The Weekly Guide to Employment Law Developments

The Rocky Mountain Employer

Labor & Employment Law Updates

Fifth Circuit Clarifies the Evidentiary Burden Required of Plaintiffs Alleging Misappropriations of Trade Secrets

“The Court of Appeals for the Fifth Circuit recently emphasized the importance of evidence showing the actual “misuse” of another’s trade secrets in disputes over the same.”

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Ninth Circuit Court of Appeals to Review Validity of Employment Arbitration Agreements Again

“The Ninth Circuit Court of Appeals is poised to rehear Chamber of Commerce of the United States v. Bonta, a case addressing whether California Assembly Bill 51 is preempted by the Federal Arbitration Act (“FAA”).”

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The Conduct of Independent Contractors May Result in Liability in Racial Discrimination Claims

Once an agency relationship is established, the business must contend with the ramifications of the agent’s conduct – good or bad.

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Colorado’s New Non-Compete Laws Are Here: What Employers Need to Know.

“ Colorado House Bill 22-1317 (“HB 22-1317) is now effective as of August 10, 2022, and imposes some of the most restrictive measures against non-competition covenants between employers and employees in the country.“

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Colorado Employers Could Face Penalties Up to Twice the Amount of a Wage Claim but Can Provide Comments to the Colorado Department of Labor Standards and Statistics during Rule-Making

“On January 1, 2023, Colorado employers could face penalties of up to twice the amount of wages owed in wage claims brought by employees, which is significantly different than the current penalty scheme for wage claim violations.”

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Employers May Administer COVID-19 Viral Test as Mandatory Screening Measure, But Not Antibody Testing, According to EEOC Guidance

“On July 12, 2022, the Equal Employment Opportunity Commission (“EEOC”) issued new guidance allowing employers to administer mandatory worksite COVID-19 viral testing to determine whether it is safe for employees to be present in the workplace.”

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Service Contractors’ Opportunity to Comment on Proposed Rule Requiring Hiring of Qualified Workers When Taking Over Government Contracts

“The U.S. Department of Labor issued a rule proposal that requires incoming or successor contractors to hire qualified workers from the prior contractor.”

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Employers Have an Opportunity to Comment on Colorado’s Family and Medical Leave Insurance Benefit Rules

“On November 3, 2020, Colorado voters approved Proposition 118 which mandates paid family and medical leave (“PFML”) for all Colorado employees similar to eight (8) other states and the District of Columbia.”

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Employee Benefit Considerations from the Overturning of Roe v. Wade

“On June 24, 2022, the Supreme Court of the United States issued its opinion in Dobbs v. Jackson Women’s Health Organization, overturning Roe v. Wade and eliminating constitutional protection of the right to abortion.”

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Colorado’s Unemployment Notice Requirement Should Ensure the Reason for Separation will Satisfy the Pretext Analysis for Discrimination Cases

On May 25, 2022, Governor Jared Polis signed Senate Bill 22-234 into law, which took effect immediately.

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Employers May Be Responsible for the “Hidden” Cost of Employees Working from Home

“Amazon is the latest company to face a class action lawsuit from employees seeking reimbursement from costs borne out of remote work.”

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Use of Artificial Intelligence in Employment-Related Decision-Making May Result in Discrimination

On May 12, 2022, the Equal Employment Opportunity Commission (“EEOC”) issued a new comprehensive “technical assistance" guidance, The Americans with Disabilities Act and the Use of Software, Algorithms, and Artificial Intelligence to Assess Job Applicants and Employees.

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Courts Cannot Make New Arbitration Procedural Rules based on the Federal Arbitration Act’s (“FAA”) “Policy Favoring Arbitration” Print Friendly and PDF
Colorado Employers Will Likely Have to Look Beyond Non-Competes to Protect Trade Secrets for Employees who are not Highly Compensated

Although Colorado has not favored non-compete agreements, the law allows enforcement of non-compete agreements in very limited situations including, among others, to protect trade secrets or information given to certain high-level executive employees and their staff.

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Modification of Face Coverings for Employees as States Continue to Adjust COVID-19 Guidance

As the federal government’s COVID-19 guidance continues to change so do the public health orders issued by state governments. As COVID-19 numbers trend downward in many states, restrictions are being lifted throughout the nation by those states’ Public Health Departments.

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Colorado House Votes to Expand Employment Discrimination Laws to Cover Domestic Workers

The Colorado House of Representatives voted to approve House Bill 1367 on Thursday, April 28, 2022, which, if passed by the Senate, would expand the Colorado Anti-Discrimination Act (“CADA”) to cover domestic workers—those who work for private households such as cleaners, gardeners, nannies, and elderly care takers.[1] As currently enacted, CADA’s definition of “employee” excludes domestic workers.

[1] http://leg.colorado.gov/sites/default/files/documents/2022A/bills/2022a_1367_ren.pdf

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Colorado Businesses May Receive Relief on Unemployment Insurance Premiums

The pandemic created several new challenges for Colorado businesses. Labor shortages and a volatile workforce remain some of the biggest challenges. During the height of the pandemic, businesses laid workers off or close their doors in response to lockdowns and other COVID-19 measures, which led to an alarming increase in unemployment claims. On May 1, 2021, approximately 190,000 Coloradans were filing for continuous unemployment benefit coverage, and the state had already distributed over $9 billion in unemployment benefits since the beginning of the pandemic.[1] The surge in unemployment claims depleted Colorado’s unemployment insurance trust fund (UITF), leading to the need for Colorado to obtain a billion-dollar loan from the federal government to keep the UITF afloat. The deficit subjected Colorado employers to higher unemployment insurance premiums.

[1] Press Release: Update for the Week Ending May 1st: Continued Decline in Initial Claims and Work Search Updates | Department of Labor & Employment (colorado.gov).

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Federal Judge Voids Mask Mandate for Airplanes and Public Transit

On Monday, April 18, 2022, a federal judge from the U.S. District Court for the Middle District of Florida struck down the Centers for Disease Control’s (“CDC”) national mask mandate on airplanes and public transit.[1] The judge’s ruling freed airlines, airports, and mass transit systems to make their own decisions about mask requirements, resulting in a mix of responses. The filing came days after airline CEOs called on President Biden to drop the mandate.[2]

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Proponents to Remove the “Severe or Pervasive” Standard from Colorado’s Workplace Harassment Reform Bill withdraw Proposed Legislation.

Colorado lawmakers abandoned yet another attempt to pass Protecting Opportunities and Workers’ Rights Act (“POWR”), which would have removed the longstanding “severe or pervasive” standard from Colorado sexual harassment claims for a much easier standard to prove.

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OFCCP Issues a New Directive with Increased Burden on Employers

On March 15, 2022, the Office of Federal Contract Compliance Programs (“OFCCP”) issued a Directive[1] addressing federal contractors’ obligations to analyze their compensation systems for impediments to equal employment opportunity and to turn over such analyses when under audit.[2]

[1] Directive 2022-01, https://www.dol.gov/agencies/ofccp/directives/2022-01

[2] As part of their affirmative action obligations, the OFCCP requires federal contractors are required to perform an in-depth analysis of their total employment practices to determine whether and where impediments to equal employment opportunity exist, including conducting an in-depth analysis of their compensation systems to determine whether there are gender-, race-, or ethnicity-based disparities, as provided in 41 CFR 60-2.17(b)(3).3.

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