkintheUnitedStates.Todoso,employersarerequired to complete a USCIS Form I-9 for eachnewlyhiredemployee.Employershavetheoptionof participating in the on-line E-Verify program,

under which USCIS confirms whether or not anemployeeisinfactauthorizedtoworkintheUnitedStates.

Rather than hiring workers one by one, U.S.companies may engage outsourcing and staffingfirms that obtain H-1B visas and hire groups ofhigh-skilled foreignworkerswho then are placedwith the U.S. company as needed. As part of itsefforttoprotecttheU.S.workforceandpreventtheabuseof immigrationprogramsasoutlined inthe“Buy American, Hire American” Executive Order,theTrumpAdministrationhastargetedoutsourcingand staffing firms that use H-1B visas. TheAdministration said abuses of the H-1B program,such as not paying the required wage or havingworkersdo“non-specialtyoccupation”work,harmtheU.S.workforceandaremorelikelytooccuratthird-partyworksites.

an alliance of employers’ counsel worldwide | 13 employment law overview

2019-2020 / usa

viii. termination of emPloyment contracts 1. grounds for termination Generally, employees employed on an “at-will”basis may be terminated, with or without causeorgrounds,provideditisnotforanillegalreason,notably discrimination on grounds of a categoryprotected by law or protected “whistleblowing”activity (reporting certain employer activitywheretheemployeereasonablybelievesthattheinformationheorsheprovidedrelatestopotentialviolations of specific laws). The employmentcontracts of executives and other highly-skilledindividual often incorporate a “just causetermination”clause,mandatingthattheemployeemay only be terminated for “cause” and lists thepermissiblegrounds.Insuchcases,thegroundsfora “just cause” termination are negotiated by thepartiesonacase-by-casebasis.

2. collective dismissalsThereareno restrictionsonanemployer’sabilitytocollectivelydismissitsemployees.However,theWARNActrequirescoveredemployerstoprovide60days’noticeinadvanceofcoveredplantclosingsand mass layoffs to: 1) the affected workers ortheir representatives (e.g., a labor union); 2) thedislocated worker unit in the state where thelayofforplantclosingwilloccur;and3)tothelocalgovernment.

In general, employers are covered by theWARNActiftheyhave100ormoreemployees,excludingemployeeswhohaveworkedfewerthansixmonthsinthelast12monthsandnotcountingemployeeswho work an average of fewer than 20 hours aweek. A covered plant closing is defined undertheWARNActastheshutdownofanemployment

site (or one or more facilities or operating unitswithin an employment site) that will result inan employment loss (as defined) for 50 ormoreemployeesduringany30-dayperiod.Thisdoesnotcountemployeeswhohaveworkedfewerthansixmonths in the last 12months or employeeswhoworkanaverageoffewerthan20hoursaweekforthat employer. These latter groups, however, areentitledtonotice.

A coveredmass layoff is defined as a layoff thatdoesnotresultfromaplantclosing,butwhichwillresult in an employment loss at the employmentsite during any 30-day period for 500 or moreemployees,orfor50-499employeesiftheymakeupatleast33%oftheemployer‘sactiveworkforce.As defined in theWARN Act, “employment loss“means: (1) an employment termination, otherthanadischargeforcause,voluntarydeparture,orretirement;(2)alayoffexceedingsixmonths;or(3)areductioninanemployee’shoursofworkofmorethan50%ineachmonthofanysix-monthperiod.

Even if a singlemass layoff or plant closing doesnot trigger the WARN Act’s collective dismissalrequirements,anemployeralsomustgivethe60-dayWARNActnoticeifthenumberofemploymentlossesfortwoormoregroupsofworkers,eachofwhichisfewerthantheminimumnumberneededto trigger notice, reaches the threshold level,duringany90-dayperiod,ofeitheraplantclosingormasslayoff.

Inadditiontothe federalWARNAct,manystateshave implemented their own collective dismissalnotificationstatutes,knownas“mini-WARN”laws.Thestatemini-WARNlawsoftenmirrorthefederalstatute, but often lower theminimum thresholdsforprovidingnotice.



