Policies & Compliance

The Second Circuit Court of Appeals recently held that when the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA) applies to at least one claim in an employee’s lawsuit, the EFAA invalidates a pre-dispute arbitration agreement as to the entire lawsuit. This includes claims unrelated to sexual harassment or assault such as breach of contract and wage claims. In Diaz-Roa v. Hermes Law, P.C., a senior employee filed sexual harassment, contract, wage and other claims against a law firm and another business entity. The defendants argued that the EFAA should have only permitted the employee’s harassment claim to be decided in court while the rest of the case belonged in arbitration under a pre-dispute arbitration agreement that the employee signed. The Second Circuit disagreed, finding that when a case involves a sexual harassment or sexual assault claim, the arbitration agreement is invalidated under the EFAA with respect to the entire case. The Sixth and Ninth Circuits have issued similar rulings. Based on this decision, employers in New York, Connecticut, and Vermont should be aware that even if an employee signs an arbitration agreement, the inclusion of a claim related to sexual harassment or assault in a case involving other non-harassment claims could result in the entire case being litigated in court instead of arbitration. …

On September 8, 2026, the Department of Labor issued new enforcement guidance regarding the Mental Health Parity and Addiction Equity Act (MHPAEA) and its nonquantitative treatment limitation (NQTL) requirements.

Under MHPAEA, group health plans must ensure that any nonquantitative treatment limitations (NQTLs) affecting mental health and substance use disorder (MH/SUD) benefits are designed and applied in a manner comparable to, and no more restrictive than, those applied to medical/surgical benefits.…

Governor Newsom recently signed into law SB 1149, which amends the state’s bereavement leave law to allow for bereavement leave for designated individuals.

Under existing law, California employers with 5 or more employees must provide employees with 5 days of unpaid bereavement leave upon the death of a family member. The current law’s definition of a family member includes a spouse, child, parent, sibling, grandparent, grandchild, domestic partner, or parent-in-law.…

On Monday, September 21st, the Second Circuit Court of Appeals held that a terminated in-house attorney plausibly alleged that she engaged in a protected activity when she refused to meet with her supervisor to discuss settling her pending harassment lawsuit.

In Newton v. LVMH Moet Hennessy Louis Vuitton Inc., Newton filed a lawsuit in 2019 alleging that she was sexually harassed and assaulted at work. In 2022, LVMH terminated Newton’s employment, and Newton filed a federal retaliation claim, alleging two actions after July 2022 that she argued were protected activity: (i) her refusal to meet with her supervisor to discuss settlement of the 2019 lawsuit, and (ii) speaking out in a public forum and on social media to assert her right to be free from sex discrimination in the workplace.…

The City of Philadelphia has amended its Fair Practices Ordinance to specifically protect employees from discrimination on the basis of menstruation, perimenopause and menopause.

This includes discrimination on the basis of reproductive health autonomy, whether based on pregnancy, childbirth and related medical conditions, or menstruation, perimenopause or menopause. The law further requires an employer to provide reasonable accommodation to an employee for needs related to menstruation, perimenopause or menopause if related symptoms substantially interfere with an employee’s ability to perform one or more job functions, absent undue hardship.…

A multinational technology and consumer-services company that is one of the largest employers in the world is facing a class action lawsuit in the Southern District of New York for alleged failure to comply with the Pregnant Workers Fairness Act (PWFA), a federal law.

The complaint, filed on September 8, alleges that the employer had an improper blanket policy requiring employees to submit medical documentation with all accommodation requests. However, EEOC regulations state that it is not reasonable or necessary for an employer to require supporting documentation from a pregnant employee seeking one of the following modifications due to their pregnancy: 

  1. carrying or keeping water near for drinking;
  2. taking additional restroom breaks;
  3. sitting, for those whose work requires standing, and standing, for those whose work requires sitting, as needed;
  4. taking breaks to eat and drink.
…

The New Jersey Department of Labor and Workforce Development (NJDOL) launched the Employer Response Portal, where employers must submit separation information under New Jersey’s Unemployment Compensation Law.

The portal requires employers to proactively report layoffs, discharges, resignations, and retirements within seven (7) days of separation, rather than waiting for the former employee(s) to file for unemployment benefits. Employers also have seven (7) calendar days after the NJDOL makes an initial unemployment benefit determination to file an appeal.…

The NLRB’s new General Counsel, Crystal S. Carey, just released Memo GC 26-04 and it’s a significant signal of where labor law enforcement is headed.

The Memo identifies some key positions she’s already taken, including seeking to overturn Biden-era precedents on severance agreements (McLaren Macomb), work rules (Stericycle), and captive audience meetings (Amazon). In the Memo, GC Carey signaled anticipated future challenges to Cemex bargaining orders, duty-to-bargain standards, and protections for employee conduct under Lion Elastomers.…

The city just expanded its Fair Chance Ordinance. Under the new amendment, employers are now prohibited from considering out-of-state criminal convictions or arrests tied to conduct that’s lawful in California, including abortion-related healthcare, gender-affirming care, drag performances, and miscarriage-related care.…