Happy New Year! We have identified several issues to watch out for in the coming months that could impact your business. Two key takeaways:
1. Make sure your employees are trained on these issues and;
2. Follow the news so you don’t inadvertently violate a new law.
Here are IEL’s main issues to look out for:
New Issues Under the ADA
Hands down, one of the most difficult laws for employers to understand (and comply with) is the Americans with Disabilities Act (“ADA”). While the law has been in place for over a decade, there is no shortage of new issues arising under the ADA in any given year. For example, before COVID, many employers took the position that allowing an employee with a disability to telecommute from home was not a reasonable accommodation. However, after many employees successfully telecommuted for several years during the pandemic, employer expectations when it comes to accommodations has shifted under the ADA and telecommuting is now, in many situations, a reasonable accommodation. This is just one of many examples as to how evolving social norms drive changes under bigger employment law statutes, such as the ADA, and employers need to know and understand their legal obligations as times change and as the law changes with it.
Laws Aimed at Preventing Unfair Competition
Imagine what would happen if you showed up for work next week only to find out that three key employees quit, started a competing company, and have stolen your client list (and related confidential documents). This scenario happens more frequently than you want to imagine. Every business leader should have a basic understanding of the laws that govern unfair competition.
Although non-compete agreements are legal in Idaho (in certain circumstances), there has been a movement by the current administration (and in neighboring states) to limit their enforceability. A non-compete restricts an employee with confidential information about the employer’s interests from competing with, joining a competitor, or working for a competitor for a reasonable period of time after termination and in a reasonable geographic area. Although nothing definitive has been implemented on a federal level, this is an issue worth keeping an eye on. In the meantime, businesses should consider other related tools, like non-solicitation agreements and confidentiality agreements, which may be more broadly enforceable. Non-solicitation agreements restrict a current or former employee from soliciting their former employer’s clients, employees, or other individuals with whom the employee worked. Confidentiality/non-disclosure agreements restrict the current or former employee from disclosing the employer’s proprietary information, such as trade secrets. Unlike a non-compete, because the employee is allowed to immediately start work in the same industry and in the same geographic area, courts have generally viewed non-solicitation and confidentiality agreements more favorably. Idaho also has a trade secret act that can provide extra protection for businesses’ confidential, proprietary information yet, many businesses fail to utilize this law to the extent they could.
Anti-Discrimination and Anti-Harassment Prohibitions Under State and Federal Law
We continue to see the law change and evolve under both state and federal statutes that prohibit discrimination and harassment. The United States Supreme Court ruled in 2020 that discrimination on the basis of gender identity and/or sexual orientation is illegal under Title VII – the federal statute that prohibits discrimination on the basis of sex. While Idaho employers may understand this to be the law (hopefully), there remains a need for courts to provide additional decisions and guidance as to related workplace issues that may arise. For example, employers are seeing more and more scenarios involving pronoun usage and transgender transition in the workplace, and additional guidance on employer expectations and requirements in situations like this would be helpful and is likely to be forthcoming.
On top of that, in a labor market where employers have gotten creative with recruiting efforts, it is more important than ever for employers who have employees working in other states to know and understand that other states, including Oregon and Washington, have enacted additional protections prohibiting discrimination and harassment. In many cases, these other state laws provide protections that go far beyond what Idaho requires. In fact, if your business conducts business in other states, or has employees in other states, it is more important than ever for you to ensure that you know and understand whether and how other state laws differ and what you need to do to comply with them.
Wage and Hour Laws
As you undoubtedly know, there are certain rules that govern when an employer can pay a worker a salary and when the employer can require them to work more than 40 hours per week without overtime. These rules are administered by the Federal Department of Labor. Some common exemptions from overtime that employers rely on are known as the “white-collar exemptions,” and they require employees to meet a threshold amount of compensation received and perform certain job duties.
In August 2023, the Department of Labor issued a notice of proposed rulemaking, proposing to raise the threshold salary required for many white-collar exemptions by nearly $20,000 per year – raising the required salary from $35,568 to $55,068.00. Obviously, this could impact many Idaho employers, as they could potentially have to convert some salaried, exempt employees to a non-exempt, hourly, status if they no longer meet the salary requirement. Or, in the alternative, to keep the exemption, businesses may have to provide a raise of nearly $20,000 to certain employees. Be on the lookout for more information from the Department of Labor to see what happens – this is a big deal and you do not want to start 2024 with a wage and hour violation.
Pregnant Workers Fairness Act
Although protections for pregnant workers have been around for a number of decades, new law that went into effect in 2023 created an increased obligation on the part of employers to provide accommodations for pregnant employees both before and after childbirth. Regulations providing additional details on employer requirements are expected to be released in the coming weeks. Employers should spend time familiarizing themselves with these requirements to ensure compliance and avoid discrimination lawsuits.
As always, Idaho Employment Lawyers is available to answer any questions or assist you in the issues we have listed. Contact us by phone at 208-901-3912 or by email at [email protected]. Similarly, visit our website at idemploymentlawyers.com to learn more.