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New Form I-9 and Alternative Inspection Procedure Now in Effect

By: Cody Weyhofen

The Department of Homeland Security (“DHS”) and U.S. Citizenship and Immigration Services (“USCIS”) recently announced changes to Form I-9 and its related document verification procedures. Although these changes will likely streamline the employee-onboarding process, employers will first need to comply with multiple upcoming deadlines and determine whether they qualify for remote verification procedures.

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IRS Memo Questions Tax-Exempt Status of NIL Collectives

By: Tate Thompson and Curry Sexton

In a June memo released by the Office of the Internal Revenue Service (IRS) Chief Counsel, the IRS announced its position that, in most cases, it does not believe name, image, and likeness (NIL) collectives qualify as tax-exempt organizations under the Internal Revenue Code (IRC). Although not legally binding, the decision will likely have a significant impact on existing NIL collectives organized as nonprofits and granted tax-exempt status by the IRS.

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Supreme Court Raises Standard for Employers to Deny Religious Accommodations

By: Katie Conklin

On June 29, 2023, the U.S. Supreme Court issued a unanimous opinion in Groff v. DeJoy, raising the standard for determining when a religious accommodation constitutes an “undue hardship” for an employer. Under the decision, an employer may only deny an employee’s request for religious accommodation if the accommodation would create a substantial hardship to the employer’s business.  

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NLRB Modifies Independent Contractor Standard

By: Cody Weyhofen, John Vering, and Mark Opara

On June 13, 2023, the National Labor Relations Board (the “Board”) issued a decision revamping the test to determine whether a worker is an employee or an independent contractor under the National Labor Relations Act (the “NLRA”). As a result, workers previously categorized as independent contractors may now be entitled to the rights and protections afforded to employees under the NLRA.

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NLRB General Counsel Issues Guidance on the Board’s Prohibition of Broad Confidentiality and Non-Disparagement Provisions in Severance Agreements

By: Katie Conklin and Cody Weyhofen

As we explained in our previous client alert, on February 21, 2023, the National Labor Relations Board (the “Board”) ruled in McLaren Macomb, 372 NLRB No. 58 (2023), that confidentiality and non-disparagement provisions typically found in severance agreements are unlawful if they interfere with an employee’s Section 7 rights under the National Labor Relations Act (the “Act”) to organize, bargain collectively, and engage in concerted activities that affect terms and conditions of employment.

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New Guidance on Federal Protections for Pregnant and Nursing Employees

By: Katie Conklin and John Vering

The U.S. Department of Labor (DOL) and the Equal Employment Opportunity Commission (EEOC) recently published guidance concerning the Providing Urgent Maternal Protection for Nursing Mothers Act (PUMP Act) and the Pregnant Workers Fairness Act (PWFA). As we explained in our previous client alert, the PUMP Act, effective April 28, 2023, requires employers pay breastfeeding employees for “hours worked” during certain lactation breaks; and the PWFA, effective June 27, 2023, requires employers to provide reasonable accommodations for pregnant employees. 

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Bipartisan Legislation Introduced in United States Senate to Limit Use of Noncompete Agreements

By: Curry Sexton, Brenda Hamilton, and Mark Opara

In early January, the Federal Trade Commission (FTC) proposed a new rule that would ban employers from entering into noncompete agreements with workers and require employers to rescind existing noncompete agreements. Fast forward one month, and a bipartisan group of United States Senators has introduced legislation that would limit the use of noncompete agreements.

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NLRB Rules that Employers Cannot Offer Severance Agreements With Confidentiality and Non-Disparagement Clauses

By: Cody Weyhofen and Katie Conklin

On February 21, 2023, the National Labor Relations Board (the “Board”) ruled in McLaren Macomb, 372 NLRB No. 58 (2023) that confidentiality and non-disparagement clauses typically found in severance agreements are unlawful if they interfere with an employee’s Section 7 rights under the National Labor Relations Act (the “NLRA”) to organize, bargain collectively, and engage in concerted activities that affect terms and conditions of employment.

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