This is the last installment of the resolutions I suggest you take, as noted by Constangy, Brooks, to keep your human resources department, and business as a whole, healthy and well away from the inside of a courtroom or mediation center. The last five resolutions are:
11. Are your non-competes enforceable? And are you using them judiciously? Laws on the enforceability of non-compete agreements vary from state to state. If your agreements have not been reviewed in a while, this would be a good time to have them reviewed to ensure that they'll do you any good if you need them. You may also need to review your territorial or customer restrictions to ensure that they are serving your current business needs, as opposed to the needs you had 10 years ago.
It's also a good idea to take into account how your non-competes are being used, even if they are generally in compliance with the law. A national sandwich chain recently had a public relations nightmare after it came to light that some restaurants were requiring hourly, minimum wage delivery employees to sign non-competes.
11. Are your non-competes enforceable? And are you using them judiciously? Laws on the enforceability of non-compete agreements vary from state to state. If your agreements have not been reviewed in a while, this would be a good time to have them reviewed to ensure that they'll do you any good if you need them. You may also need to review your territorial or customer restrictions to ensure that they are serving your current business needs, as opposed to the needs you had 10 years ago.
It's also a good idea to take into account how your non-competes are being used, even if they are generally in compliance with the law. A national sandwich chain recently had a public relations nightmare after it came to light that some restaurants were requiring hourly, minimum wage delivery employees to sign non-competes.
12. Keep on monitoring the "legal pot" issue. A
patchwork of state and local laws is developing that permits medical or
recreational use of marijuana. Right now, it's still all right under federal law for employers to ban marijuana use, even in states where it's legal, because use of marijuana violates federal law. But that doesn't mean you couldn't run afoul of state
law. This issue is developing quickly, so keep watching, and be ready
to make appropriate adjustments to your substance abuse policy depending
on what happens.
13. Make sure you're ready for the Affordable Care Act. Review
your current compliance with your benefits counsel and consultants. If
you have collective bargaining agreements coming up for re-negotiation
or renewal, consider building in some sort of "flexibility mechanism" to
deal with the huge uncertainty that the ACA is generating. As examples
of the moving target that the ACA has become, the Supreme Court agreed
in November to hear a case challenging the subsidies to states that did
not set up their own insurance exchanges. (A decision is expected this
summer). And just this week, the Republicans in Congress introduced two
bills designed to mitigate parts of the employer mandate.
14. Review your contracts with staffing services and true independent contractors.
This is a good time to examine your contracts with staffing providers
and genuine independent contractors to be as certain as possible that
you have properly allocated risks and responsibilities, including
insurance obligations, indemnification rights and obligations,
compliance with wage and hour and other recordkeeping obligations,
employee supervision, employee safety, discrimination or other required
training, benefits compliance, anti-discrimination compliance, and
recordkeeping obligations and procedures. (If you aren't sure whether
your "independent contractors" are true independent contractors, then go
back to Resolution Nos. 1 and 6).
15. Review your alternative dispute resolution policy, or consider adopting one. If
you already have an arbitration agreement, is it drafted, published,
and executed through agreements with employees in a manner to be
enforced by a court? The NLRB still refuses to recognize arbitration
agreements that eliminate the possibility of class or collective
arbitration, but the Board's position has been rejected in three federal
circuits. The courts generally favor arbitration agreements, so if you
do not have one, it might be worth consideration. For employers with
collective bargaining agreements, consider whether you should negotiate
to obtain grievance and arbitration provisions that would help to meet the NLRB's new standard for post-arbitration deferral.
Disclaimer I am
not a licensed attorney. My blogs are based on
my own experiences, interviews (where credited), and loads of
research, and do not represent legal advice.
No comments:
Post a Comment
Comments? Questions? Is there a topic you'd like me to research for you?