Labor & Employment Insights

On  May 13, 2021 the CDC unexpectedly recommended that, with limited exceptions,  fully vaccinated individuals can resume all indoor and outdoor activities without wearing masks or social distancing, except where required by law or workplace guidance.  Individuals are deemed fully vaccinated 2 weeks after their final dose of the vaccine.

Under the new guidance, vaccinated individuals can resume pre-pandemic activities even if other individuals in the workplace are not fully vaccinated.  In addition, vaccinated individuals are no longer required to undergo COVID-testing or quarantine after travel within the United States.

Not so fast: The collective cheers heard in offices last Thursday afternoon following the CDC’s announcement were short-lived for some jurisdictions that were following the CDC guidance.   New York, Illinois and Massachusetts are among the states that have announced that they have or will imminently lift their states’ mask and social distancing mandates for vaccinated individuals.   California has announced that it will keep the mandates in place for indoor settings outside the home until June 15th.  New Jersey’s Governor Murphy is taking a more cautious approach, stating that all workplace requirements of EO 192 (mandatory masks, social distancing, daily health screenings, sanitation of work areas) remain in effect and he has not announced any timeline for the lifting of restrictions.

After much anticipation, New Jersey’s Governor Murphy signed the “New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act” into law on February 22, 2021. While this law made adult use recreational cannabis legal, the extensive law, together with a few “clean up bills,” did a whole lot more than legalization. In hundreds of pages, this law created the broad framework for the development and regulation of the entire cannabis industry including licensing, manufacture, distribution, taxation, enforcement, as well as criminal and social justice reforms for the possession and use of cannabis. It is therefore not surprising that some issues of particular importance to employers, such as drug testing and carve-outs for certain industries, are still hazy.

Importantly, while some provisions of the law became effective immediately, the provisions governing employment and those “activities associated with the personal use of cannabis,” are not operative until the newly appointed five member Cannabis Regulatory Commission adopts initial rules and regulations. These regulations, which will interpret and instruct how the law will be implemented, are required sometime within 180 days of the law’s adoption, or by mid-August 2021.

How does recreational marijuana impact Zero Tolerance Marijuana Policies?

On the heels of President Biden’s Executive Order on Protecting Worker Health and Safety directing the Department of Labor and the Occupational Safety and Health Administration (“OSHA”) to issue “science-based guidance” to protect workers from COVID-19 exposure, the agency announced its updated guidance entitled Protecting Workers: Guidance on Mitigating and Preventing the Spread of COVID-19 in the Workplace (the “Guidance”).  Along with providing information for employees on protecting against COIVD-19 infection, the Guidance provides additional details on key measures employers should take to limit the spread of the virus in the workplace.

Implementation of a COVID-19 protection program.  Although most employers have already implemented safety protocols in response to prior CDC guidance on reopening the workplace, the new Guidance provides greater details on recommended COVID-19 prevention programs which should include the following elements:

  • Assignment of a workplace coordinator responsible for COVID-19 issues on the employer’s behalf.

Now that COVID-19 vaccines are being administered to the general population, the Centers for Disease Control (the “CDC”) has issued new quarantine recommendations for individuals who have received the vaccination.

Quarantine not necessary for vaccinated individuals outside a healthcare setting who meet certain criteria.  Under the new CDC recommendations, individuals who have been fully vaccinated (one or two doses depending upon the authorized vaccine) are no longer required to quarantine for 14 days after exposure or suspected exposure to COVID-19 if they meet the following criteria:

  • they have been fully vaccinated , with at least 14 days since their final dose;

A recent decision from the New Jersey Appellate Division serves as a warning to employers requiring  employees to sign a bevy of employment-related documents during an orientation period.  The case, Imperato v. Medwell, LLC, concerned the enforceability of Mutual Agreement to Arbitrate all employment related disputes.

The employee acknowledged that she signed the agreement on her fourth day of employment with the employer.  Immediately above the employee’s signature line was a section titled “Voluntary Agreement,” which read in all capital letters:

I ACKNOWLEDGE THAT I HAVE CAREFULLY READ THIS AGREEMENT, THAT I UNDERSTAND ITS TERMS, THAT ALL UNDERSTANDINGS AND AGREEMENTS BETWEEN THE COMPANY AND ME RELATING TO THE SUBJECTS COVERED IN THE AGREEMENT ARE CONTAINED IN IT, AND THAT I HAVE ENTERED INTO THE AGREEMENT VOLUNTARILY AND NOT IN RELIANCE ON ANY PROMISES OR REPRESENTATIONS BY THE COMPANY OTHER THAN THOSE CONTAINED IN THE AGREEMENT ITSELF.

