NLRB Issues Final Rule on Joint-Employer Standard

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Written by Jeremy Mittman

Why This Matters

On Tuesday, the National Labor Relations Board (“NLRB” or the “Board”) announced that, on February 26, 2020, it will issue its final rule governing joint-employer status under the National Labor Relations Act (“NLRA”).  Under the NLRB’s final rule, an entity may be considered a joint employer of a separate employer’s employees only if the two share or co-determine the employees’ essential terms and conditions of employment.  “Essential terms and conditions of employment” are specifically defined as wages, benefits, hours of work, hiring, discharge, discipline, supervision, and direction.  The Board’s intent in issuing the final rule is to restore the joint-employer standard that was applied for many years prior to the Board’s 2015 decision in Browning-Ferris.

The final rule will be effective April 27, 2020.  The NLRB’s Fact Sheet regarding the final rule is available here.

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California High Court Rules That Employers Must Pay Employees For Exit Searches

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Written by Carly Epstein

Why This Matters

Last week, the California Supreme Court dealt tech giant Apple Inc. a blow when the Court ruled that California law requires the company to compensate employees for the time they spend waiting for company-required searches before leaving Apple’s retail stores.

To the extent California employers require their workers to undergo unpaid security screenings, the Apple ruling means employers must now either compensate their employees for that time or dispense with their mandatory bag-check/security screening policies.  If the latter isn’t an option, employers may be best served by speeding up their security screens.  The Supreme Court suggested several measures an employer could adopt to limit the scope of searches, such as imposing “reasonable restrictions on the size, shape or number of bags” workers bring and providing workers with off-site lockers in which to store their personal items.

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California’s Mandatory Arbitration Agreement Ban Stopped In Its Tracks

Written by Alfredo Ortega Last week, the U.S. District Court for the Eastern District of California granted a request for a preliminary injunction to prohibit the State of California from enforcing Assembly Bill 51 (AB 51) as to arbitration agreements governed by the Federal Arbitration Act (FAA).  AB 51 generally bars conditioning employment or employment-related benefits on the signing of an arbitration agreement covering claims … Continue reading California’s Mandatory Arbitration Agreement Ban Stopped In Its Tracks

NLRB Continues Trend to Create a More Business Friendly Environment by Reversing Obama-Era Labor Decisions

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Written by Jonathan Turner and Daniel Innamorati 

In a burst of year-end activity, the National Labor Relations Board (“NLRB”) largely overturned multiple Obama-era labor decisions and returned to long-standing NLRB precedents that favor employer’s property rights and abilities to regulate the workplace.  Here, we will look at these rulings and how they impact federal labor law.

Caesars – Employers may restrict employees’ email use to business purposes

Employees do not have a statutory right under the NLRA to use their employer’s email system or other information technology (“IT”) resources for NLRA Section 7 purposes.  In doing so, the NLRB reversed its 2014 ruling in Purple Communications that held workplace rules prohibiting employee email use for Section 7 activity were presumptively invalid. (Section 7 of the National Labor Relations Act guarantees employees “the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection,” as well as the right “to refrain from any or all such activities.”)

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NLRB Issues Changes to Representation Case Procedures

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Written by Jonathan Turner

If you regularly deal with union concepts, read on! Otherwise you may find this a tad wonky…

After some three years into the current administration, the NLRB (“Board”) has issued new election rules that reverse or modify rules put in place during the Obama administration.  The Obama era rules, commonly referred to as the “fast track” or “quickie” election rules, were the subject of controversy and debate between the business community and organized labor prior to their becoming law in 2014.  The stated policy objectives for the Obama era rules were “to simplify and modernize” the Board’s election procedures for determining employee desire for union representation, establish “greater transparency and consistency” in administration of those procedures, and provide for a more “fair and expeditious resolution” of NLRB election cases; however, the business community objected to the Obama era rules primarily because they imposed procedural and substantive limits on the types of issues that can be adjudicated in a pre-election hearing, and shortened the time frame within which such hearings were to occur.

The new rules became effective December 18, 2019.  Set forth below is a summary of the more significant aspects of the new rules and how those rules differ from those previously in place. Continue reading “NLRB Issues Changes to Representation Case Procedures”

More Bad News For California Employers as Governor Signs Bills Into Law

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Written by Jeremy Mittman

Recently, we informed our readers about a new law making it more difficult to classify independent contractors as such.  Unfortunately, that was just the tip of the iceberg.  A number of additional new employment-related bills recently signed into law by Governor Gavin Newsom will have a negative impact on California employers. Unless specifically noted, these laws go into effect on January 1, 2020.  MSK recommends that any employer with California employees should consult with their employment counsel to address questions regarding changes to current policies/procedures in light of these new laws.  Continue reading “More Bad News For California Employers as Governor Signs Bills Into Law”

Bite Your Tongue: NLRB Rules That Produce Company’s Media, Confidentiality Policies are Lawful

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Written by Jonathan Turner

The NLRB under the current administration continues to issue decisions that factor in legitimate business considerations of employers when evaluating rules that are alleged to restrict employee protections under the NLRA.  One such recently issued decision, LA Specialty Produce Company, 368 NLRB No. 93 (October 10, 2019), may have particular significance to many of MSK’s clients because it addresses an important issue on which we frequently have consulted with clients in the past — restrictions on communications responsive to inquiries from the media.

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NLRB Adopts Employer-Friendly Standard Regarding What Constitutes a Unilateral Change in Violation of the NLRA

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Written by Jonathan Turner

Spoiler Alert – unless you regularly deal with collective bargaining agreements you may find this a tad wonky.

The National Labor Relations Board (“NLRB” or the “Board”) recently fashioned a new, business-friendly standard for determining when an employer’s action taken in reliance on contractual provisions under a collective bargaining agreement (“CBA”) constitutes a “unilateral change” in violation of the National Labor Relations Act (“NLRA”).  Under the new standard, set forth in M.V. Transportation, Inc., 368 NLRB No. 66, the Board has adopted the “contract coverage” test fashioned and historically applied by the Court of Appeals for the District of Columbia.  In doing so, the Board abandoned the “clear and unmistakable waiver” test traditionally applied by the Board.  Under the new standard, the Board first determines if the contract provision relied on by the employer covers the employer’s action challenged by the union.  If so, the Board will conclude that “the agreement … authorized the employer to make the disputed change unilaterally, and the employer will not have violated [the NLRA].”  If, on the other hand, there are no provisions in the CBA that covers a disputed unilateral change, the Board then will consider whether the union nevertheless waived its right to bargain over the change.  In making this latter determination the Board will continue to apply the “clear and unmistakable waiver… analysis to determine whether some combination of contractual language, bargaining history, and past practice establishes that the union waived its right to bargain regarding a challenged unilateral change.” Continue reading “NLRB Adopts Employer-Friendly Standard Regarding What Constitutes a Unilateral Change in Violation of the NLRA”

Print Shoot Pay Delay

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Written by Jeremy Mittman and Stephen Rossi

Finally, an employer-friendly law passed in California! Unfortunately, it only affects a small number of employees— but for those employers that are implicated, the law is a welcome reprieve.

 

On September 5, 2019, California Governor Gavin Newsom signed into law Senate Bill 671, the “Photoshoot Pay Easement Act,” which went into effect immediately.  This law specifies that any short-term print shoot employee (from models to crew members) can be paid on the employer’s next regular pay day (including by mail), rather than on the last day they work. Continue reading “Print Shoot Pay Delay”