3. individual dismissalsExcept as otherwise provided in an employmentcontractorcollectivebargainingagreement,nolawrequires employers to follow a formal procedurewhendischarging individualemployees.However,employees are protected fromunfair dismissal inviolationof federal, stateand localdiscriminationoranti-retaliationlaws.

A. IS SEVERANCE PAY REquIRED?

Except as otherwise provided in an employmentcontract or collective bargaining agreement,employersneednotmakeseverancepaymentstoterminatedemployees.However,employersoftenoffer severance payments to bind an agreementmadebetweentheemployerandemployeeatthetimeof terminationtowaiveanypotentialclaimsarisingoutoftheemploymentrelationship.

4. seParation agreements

A. IS A SEPARATION AgREEMENT REquIRED OR CONSIDERED BEST PRACTICE?

SeparationagreementsarenotrequiredunderU.S.law.Incertainsituations,theemployeemayagreetoacontractualwaiverofstatutoryrights,suchasthoseunderfederalandstateanti-biaslaws.

B. whAT ARE ThE STANDARD REquIREMENTS Of A SEPARATION AgREEMENT?

Such agreementsmust generallymeet a numberof requirements to be enforceable, including thefollowing: (1) the waivermust be knowingly andvoluntarily executed by the employee; (2) theprocess for obtaining the waiver must be freeof employer fraud, undue influence, or otherimproper conduct; and (3) the agreement mustbe supported by consideration over and aboveanybenefits towhichtheemployee isentitledasamatterofpolicyorpastpractice(e.g.,severancepay or a severance plan, extended or continued

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insurance coverage, outplacement services, prorata incentive compensation, or forbearance onemployeeloans).

C. DOES ThE AgE Of ThE EMPLOYEE MAkE A DIffERENCE?

Specific criteriamust be satisfied for a waiver offederalagediscriminationclaimstobeconsidered“knowingandvoluntary”undertheOlderWorkersBenefitProtectionAct(“OWBPA”).Thewaivermustbe written in easily understandable terms, mustreferspecificallytorightsandclaimsexistingunderthe Age Discrimination in Employment Act,mustprovideaminimumtimeperiod forconsiderationand revocation, and cannot extend to rights orclaimsthatmayariseafterthedatethereleaseisexecuted.Additionally,itmustadvisetheindividualinwritingtoconsultanattorneybeforeexecutingtheagreement.

D. ARE ThERE ADDITIONAL PROVISIONS TO CONSIDER?

Additional disclosure requirements apply whenwaivers are requested from a group or class ofemployees,asinamasslayofforreductioninforce.

5. remedies for emPloyee seeKing to challenge wrongful terminationAlthough individuals employed on an “at-will”basis can be dismissed with or without cause,they are protected from discriminatory adverseemployment actions, including dismissal, underthefederal,stateandlocalcivilrightslaws,aswellas various anti-retaliation provisions discussedelsewhereinthememo.

Inadditiontothecivilrightsstatutes,employeesareprotectedfromdismissalinretaliationforengagingin various “protected activities,” including: 1)making reports or complaints regarding potentialviolations of federal securities law; 2) makingreports or complaints of dangers to the publichealthor safety; and3) reporting conduct that is





against thepublicwelfareorpublicpolicy. Somestateshavebroaderwhistleblowinglawsprotectingcomplaints of possible fraudulent or criminalconduct.

Employeesfoundtohavebeenunfairlyterminatedin violation of the civil rights statutes or anti-retaliation provisions can resort to the variousadministrative agencies and the court systems. Ifanemployeeisfoundtohavebeenterminatedinviolation of any applicable statute, the employeemay be entitled to some or all of the followingremedies:1) reinstatement to formerposition;2)monetarydamagesforwagesandbenefits lostasaresultofthetermination;3)monetarydamagesfor any emotional or physical distress sufferedas a result of the employer’s actions; 4) punitivedamages intended to punish an employer foregregious violationsof the law; and5) attorneys’fees.

