When: Thursday, September 14, 2017 8:00 a.m. – 4:30 p.m.

Where: New York Hilton Midtown, 1335 Avenue of the Americas, New York, NY 10019

Epstein Becker Green’s Annual Workforce Management Briefing will focus on the latest developments in labor and employment law, including:

  • Immigration
  • Global Executive Compensation
  • Artificial Intelligence
  • Internal Cyber Threats
  • Pay Equity
  • People Analytics in Hiring
  • Gig Economy
  • Wage and Hour
  • Paid and Unpaid Leave
  • Trade Secret Misappropriation
  • Ethics

We will start the day with two morning Plenary Sessions. The first session is kicked off with Philip A. Miscimarra, Chairman of the National Labor Relations Board (NLRB).

We are thrilled to welcome back speakers from the U.S. Chamber of Commerce. Marc Freedman and Katie Mahoney will speak on the latest policy developments in Washington, D.C., that impact employers nationwide during the second plenary session.

Morning and afternoon breakout workshop sessions are being led by attorneys at Epstein Becker Green – including some contributors to this blog! Commissioner of the Equal Employment Opportunity Commission, Chai R. Feldblum, will be making remarks in the afternoon before attendees break into their afternoon workshops. We are also looking forward to hearing from our keynote speaker, Bret Baier, Chief Political Anchor of FOX News Channel and Anchor of Special Report with Bret Baier.

View the full briefing agenda and workshop descriptions here.

Visit the briefing website for more information and to register, and contact Sylwia Faszczewska or Elizabeth Gannon with questions. Seating is limited.

Our colleagues Patrick G. Brady and Julie Saker Schlegel, at Epstein Becker Green, have a post on the Retail Labor and Employment Law blog that will be of interest to many of our readers in the technology industry: “Beyond Joint Employment: Do Companies Aid and Abet Discrimination by Conducting Background Checks on Independent Contractors?

Following is an excerpt:

Ever since the National Labor Relations Board (“NLRB”) issued its August 2015 decision in Browning-Ferris Industries of California, Inc., holding two entities may be joint employers if one exercises either direct or indirect control over the terms and conditions of the other’s employees or reserves the right to do so, the concept of joint employment has generated increased interest from plaintiffs’ attorneys, and increased concern from employers. Questions raised by the New York Court of Appeals in a recent oral argument, however, indicate that employers who engage another company’s workers on an independent contractor basis would be wise to guard against another potential form of liability, for aiding and abetting acts that violate various anti-discrimination statutes, including both the New York State (“NYSHRL”) and New York City Human Rights Laws (“NYCHRL”) and the New Jersey Law Against Discrimination (“NJLAD”).

Read the full post here.

A new post on the Management Memo blog will be of interest to many of our readers in the tech industry: “‘A Day Without’ Actions – How Can Employers Prepare?” by our colleagues Steven M. Swirsky and Laura C. Monaco of Epstein Becker Green.

Following is an excerpt:

[T]he same groups that organized the January 21, 2017 Women’s March on Washington – an action participated in by millions of individuals across the county – has called for a “Day Without Women” to be held on Wednesday, March 8, 2017. Organizers are encouraging women to participate by taking the day off from paid and unpaid labor, and by wearing red – which the organizers note “may be a great act of defiance for some uniformed workers.”

Employers should be prepared to address any difficult questions that might arise in connection with the upcoming “Day Without Women” strike: Do I have to give my employees time off to participate in Day Without events? Can I still enforce the company dress code – or do I need to permit employees to wear red? Can I discipline an employee who is “no call, no show” to work that day? Am I required to approve requests for the day off by employees who want to participate? As we explained in our prior blog post, guidance from the National Labor Relations Board’s General Counsel suggests that an employer can rely on its “lawful and neutrally-applied work rules” to make decisions about granting requests for time off, enforcing its dress code, and disciplining employees for attendance rule violations. An employer’s response, however, to a given employee’s request for time off or for an exception to the dress code, may vary widely based upon the individual facts and circumstances of each case. …

Read the full post here.

