The Rocky Mountain Employer

President Trump has the opportunity to fill vacant seats on the National Labor Relations Board (“NLRB” or “Board”), creating an employer-friendly and Republican majority. He will also be able to appoint new general counsel of NLRB in November 2017. No new board members have been appointed, although reports have circulated that he is narrowing in on potential appointees. It is suspected that his final appointments to these positions will occur by the end of the year.   

Whistleblower claims continue to increase, and employers across the country are becoming more and more likely to run into such a claim.  Damage awards for whistleblower claims often range into the millions of dollars.  Given the severity and potential crippling impact on the company such claims have, employees who “blow the whistle” and report the alleged misconduct may experience various forms of adverse action—both from management and their co-workers.  As a result, most whistleblower statutes[1] protect whistleblowers from retaliation. This article addresses best practices to manage whistleblower employees and avoid retaliation claims and additional liability.

VCG Holding Corp., a company that owns strip clubs across the country was sued by more than 500 adult dancers for various violations of the Fair Labor Standards Act (“FLSA”) and Colorado Labor Code stemming from their misclassification as independent contractors.  This case is one of many lawsuits in the last several years targeting strip club owners and other businesses, and forcing many businesses to reevaluate how they classify and compensate their workers. 

Amid uncertainty regarding the lawfulness of class-action waivers in employment arbitration agreements, a U.S. District Court has held that such waivers are not unlawful as applied to supervisory employees.[1]

In his February 28, 2017 Congressional address, President Donald Trump urged Congress to consider a paid family leave bill. Democrats and Republicans have introduced bills in the United States Senate (the “Senate Bills”) addressing paid family leave, but the Senate Bills affect employers in significantly different ways.[1]  This article analyzes the Senate Bills and their potential impact on employers across the country.

Employers may soon have more clarity regarding the scope of federal agency subpoena power.  On February 21, 2017, the United States Supreme Court heard oral arguments in McLane Co. v. EEOC, a case initially brought to determine appropriate procedural standards, but has since grown to a case that may determine the appropriate scope of Equal Employment Opportunity Commission (“EEOC”) subpoena power.  This article examines the federal agencies’ subpoena power; the increased agencies’ threats of the use of subpoenas; and an overview of McLane Co. and its potential impact on employers.

President Trump’s announcement of a new Department of Labor (“DOL”) Secretary pick, and statements from the Chairman of the Congressional Workforce Protections Subcommittee (the “WP Subcommittee”) about possible legislation, are setting the stage for changes in employment and labor policy in the Trump administration.

The 2017 Colorado proposed legislation could significantly impact Colorado employers.  On January 31, 2017, Senators Jack Tate (R-District 27) and Jim Smallwood (R – District 4) spoke at the Labor and Employment Council for the Colorado Association of Commerce & Industry (“CACI”) and provided an overview of various proposed employment laws.  Below is Campbell Litigation’s report on the meeting.

Employers throughout the country will very likely face fewer regulatory burdens in the next four years.  President Trump recently signed an executive order directing federal agencies to eliminate two current regulations for every new regulation they implement (the “Executive Order”). President Trump stated one of the goals of the Executive Order will be to help grow business by reducing regulation, and further explained that he wants to eliminate “a little more than 75 percent” of current regulations.  President Trump’s Executive Order and comment clearly signal a reversal from the previous administration’s philosophy concerning regulations, and many business groups and associations have applauded the change.  

A recent National Labor Relations Board (“NLRB” or the “Board”) decision highlights the well-established rule that an employer violates Section 8(a) of the National Labor Relations Act (“NLRA” or “Act”) by prohibiting employees from discussing unionization, when employees are not otherwise prohibited from discussing other subjects unrelated to work.

The United States Supreme Court will decide the validity of class action waivers within employment arbitration agreements.  On January 13, 2017, the Supreme Court granted certiorari to and consolidated three separate petitions requesting that the Court review this issue.  The Court has yet to set a date for oral argument, but will likely decide this issue before taking its summer recess in late June 2017.   Currently, there is a deep split in the federal appellate courts regarding whether employment arbitration agreements that contain class action waiver clauses are enforceable, as two federal appellate courts have found such agreements unenforceable, and four federal appellate courts have held such agreements are valid.

The Third Circuit Court of Appeals (“Third Circuit”) recently held that the Age Discrimination in Employment Act (“ADEA”) permits plaintiffs within a subgroup of the protected class to bring a disparate-impact claim.  The Third Circuit decision is the first to recognize such a claim, and creates a split within the federal appellate courts.  This article analyzes ADEA disparate-impact claims and the Third Circuit decision creating the circuit split, and provides practical takeaways for employers.

As of January 1, 2017, Colorado employers must begin paying its employees a minimum of $9.30 per hour, or $6.28 per hour for tipped employees, an increase of $0.99 per hour.  In November 2016, Colorado passed Amendment 70, which will gradually increase the state’s minimum wage to $12.00 per hour by January 2020, and the first—and biggest—increase took effect January 1, 2017.  While Amendment 70 did not specifically address the tipped employee minimum wage, Colorado’s Minimum Wage Order Number 33 only permits up to $3.02 per hour in tip income to offset the standard minimum wage.  Accordingly, Colorado’s tipped minimum wage will also gradually increase each year until it reaches $8.98 per hour in January 2020.  

In 2017, we will continue to focus on the areas of most importance for employers not only in the Rocky Mountain region, but across the country as well.  In 2017, we anticipate that some of the key areas impacting employers will include: The Trump Administration’s relaxing of regulations on employers; The Supreme Court ruling on whether arbitration agreements can include class action waivers; likely increases to the minimum wage; and further guidance regarding LGBT protections under Title VII of the Civil Rights Act of 1964.