Professional Documents
Culture Documents
Takeaways Fall 2021
Takeaways Fall 2021
Takeaways Fall 2021
NYC Fair Chance Act Upends DOL further identified seven factors (delineated in our
Employers’ Background Check Process Spring 2016 article) to be considered in evaluating the
“economic realities” of the relationship.
Recent amendments to the New York City Fair Chance
Act that took effect July 29, 2021, together with Legal As we subsequently reported in the Winter 2019/20
Enforcement Guidance issued by the New York City issue of Takeaways, that broadened “economic
Commission on Human Rights, collectively necessitate realities” test was then superseded by a final rule on
that employers in New York City who conduct criminal “Joint Employer Status Under the Fair Labor Standards
background checks revisit their processes. Unless an Act,” which became effective on March 16, 2020. The
employer falls within one of the Fair Chance Act rule shifted the focus away from economic dependence
exemptions (which we listed in the Fall 2015 issue of to consider four factors evidencing control. Key
Takeaways when the law first took effect), the provisions of the 2020 DOL rule were then invalidated
amendments to the Fair Chance Act require employers by a U.S. district court in September 2020, as discussed
to bifurcate their background check process and delay in the Fall 2020 issue of Takeaways. This latest
conducting or even referring to a criminal history check rescission of the 2020 DOL rule therefore means that
until after issuing a conditional offer of employment. the DOL will once again analyze joint employer status
Our recent blog article provides further details on the based on the “economic realities” of the relationship
bifurcated process and the latest requirements for New between the parties. Employers should revisit the 2016
York City employers conducting background checks. Administrator’s Interpretation and prior DOL guidance,
and presume that shared services arrangements are
US DOL Officially Withdraws Joint now more likely to be considered joint employment for
Employer Rule purposes of the federal wage and hour laws.
Effective September 28, 2021, the U.S. Department of NY Amends Wage Payment Law
Labor has rescinded the narrowed definition of joint
employer for purposes of the Fair Labor Standards Act To the extent any employer questioned whether it
(FLSA) that was adopted under the prior administration. could withhold all of an employee’s wages, benefits or
The standard for determining who is a “joint employer” wage supplements, a recent amendment to the New
under the FLSA has had something of a tortured history York Labor Law entitled the “No Wage Theft Loophole
in the past five years. Act” makes clear that such action is unlawful. The
amendment, which took effect August 20, 2021,
In 2016, the DOL issued an Administrator’s addresses a “judicial loophole” resulting from some
Interpretation, as we reported in some detail in the recent court decisions to clarify that the limitations on
Spring 2016 issue of Takeaways, that focused on the deductions from wages in section 193 of the New York
“economic realities” of the relationship between the Labor Law apply regardless of whether the employer’s
parties to determine whether workers are ultimately deduction subsumes only a portion or the entirety of
economically dependent on the business for which they the employee’s wages, benefits or wage supplements.
are performing services, such that the service-recipient
business should be deemed a “joint employer.” The
EEO-1 Filings at PlayeEEO-1 filing dead and does not address those reached at an earlier stage
The Equal Employment Opportunity Commission (EEOC) of the agency’s process.
has once again extended the deadline for filing 2020
EEO-1 reports to October 25, 2021, and it has
NJ Requires Worker’s Comp Hiring
announced no further extensions will be made. Preference
Effective September 24, 2021, New Jersey employers
The Office of Federal Contract Compliance Programs
with 50 or more employees are subject to a new
(OFCCP) has announced it is reversing course and it will
requirement under the state Worker’s Compensation
use EEO-1 Component 2 pay data from 2018-19 when
Act to give a hiring preference for employees returning
enforcing and investigating affirmative action and non-
from work-related injuries. Employees who have
discrimination compliance of federal contractors. While reached maximum medical improvement and are no
prior policy had declared that pay data, comprised of
longer completely unable to work, but are not able to
hours worked and pay data from employees’ W-2
perform the essential job functions required for their
income information, broken down by gender, race and previous position, must be given a preference over
ethnicity, and job category, was of limited utility, the
other job applicants for other positions that they are
OFCCP now asserts that policy determination was
qualified for and can perform.
premature as it was made before OFCCP had enough
information on the utility of the data collected.