Welcome to the most recent Labor and Employment Update. This summer, we are trying a new format for our updates. Rather than our larger quarterly newsletter, we will be distributing shorter updates more frequently. We have also added links to recent Labor and Employment Update articles. We hope you enjoy this new format.

Illinois Department of Labor Issues New Day and Temporary Labor Regulations

The Illinois Department of Labor has recently published final regulations incorporating the amendments to the Illinois Day and Temporary Labor Services Act, which amendments became effective January 1, 2006. [Click here for a discussion of the amendments to the Act which appeared in our February 2006 newsletter.] The new regulations add and modify definitions for the Act; set forth requirements for the application, registration and renewal process for day and temporary labor service agencies - including an increase in registration fees; explain the duties and responsibilities of day and temporary labor service agencies and third party clients; impose recordkeeping requirements; and set forth the complaint, investigation and hearing process for alleged violations of the Act.

A copy of the final regulations can downloaded from the Illinois Department of Labor web site at http://www.ilga.gov/commission/jcar/admincode/056/05600260sections.html. Please contact any member of Schiff Hardin's Labor and Employment group if you have any questions about these new regulations or about the Day and Temporary Labor Services Act.

NLRB Rules that Arbitration Agreements Cannot Require Waiver of Unfair Labor Practice Charges

A recent decision of the National Labor Relations Board (NRLB) has significant ramifications for employers who have mandatory arbitration agreements with employees. In U-Haul Co. of California, the Board held that U-Haul was in violation of the National Labor Relations Act (NLRA) because its arbitration policy with non-union employees could reasonably be read to prohibit the filing of unfair labor practice charges with the NLRB. The arbitration policy expressly provided that it applied to:

claims for wrongful termination of employment, breach of contract, fraud, employment discrimination, harassment or retaliation under the Americans With Disabilities Act, the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964 and its amendment, the California Fair Employment and Housing Act or any other state or local anti-discrimination laws, tort claims, wage or overtime claims or other claims under the Labor Code, or any other legal or equitable claims and causes of action recognized by local, state or federal law or regulations.

As pointed out by the Administrative Law Judge who heard the underlying claims, the language any other legal or equitable claims and causes of action recognized by local, state, or federal law or regulations was particularly problematic because this could reasonably be read to include the filing of unfair labor practice charges with the NLRB.

Accordingly, the Board ordered U-Haul to 1) cease and desist from requiring employees to execute waivers of their rights to take legal action, to the extent that such waivers apply to the filing of NLRB charges; 2) remove from its files all unlawful waivers of the right to take legal action executed by its employees; 3) notify in writing each present or former employee who executed such waiver that this has been done and that the waiver will not be used in any way; and 4) post a remedial notice regarding the policy at all facilities in which the policy was in effect.

As a result of this decision, employers that have mandatory arbitration agreements should ensure that their arbitration policies do not contain language that could be read to prohibit employees from filing any unfair labor practice charges under the NLRA. If arbitration policies do contain such language, they should be amended accordingly.

Eric L. Barnum
404.437.7013
ebarnum@schiffhardin.com
Paula M. Ketcham
312.258.5539
pketcham@schiffhardin.com
Patricia Costello Slovak
312.258.5665
pslovak@schiffhardin.com
Howard R. Barron
312.258.5558
hbarron@schiffhardin.com
Matthew D. Lahey
312.258.5674
mlahey@schiffhardin.com
Drahcir M. Smith
312.258.5557
dsmith@schiffhardin.com
Max G. Brittain Jr.
312.258.5544
mbrittain@schiffhardin.com
Neil Lloyd
312.258.5628
nlloyd@schiffhardin.com
Richard L. Verkler
847.295.4300
rverkler@schiffhardin.com
Jennifer M. Cerven
312.258.5599
jcerven@schiffhardin.com
Catherine M. Masters
312.258.5565
cmasters@schiffhardin.com
Nora Kersten Walsh
312.258.5530
nkerstenwalsh@schiffhardin.com
Nicole Finitzo
847.295.4308
nfinitzo@schiffhardin.com
Ralph A. Morris
312.258.5553
rmorris@schiffhardin.com
Dorothy A. Weber
312.258.5749
daweber@schiffhardin.com
Laura B. Friedel
312.258.5673
lfriedel@schiffhardin.com
Lee Ann Rabe
312.258.5527 
lrabe@schiffhardin.com
Ronald Wilder
312.258.5610
rwilder@schiffhardin.com
Julie J. Furer
312.258.5689
jfurer@schiffhardin.com
Dana D. Rice
312.258.5622  
danarice@schiffhardin.com
Tamera M. Woodard
404.437.7016
twoodard@schiffhardin.com
Charlene Q. Kalebic
847.295.4335
ckalebic@schiffhardin.com
Marc L. Silverman
212.745.0872 
msilverman@schiffhardin.com
Brenna Woodley
312.258.5738
bwoodley@schiffhardin.com


Henry W. Sledz Jr.
312.258.5525
hsledz@schiffhardin.com



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© 2006 Schiff Hardin LLP

This publication is for the general information of clients and friends of our firm. It does not provide legal advice for any specific matter. Readers should consult a lawyer directly for such advice. This publication, or parts of it, may be considered advertising material under professional conduct rules applicable to lawyers.

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