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Employers and Artificial Intelligence: Six Pitfalls to Watch Out For

As governments lift COVID-19 pandemic restrictions, employers are turning to artificial intelligence tools to accelerate their hiring processes.

However, these AI-based tools can open businesses up to discrimination claims if they are not careful, according to McDermott partner Brian Mead.

“[The technology] could decide that certain words [are] unlikely to [yield] successful candidates, and then it’s prescreening out members of protected classes and categories of applicants in a discriminatory way,” Mead said in a recent Law360 article.

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California’s “Right to Recall” Law: What You Need to Know

On April 16, 2021, California Governor Gavin Newsom signed Senate Bill (SB) 93 into law, a rehiring and retention law which requires employers in certain industries to make written job offers to employees who were laid off because of the impact of COVID-19. The law takes immediate effect and will remain in effect until December 31, 2024. Previously, some California cities adopted their own versions of local ordinances providing for a right to be recalled, including Carlsbad, Long Beach, Los Angeles, Oakland, Pasadena, San Diego, San Francisco and Santa Clara.

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VIDEO: The COVID Vaccine – Understanding What’s Next

Employers have questions about the COVID-19 vaccine and how to update their employment policies. In this video, McDermott partners, Chris Braham, Chris Foster and Michelle Strowhiro answer questions about vaccine requirements in the workforce, additional considerations and more.

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A Living Wage: The Latest ESG Challenge for Corporate Governance

Long considered controversial from economic and shareholder perspectives, living wage concepts are receiving more attention in the context of economic policy, social responsibility and ESG investing. As progressive perspectives concerning income equality, and executive and employee compensation, are becoming more mainstream, corporate leaders should prepare for greater engagement in this important conversation.

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New Resource Center: Navigating Change in the US Administration

Pandemic relief, taxes, income inequality, climate change, infrastructure, healthcare and civil rights: the new US administration is moving forward rapidly on President Joe Biden’s stated priorities. So how are these new policies affecting your business? We’re here to keep you informed!

McDermott Will & Emery’s multidisciplinary team of industry-leading lawyers are monitoring key legal areas to help you navigate and gain perspective on the most critical impacts of changing US policies. Access the latest updates in our new resource center.




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Open for Business: How ‘Essential’ Businesses Can Keep Their Workplace Healthy and Safe

Most states have issued some form of ‘shelter in place’ or ‘stay at home’ order to flatten the curve of COVID-19. As a result, many business operations have been temporarily suspended, unless the business is engaged in essential or critical infrastructure functions or supports businesses engaged in such functions.

For businesses that are considered ‘essential’ and have employees still reporting to work, what steps can employers take to keep their workplace healthy and safe?

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COVID-19 Ate My Homework – Recent Extensions and Relief for Retirement Plans

In recognition of the difficulties faced by retirement plan sponsors, participants and beneficiaries due to the COVID-19 pandemic, new guidance extends the deadlines for notices and disclosures required by Title I of ERISA and extends deadlines for retirement plan participants and beneficiaries to submit benefit claims and benefit appeals. The new guidance also provides some welcome fiduciary relief for electronic disclosures, incomplete plan loan or distribution documentation, as well as delayed participant contributions and loan repayments.

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Globally (Not So) Mobile Employees: Taxation of Equity Awards in a COVID-19 World

The US tax rules governing the taxation of equity awards for globally mobile employees are complex and in some cases, uncertain. Among other things, employers must consider the type of award, grant and vesting dates, and sourcing rules to ensure proper reporting and withholding for non-US employees that have worked in the United States. The travel restrictions have caused US multinational businesses to review their existing processes for how they compute and report taxable income for non-US employees working in the United States, especially with regard to vesting of equity arrangements.

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DOL Relaxes Deadlines for ERISA-Governed Group Health Plans

The US Department of Labor, in conjunction with the Internal Revenue Service and US Department of the Treasury, issued guidance and deadline extensions applicable to ERISA-governed group health and welfare plans. The guidance provides relief for plan sponsors, plan administrators and plan participants that may be struggling to comply with applicable deadlines and requirements in the midst of the chaos related to the COVID-19 pandemic.

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Ninth Circuit En Banc Ruling Deepens Rift Over Gender-Based Pay Gaps

The Ninth Circuit’s recent en banc ruling that employers can’t excuse sex-based pay gaps by pointing to workers’ past salaries deepened a circuit split over the federal Equal Pay Act, a development that could push the issue up to the US Supreme Court.

The majority’s opinion puts the Ninth Circuit directly at odds with the Seventh Circuit amid a growing debate between workers’ and employers’ advocates over whether the common practice of basing salary offers on workers’ past salaries perpetuates illegal pay disparities between men and women.

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