6. whistleblower laws Twomajorwhistleblower laws in theU.S.are theSarbanes-Oxley Act of 2002 (SOX) and theDodd-FrankActof2010.TherearealsoanumberofOSHAwhistleblower statutes that prohibit retaliation,or “adverse action,” against workers who reportinjuries,safetyconcerns,orotherprotectedactivity.Further, there are a number of whistleblowerlaws at the state and local levelswhich generallyprohibit retaliationagainstemployeeswhoreportmisconduct.Insomestates(e.g.NewJerseyundertheverybroadConscientiousEmployeeProtectionAct), it is very important for the employer toconsider potential whistleblowing exposurewheneverdiscipliningorterminatinganemployee.The Sarbanes-Oxley Act includes provisionsprohibiting discrimination against corporatewhistleblowers who have revealed financialand other wrongdoing within a publicly tradedcompany.SOXincludesabroadrangeofcorporateaccountability and transparency measures,including a requirement that corporate boardsestablish internal independent audit committees.Theseaudit committeesmustestablishcomplaintprocedures and accept anonymous complaints.SOXalsoincludesprovisionsforenhancedfinancialdisclosures, as well as provisions addressingauditorindependenceandcertificationoffinancialstatementsbycorporateofficers.

Sarbanes-Oxley’s whistleblower provisions createbroad protection for employees of publicly heldcompanies (andtheircontractors, subcontractors,andagents)whohaveareasonablebeliefthatfraudor otherwrongdoing has occurred in violation ofU.S.securitieslaws.Arangeofconductisprotected,including internal complaints, communicationswith Congress, contacts with governmentagencies, and participation in investigations ofsecurities law violations. Employees who sufferreprisals for engaging in protected conduct mayfile administrative complaints with the U.S.Department of Labor’s Occupational Safety &Health Administration (“OSHA”) within 180 daysof the alleged discrimination. Complainants mayname the company aswell as specific individualsinsuchcomplaints.OSHAisrequiredtodeterminewhetherthereisreasonablecausetobelievethatthecomplainthasmeritwithin60daysofthefilingof the complaint. IfOSHAbelieves the complainthasmerit,itcanorderrelief,includingpreliminaryreinstatement.

The Dodd-Frank Act allows for the award ofmonetaryincentivestoindividualswhovoluntarilyprovideoriginalinformationrelatingtoaviolationofthesecuritieslaws,whichresultsinthecollectionofmonetarysanctionsexceeding$1milliondollars.The bounty can range from 10 to 30 percent ofthe aggregate amount of sanctions collected,to be set at the discretion of the Commission(a number of factors are considered). The anti-retaliation provision prohibits an employer fromretaliatingagainstawhistleblowerwhomakesoneof threetypesofdisclosures: i) thoserequiredbythe Sarbanes-Oxley Act of 2002 (SOX); ii) thoserequired by the Securities Exchange Act of 1934;and iii) those required by any other law, rule, orregulationsubjecttotheSEC’sjurisdiction.

ix. restrictive covenants 1. definition of restrictive covenantsRestrictive covenants are contracts entered intobetweentheemployerandemployeetoprotecttheemployer’sbusinessinterests,suchastradesecretsandotherconfidentialinformation,investmentsinemployeetraining,andcustomergoodwill.

2. tyPes of restrictive covenants

A. NON-COMPETE CLAuSES

Non-compete clauses generally prohibit anemployee from working for competitors orotherwise engaging in competitive businessactivities during the period of and for some setperiodafteremployment.Somecommonelementsofanon-competeclauseinclude:

•Tolling provision: Time for non-solicit / non-competeistolledduringtheperiodofanybreach.

•Provision clarifying that the agreementsupplements,ratherthanreplaces,statutoryandcommonlawobligations(e.g.,employeedutyofloyaltyorapplicabletradesecretstatute)

•Provisionpermittingemployeeand/oremployerto show agreement to potential subsequentemployers

•Provisions allowing the court to “blue pencil”overly broad restrictions and enforce theremainderofthecovenant.

