Each month, Optimum Employer Solutions gathers the latest updates and changes to federal and state
employment law. Read below to learn how these changes may affect you, and how Optimum can help you
ensure compliance.
Question: An employee called out a few days ago by leaving a message with some vague information
about being ill and hasn’t followed up since. Can we consider this a voluntary resignation and start the
termination process?
FTC’s Non-Compete Ban Struck Down For All Employers Nationwide
On August 20, a Texas federal court struck down the FTC’s proposed ban on non-competition
agreements on a nationwide basis mere weeks before it was set to take effect, meaning employers
across the country can breathe a sigh of relief and continue to maintain non-competes as their state
laws allow. While there is a slim chance the rule could be resurrected by a federal appeals court in the
future, what’s for certain after the ruling is that you will not have to comply with the rule by September
4 as originally scheduled.
The FTC could try to breathe new life into the rule by filing an appeal of this decision in the coming
weeks. It could also seek an emergency order from the appellate court that would cause the rule to take
effect as scheduled.
We will be monitoring the situation and providing updates as the court battles continue.
California Supreme Court Held One Racial Slur Justified Lawsuit
On July 29, 2024, the California Supreme Court issued its opinion in the case of Bailey v. San Francisco District Attorney’s Office, et al. The Court held, in effect, that an isolated act of harassment can be actionable under California’s Fair Employment & Housing Act (FEHA) if it is severe enough “in light of the totality of the circumstances,” and the single use of “an unambiguous racial epithet” can meet that standard of severity.
CROWN Act Prohibits Discrimination Based on Hair
September 1, 2024, New Hampshire’s CROWN Act goes into effect. This legislation prohibits
discrimination because of a person’s protective hairstyle. A protective hairstyle “means hairstyles or hair
type, including braids, locs, tight coils or curls, corn rows, Banto knots, Afros, twists, and head wraps.”
Employers with grooming/personal appearance policies banning, limiting, or restricting hairstyles listed
above will be violating New Hampshire law. In addition, facially neutral policies requiring employees to
maintain a “professional,” “neat,” or “tidy” appearance will violate the law if they are discriminatorily
applied or selectively enforced.
Employers should review their dress code policy and educate managers on this change. Prohibiting
discrimination on the basis of a person’s natural hair applies throughout the employment relationship,
from recruiting through termination, not just dress codes.
Expansion of Family Violence Victim Leave
Effective October 1, 2024, amendments to the family violence victim leave law require leave for victims
of sexual assault in addition to family violence. As amended, employees can take leave for the following
qualifying reasons:
Equal Pay Law Amendments
Effective October 1, the Maryland Equal Pay for Equal Work Act is amended to prohibit pay
discrimination on the basis of sexual orientation, religious beliefs, race, and disability.
Under the amended law, an employer may not discriminate by paying employees at a rate less than the
rate paid to other employees in the same establishment performing work of comparable character or of
the same type if the pay difference is based on sex, race, religious beliefs, gender identity, or sexual
orientation.
In addition, employers may not provide less favorable employment opportunities based on sex, race,
religious beliefs, sexual orientation, disability, or gender identity. Less favorable employment
opportunities include
It is recommended that employers conduct a pay equity analysis whereby they audit employees’ pay
rate to ensure that employees are being paid fairly for equal work. This audit is aimed at determining
whether pay gaps are due to legitimate, non-discriminatory reasons, such as seniority or merit, and not due to a protected class.
Pay Range Required in Job Postings
Effective October 1, 2024, Maryland employers are required to include a wage range in job postings, as
well as a general description of benefits and other compensation. This is required for any position that
will be performed, at least partially, in Maryland.
This new requirement applies to all Maryland employers, regardless of size and whether the employer
directly posts the position or uses a third-party recruiter.
“Wage range” is defined as the minimum and maximum hourly rate or salary set in good faith by
reference to either:
Employers must be ready by October 1 to include pay ranges in their jobs posts, even if just posting the
job internally. Employers should also educate their recruiters and interviewers about this new law,
including the anti-retaliation provision.
Timekeeping Errors There are many different options to choose from when keeping track of employee time and attendance. However, some timekeeping methods are much better than others. While there are numerous electronic options, many businesses continue to keep track of employee time using manual methods like pen and paper. Though commonly used, this method can…
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Job Descriptions: Are they that important? Job descriptions are more than an overview of a particular position. A well-written job description offers a variety of benefits to both the employee and the employer. However, a poorly written job description can offer employers a lot of problems. Job Descriptions and Liability Protection Two recent cases do…
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Welcome to Part 2 of Our Scary HR Mistakes: Skipping Steps When Firing An Employee This week we explore the creepy conundrums companies come upon in failing to take certain steps when firing an employee, particularly in not documenting the process. Terminating an employee is probably one of the scariest things a company can do.…
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