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Giorgio Trovato, Unsplash

On the evening of September 25, 2008, federal regulators seized Washington Mutual (“WaMu”) in what was, and still is, the largest bank failure in United States history. The government immediately sold virtually all of WaMu to J.P. Morgan Chase (“Chase”), at which point Chase took control of all of WaMu’s branches and deposits, and became the employer of WaMu’s more than 43,000 workers.

In the ensuing months, WaMu’s headquarters, which were in Washington, were shuttered and its operations were moved to Chase’s New York headquarters and other locations throughout the country. Many WaMu branches were closed rather than rebranded as Chase locations. While some employees initially stayed on with Chase, thousands were laid off. Others were offered bonuses to remain with Chase temporarily for a transition period.

Continue Reading What’s Next for Employees of Failed Banks?
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Cytonn Photography, Unsplash

It is not uncommon for employers to offer departing employees a severance package in exchange for their signature on a separation agreement. The employer’s primary goal in doing so is often to secure a release of all claims the departing employee may have. But some employers want to impose other obligations on departing employees, like commitments to refrain from disparaging the employer or disclosing information about the employer/the agreement itself. Their ability to do so was recently limited by the decision of the National Labor Relations Board (NLRB) in McClaren McComb.

Continue Reading NLRB Restricts Inclusion of Non-Disclosure and Non-Disparagement Provisions in Severance Agreements
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New York City employers who use Artificial Intelligence (“AI”) tools in hiring employees will soon be subject to new regulations aimed at curbing discrimination. Local Law 144, which goes into effect on April 15, 2023, will require City employers to test their AI recruitment tools for bias and post the results publicly.

Continue Reading New York City Employers: How Biased Is Your HR Software?
Non-compete Agreement

Many employment contracts contain non-competition clauses. There has long been a body of case law limiting the enforceability of these restrictive covenants in New York. For example, under the so-called BDO Seidman test, a non-compete provision is only enforceable if it is no greater than required to protect the legitimate business interests of the employer, does not impose undue hardship on the employee, and is not injurious to the public. See generally BDO Seidman v. Hirshberg, 93 N.Y.2d 382 (1999).

The BDO Seidman test and other judicially created rules governing non-competition clauses may soon fall by the wayside. On January 5, 2023, the Federal Trade Commission (FTC) issued a proposed rule (PR) that would largely ban non-competition provisions throughout the United States. The PR follows an executive order issued by President Biden on July 9, 2021, which urged the FTC to “curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility.”

Continue Reading What Employers Should Know About the FTC’s Proposed Ban on Non-Competition Clauses
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Amy Elting, Unsplash

The New York Department of Labor has issued a new model sexual harassment policy for all employers in New York State. The new model, which was drafted in consultation with the New York State Division of Human Rights (DHR), expands on the topics of sexual harassment as it pertains to gender identity, bystander intervention, and remote workers. The policy will become final after a 30-day comment period, at which point New York employers will need to familiarize themselves with the changes and incorporate them into workplace practices.

Continue Reading New York State Department of Labor Issues New Model Sexual Harassment Policy
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Dylan Gillis, Unsplash

On December 21, 2022, New York joined several other jurisdictions, including New York City, in enacting a compensation transparency law. All New York employers with four or more employees must begin complying with the law starting on September 17, 2023.

Continue Reading New York State Enacts Compensation Transparency Law
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As we move towards year-end, now is an opportune time for businesses to review their policies to ensure compliance with recent changes in state employment laws and guidance. This Employment Alert provides a brief overview of the recent and pending changes to the laws and regulations applicable to New York employers.

Continue Reading Employment Law Update – October 2022
A couple enjoying the sunshine during New York City's #Coronavirus Quarantine, found walking up Flatbush Avenue in Brooklyn. #NYC #Covid
Julian Wan, Unsplash

As the COVID-19 pandemic shifts into a new phase, the rules and regulations surrounding the virus and the workplace continue to evolve. This Employment Alert provides a brief overview of the recent changes to the rules and regulations applicable to New York employers.

Continue Reading COVID-19 Update
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On February 15, 2022, the New York State Department of Health announced that COVID-19 will continue to be designated as “a highly contagious communicable disease that presents a serious risk of harm to the public health” under the New York Health and Essential Rights Act (“HERO Act”).

Continue Reading NYS HERO Act Extended Once Again
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Atoms, Unsplash

On February 9, 2022, Governor Kathy Hochul announced that beginning on Thursday, February 10, 2022, indoor businesses are no longer required to ensure that all entrants are vaccinated or that they wear face masks. This announcement effectively ends the mask mandate put in place in December 2021.

Continue Reading New York Ends Indoor Mask Mandate for Businesses