The new episode of Employment Law This Week offers a year-end roundup of the biggest employment, workforce, and management issues in 2016:

  • Impact of the Defend Trade Secrets Act
  • States Called to Ban Non-Compete Agreements
  • Paid Sick Leave Laws Expand
  • Transgender Employment Law
  • Uncertainty Over the DOL’s Overtime Rule and Salary Thresholds
  • NLRB Addresses Joint Employment
  • NLRB Rules on Union Organizing

Watch the episode below and read EBG’s Take 5 newsletter, “Top Five Employment, Labor & Workforce Management Issues of 2016.”

In August 2015, the National Labor Relations Board (“Board”) issued its decision in Browning-Ferris Industries of California, Inc., 362 NLRB No. 186 (2015), adopting a new standard for determining whether a company is a joint employer and therefore subject to all of an employer’s legal obligations under the NLRA with respect to the employees of another employer that provides it with services, leased or temporary labor, or the like. Since then, there have been many dire predictions as to how this new test would result in finding businesses to be joint employers of the employees of those they do business with, whether suppliers of temporary labor, franchisees, or a wide range of other circumstances. The latest permutation involves claims that a business that maintains a corporate social responsibility (“CSR”) policy intended to ensure that its suppliers and business affiliates comply with applicable laws and treat their employees fairly is, by virtue of such a policy, a joint employer of the supplier’s employees.

Under the new test that the Board adopted in Browning-Ferris Industries (“BFI”), what matters is whether the purported joint employer possesses the authority to control the terms and conditions of employment, either directly or indirectly, of another employer’s employees. In other words, the actual or potential ability to exercise control, regardless of whether the company has, in fact, exercised such authority, is now the focus of the Board’s inquiry. As the Board puts it, “reserved authority to control terms and conditions of employment, even if not exercised, is clearly relevant to the joint-employment inquiry.”

Not surprisingly, the Board’s decision in BFI has been appealed. An amicus brief supporting a challenge to the BFI decision recently filed on behalf of Microsoft illustrates that the Board’s new standard, if left undisturbed, is likely to have the unintended consequence of discouraging responsible companies from encouraging their suppliers to provide their employees with benefits in excess of the bare minimums required by law.

In BFI, the Board held that the NLRA imposes joint-employer obligations if (1) a common law employment relationship exists between the putative joint employer and another entity’s employees and (2) “the putative joint employer possesses sufficient control over the employees’ essential terms and conditions of employment to permit meaningful collective bargaining.”

As this amicus brief points out, one potential consequence of the new joint-employer rule is to discourage companies from maintaining CSR policies to ensure that those companies they do business with, in the United States, follow responsible policies when it comes to the treatment of their own employees. Typically, CSR policies provide for a minimum set of standards that would-be suppliers and service providers are expected to follow. For example, in March 2015, Microsoft announced that it would do business with only those large suppliers that provided employees with at least 15 days of paid leave annually. Both President Obama and Secretary of Labor Perez praised Microsoft’s CSR policy and expressed the hope that other companies would follow suit.

After BFI was decided, however, a union representing the employees of one of its suppliers claimed that Microsoft was a joint employer of the supplier’s workers and therefore subject to the supplier’s obligations under the NLRA vis–à–vis the supplier’s workforce. When Microsoft disagreed and declined to participate in bargaining between the supplier and its employees’ union, the union filed an unfair labor practice charge against Microsoft claiming that the company was a joint employer of the supplier’s workers and accusing it of unlawfully refusing to bargain.

The amicus brief highlights the importance of the first element of the BFI test (i.e., only common law employers can be liable as joint employers) in constructing a workable definition of “joint employer.” Basing the existence of joint employer status simply on whether a company has “sufficient control . . . to permit meaningful collective bargaining” overlooks the fact that a wide variety of economic actors have substantial control over the terms and conditions of workers employed by others. A company is unlikely to adopt a CSR policy if it lacks the size and market power to encourage vendors to comply with that policy. Thus, CSR policies do not demonstrate control over labor relations but, rather, should be more properly thought of as eligibility criteria for suppliers to provide services and do business. As Microsoft points out in its brief, “such oversight and standard-setting is commonplace in a supplier contracting relationship and is not the type of control that can support a finding of joint employment.”

Thus far, unions have had some success in organizing the employees of vendors, such as shuttle bus companies that provide services to technology companies. They have also had limited success organizing workers directly employed by technology companies. This presents a strategic challenge for unions as the direct employers of the employees they represent are often in commoditized businesses with comparatively low margins, unable to offer the pay and benefits provided to technology company employees. Unions therefore have a strong financial interest in blurring the distinction between customers and employers, in an effort to forge a strategy to force technology companies to the bargaining table and extract expensive concessions.

