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Illinois and City of Chicago Poised to Implement New Laws Addressing Changes in the Workplace – Signs of Things to Come? (US)

Illinois Restricts Use of Artificial Intelligence in Hiring On May 29, 2019, the Illinois Legislature unanimously passed the Artificial Intelligence Video Interview Act , which, not surprisingly, addresses how employers use artificial intelligence to analyze job applicant video interviews to determine the applicant’s fitness for the position.  Under the new law (assuming it is signed by the Governor, as anticipated), before requesting an applicant submit to a video interview, employers will be required to: notify applicants for positions based in Illinois that it plans to have their video interview analyzed electronically; explain how the artificial intelligence analysis technology works and what general characteristics it will use to evaluate candidates; and obtain the applicant’s consent to these procedures (note: consent does not have to be in writing). Under the bill, employers are required to destroy all copies, including back-ups, of an applicant’s video int...

US Department Of Labor Issues Final Rule On Joint Employer Status Under The FLSA (US)

Rule establishes standard under which two employers will be deemed jointly and severally liable under the Fair Labor Standards Act as of March 16, 2020 In January 2016, we posted about an Administrator’s Interpretation issued by the US Department of Labor’s (DOL) then-Wage and Hour Division Administrator that provided guidance for when two or more employers should be considered “joint employers” under the Fair Labor Standards Act (FLSA).  (The FLSA is the primary federal statute that regulates minimum wage and overtime compensation for US workers.)  This guidance noted the “growing variety and number of business models and labor arrangements,” and suggested that because of this, more direction was needed “to hold all responsible parties accountable for their legal obligations.” Now, four years later, the DOL has issued its Final Rule on Joint Employer Status under the FLSA.  The rule specifically addresses two types of poten...

Coronavirus Disease 2019 (COVID-19) – Legal Issues in the US

Although the coronavirus disease 2019 (COVID-19), commonly referred to as the “coronavirus,” remains a developing situation, it has begun affecting the US in major ways.  With cases now reported throughout the US, every organization should have a plan of action in place concerning the coronavirus.  Although every business faces unique considerations, a cross-disciplinary team of Squire Patton Boggs attorneys have collaborated to prepare guidance – available here – for organizations to consider when addressing coronavirus-related employment, customer service, and other issues.

Department of Labor Continues to Loosen Restrictions on Calculating Overtime (US)

In what Labor Secretary Eugene Scalia called a step in the US Department of Labor’s (DOL) goal of lessening “unnecessary regulatory burdens” on businesses, on May 20, 2020 the DOL released a final rule regarding the calculation of overtime for salaried non-exempt workers with fluctuating workweeks. The rule change may encourage payment of additional incentive compensation to non-exempt employees paid using the “fluctuating workweek” (FWW) method of computing overtime without jeopardizing the advantageous overtime calculation. Ordinarily, to calculate overtime, an employer determines a non-exempt employee’s regular rate of pay by dividing their total remuneration earned in the workweek by the number of hours worked, and then pays the regular rate plus an additional 50% of the regular rate for any overtime hours worked by the non-exempt employee. By contrast, the FWW formula of overtime payment allows businesses to pay employees whose hours vary widely ...