New Rules Highlight the Need to Review Employee Forms and Policies
In this new year, companies should consider a wholesale review of their existing forms of offer letters and employment agreements, separation agreements, restrictive covenant agreements (including proprietary information and confidentiality agreements), equity award agreements, and employee handbooks to ensure they adequately address recent changes in employment laws, the enforcement priorities of relevant regulators, and evolving standards of best practice.
The following outlines items for consideration for public and private companies with respect to both existing and future agreements with employees.
Restrictive Covenants
There are now many restrictions on these covenants, both federal and state, which employers must follow.Whistleblower Protections
Whistleblowers are now given greater protections.Confidentiality
Severance agreements are now under greater scrutiny over this aspect.Cause Definitions
Companies must update their procedures on how to deal with allegations of sexual assault or harassment.Social Media Policies
Employers are now limited in their access to employees' social media accounts.
Separations and Releases
There are new restrictions on the timing of releases.
Conclusion
Several meaningful changes in employment law have gone into effect recently and additional changes are anticipated in 2024.
Companies should also continue to watch out for employee/independent contractor misclassification and claw back policy requirements, which are now a priority. Companies must review their employee documentation to ensure compliance with thesenew laws.
This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship.
For more information on this and other topics, please contact Kevin via any of the channels listed below:
📧 kevin@kmckernan.com | 📞 718-317-5007