May 2022

Q. What do companies with employees in Delaware need to know about Delaware’s paid family leave law?

A. On May 10, Governor Carney signed the Healthy Delaware Families Act into law, making Delaware the eleventh state in the country to offer paid family leave when the law goes into effect in 2026. The law will provide 12 weeks of paid parental leave and six weeks of paid medical, family caregiving, and military leave to eligible Delaware employees through a state-run paid family and medical leave insurance program.

Q: In a unanimous opinion, the U.S. Supreme Court held that employers who do not act promptly to invoke an arbitration clause may be held to waive arbitration. What does this mean for my company?

A: As noted in our colleagues’ blog post, on May 23, in a unanimous opinion, the U.S. Supreme Court held that employers who do not act promptly to invoke an arbitration clause may be held to waive arbitration. In so holding, the Court resolved a circuit court split over whether a party arguing waiver had to demonstrate prejudice. The Court held that prejudice was not a requirement. The Court’s holding departs from its generally pro-arbitration holdings over the last 15 years.

Q: What types of damages are available when a former employee breaches a restrictive covenant barring solicitation of his or her former employer’s customers?

A: While parties often focus on the possibility to enjoin a former employee from soliciting a company’s customers, it is possible to recoup lost profits as well, particularly where they are significant. For example, a Massachusetts federal court found a sales representative liable for over $1.6 million in damages for breaching a nonsolicitation clause that prohibited him from procuring business from his former employer’s customers.

In Episode 1 of the Hiring to Firing Podcast, Troutman Pepper Partners Tracey Diamond and Evan Gibbs sit down with European Metal Recycling VP of People and Deputy General Counsel Kate Puccio to discuss the hit show Emily in Paris and the lessons learned about national origin based on events from the show. This episode blends pop culture and fashion into a discussion about important and contemporary legal issues in the workplace.

Q. There have been lots of recent headlines about workers unionizing, but is labor activity actually increasing — and what’s on the horizon for employers?

A. Although union membership declined slightly between 2020 and 2021, labor organizing now appears to be on the rise. The National Labor Relations Board (NLRB or Board) announced this month that union election petitions increased by 57% in the first half of the federal fiscal year, which began in October 2021. At this pace, the nation is on track this year to see the highest levels of union election petitions in at least a decade, according to the NLRB.

What do Emily in Paris, Squid Game, Severance, Ted Lasso, and Moneyball have in common? Find out by listening and subscribing to our Hiring to Firing Podcast hosted by Tracey Diamond and Evan Gibbs. The pair delve into hot-button labor and employment law issues with unique perspectives drawing on pop culture and hit shows and movies. Stay informed and entertained!

Q: I heard that New York City recently amended the salary transparency law. What are the key aspects of the amendment and when does it go into effect?

A: As discussed in our previous post, an upcoming law requires New York City employers to include salary bands in job advertisements or postings. Employers must include the minimum and maximum salary or hourly rate for the position, and the requirement applies to both internal and external postings.