B. NON-SOLICITATION Of CuSTOMERS

Theseprovisions typically try toprotectcustomergoodwillbypreventingemployeesfromattemptingto take away the employer’s customers post-employment.

C. NON-SOLICITATION Of EMPLOYEES

These provisions typically try to protect theemployer’sinvestmentintraininganddevelopmentof its workforce by preventing employees fromattemptingtotakeawaytheemployer’semployeespost-employment.

3. enforcement of restrictive COVENANTS—PROCESS and remediesThe enforceability of restrictive covenants in theU.S. is determinedby state law.Generally, courtsin states that enforce non-compete agreementshold that a covenant restricting the activities ofan employee upon the termination of his or heremployment with the employer will be enforcedif it protects a legitimate business interest, isreasonablylimitedinscope,timeandplace,andissupportedbyconsideration,andisreasonable.Inotherwords,itshouldaffordonlyafairprotectiontotheemployer’sinterestandnotbesobroadinitsoperationasto interferewiththe interestsofthepublicorpreventanemployeefromengaginginhisorherlivelihood.




The reasonableness of a restrictive employmentcovenantoftenisconsideredusingthefollowingsixfactors:

•Lengthoftimetherestrictionoperates;•Geographicalareacovered;•Scopeofbusinesscovered;•Fairnessofandbusinessneedfortheprotectionaccordedtotheemployer;

•Extent of the restraint on the employee’sopportunitytopursuehisoccupation;and

•Extentofinterferencewiththepublic’sinterests.

Some common remedies included in restrictivecovenantagreementsare:

•IrreparableHarm:Acknowledgesthatbreachwillcause and entitle employer to seek and obtaininjunctiverelief.

•Attorneys’ Fees: Beware of generic “prevailingparty”language(somecourtsinterpretthisasarequirementforsuccessonthemerits).

•Arbitration:Particularlyifconfidentialityisarealconcern (including right to expedited discoveryandrelief).

•Forfeiture: Conditions the receipt of certainbenefits/compensationonthepromiseofnon-competition.

4. use and limitations of garden leave Gardenleaveisaperiodduringwhichadepartingemployeeprovidesnotice to theemployerand isgivenhisorhersalaryforasetperiodoftime,butisnotpermittedtowork.Theunderlyingrationaleforgarden leave is topreventtheemployeefromcompeting in some way with the employer ortaking confidential informationduring this periodoftime.Likerestrictivecovenantsmoregenerally,thereisnoclearfederallawregardinggardenleaveandeachsituationwillbeexaminedindependently.Unlike inmany countries, however, it should notbe assumed that garden leave would be valid intheU.S. if it does not satisfy restrictive covenantrequirements.


x. transfer of undertaKings 1. emPloyees’ rights in case of a transfer of undertaKingNo statute governs the employment relationshipwhen a business transfers to new ownership. Asmost employees are employed “at-will,” a “newemployer” is free to offer employment to theemployees of the seller/transferor employer oralter the termsand conditionsof employment attheemployment site. If a transferof undertakingwillresultinaplantclosingormasslayoff,asdefinedundertheWARNAct,employeesareentitledto60days’advancenoticebytheseller/oldemployer.Ifaunionrepresentstheemployeesoftheseller,thenewemployermaybeunderadutytobargainwiththelaborunionandcannotchangeanytermsandconditionsofemploymentwithoutfirstbargainingwiththelaborunion.

