California, the 5th largest economy in the world, yet only a state of this country, has rolled out a number of new laws HR needs to be aware of.  See below for a short summary of some of the changes in 2025:

As Artificial Intelligence (AI) permeates throughout the organization, it leads to a new type of organizational structure: the diamond shaped structure.  Although still early in the AI development, jobs will be changed or taken over by AI.  As such, the structure of the organization and career lattice for employees will change. 

PBMs or Pharmacy Benefit Managers are under the gun these days. PBMs are third party administrators for many types of drug care plans, especially those covering employers. PBMs earn revenues in a variety of ways. First, they collect administrative and service fees from the original insurance plan. Second, they can also collect rebates from the manufacturer. Third, and more controversial, they can resell drugs at a price higher that than the price negotiated with the manufacturer or...

The Illinois Equal Pay Act (the "Act") is officially going live January 1, 2025.  It was passed in 2023 and amended several times. Employers in Illinois with 15 or more employees will be required to include pay and benefit information in all job postings both external and internal.    The following are specific provisions that must be complied with:

The U.S. Court of Appeals for the Ninth Circuit ruled in Nebraska v. Su, No. 23-15179 (9th Cir. Nov. 5, 2024) that the president lacks authority under the Federal Property and Administrative Services Act of 1949 to set a federal contractor minimum wage.  Initially, Arizona, Nebraska, Idaho, Indiana, and South Carolina brought suit in the U.S. District Court for the District of Arizona challenging enforcement of the contractor minimum wage. The district court had dismissed the suit...

Last Friday, President Elect Trump nominated Lori Chavez-DeRemer for the position of U.S. Department of Labor Secretary.  Ms. Chavez-DeRemer is a Republican from Oregon who recently lost her seat in the House of Representatives, representing a district that includes part of Portland, Oregon. She previously was mayor of Happy Valley, a Portland suburb.  She was a one-term congressperson.

 

For many in HR today, artificial intelligence (AI) is mainly utilized in the recruiting sphere.  From chat boxes, video interviews, and resume assessment to candidate resume creation, AI is becoming a staple in the recruitment area.  However, AI could upend the compensation and labor markets through pricing algorithms.  For example, in the IC market for Uber drivers, algorithms are used to determine peak pricing and control ride share costs.  Therefore, Uber driver...

The Family and Medical Leave Act (FMLA) remains essential but can present challenges for employers. While most employee requests for leave are genuine, there are instances that raise questions for HR. Even in legitimate cases, certain aspects of the leave process can create complications for HR teams. So, how can employers manage FMLA effectively without risking legal issues?
 

The U.S. Federal District Court for the Southern District of Texas issued an order halting further action in an enforcement case brought by the Office of Federal Contract Compliance Programs (OFCCP) against ABM Industry Groups LLC, a janitorial service provider in Houston, Texas. The case involves allegations that ABM favored Hispanic applicants over African American applicants in its hiring practices. The court’s ruling prevents the U.S. Department of Labor, the Acting Secretary of...

The Pregnant Worker Fairness Act (PWFA) became effective June 27, 2023.  The implementing regulations by the EEOC were promulgated on June 18, 2024.  It covers employers with 15 or more employees.  The PWFA requires a covered employer to provide a “reasonable accommodation” for a qualified employee’s or applicant’s known limitations related to, affected by, or arising out of pregnancy, childbirth, or related medical conditions, unless the accommodation...

SAFE leave is becoming more prominent as domestic violence and crimes against women are more widely reported.  One in four women and one in nine men experience severe intimate partner violence in their lifetime, according to the National Coalition Against Domestic Violence. Over 47% of women have encountered sexual violence, physical violence, or stalking by an intimate partner during their lifetime as reported by Break the Cycle.  More than 16 million people in the U.S. suffer...

The Worker Protection Act 2024 comes into force on October 26, 2024, and employers in Great Britain have specific items they must do to meet requirements of the law.  Given the issues arising from the #MeToo and other movements, this law was passed with the intention to keep the workplace as a safe environment for all. 

In recent developments, a couple of court cases need to be noted by employers who do diversity activities.  The first is the Fearless Fund case.  Fearless Fund is an investment fund that sought to administer a contest that would have awarded $20,000 grants to small businesses owned by Black women.  The American Alliance for Equal Rights (the Alliance), an organization led by Edward Blum, who led the charge against the Harvard and University of North Carolina’s...

As degrees and education are being sidelined from job requirements (primarily due to job requirement inflation), employers need to determine if the applicant’s skills meet the level required to be successful for the job.  The jobs themselves likely don’t require degrees, but rather specific skill levels that the degree requirements have screened out, leading to a dearth of candidates for the specific job.  By opening the pool, employers have also increased the diversity...

In a recent case filed in the federal court in the Southern District of Texas, janitorial services company ABM Industry Groups (ABM) sued the U.S. Department of Labor, claiming the agency's administrative proceedings for enforcing anti-discrimination requirements for federal contractors are unconstitutional.  This case arises from the U.S. Supreme Court’s decision in the Jarskey case (SEC v. Jarskey, No. 22–859 (6/27/24)).