The Weekly Guide to Employment Law Developments

The Rocky Mountain Employer

Labor & Employment Law Updates

EEOC Publishes Final Rules Governing the Pregnant Workers Fairness Act

On April 15, 2024, the Equal Employment Opportunity Commission (“EEOC”)  released its highly anticipated revised rules (“Final Rules”) regarding interpretation and enforcement of the Pregnant Workers Fairness Act (“PWFA”).”

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U.S. Supreme Court Lessens the Burden for Employees Alleging a Discriminatory Job Transfer

On April 17, 2024, the United States Supreme Court issued its decision in Muldrow v. City of St. Louis,[1] and held that an employee alleging that his or her job transfer was discriminatory in violation of Title VII of the Civil Rights Act of 1964 need only show that the transfer left them worse off in order to state a cognizable discrimination claim.”

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OSHA Walkaround Rule Provides a Potential New Avenue for Labor Union Access to Private Workspaces

On April 1, 2024, the Occupational Safety and Health Administration (“OSHA”) published its final rule regarding who may be designated to represent employees during physical worksite inspections conducted by OSHA Compliance Safety and Health Officers (“CSHOs”), colloquially referred to as the “Walkaround Rule”.“

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Groff v. DeJoy in Action – Jury Finds That Employee’s COVID-19 Religious Accommodation Request Would Cause Undue Hardship

After a two-day trial on the merits of Robert Varkonyi’s claim that his employer failed to accommodate his request for a religious exemption from the company’s COVID-19 vaccination requirement, a jury returned a verdict finding that undue hardship would result to the employer if the request were granted.“

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The Decision to Recognize a Union versus a Board Election— the Denver Art Museum’s Recent Unionization

“In the wake of a contentious unionization effort, Denver Art Museum (the “Museum”) workers successfully unionized on March 7th, 2024.”

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Colorado Supreme Court Hears Oral Argument on Overtime Pay Calculations After Tenth Circuit Certifies Question of State Law

On March 13, 2024, Colorado’s high court heard argument from the parties in Hamilton v. Amazon.com Services LLC, a federal proposed class action against the retail giant challenging the company’s calculation of overtime pay when employees work shifts already paid at a premium “holiday incentive pay” rate.”

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General Assembly Takes Aim At Captive Audience Meetings in the Workplace Via HB 24-1260

Colorado may join a small number of other states (Connecticut, Maine, New York, Minnesota, and Oregon) which have passed legislation banning mandatory “captive audience” meetings in the workplace.  House Bill 24-1260, introduced on February 12, 2024, and set to be heard by the Business Affairs & Labor Committee on March 20, 2024, would prohibit employers from requiring employees to attend meetings, listen to speech, or view communications concerning “religious or political matters”—including speech related to labor organizations and unionization—and would create a private right of action for violations of the same.”

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The Job Application Fairness Act and Penalties for Direct (or Indirect) Requests for Information Pertaining to the Age of Job Applicants

Beginning July 1, 2024, Colorado’s new Job Application Fairness Act (“JAFA” or the “Act”) will go into effect, which will restrict the ability of Colorado employers to inquire into the age of job applicants, or else risk civil penalties.”

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U.S. Supreme Court Clarifies Burden of Proof Standards for Sarbanes-Oxley Whistleblower Lawsuits

On February 8, 2024, the United States Supreme Court resolved a split among the lower Courts of Appeals regarding a plaintiff’s burden of proof in whistleblower retaliation cases where the plaintiff has been punished for reporting criminal fraud or securities violations under the Sarbanes-Oxley Act.”

