Employers face many legal challenges when managing their business. Keep reading for the most anticipated legal roadblocks for employers in 2023.
Worker Classifications
A proposed rule regarding employee classifications from the U.S. Department of Labor will take effect May 2023. The rule will rescind the 2021 Independent Contractor Rule which focused on the factors of control of profit for independent contractors. HT new rule dictates that more workers will be classified as employees and those who may have been previously classified as contractors may be reclassified as employees. There will also be more exceptions to state laws regarding standards for independent contractors.
Noncompete Clauses
The Federal Trade Commission has proposed a rule prohibiting non-compete provisions in employment contracts. Previously, the FTC allowed some contracts to include a noncompete agreement that would limit an employee’s ability to work with competitors in the same area or industry. Now, existing non competes will be nullified within six months of the rule taking effect.
Pay Transparency
Employers are required to disclose salary and salary range when advertising open positions. Each state may have specific guidelines for posting compensation, but new laws will require employers to post compensation for each position.
AI
Artificial intelligence has made tremendous strides for many industries from sales to medicine. However, the federal government is limiting the use of AI for hiring as it has led to an increase in discrimination claims. The Equal Employment Opportunity Commission has issued a guidance in response that states that AI may be used within strict guidelines pertaining to equitable use.
Ethnic Hair
The CROWN Act or the Creating a Respectful and Open World for Natural Hair prohibits discrimination based on racial and national hairstyles. The CROWN act has been adopted by most states and a number of municipalities have regulations that address this specific kind of discrimination. Employers who are found in noncompliance, may face civil action and even action from federal enforcement agencies.
Legal Protection
Eldridge & Blakney, PC has extensive experience helping employers and employees with complicated legal matters from discrimination to EEOC violations and more. Our attorneys can provide the legal guidance and support our clients need to procure the most optimal result.
Contact our firm today for more information.
