Oregon employers feeling the financial strain of economic disruptions caused by the COVID-19 pandemic are bracing themselves for another impact. On July 1, 2020, Oregon’s minimum wage increase will take effect.
In a move that could impact many Maryland employers, the Maryland General Assembly has made a major change to the state’s version of the federal Worker Adjustment and Retraining Notification (WARN) Act or its “mini-WARN” law.
On May 4, 2020, Mayor Eric Garcetti signed two new ordinances governing employee right of recall and worker retention in the City of Los Angeles. The ordinances provide certain rights and preferences to various workers whose employment has been affected by the COVID-19 crisis.
For the last several months, employers have been forced to learn how COVID-19 spreads, how to maintain or resume safe work environments, and how to navigate a complex web of new and existing laws and regulations implicated by the pandemic. Employers have also had to contend with a growing wave of COVID-19–related employment litigation.
Employers across the country are making difficult decisions due to the COVID-19 crisis. The economic downturn has affected current employees in a number of ways, including reduced pay, reduced work hours, furloughs, and even permanent reductions in force. To help keep their businesses afloat, employers also must make the difficult decision to withdraw job offers that have been extended to future employees, such as summer interns, coop students, and college graduates.
On March 23, 2020, the California Department of Industrial Relations (DIR) issued “Guidance on [the] Conditional Suspension of California WARN Act Notice Requirements under Executive Order N-31-20.” The DIR provided guidance to further clarify Governor Gavin Newsom’s Executive Order N-31-20 (March 17, 2020), which temporarily suspended Cal-WARN’s typical 60-day notice requirement for layoffs or business closures. The guidance may assist employers in understanding their Cal-WARN obligations when faced with making temporary or permanent staffing reductions (or relocations) as a result of COVID-19 prevention and mitigation efforts.
The COVID-19 pandemic is a public health and economic cataclysm, and few employers have been able to escape its impact on their business operations and employees. In their efforts to better manage their workforces during this period of extreme economic instability, many employers are turning to unpaid leaves of absences and furloughs as a way to scale back on costs temporarily while maintaining a connection to employees whose help will be critical to restarting normal business operations (whenever that may be). However, at a time when access to health care and financial support for impacted employees is more important than ever, indefinite unpaid leaves or absence and furloughs can present complex administrative issues for many common employee benefit plans. In the discussion that follows, we highlight some of the more important employee benefits issues to consider when employees are placed on unpaid leaves of absence or furloughs.
During this season of COVID-19, in which the duration of the crisis is unknown, employers across the country are seeking to implement cost-cutting measures which avoid full-blown reductions in force (RIFs). Many employers are opting instead for cost-saving measures that are designed to be temporary and reversible placeholders in the event the economy snaps back sooner rather than later. Employers have several tools in their toolkits.
It was a busy January 2020 in Trenton, with the state enacting several new employment laws, with more apparently on the way. This is in addition to the slew of new laws adopted in 2019 impacting New Jersey employers. Here’s a summary of recent employment law developments in New Jersey just one month into 2020, a look at what may be on the way, and a recap of 2019’s changes.
On January 21, 2020, Governor Phil Murphy signed into law Senate Bill 3170, which expands New Jersey’s Millville Dallas Airmotive Plant Job Loss Notification Act (New Jersey WARN Act) well beyond the requirements of the federal Worker Adjustment and Retraining Notification Act of 1988. The law is scheduled to go into effect on July 19, 2020, and will make New Jersey the first state to guarantee payment of severance to employees affected by mass layoffs.
Given the litigious environment in California, employers operating in the state are in great need of enforceable general release terms in severance and settlement agreements. California employers entering into severance or settlement agreements will want to be aware of the amendment to California Civil Code Section 1542.
Although the Cour de cassation (France’s Supreme Court) still limits the application of the concept of “co-employment” between parent companies and their subsidiaries to exceptional cases, its rulings do not preclude a finding of liability on the part of a parent company when it has placed its subsidiary in increased difficulty.
A Plan de Sauvegarde de l’Emploi (PSE) is a mass redundancy or reduction-in-force plan that companies employing 50 or more employees in France must have in place before dismissing 10 or more employees in a layoff. Such a plan is designed to mitigate the effects of a mass layoff or redundancy.