Welcome to the most recent Labor and Employment Update. This summer, we are trying a new format for our updates. Rather than our larger quarterly newsletter, we will be distributing shorter updates more frequently. We have also added links to recent Labor and Employment Update articles. We hope you enjoy this new format.
Illinois Department of Labor Issues New Day and Temporary Labor Regulations
The Illinois Department of Labor has recently published final regulations incorporating the amendments to the Illinois Day and Temporary Labor Services Act, which amendments became effective January 1, 2006. [Click here for a discussion of the amendments to the Act which appeared in our February 2006 newsletter.] The new regulations add and modify definitions for the Act; set forth requirements for the application, registration and renewal process for day and temporary labor service agencies - including an increase in registration fees; explain the duties and responsibilities of day and temporary labor service agencies and third party clients; impose recordkeeping requirements; and set forth the complaint, investigation and hearing process for alleged violations of the Act.
A copy of the final regulations can downloaded from the Illinois Department of Labor web site at http://www.ilga.gov/commission/jcar/admincode/056/05600260sections.html. Please contact any member of Schiff Hardin's Labor and Employment group if you have any questions about these new regulations or about the Day and Temporary Labor Services Act.
A recent decision of the National Labor Relations Board (NRLB) has significant ramifications for employers who have mandatory arbitration agreements with employees. In U-Haul Co. of California, the Board held that U-Haul was in violation of the National Labor Relations Act (NLRA) because its arbitration policy with non-union employees could reasonably be read to prohibit the filing of unfair labor practice charges with the NLRB. The arbitration policy expressly provided that it applied to:
As pointed out by the Administrative Law Judge who heard the underlying claims, the language any other legal or equitable claims and causes of action recognized by local, state, or federal law or regulations was particularly problematic because this could reasonably be read to include the filing of unfair labor practice charges with the NLRB.
Accordingly, the Board ordered U-Haul to 1) cease and desist from requiring employees to execute waivers of their rights to take legal action, to the extent that such waivers apply to the filing of NLRB charges; 2) remove from its files all unlawful waivers of the right to take legal action executed by its employees; 3) notify in writing each present or former employee who executed such waiver that this has been done and that the waiver will not be used in any way; and 4) post a remedial notice regarding the policy at all facilities in which the policy was in effect.
As a result of this decision, employers that have mandatory arbitration agreements should ensure that their arbitration policies do not contain language that could be read to prohibit employees from filing any unfair labor practice charges under the NLRA. If arbitration policies do contain such language, they should be amended accordingly.
Other Recent Articles
Schiff Hardin Labor and Employment Group
Schiff Hardin LLP