Employment Law Alert: Form I-9, Tipped Worker Rule & LA County Ordinance
FEDERAL
New Expiration Date for Form I-9 Announced by USCIS
The U.S. Citizenship and Immigration Services (USCIS) has extended the expiration of Form I-9, used for employment eligibility verification, to May 31, 2027. Employers are required to use the form edition dated August 1, 2023, which may display an expiration date of either July 31, 2026, or the updated date of May 31, 2027. Either version is valid until its respective expiration. USCIS has made the updated Form I-9 available for download on their website, and employers are strongly advised to ensure their electronic systems reflect the 2027 expiration as soon as possible, with a mandatory update by July 31, 2026.
Fifth Circuit Court Nullifies Dual Jobs Rule for Tipped Workers
In a significant ruling on August 24, 2024, the Fifth Circuit Court of Appeals vacated the U.S. Department of Labor’s (DOL) Dual Jobs Final Rule, deeming it inconsistent with the Fair Labor Standards Act (FLSA) and lacking proper justification. The rule previously required employers to pay tipped employees the federal minimum wage when they performed non-tipped duties for over 20% of their weekly hours or for more than 30 minutes consecutively. This decision effectively eliminates those requirements, providing immediate relief to affected employers.
Federal Judge Blocks FTC’s Proposed Non-Compete Ban
A major blow to the Federal Trade Commission (FTC) came on August 20, 2024, when a U.S. District Court judge in Texas issued a permanent nationwide injunction against the FTC’s Final Non-Compete Clause Rule. The ruling declared that the FTC lacked the authority to impose a ban on most non-compete agreements, originally set to take effect on September 4, 2024. While this ruling halts the rule’s implementation, the decision may be subject to appeal, and the FTC retains the ability to challenge restrictive employment covenants individually. Employers should stay informed and consult legal counsel regarding any contractual provisions.
CALIFORNIA
Los Angeles County’s Fair Chance Ordinance
Los Angeles County recently implemented the Fair Chance Ordinance, impacting employers in unincorporated areas of the county with five or more employees. The ordinance introduces requirements on job postings and background checks, aiming to provide fair opportunities for individuals with a criminal record. Employers are prohibited from inquiring about an applicant’s criminal history until a conditional job offer is made, except when required by law. Furthermore, if a conditional offer is withdrawn based on background information, employers must adhere to specific procedures outlined in the ordinance. Employers are required to maintain relevant records for at least four years after an application is received. The ordinance became effective in March, with an operative date of September 3, 2024. Violations can lead to county fines, and workers affected by noncompliance may pursue legal action.
These developments highlight the evolving landscape of employment regulations on both federal and state levels. Employers should stay updated and ensure compliance to avoid legal pitfalls and potential penalties. Legal counsel is recommended to navigate any complex changes effectively.
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