HR Update: July 27th, 2023

Tips on Physical Reverification of Virtually Verified Remote Employees

As was previously reported, employers have until August 30, 2023, to conduct in-person physical verification of identity and employment eligibility documentation for all employees who were onboarded using remote virtual verification between March 20, 2020 and July 31, 2023. Employers have been raising several questions about this process. The USCIS has provided answers to many of these questions. Learn More

Supreme Court of Puerto Rico Rules PR-DOL Christmas Bonus Exemption Decree Was Inapplicable to Unionized Employees

On June 30, 2023, the Supreme Court of Puerto Rico issued an Opinion and Order interpreting an employer’s obligation to pay the Christmas Bonus to employees covered by a Collective Bargaining Agreement (CBA). Writing for the Court, Judge Rafael Martínez Torres reasoned that because the Puerto Rico Department of Labor and Human Resources exempted unionized employees from its decision to relieve an employer of its obligation to pay a Christmas Bonus for financial reasons, the employer could not escape its obligation to pay the negotiated bonus under the CBA to its unionized employees. Learn More

Florida Agency Provides Some Guidance on State’s New Immigration Law (SB1718)

The state of Florida recently enacted legislation that will have a significant impact on employers across the state. Senate Bill 1718 (SB1718), which Governor Ron DeSantis signed into law on May 10, 2023, requires private employers with 25 or more employees to use E-Verify for all new hires, effective July 1, 2023. E-Verify is an internet-based system operated by the U.S. Department of Homeland Security and the Social Security Administration that allows employers to electronically verify the employment eligibility of newly hired employees. The Florida Department of Revenue recently provided some guidance clarifying which employers are covered by SB1718’s requirements, although some questions remain. Learn More

Labor Cost Pressures in Higher Ed Call for Proactive Labor Strategy

The country’s colleges and universities will likely face significant labor cost pressures for the next year, according to a higher ed sector financial analysis released last week by Moody’s Investors Service. The Moody’s report, noted by business and higher education media outlets, predicts that increasing costs of labor, food, utilities and construction will spur difficult decisions and force higher education leaders to reprioritize how they allocate resources. Learn More

Connecticut Offers Health Insurance Option to Striking Employees

While President Biden says he is the most pro-union president in history, many legislators in Connecticut seem determined to make theirs one of the most pro-union states. Although proponents have failed so far in annual efforts to make strikers eligible for unemployment compensation benefits, they have now managed to give them access to state-sponsored health insurance. Effective October 1, 2023, Connecticut employees whose health care coverage has been terminated by an employer because of a strike, lockout, or other labor dispute will be eligible for special enrollment in state health insurance programs. Learn More

Colorado Court of Appeals Decision Underscores How Employer’s Prior Breach of an Employment Agreement May Excuse an Employee from Complying with Post-Employment Obligations

In a recent decision, the Colorado Court of Appeals affirmed a lower court’s ruling that a former executive for a credit-card processing company did not breach his employment agreement when he poached company clients, because the company materially breached the employment agreement first. Accordingly, even though the restrictive covenant was otherwise enforceable, the employer could not recover damages caused by the former employee’s solicitation. Learn More

An “AI Summer” in California?

What’s in store for artificial intelligence (AI) in California? Will there be an “AI summer” hiatus as the Assembly recommends, or will legislation and regulatory proposals go forging ahead? Regardless of whether California bills to regulate the use of AI advance, the issues addressed in such legislation underscore issues employers that have adopted AI in employment decisions—or are contemplating doing so—should consider. Such topics include the intended use and benefit of an automated decision system, data privacy and the types of information or data used by the AI system, and protections in place to mitigate against the risk of inaccurate, discriminatory, and biased results of the AI system. Learn More