Employment Law Alert: D.C. Expands Coverage of Minimum Wage Law

On January 10, 2024, D.C. Mayor Muriel Bowser signed an amendment to D.C.’s minimum wage law that expands the coverage of the law to include individuals working 2 or more hours a week in D.C.  Prior to the amendment, the law applied to individuals who regularly spend more than 50% of their working time in D.C. or the employee’s employment is based in D.C. and they regularly spend a substantial amount of their working time in D.C. and not more than 50% of their working time in any particular state.  D.C.’s minimum wage law requires non-tipped employees to be paid $17.00 per hour, and tipped employees $8.00 per hour.  Effective July 1, 2024, these rates will be increased to $17.50 per hour and $10.00 per hour, respectively.

It is important to note that D.C.’s minimum wage law only applies to hours worked in D.C.  This may result in an employer having to pay two different hourly rates to an employee who works in both D.C. and another state in the same week.  For example, if an employee works in Maryland for 35 hours in a week and earns Maryland’s minimum wage rate of $15.00 per hour, and also works 5 hours in D.C. that same week, the employee would earn $15.00 per hour for 35 hours and $17.00 for 5 hours.

The text of the amendment is available here.

If you have any questions about this Alert, we encourage you to contact your Shulman Rogers contact for solutions and recommendations for addressing these issues.

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The contents of this Alert are for informational purposes only and do not constitute legal advice. If you have any questions about this Alert, please contact the Shulman Rogers attorney with whom you regularly work or a member of the Shulman Rogers Employment and Labor Law Group.

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Employment Law Alert: DOL Issues Final Rule Requiring Successor Contractors to Offer Employment to Predecessor Employees Under the Service Contract Act

The U.S. Department of Labor recently issued a final rule implementing Executive Order 14055 (EO), which requires federal contractors and subcontractors on certain successor federal service contracts to offer employment to service employees on predecessor contracts.  The final rule is effective February 12, 2024 and applies only to contract solicitations issued on or after that date by the Federal Acquisition Regulatory Council.

The final rule and FAQs prepared by the DOL state, among other things:

  • The final rule applies to any contract, contract-like instrument or subcontract for services covered by the Service Contract Act.  It does not apply to prime contracts under the simplified acquisition threshold (currently $250,000) and any subcontracts of any tier under such prime contracts.
  • Contracting agencies are responsible for determining whether a solicitation is covered by the EO, deciding whether to waive the requirements of the EO and conducting a “location continuity” analysis to consider whether to include a location-continuity requirement or preference in a covered solicitation.
  • Contracting agencies must send the successor contractor a certified list of names of the employees working under the predecessor prime contract and any subcontract.
  • Successor contractors must make written job offers to service employees who were employed under the predecessor contract.  The successor contractor must offer employment even if it does not receive a list of employees on the predecessor contract (in which case, it is required to accept other reliable evidence of a worker’s right to receive a job offer).  Employees must be given at least 10 business days to consider and accept the offer. The offer does not need to be for a position similar to the one the employee previously held—it just needs to be a position for which the employee is qualified.  The offer also may include different employment terms and conditions, including changes to pay, benefits or the option of remote work, as long as the different terms are not offered to discourage the employee from accepting the offer.

If you have any questions about this Alert, we encourage you to reach out to your Shulman Rogers contact for solutions and recommendations for addressing these issues.

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The contents of this Alert are for informational purposes only and do not constitute legal advice. If you have any questions about this Alert, please contact the Shulman Rogers attorney with whom you regularly work or a member of the Shulman Rogers Employment and Labor Law Group.

To receive Employment Law Alerts and other timely news and information from Shulman Rogers, please click HERE to subscribe.

Employment Law Alert: D.C. Enacts New Pay Transparency Law

On January 12, 2024, D.C. Mayor Muriel Bowser signed the Wage Transparency Omnibus Amendment Act of 2023, which will require employers with at least one employee in D.C. to post the pay ranges and benefits information for open positions.  The Act also increases protections for employees and applicants to inquire about and discuss compensation.  The Act takes effect on June 30, 2024.

The Act requires employers to provide “the minimum and maximum projected salary or hourly pay in all job listings and position descriptions advertised.” Employers also must disclose available benefits to prospective employees before the first interview.  Notably, the Act does not define “job listing” or “position description advertised.”  The Act is also silent about whether it covers jobs outside of D.C., including remote positions.

In addition, the Act prohibits employers from screening applicants based on their wage history. It also prohibits employers from requesting or requiring that applicants disclose their wage history, and from seeking an applicant’s wage history from a prior employer. Employers also must post a yet-to-be-developed notice in the workplace regarding the Act.

If you have any questions about this Alert, we encourage you to reach out to your Shulman Rogers contact for solutions and recommendations for addressing these issues.