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Tenth Circuit Reaffirms Plaintiffs’ Ability to Plead Alternative Discrimination Theories, Notwithstanding Contradictory Allegations or Causation Standards

The Court of Appeals for the Tenth Circuit revived a medical professional's state age discrimination claim where the facts he alleged sufficiently implied he was terminated because of his age—notwithstanding that the plaintiff also alleged that his disability was the driving factor behind his termination.“

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Compensatory and Punitive Damages Caps under Federal Anti-Discrimination Statutes Under Fire

n light of recent District Court and appellate decisions which have significantly reduced jury damages awards in federal discrimination cases based on existing caps on recoverable compensatory and punitive damages, these damages caps are now under scrutiny from both the Equal Employment Opportunity Commission (“EEOC”)’s General Counsel—Karla Gilbride—as well as, potentially, Congress itself.“

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Federal Court to Decide Whether a Constitutional Challenge to Colorado’s Healthy Families and Workplaces Act May Proceed

In a recent federal lawsuit challenging Colorado’s Healthy Families and Workplaces Act (“HFWA” or the “Act”), plaintiff Airlines for America alleges that the Act unconstitutionally violates the dormant Commerce Clause because it creates conflicting regulations and unduly burdens interstate commerce.“

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Eleventh Circuit Panel Hears Argument on Temporary Injunction in Latest Legal Threat to DEI Programs

On Wednesday, January 31, 2024, a three-judge panel of the Eleventh Circuit U.S. Court of Appeals heard oral argument in American Alliance for Equal Rights v. Fearless Fund Management, LLC et al., in which the Court had issued a temporary injunction against a Black women-owned venture capitalist firm’s grant program, which seeks to provide financial and other assistance exclusively to Black women entrepreneurs.”

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Early Colorado General Assembly Bills Emphasize the Protection of Employee Physical and Mental Health and Safety

The Colorado General Assembly reconvened on January 10, 2024, and representatives quickly introduced new labor and employment legislation which focuses on the physical and mental health of Colorado employees in the workplace—particularly in health-care and behavioral health settings—in the form of the “Violence Prevention in Health-care Settings Act” and the “Violence Prevention in Behavioral Health Settings Act” (HB24-1066), as well as the “Concerning Suicide Prevention Education in the Workplace” bill (HB24-1015).”

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Future of “Chevron Two-Step” Judicial Deference to Administrative Agency Interpretations of Law is Now Before the U.S. Supreme Court

On January 17, 2024, the U.S. Supreme Court heard oral arguments in two cases which present the question of whether the Court should overrule, or at least clarify, its 1984 decision in Chevron, U.S.A., Inc. v. National Resources Defense Council, Inc.”

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Department of Labor Re-Adopts the Economic Reality Test for Worker Classifications under the Fair Labor Standards Act

On January 10, 2024, the U.S. Department of Labor published its final rule setting new guidelines for classifying workers as either “employees” or “independent contractors” under the Fair Labor Standards Act.”

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Tenth Circuit Rejects “Open-Ended, Indefinite Amount of Time Off from Work" Accommodation

On December 19, 2023, the Court of Appeals for the Tenth Circuit affirmed summary judgment in Davis v. PHK Staffing against an employee terminated for exceeding the limits of a no-fault attendance policy.”

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Tenth Circuit Decision Emphasizes Mental Health and Substance Use Disorders as Independent Reasons for Potential Coverage under ERISA Plans

On December 5, 2023, the Court of Appeals for the Tenth Circuit found that an employee benefit plan administrator failed to satisfy the relatively lenient arbitrary and capricious standard of review when it denied residential treatment benefits for mental health and substance use disorders under the Employee Retirement Income Security Act of 1974 (“ERISA”).”

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Updates to Colorado Wage & Hour Rules Effective January 1, 2024, Plus Related Updates to Interpretive Notices and Formal Opinions

The Colorado Department of Labor and Employment (“CDLE”) has updated and finalized its rules concerning pay standards and compensation, equal pay transparency, and prevailing wage and residency requirements, effective January 1, 2024.”

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EEOC Set to Issue Final Rule Implementing the Pregnant Workers Fairness Act on December 29, 2023

“The Rocky Mountain Employer previously discussed the Equal Employment Opportunity Commission’s (“EEOC”) Proposed Rule to implement the Pregnant Workers Fairness Act (the “Act”) which was signed into law on December 29, 2022, and became effective on June 27, 2023.”

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