2. reQuirements for Predecessor and successor PartiesThere is no obligation for a party acquiring abusiness (an asset sale) to retain any of theseller’semployees.However, ifthenewemployerreorganizestheworkforceafterthetransfer,whichresultsinacoveredplantclosingormasslayoff,thenewemployer or “takeover party”must providethe employees with 60 days’ advance notice. Inaddition, an employer who acquires a workforceconsisting of unionized employees is required tobargainwiththeunioningoodfaithregardingtheeffectofthelayoffonunionizedemployeesand,incertain situations,may be required to honor thetermsandconditionsofemploymentarticulatedinanexistingcollectivebargainingagreement.



xi. trade unions and emPloyers associations 1. brief descriPtion of emPloyees’ and emPloyers’ associations Trade unions constitute the largest and mostinfluential employee organizations in the UnitedStates. A majority of trade unions are organizedunder two umbrella organizations: the AmericanFederation of Labor and Congress of IndustrialOrganizations (“AFL-CIO”) and the Change-to-WinFederation.

The largest employer organization in the UnitedStatesistheUnitedStatesChamberofCommerce,anorganizationdedicatedtorepresentingemployerinterests by engaging in lobbying campaigns. Incertainheavilyunionizedsectors(e.g.,healthcare),employers can and do create multi-employerbargaining organizations to collectively negotiatethetermsofcollectivebargainingagreementswithemployee-electedunions.

2. rights and imPortance of trade unionsDuetotheUnitedStatesConstitution’sguaranteeofafreedomofassociation,employeesarefreetoformandjointradeunions.Approximately15millionworkers,or10.7%oftheworkforce,aremembersof a trade union. Public-sector employees areunionizedatamuchhigherratethanprivate-sectoremployees. Only about 6.5% of private industryemployeesareunionized.Private-sectorsindustrieswith thehighest ratesofunionizationareutilities(23percent),transportationandwarehousing(17.3

percent), telecommunications (16.1 percent) andconstruction (14 percent). (Among occupationalgroups,education,training,andlibraryoccupations(33.5%) and protective service (34.7% each) hadthehighestunionizationratesin2015.WhileonlyasmallportionoftheU.S.workforceisunionized,tradeunionswieldsignificantlobbyingpower.

3. tyPes of rePresentationGenerally, most employers’ first exposure tounionization comes in one of two ways: theynotice union organizing activity going on in theirorganizationortheyareconfrontedwitharequestby a union to be recognized as the exclusiverepresentativeoftheiremployees. Ifanemployerdeclinesvoluntaryrecognition, theunionmayfileapetition foranelectionwith theNationalLaborRelations Board (“NLRB”), the federal agencychargedwithenforcingtheNationalLaborRelationAct (“NLRA”).Thepetitionmustdescribetheunitofemployees itseeks torepresentandtheunionmust demonstrate to theNLRB byway of signedauthorization cards that it has the support of atleast30%oftheemployeesinthatbargainingunit.Iftheunionshowstherequiredlevelofsupport,arepresentationelectionisheld.

TheelectionisconductedbywayofasecretballotthatissupervisedbyanNLRBagent.Nomemberofmanagementortheunionisallowedinthevotingareaandnoelectioneeringcanbeconductedthere,but both the employer and union may appointobservers to be present during the ballotingprocess.

If a majority of the employees in the bargainingunit who cast their vote had voted in favor ofunion representation, the union gets the right of



“exclusive”representationofall theemployees inthebargainingunit (notonly theemployeeswhovotedinfavoroftheunion).

4. tasKs and obligations of rePresentativesTheNLRA’sstatedpurposeis“...topromotethefullflowofcommerce,toprescribethelegitimaterightsofbothemployeesandemployersintheirrelationsaffecting commerce, to provide orderly andpeacefulproceduresforpreventingtheinterferencebyeitherwiththelegitimaterightsoftheother,toprotecttherightsof individualemployeesintheirrelationswithlabororganizationswhoseactivitiesaffectcommerce,todefineandproscribepracticesonthepartoflaborandmanagementwhichaffectcommerceandareinimicaltothegeneralwelfare,andtoprotecttherightsofthepublicinconnectionwithlabordisputesaffectingcommerce.”