A version of this article originally appeared in the Take 5 newsletter “Five Trending Challenges Facing Employers in the Technology, Media, and Telecommunications Industry.”

Our colleague Steven M. Swirsky, a Member of the Firm at Epstein Becker Green, has a post on the Management Memo blog that will be of interest to many of our readers in the technology industry: “Can Your Corporate Social Responsibility Policy Make You a Joint-Employer With Your Suppliers? The NLRB May Find That It Does

Following is an excerpt:

The National Labor Relations Board (NLRB or Board), which continues to apply an ever expanding standard for determining whether a company that contracts with another business to supply contract labor or services in support of its operations should be treated as a joint employer of the supplier or contractor’s employees, is now considering whether a company’s requirement that its suppliers and contractors comply with its Corporate Social Responsibility (CSR) Policy, which includes minimum standards for the contractor or supplier’s practices with its own employees can support a claim that the customer is a joint employer. …

Employers are well advised to review the full range of their operations and personnel decisions, including their use of contingent and temporaries and personnel supplied by temporary and other staffing agencies to assess their vulnerability to such action and to determine what steps they make take to better position themselves for the challenges that are surely coming.

Read the full post here.

Our colleagues Adam C. Abrahms and Steven M. Swirsky, attorneys at Epstein Becker Green, have a post on the Management Memo blog that will be of interest to many of our readers in the technology industry: “NLRB Drops Other Shoe on Temporary/Contract Employee Relationships: Ruling Will Require Bargaining In Combined Units Including Employees of Multiple Employers – Greatly Multiplies Impact of BFI Expanded Joint Employer Test.”

Following is an excerpt:

The National Labor Relations Board (“NLRB” or “Board”) announced in its 3-1 decision in Miller & Anderson, 364 NLRB #39 (2016) that it will now conduct representation elections and require collective bargaining in single combined units composed of what it refers to as “solely employed employees” and “jointly employed employees,” meaning that two separate employers will be required to join together to bargain over such employees’ terms and conditions of employment.” …

The potential for confusion and uncertainty is enormous. In an attempt to minimize these concerns, the Board majority stated that the so-called user employer’s bargaining obligations will be limited to those of such workers’ terms and conditions that it possesses “the authority to control.”

Read the full post here.

Our colleague Steven M. Swirsky, a Member of the Firm at Epstein Becker Green, has a post on the Management Memo blog that will be of interest to many of our readers in the technology industry: “Federal Appeals Court Sides with NLRB – Holds Arbitration Agreement and Class Action Waiver Violates Employee Rights and Unenforceable.

Following is an excerpt:

The US Court of Appeals for the Seventh Circuit in Chicago has now sided with the National Labor Relations Board (NLRB or Board) in its decision in Lewis v. Epic Systems Corporation, and found that an employer’s arbitration agreement that it required all of its workers to sign, requiring them to bring any wage and hour claims that they have against the company in individual arbitrations “violates the National Labor Relations Act (NLRA) and is unenforceable under the Federal Arbitration Act FAA).” …

The decision of the Seventh Circuit, finding that the Board’s view was not inconsistent with the FAA, sets the ground for continued uncertainty as employers wrestle with the issue.  Clearly, the question is one that is likely to remain open until such time as the Supreme Court agrees to consider the divergent views, or the Board, assuming a new majority appointed by a different President, reevaluates its own position.

Read the full post here.

Our colleague Steven M. Swirsky, a Member of the Firm at Epstein Becker Green, has a post on the Management Memo blog that will be of interest to many of our readers in the technology industry: “NLRB Looks to Make It Harder for Employees to Decertify Unions.”

Following is an excerpt:

National Labor Relations Board (NLRB) General Counsel Richard F. Griffin, Jr., has announced in a newly issued Memorandum Regional Directors in the agency’s offices across the country that he is seeking a change in law that would make it much more difficult for employees who no longer wish to be represented by a union to do so.  Under long standing case law, an employer has had the right to unilaterally withdraw recognition from a union when there is objective evidence that a majority of the employees in a bargaining unit no longer want the union to represent them. …

An employer faced with evidence that a majority of its employees no longer wish to be represented by their union has always faced a difficult choice – whether to petition for an election or to respect its employees’ request and take the risk of charges and litigation by immediately withdrawing recognition. Clear understanding of the law and facts, as well as the potential consequences of each course of action has always been critical.  By issuing this Memo and announcing his goal, the stakes have clearly been raised, and the right of employees to decide—perhaps the ultimate purpose of the National Labor Relations Act—has been placed at serious risk.