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The contents of this Alert are for informational purposes only and do not constitute legal advice. If you have any questions about this Alert, please contact the Shulman Rogers attorney with whom you regularly work or a member of the Shulman Rogers Employment and Labor Law Group.

To receive Employment Law Alerts and other timely news and information from Shulman Rogers, please click HERE to subscribe.

Employment Law Alert: Virginia’s Non-Compete Wage Cap Rises in 2024: What It Means for Employers and Employees

In 2020, Virginia enacted Virginia Code § 40.1-28.7:8 which makes non-compete agreements unenforceable for “low-wage earners” in Virginia and prohibits employers from entering into, enforcing, or threatening to enforce a covenant not to compete with any “low-wage employee.” The law defines “low-wage employee” as one whose average weekly earnings are less than the average weekly wage of the Commonwealth, as determined annually in January by the Virginia Department of Labor and Industry.

On January 16, 2024, the Virginia Department of Labor and Industry announced that the average weekly wage was determined to be $1,410. This establishes the 2024 annual salary threshold at $73,320, under which non-compete agreements are not enforceable in Virginia. It is important to note that this regulation does not apply to employees who primarily earn through commissions and bonuses.

The increase in the salary threshold for non-compete agreements marks an increase from the previous limit of $69,836.  Since the law’s introduction in 2020, there has been an upward adjustment of nearly $14,820. Importantly, the law targets agreements made post-July 1, 2020, but also extends to current agreements, potentially rendering some non-competes unenforceable against employees who now fall under the updated wage threshold.

Employers must tread carefully, as violations of this law can lead to serious financial penalties. Affected employees have the right to pursue legal action, which can include seeking damages, lost wages and legal fees. Employers could face civil penalties as high as $10,000 per violation. This law aligns Virginia with other states that have similar restrictions, emphasizing a growing national movement to limit the use of non-compete clauses, particularly for low-wage workers.

The national landscape is also shifting. The Federal Trade Commission’s proposal in early 2023 to ban most non-compete agreements, along with the National Labor Relations Board’s stance against them, signifies a strong federal interest in curbing these restrictive practices. Given these developments, employers are advised to conduct thorough audits of their post-employment agreements to ensure compliance with both state and potential federal regulations.

If you have any questions about this Alert or the use of non-compete agreements, we encourage you to reach out to your Shulman Rogers contact for solutions and recommendations for addressing these issues.

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The contents of this Alert are for informational purposes only and do not constitute legal advice. If you have any questions about this Alert, please contact the Shulman Rogers attorney with whom you regularly work or a member of the Shulman Rogers Employment and Labor Law Group.

To receive Employment Law Alerts and other timely news and information from Shulman Rogers, please click HERE to subscribe.

Employment Law Alert: New D.C. Paid Family Leave Poster

The D.C. Department of Employment Services recently issued an updated Paid Family Leave poster to be displayed in the workplace, which is available here. The poster was updated to reflect the new maximum weekly benefit amount of $1,118. The previous maximum weekly benefit amount was $1,049.

If you have any questions about this Alert, we encourage you to reach out to your Shulman Rogers contact for solutions and recommendations for addressing these issues.

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The contents of this Alert are for informational purposes only and do not constitute legal advice. If you have any questions about this Alert, please contact the Shulman Rogers attorney with whom you regularly work or a member of the Shulman Rogers Employment and Labor Law Group.

To receive Employment Law Alerts and other timely news and information from Shulman Rogers, please click HERE to subscribe.

New Maryland Minimum Wage Rate and Poster

Maryland’s minimum wage rate increased to $15.00 per hour for all employers, regardless of size, effective January 1, 2024.  The tipped wage rate remains at $3.63 per hour.  The Maryland Department of Labor has issued an updated minimum wage poster to be displayed in the workplace, which is available here.

Don’t forget – employees working in Montgomery County might be subject to a different wage rate, depending on company size.

If you have any questions about this Alert, we encourage you to reach out to your Shulman Rogers contact for solutions and recommendations for addressing these issues.

 

CONTACT

Meredith “Merry” Campbell

Joy C. Einstein

Alexander I. Castelli

Drew T. Ricci

 

MORE INFORMATION

The contents of this Alert are for informational purposes only and do not constitute legal advice. If you have any questions about this Alert, please contact the Shulman Rogers attorney with whom you regularly work or a member of the Shulman Rogers Employment and Labor Law Group.

To receive Employment Law Alerts and other timely news and information from Shulman Rogers, please click HERE to subscribe.

2024 Washingtonian Top Financial Adviser: Jay Eisenberg

January 2, 2024 – Jay Eisenberg has been recognized as a 2024 Washingtonian Top Financial Advisor! 

Shulman Rogers is proud to announce that Washingtonian Magazine has named Jay Eisenberg to the 2024 Top Financial Advisors list.