The Biden Administration has made it clear that it intends to reverse many of the Trump Administration’s regulatory initiatives.  During his campaign Biden touted himself as a champion of labor, and his administration’s actions immediately after assuming power suggest that he intends to keep this campaign promise.  This article summarizes some of the actions already taken and those contemplated by the new administration.

EXECUTIVE ORDERS.  In his first week in office the Biden Administration signed 22 Executive Orders (EO’s), significantly more than his predecessors, and shows no signs of slowing the pace down.   Some of those affecting employers are discussed below.


Freeze on Proposed and Pending Regulations.  President Biden’s first EO called for an immediate withdrawal of administrative agency rules not yet published in Federal Register so they can be reviewed and approved by the new administration.  The Administration also asked federal agencies to consider postponing the effective date of pending rules published in Federal Register for 60 days and opening a 30 public comment period.

In November 2020, by a vote of 67.08% to 32.92%, the voters of New Jersey passed a ballot measure to amend New Jersey’s Constitution to make use of recreational marijuana by those over age 21 legal in New Jersey beginning on January 1, 2021. However, until legislation is signed by the Governor and rules and regulations are issued by the Commission, the details on legalization and the cannabis industry rollout are hazy.  And, what may be worse for New Jersey employers, is the considerable uncertainty regarding how they can maintain a drug free workplace.

When will recreational marijuana become legal?

With voter approval to legalize weed, it is clear that there exists considerable pressure to quickly pass legislation which explains how New Jersey’s recreational marijuana program will roll out. And while some might suggest that recreational marijuana became legal in New Jersey on January 1, 2021, because the ballot measure contemplated a highly regulated and taxed recreational cannabis market, most agree that recreational marijuana is not, in fact, legal until New Jersey’s recreational marijuana law and regulations are enacted.

In our December 11, 2020 publication found here, we explored the ability of employers to mandate COVID-19 vaccinations in the workplace. In short, in the absence of federal or state laws to the contrary, employers are free to mandate vaccinations.

On December 16, 2020 the EEOC issued guidance that paved the way for employers to mandate vaccinations without fear of violating the Americans with Disabilities Act (the “ADA”), Title VII and other federal law.  The provisions of the new guidance are outlined below.

Vaccinations are not “medical examinations” under the ADA.

Federal and State law require nonexempt employees to be paid time and one half their regular hourly wage for hours worked in excess of 40 hours in any given workweek.  Overtime is calculated based on an employee’s regular hourly wage.[1] Assuming there is no contract or other obligation imposed by Federal or State law, there is no requirement that a nonexempt employee be paid premium overtime compensation for hours worked in excess of eight hours per day, nor for work on Saturdays, Sundays, or holidays, other than the requirement of overtime for over 40 hours per week.

Who Qualifies as a Nonexempt Employee Eligible for Overtime Pay?

Not all employees qualify for overtime pay.  Generally, individuals employed in bona fide executive, administrative, or professional capacities are exempt from Federal and State overtime requirements under the so-called “white collar” exemptions.  Qualification for exemption is not determined solely by an employee’s title, job description or the fact that the employee is paid on a salary as opposed to hourly basis.  Rather, to qualify for this exemption, the employer must show that the employee satisfies both a “salary basis” test and a “duties” test.  Because the burden is on the employer to demonstrate that the exemption applies, it is critical that employers conduct a thoughtful and careful analysis when classifying an employee as exempt.

In response to the pandemic, Congress passed the Families First Coronavirus Response Act (the “FFCRA”) that provided up to 10 days of emergency paid sick leave for COVID-related absences and up to 12 weeks emergency paid family leave to care for a child in the event of a COVID-related school or daycare closure.  These benefits went into effect in April 2020 and will terminate on December 31, 2020.

Many speculated that Congress would extend the FFCRA benefits to provide continued relief to individuals and families still grappling with work-related absences caused by the ongoing pandemic.   Cases have spiked in many areas and schools continue to provide remote learning.  Although the Consolidated Appropriations Act (the “Act”) signed by President Trump earlier this week provides various pandemic relief programs, the Act did not extend the expiration date of the FFCRA.

The Consolidated Appropriations Act’s extension of FFCRA Tax Credits for Employers.

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