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Monday, February 18, 2013

Editor's Note: Top Labor and Employment Issues in 2013, Part Two

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Last week I outlined several key issues labor and employment practitioners should watch for this year. Today, let's finish the list with the five hottest issues in labor and employment right now.

 

5. U.S. Supreme Court to weigh in on class action waivers in arbitration agreements.  

The Supreme Court is scheduled to hear oral argument Feb. 27 in American Express Co. v. Italian Colors Rest. In the case, American Express is challenging a federal appeals court ruling that a class action waiver in American Express's commercial arbitration agreement with restaurants using its services is unenforceable under the Federal Arbitration Act.

While the case is about commercial arbitrations, it could potentially influence the use of mandatory arbitration agreements generally, including those in employment contracts. If class action waiver language is upheld, employers may want to add such language to their employment contracts.

 

4. High court poised to rule on scope of "supervisor" under Title VII.  

In Vance v. Ball State University, the court is considering whether an employee who directs other workers' day-to-day activities may be a ''supervisor'' under Title VII of the 1964 Civil Rights Act, even if the employee lacks authority to hire, fire, demote, transfer, or discipline any workers.

Employers should care about this case because it may force them to re-evaluate both formal and informal job descriptions for workers, and think about the authority exercised by members of their workforce.

   

3. Comprehensive immigration bill to take center stage.  

This year may be all about immigration. 

President Obama said during his State of the Union address Feb. 12 that the time has come for Congress to pass a comprehensive bill that would overhaul the nation's immigration system.

"Our economy is stronger when we harness the talents and ingenuity of striving, hopeful immigrants," Obama said. "Now is the time to get it done."

A bipartisan group of senators Jan. 28 released a framework for such a bill, and the group continues to meet twice a week in order to work out the details. A similar group also is meeting in the House, although no comprehensive legislation or blueprint has come from that chamber.

In addition, the House and Senate Judiciary committees have held hearings to discuss the numerous issues surrounding an immigration overhaul.

Obama Jan. 29 released his own set of principles for a comprehensive bill. While he appears to be taking a back seat to let Congress work out the details, the president did say he plans to step in with his own measure should nothing substantive come from the House and Senate talks.

   

2. National Labor Relations Board determined to act despite challenges.  

To say 2013 has already been a big year for the NLRB is an understatement.

The D.C. Circuit found Jan. 25 that the recess appointment power of the president described in the U.S. Constitution applies only during an "intersession" recess between the first and second sessions of the Senate, not during intrasession adjournments of the congressional body. Sharon Block (D), Richard F. Griffin (D), and Terence F. Flynn (R) were appointed to the NLRB after the opening of the second session of the 112th Congress, and the court found the appointments were unconstitutional. Block and Griffin are still on the board; Flynn resigned in 2012.

The decision left the board with no quorum, but the administration disagrees with the court's interpretation of the recess appointment power.

Dozens of other cases raising the issue of NLRB's recess appointments are pending in other courts, and the issue is widely predicted to make its way to the Supreme Court.

Despite all of this, Mark Gaston Pearce, the board's chairman, says NLRB has "important work to do" and will continue to issue decisions.  The validity of those decisions, and any issued in 2012, remains an open question.

President Obama Feb. 13 sent the nominations of Block and Griffin to the Senate, seeking confirmation of the two NLRB members.

In addition to the question of the recess appointments, the board also faces other challenges this year.

Two board seats remain vacant and federal courts are considering three major challenges of business groups to NLRB regulations adopted in 2011, with decisions expected this year.

The first two cases target NLRB's adoption of a final rule in August 2011 requiring most U.S. employers to post an NLRB notice that informs employees of their NLRA rights. An additional case challenges the adoption of amendments to NLRB's regulations on the processing of representation cases.

 

1. Office of Federal Contract Compliance Programs to continue focus on pay bias and finalize rules related to hiring of veterans, individuals with disabilities.  

As outlined in the 2013 Labor Outlook, federal contractors and subcontractors in 2013 can expect OFCCP to finalize rules pertaining to the recruitment and hiring of veterans and individuals with disabilities, to continue with plans to combat pay discrimination and update construction contractor regulations and sex discrimination guidelines, and to conduct more thorough compliance evaluations.

OFCCP's regulations and compliance reviews have a big impact on federal contractors.

The federal government has almost $700 billion in contracts with nearly 200,000 businesses. Since fiscal year 2009 OFCCP has reviewed almost 17,000 companies that do business with the federal government, and there are no signs that the agency is going to slow down.

Since FY 2009 OFCCP has recovered $42.5 million in back wages and more than 8,300 potential job offers improperly denied to qualified applicants.

With such a broad reach, it is critical for employers that have federal contracts to stay on top of any changes OFCCP makes.

On Feb. 1, for example, OFCCP posted a directive advising federal contractors and subcontractors to carefully consider their nondiscrimination obligations prior to adopting hiring policies and practices that exclude applicants from employment based on their criminal history records. The directive discusses racial and ethnic disparities in U.S. incarceration rates and observes that blanket hiring exclusions against individuals with criminal records may have an impermissible disparate impact on those protected groups.

 

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