In furtherance of that purpose, the NLRAprovides that employees shall have the right toself-organization, to form, join or assist labororganizations, to bargain collectively throughrepresentatives of their own choosing, and toengage in other concerted activities for thepurpose of collective bargaining or other mutualaidorprotection.Inaddition,itprotectstherightofemployeestorefrainfromanyorallsuchactivities.

5. emPloyees’ rePresentation in managementOnce certified by the NLRB as the exclusivebargaining representative of the employees inthe bargaining unit, the employer must beginbargaining for a collective bargaining agreementin good faith with the union as the employee’sexclusivebargainingagent.

6. other tyPes of emPloyee rePresentative bodies Outside of the representation by a union, or asotherwise provided by a negotiated collectivebargaining agreement, employees do not havean independent right to management or boardrepresentation. American law does not recognizework councils or other forms of employeerepresentation.



xii. emPloyee benefits 1. social securityUnitedStateslawprovidesforretirementbenefitsand subsidized health insurance under federalSocialSecurityandMedicareprograms.

Employersarerequiredtocontribute6.2%ofeachemployee’s salary (in 2018, on the first $128,400ofanemployee’sgrosswages)toSocialSecurity,aswell as1.45%ofeachemployee’s salary (withoutany limit on the wage base) to Medicare. Equalcontributionsaredeductedfromeachemployee’swagesandactasan“employeecontribution.”Thesefederalprogramsprovidebenefitsforretirees,thedisabled,andchildrenofdeceasedworkers.SocialSecurity benefits include old-age, survivors, anddisability insurance. Medicare provides hospitalinsurancebenefits.

2. healthcare and insurancesUnder the Patient Protection and AffordableCare Act, certain large employers who do notoffer affordable health insurance that providesminimum value to their full-time employeesmaybe subject to significant penalties. Specifically,coveredemployerswillbesubjecttoanannualizedemployer“sharedresponsibility”penaltyof$2,000(indexed)perfull-timeemployee(lessthefirst30full-timeemployeesin2016)iftheemployersdonotofferhealthinsurancetoatleast95%oftheirfull-timeemployeesandtheirdependents.Employersmay also be required to provide employeeswithhealthinsurancebenefitspursuanttoanegotiatedcollective bargaining agreement or employmentcontract.

3. reQuired leave

A. hOLIDAYS AND ANNuAL LEAVE

AlthoughtheUnitedStatesgovernmentrecognizesseveral“nationalholidays,”nofederallawrequiresemployerstoprovideemployeeswithtimeoffforaholiday.However, it is customary foremployerstoprovideemployeeswithpaidtime-offtoobservenationally and locally recognized holidays. Forexample, the public holidays widely observed byemployersinprivateindustryare:NewYear’sDay,MemorialDay(inlateMay),IndependenceDay(July4th), Labor Day (early September), ThanksgivingDay (thirdThursday inNovember),andChristmasDay.Somestatesrequire thatemployeesworkingonenumeratedholidaysbepaidatahigherrateofpay.

Similarly, no federal law requires employers toprovide employees with paid vacation time. Inpractice, all employers provide employees withpaidvacationtime.Itmayrangefromoneweekperyear during thefirst few years to threeweeks ormoreforlong-servingemployees.Employeeswhoarerepresentedbyalaborunionmayreceivemoregenerousvacationtime.

B. MATERNITY / PATERNITY / parental leave

TheFamilyandMedicalLeaveAct(”FMLA”)requiresemployerswithfifty(50)ormoreemployeeswithinaseventy-five(75)mileradiustoprovidecoveredemployeeswithtwelve(12)weeks’unpaidleaveina12-monthperiodforthebirthorplacementofachild.Somestatelawsprovideformaternityleavefor employees who are not covered under theFMLA.Inaddition,severalstatesprovideworkerswith partial pay during parental leave. Whetherthetrendtowardstatepaid family leave lawswillcontinueremainstobeseen.