Jay brings over 30 years of expertise in tailored trust and estate planning, minimizing taxes and facilitating smooth transitions for businesses and families. He leads Shulman Rogers’ Estates and Trusts and Probate Practice, representing a wide array of individuals, families, entrepreneurs and executives throughout Maryland, Virginia and the District of Columbia.

Employment Law Alert: New Notice Obligations for California Employers

California Employers Must Update Their Wage Prevention Notices by January 1, 2024  

Effective January 1, 2024, California employers must use the updated version of the wage theft prevention notice.  The notice is available here.  Employers are required to provide the notice to non-exempt employees at the time of hire and within 7 days of any change to the information contained in the notice. The updated notice reflects the increased amount of paid sick leave that employers are required to provide, and it includes information regarding the existence of a federal or state emergency declaration applicable to the county or counties in which the employee will be employed and that was issued within 30 days before the employee’s first day of employment.

 

California Employers Have Until February 14, 2024, To Notify Current And Former Employees That Their Non-Compete Agreements Are Void

California recently enacted a law that requires employers to provide individualized written notice to current employees in California and former employees who were employed after January 1, 2022, in California, stating that any non-compete clause or non-compete agreement that they entered into with the employer is void.  The deadline to provide this notice is February 14, 2024.  The notice must be delivered to the last known address and the email address of the employee or former employee.

 

If you have any questions about this Alert, we encourage you to reach out to your Shulman Rogers contact for solutions and recommendations for addressing these issues.

 

CONTACT

Meredith “Merry” Campbell

Joy C. Einstein

Alexander I. Castelli

Drew T. Ricci

 

MORE INFORMATION

The contents of this Alert are for informational purposes only and do not constitute legal advice. If you have any questions about this Alert, please contact the Shulman Rogers attorney with whom you regularly work or a member of the Shulman Rogers Employment and Labor Law Group.

To receive Employment Law Alerts and other timely news and information from Shulman Rogers, please click HERE to subscribe.

 

Employment Law Alert: Update on Maryland Non-Compete Agreements

As we noted in our April 18, 2023 Alert here, Senate Bill 591 was passed during Maryland’s General Assembly on April 10, 2023. This Bill increased the amount that an employee must earn in order for a non-compete provision in an employment contract to be permissible under Maryland law. As expected, Maryland Governor Wes Moore signed Senate Bill 591 into law and it became effective on October 1, 2023.

 

The Salary Threshold Increase(s)

As of October 1, 2023, the salary threshold for non-competes increased to 150% of the state’s minimum wage – which is $19.88 per hour (the minimum wage of $13.25 per hour times 150%) or approximately $41,350 annually. This means that Maryland employers are prohibited from requiring employees to enter into non-compete agreements if they make $41,350 or less annually. This is a significant increase from the previous threshold of $15.00 per hour or approximately $31,200 annually. It is important to remember that this threshold will continue to rise automatically as the minimum wage increases, including this coming year.

Importantly, on January 1, 2024, when Maryland’s minimum wage automatically increases to $15.00 per hour, the ban on non-compete agreements will automatically expand to now include those making up to $22.50 per hour, or up to approximately $46,800 annually.

 

Takeaway

A non-compete or conflict of interest provision in an employment contract or similar document in violation of the new threshold shall be null and void, even if voluntarily entered into by the employee. Therefore, we encourage all Maryland employers to prepare for the increase in the state’s minimum wage and the resultant increase in the non-compete threshold beginning in 2024, and to seek legal counsel, if necessary, to ensure compliance.

 

More Information

The contents of this Alert are for informational purposes only and do not constitute legal advice. If you have any questions about this Alert, please contact the Shulman Rogers attorney with whom you regularly work or a member of the Shulman Rogers Employment and Labor Law Group.

MORE INFORMATION

The contents of this Alert are for informational purposes only and do not constitute legal advice. If you have any questions about this Alert, please contact the Shulman Rogers attorney with whom you regularly work or a member of the Shulman Rogers Employment and Labor Law Group.

 

To receive Employment Law Alerts and other timely news and information from Shulman Rogers, please click HERE to subscribe.

Employment Law Alert: The Implications of NLRB’s New Joint Employer Rule for Businesses and Contractors

Did you know that the law may consider people who work with you, but not necessarily for you, to be your responsibility as an employer?  The concept of joint employment involves situations where multiple legal entities exert control or influence over workers, making them all employers of the worker. This status carries substantial implications, including shared liability for unfair labor practices and obligations for collective bargaining.

On October 26, 2023, the National Labor Relations Board (“NLRB”) unveiled a final rule (“New Rule”) that defines the criteria for joint employer status under the National Labor Relations Act (“NLRA”).  The New Rule takes effect December 26, 2023, and replaces the 2020 rule instated during the Trump administration (the “Old Rule”).