Read the full post here.

DSCN0843Employers in the technology, media and telecommunications industry are faced with many workplace management and legal compliance challenges.  Among these are trends in the shared economy and rise of the contingent workforce, data privacy and security, and use of social media in connection with recruitment, employee monitoring and termination.  At the recent  Epstein Becker Green 34th Annual Workforce Management Briefing held at the New York Hilton, members of the firm’s TMT Group including the authors of this post, along with in-house counsel speakers Rebecca Clar of AOL and Blake Reese of Google provided a panel workshop on these hot-button issues.  Some of the key take-aways from the workshop include:

Shared Economy & Contingent Workforce

As a result of changes in the post-recession, global economy, there has been a tremendous change in how goods and services are delivered and how consumers acquire these goods and services.  As businesses try to meet these demands and save costs associated with full time employees, they have implemented many alternative work arrangements and hired workers through various means including as independent contractors,  through staffing arrangements, or temporary solutions.  Many workers also have become attracted to the flexibility that these work arrangements can provide to them.  However, employers need to be mindful of the potential pitfalls associated with the contingent workforce and take requisite steps to avoid legal risks:

  • Worker misclassifications can lead to back pay, overtime, tax, unemployment insurance, and workers compensation violations as well as employee benefit plan eligibility and coverage errors.  Ensuring that workers are properly classified is mission critical and employers should self-audit their work arrangements and benefit plans periodically for compliance.
  • The NLRB’s decision in Browning-Ferris, coupled with new “quickie” election rules and the Silicon Valley Rising movement have made for a perfect storm of issues.  As a result, TMT employers who may not currently be represented by a labor organization should be mindful that non-traditional workplaces and corporations, such as new media, may be targeted for unionizations, and/or may be brought to the bargaining table as a joint-employer who engages third-party workers.
  • Given the developments at the Department of Labor, and in particular, the proposed increase in the minimum annual salary requirement in order to meet the salary basis test of the white collar exemptions, there has never been a better and more opportune time to conduct a self-assessment audit in conjunction with counsel.

Data Privacy and Security

In the global, digital world, data privacy and security is top of mind for all organizations and their leaders.  Protecting organizational data, as well as that of employees, is imperative and development of data privacy and security policies will become the norm. The issues employers should address in their policies, as well as the ways in which they do business, include:

  • Conduct a self-audit of organizational networks and systems for security vulnerabilities and train workers on information security best practices
  • Establish audit procedures of vendors engaged to provide services to the organization and any employee benefit plan, especially where the vendor stores information in the cloud or remote data centers
  • Address data privacy and security issues in service agreements including notification procedures and indemnification provisions
  • Develop a breach response plan
  • Obtain cybersecurity insurance
  • Remember:  data privacy and security are no longer just CIO/CTO/IT issues – instead, these are topics that are increasingly becoming relevant in the employment law and employee benefits space.

Social Media and the Workplace

The use of social media by employers to review background information of prospective employees in the recruitment process, as well as ongoing activities during the employment or leading up to a termination process is highly prevalent.  It is easy for employers to search an employee’s name, background and activities on the internet but, how that information is used can have legal implications.  Employers should be mindful of the following:

  • Always rely on objective criteria set forth in a job description before conducting an online search and retain information among the recruitment team at the organization
  • Carefully document reasons for all hiring (and termination) decisions that are consistent with the job description and avoid discriminatory decision making
  • Consider separating the search and decision making functions and train employees searching to remove protected categories from summary of results, upon which hiring decision is made
  • Develop a company social media policy with counsel that is narrowly tailored to survive NLRB scrutiny, but that safeguards the company’s treasures and secrets.
  • Employers can continue to discipline employees for their social media activities, provided that the objectionable conduct does not implicate Section 7 behavior – a fact and circumstances based analysis that may be counterintuitive to HR and in-house personnel.

Employers that address these issues head-on will be able to benefit from the advent of new technologies in the workplace and stay in compliance with applicable laws.

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