Expert Analysis

• 7th Circ. FLSA Notice Test Adds Flexibility, Raises Questions

  

  In Richards v. Eli Lilly, the Seventh Circuit created a new approach for district courts to determine whether to issue notice to opt-in plaintiffs in Fair Labor Standards Act collective actions, but its road map leaves many unanswered questions, says Rebecca Ojserkis at Cohen Milstein.

• Handbook Hot Topics: State Laws Shape Drug-Testing Policies

  

  With the growing popularity of state laws regulating drug testing, employers must consider the benefits and costs associated with maintaining such policies, particularly where they are subject to conflicting state laws, say attorneys at Kutak Rock.

• Calif. Arbitration Fee Ruling Gives Employers Slight Leeway

  

  The California Supreme Court's decision in Hohenshelt v. Superior Court of Los Angeles County offers a narrow lifeline that protects employers from losing arbitration rights over inadvertent fee payment delays, but auditing arbitration agreements and implementing payment tracking protocols can ensure that deadlines are always met, say attorneys at Buchalter.

• 3rd Circ. FMLA Suit Revival Offers Notice Rule Lessons

  

  In Walker v. SEPTA, the Third Circuit reinstated a former Philadelphia bus driver's Family and Medical Leave Act lawsuit, finding the notice standard is not particularly onerous, which underscores employers' responsibilities to recognize and document leave requests, and to avoid penalizing workers for protected absences, say Fiona Ong and Leah Shepherd at Ogletree.

• Employer Tips As DOL Shifts Away From Liquidated Damages

  

  The recent guidance from the U.S. Department of Labor's Wage and Hour Division eliminating liquidated damages during Fair Labor Standards Act investigations creates an opportunity for employers to secure early, cost-effective resolution, but there are still reasons to remain vigilant, say attorneys at Foley & Lardner.

• Class Actions At The Circuit Courts: August Lessons

  

  In this month's review of class action appeals, Mitchell Engel at Shook Hardy discusses key takeaways from federal appellate decisions involving topics including antitrust, immigration, consumer fraud, birthright citizenship under the Fourteenth Amendment, and product defects.

• 3rd Circ. H-2A Decision Mistakenly Relies On Jarkesy

  

  The Third Circuit's decision last month in Sun Valley v. U.S. Department of Labor found that the claims required Article III adjudication under the U.S. Supreme Court's Jarkesy decision — but there is an alternative legal course that can resolve similar H-2A and H-2B cases on firmer constitutional ground, says Alex Platt at the University of Kansas School of Law.

• How To Navigate NYC's Stricter New Prenatal Leave Rules

  

  On top of the state's prenatal leave law, New York City employers now face additional rules, including notice and recordkeeping requirements, and necessary separation from sick leave, so employers should review their policies and train staff to ensure compliance with both laws, say attorneys at BakerHostetler.

• What To Expect As Calif. Justices Weigh Arbitration Fee Law

  

  If the California Supreme Court’s upcoming ruling in Hohenshelt v. Superior Court holds that the Federal Arbitration Act does not preempt the California Arbitration Act's strict fee deadlines, employers and businesses could lose the right to arbitrate over minor procedural delays, say attorneys at Bird Marella.

• Noncompete Forecast Shows Tough Weather For Employers

  

  Several new state noncompete laws signal rough conditions for employers, particularly in the healthcare sector, so employers must account for employees' geographic circumstances as they cannot rely solely on choice-of-law clauses, say lawyers at McDermott.

• Texas Med Spas Must Prepare For 2 New State Laws

  

  Two new laws in Texas — regulating elective intravenous therapy and reforming healthcare noncompetes — mark a pivotal shift in the regulatory framework for medical spas in the state, which must proactively adapt their operations and contractual practices, says Brad Cook at Munsch Hardt.

• 4 In-Flux Employment Law Issues Banks Should Note

  

  Attorneys at Ogletree provide a midyear update on employment law changes that could significantly affect banks and other financial service institutions — including federal diversity equity and inclusion updates, and new and developing state and local artificial intelligence laws.

• Mulling Worker Reclassification In Light Of No Tax On OT

  

  The One Big Beautiful Bill Act's no-tax-on-overtime provisions provide tax relief for employees who regularly work overtime and are nonexempt from the Fair Labor Standards Act, but reclassifying employees may lead to higher compliance costs and increased wage and hour litigation for employers, says Steve Bronars at Edgeworth Economics.