Under the New Rule, two or more entities can be classified as joint employers if they share or jointly determine any of the employees’ essential employment terms. These terms include wages, benefits, work hours, duties, supervision, work rules, tenure, and safety conditions. Notably, the New Rule emphasizes that even indirect control or reserved authority over these terms can establish joint employer status, diverging from the Old Rule’s focus on direct and immediate control.   What does this mean in plain English?  Think about the cleaning people in your office space.  Do your managers tell them when or how to clean, if they are not doing a good enough job, or how they want things done?  This type of interaction could be construed as indirect control over the employees of the third-party cleaning service, and those employees might have an argument that as a result of those directions your company is a joint employer responsible for any legal non-compliance.

The New Rule reinstates the broader criteria for joint employment that was in place during the Obama administration. Under this framework, a company can be considered a joint employer of another company’s employees, not just when it exercises direct and immediate control, but also when it has indirect influence or simply reserves the right to exercise such control, even if it never actually does so. The expansive definition of joint employment in this New Rule echoes the Biden administration’s focus on labor rights.

The implications of being recognized as a joint employer are significant. Such employers might need to engage in collective bargaining with unions representing jointly employed workers and could face joint and several liabilities for unfair labor practices committed by the other employer.  And the implications are not necessarily limited to NLRA protections.  Courts could extend the joint employer status and impose liability for things like wage/hour violations and discrimination or harassment claims.

We highly encourage employers to contact their Shulman Rogers attorney to review their relationships with vendors, independent contractors, and other third parties to determine potential joint-employer status under the New Rule. The New Rule is expected to lead to more litigation and legal challenges, emphasizing the need for employers to adapt to this new landscape in labor relations.

CONTACT

Meredith “Merry” Campbell

Joy C. Einstein

Alexander I. Castelli

Drew T. Ricci

MORE INFORMATION

The contents of this Alert are for informational purposes only and do not constitute legal advice. If you have any questions about this Alert, please contact the Shulman Rogers attorney with whom you regularly work or a member of the Shulman Rogers Employment and Labor Law Group.

To receive Employment Law Alerts and other timely news and information from Shulman Rogers, please click HERE to subscribe.

Eric von Vorys Quoted in Press: Intellectual property attorney tells Press Club members artificial intelligence won’t immediately replace authors

Eric von Vorys, Practice Chair of Shulman Rogers’ Intellectual Property Group, recently addressed members of the National Press Club, on the topic of artificial intelligence.

Explore insights from Eric in the full article, “Intellectual property attorney tells Press Club members Artificial Intelligence won’t immediately replace authors,” by Edward Segal on Press.org.

 

Shulman Rogers Ranked by Best Law Firms in 2024

Potomac, MD, November 2, 2024 — Shulman Rogers has been recognized in the 2024 edition of Best Law Firms®, ranked by Best Lawyers®, nationally in 4 practice areas and regionally in 9 practice areas.

Firms included in the 2024 Best Law Firms® list are recognized for professional excellence with persistently impressive ratings from clients and peers. To be considered for this milestone achievement, at least one lawyer in the law firm must be recognized in the 2024 edition of The Best Lawyers in America®.

Achieving a tiered ranking in Best Law Firms® on a national and/or metropolitan scale signals a unique credibility within the industry. The transparent, collaborative research process employs qualitative and quantitative data from peer and client reviews that are supported by proprietary algorithmic technology to produce a tiered system of industry-led rankings of the top 4% of the industry.

Receiving a tier designation represents an elite status, integrity and reputation that law firms earn among other leading firms and lawyers. The 2024 edition of  Best Law Firms® includes rankings in 75 national practice areas and 127 metropolitan-based practice areas. Additionally, one “Law Firm of the Year” was named in each nationally ranked practice area.

Shulman Rogers received the following rankings in the 2024 Best Law Firms®:

  • National Tier 1
    • Land Use & Zoning Law
  • National Tier 2
    • Litigation – Real Estate
    • Real Estate Law
  • National Tier 3
    • Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law
  • Regional Tier 1
    • Washington, D.C.
      • Business Organizations (including LLCs and Partnerships)
      • Family Law
      • Land Use & Zoning Law
      • Real Estate Law
  • Regional Tier 2
    • Washington, D.C.
      • Bankruptcy and Creditor Debtor Rights / Insolvency and Reorganization Law
      • Corporate Law
      • Litigation – Real Estate
      • Trusts & Estates Law
  • Regional Tier 3
    • Washington, D.C.
      • Family Law Mediation

 

About Shulman Rogers

Shulman Rogers is a full-service law firm with its principal office located in Potomac, Maryland and branch offices in Alexandria, Virginia, Tysons Corner, Virginia and Washington, D.C. Our 100+ attorneys work collaboratively across our real estate, corporate, commercial litigation and personal services departments to support national, regional and local clients in response to all of their legal needs.