C. SICkNESS LEAVE

Employees may be entitled to unpaid sick leaveundertheFMLA,whichallowseligibleemployeestotakeuptotwelve(12)weeks’unpaidmedicalleaveina12-monthperiodforaserioushealthconditionthat prevents the employee from performingthe functions of his or her job. A serious healthconditioncoversarangeofillnesses,thoughcolds,headaches,androutinemedicalcareistypicallynotcovered.

Though there is no national law guaranteeingpaidsick leave,anumberofstates,counties,andcities require employers doing business withintheirboundariestoofferpaidsickleave.Thelawsvary considerably in such details as definingwhoisacoveredemployer,whoqualifiesasaneligibleemployee,howmuchsickleaveisavailable,howitisaccruedandwhenitcanbetaken.

Further, employers must offer paid sick leave toemployees working on certain federal contracts.ExecutiveOrder13706,signedbyPresidentBarackObamain2015,imposesasickleavemandateonabroadrangeofcontractsenteredwiththefederalgovernment based on solicitations issued on orafterthefirstdayof2017.

D. DISABILITY LEAVE

A disabled employee may be entitled to unpaidleave under the FMLA as discussed above. Inaddition, workers’ compensation insuranceadministeredatthestatelevelmayprovideforpaidleave.Finally,whiletheAmericanswithDisabilitiesAct(“ADA”)doesnotexpresslyprovidefordisabilityleave,employersarerequiredtomakereasonableaccommodations for qualified employees withdisabilities,which could include leave, so long asdoing so does not pose anundueburdenon theemployer.

4. Pensions: mandatory and tyPically Provided Unless otherwise provided for pursuant toa collective bargaining agreement or andemploymentcontract,employersarenotrequiredto provide employee pensions or any retirementbenefits. Many American employers do providesome retirement benefit to their employees,increasingly in the form of a retirement savingsplan, which is a defined contribution plan andcommonly named after the applicable section oftheInternalRevenuesCodeasa“401k”plan.

JohnSander,PrincipalJackson Lewis P.C. [email protected]+1212-545-4050



mailto:John.Sander%40jacksonlewis.com%20%20?subject=

Founded in 1958, Jackson Lewis, dedicated torepresenting management exclusively in workplacelaw,isoneofthefastestgrowingworkplacelawfirmsin theU.S.,withmore than 850 attorneys inmajorcitiesnationwide.Wehaveawide-rangeofspecializedpractice areas, including: Affirmative Action andOFCCPPlanningandCounseling;Disability,LeaveandHealthManagement; Employee Benefits Counselingand Litigation; Global Immigration; Labor, includingPreventivePractices;GeneralEmploymentLitigation,including Class Actions, Complex Litigation ande-Discovery; Non-Competes and Protection AgainstUnfair Competition; Wage and Hour Compliance;WorkplaceSafetyComplianceandCorporateDiversityCounseling.Inaddition,JacksonLewisprovidesadvicenationally in other workplace law areas, including:ReductionsinForce,WARNAct;CorporateGovernanceandInternalInvestigations;DrugTestingandSubstanceAbuse Management; International EmploymentIssues; Management Education; Alternative DisputeResolution;PublicSectorRepresentation;GovernmentRelations; Collegiate and Professional Sports; andPrivacy,SocialMediaandInformationManagement.

For the12thconsecutiveyear (2017), JacksonLewiswasrecognizedfordeliveringclientserviceexcellencetotheworld’slargestcorporations.JacksonLewishasalsobeenrecognizedbyin-housecounselofFortune1000companiesfollowingacomprehensivesurveyas“thesinglehighest-rankedfirmclientswantby theirside in employment battles.” In addition, JacksonLewis is ranked in the First Tier nationally in thecategoryofLaborandEmploymentLitigation,aswellasinbothEmploymentLawandLaborLawonbehalfofManagement in theU.S. News – Best Lawyers ®“BestLawFirms,”andisrecognizedbyChambersandLegal500.Asan“AmLaw100”firm,JacksonLewishasoneofthemostactiveemploymentlitigationpracticesintheUnitedStates,withacurrentcaseloadofover5000litigationsandapproximately300classactions.

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