The Weekly Guide to Employment Law Developments

The Rocky Mountain Employer

Labor & Employment Law Updates

Early Colorado General Assembly Bills Emphasize the Protection of Employee Physical and Mental Health and Safety

The Colorado General Assembly reconvened on January 10, 2024, and representatives quickly introduced new labor and employment legislation which focuses on the physical and mental health of Colorado employees in the workplace—particularly in health-care and behavioral health settings—in the form of the “Violence Prevention in Health-care Settings Act” and the “Violence Prevention in Behavioral Health Settings Act” (HB24-1066), as well as the “Concerning Suicide Prevention Education in the Workplace” bill (HB24-1015).”

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Future of “Chevron Two-Step” Judicial Deference to Administrative Agency Interpretations of Law is Now Before the U.S. Supreme Court

On January 17, 2024, the U.S. Supreme Court heard oral arguments in two cases which present the question of whether the Court should overrule, or at least clarify, its 1984 decision in Chevron, U.S.A., Inc. v. National Resources Defense Council, Inc.”

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Department of Labor Re-Adopts the Economic Reality Test for Worker Classifications under the Fair Labor Standards Act

On January 10, 2024, the U.S. Department of Labor published its final rule setting new guidelines for classifying workers as either “employees” or “independent contractors” under the Fair Labor Standards Act.”

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Tenth Circuit Rejects “Open-Ended, Indefinite Amount of Time Off from Work" Accommodation

On December 19, 2023, the Court of Appeals for the Tenth Circuit affirmed summary judgment in Davis v. PHK Staffing against an employee terminated for exceeding the limits of a no-fault attendance policy.”

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Tenth Circuit Decision Emphasizes Mental Health and Substance Use Disorders as Independent Reasons for Potential Coverage under ERISA Plans

On December 5, 2023, the Court of Appeals for the Tenth Circuit found that an employee benefit plan administrator failed to satisfy the relatively lenient arbitrary and capricious standard of review when it denied residential treatment benefits for mental health and substance use disorders under the Employee Retirement Income Security Act of 1974 (“ERISA”).”

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Updates to Colorado Wage & Hour Rules Effective January 1, 2024, Plus Related Updates to Interpretive Notices and Formal Opinions

The Colorado Department of Labor and Employment (“CDLE”) has updated and finalized its rules concerning pay standards and compensation, equal pay transparency, and prevailing wage and residency requirements, effective January 1, 2024.”

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EEOC Set to Issue Final Rule Implementing the Pregnant Workers Fairness Act on December 29, 2023

“The Rocky Mountain Employer previously discussed the Equal Employment Opportunity Commission’s (“EEOC”) Proposed Rule to implement the Pregnant Workers Fairness Act (the “Act”) which was signed into law on December 29, 2022, and became effective on June 27, 2023.”

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Tenth Circuit Emphasizes the Importance of Reasonable Flexibility of Employer Policies in Response to Employee Disability Accommodation Requests

The Court of Appeals for the Tenth Circuit recently issued a decision which demonstrates the limits to which courts will defer to employers’ judgment when they rely on company policies to determine which elements of a particular job are, or are not, essential for disability accommodation purposes.”

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NLRB General Counsel’s Spring 2023 Memorandum Regarding Non-Competes is Being Put to the Litigation Test

As previously discussed in The Rocky Mountain Employer, the General Counsel for the National Labor Relations Board, Jennifer Abruzzo, has taken the position that most non-compete provisions in employment contracts and separation agreements are unlawful under the National Labor Relations Act.”

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The EEOC Releases Proposed Updated Guidance on Actionable Harassment in the Modern Workplace

“On September 29, 2023, the Equal Employment Opportunity Commission released its revised “Proposed Enforcement Guidance on Harassment in the Workplace”, which was published in the Federal Register on October 2, 2023.“

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Proposed Changes to The Treatment of Tips in Colorado

On September 29, 2023, the Colorado Division of Labor Standards and Statistics (the “Division”) issued proposed amendments to the state’s Overtime & Minimum Pay Standards Order (“COMPS Order #39”).”

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NLRB Relaxes Requirements to Establish Joint Employment Relationship

On October 26, 2023, the National Labor Relations Board (the “Board”) announced and published its “final” rules regarding the standard for determining joint employer status under the National Labor Relations Act (“NLRA” or the “Act”)—abandoning its prior published rules from April, 2020 which were significantly more employer-friendly.”

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EEOC Litigates the Issue of Employer Responsibilities under the ADA Regarding “Long COVID” Accommodations

On September 21, 2023, the Equal Employment Opportunity Commission (the “EEOC”) filed a complaint against A&A Appliance, Inc. (“A&A Appliance”), alleging that it violated the Americans with Disabilities Act (the “ADA”) when it declined to grant an employee’s request for additional leave from work after her FMLA leave expired in order to further address symptoms and ailments resulting from long COVID.“

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CDLE Publishes Proposed Equal Pay Transparency Rules under the Equal Pay for Equal Work Act

“The Colorado Department of Labor and Employment (“the CDLE”) issued proposed rules on September 29, 2023, clarifying employer obligations under the Equal Pay for Equal Work Act (“the Act” or “EPEWA”) by defining career development and progression, expanding on exceptions to job postings and deadline requirements, and obligating employers to provide “post-selection” notices to employees.”

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Colorado Attorney General Issues Formal Opinion Discussing the Legality of Employer DEI Programs

Following the United States Supreme Court’s recent decision in Students for Fair Admissions, Inc. v. Harvard College (“SFFA”), Colorado Attorney General Phil Weiser issued a formal opinion on October 4, 2023, in response to questions and concerns regarding the legitimacy of diversity, equity, and inclusion (DEI) programs in the employment context.”

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WHD and EEOC Memorialize Intent to Cooperate and Coordinate with Each Other’s Investigation and Enforcement Efforts

Generally speaking, when an agency like the Equal Employment Opportunity Commission (“EEOC”) investigates a charge, its investigation may expand beyond the allegations in the charge to include other potential violations of federal anti-discrimination laws, but its investigation is nonetheless bound by its own jurisdictional limitations.“

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EEOC Releases its Strategic Enforcement Plan for Fiscal Years 2024-2028

The Equal Employment Opportunity Commission released its Strategic Enforcement Plan detailing issues the EEOC will prioritize for enforcement purposes in the coming years.”

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NLRB Expands What May be Considered Protected “Concerted Activity”

The National Labor Relations Board (“NLRB” or the “Board”) issued a decision on August 25, 2023, which broadens the circumstances in which the NLRB may find that an individual employee engaged in concerted activity under the National Labor Relations Act (“NLRA” or “the Act”).“

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ERISA: Tenth Circuit Allows Healthcare Insurer to Reprocess a Faulty Claim Denial Despite Finding Abuse of Discretion in Handling the Claim

In David P. v. United Healthcare Ins. Co., a Tenth Circuit panel endorsed a remedy that may seem unusual to laypersons and practitioners alike: having concluded that an Employee Retirement Income Security Act (ERISA) plan administrator abused its discretion in the handling of a healthcare plan beneficiary’s claim, the appellate court found that, without a clear showing that the claim should have been in fact granted, the matter should be sent back to the defendant plan administrator to correct its own mistake.”

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