DOL Targeting “Coercive Contractual Provisions."
This week, the U.S. Department of Labor (DOL) and the Office of the Solicitor released a “Special Enforcement Report” on so-called “coercive contractual provisions.” The report outlines recent DOL enforcement efforts “to combat coercive contractual provisions” such as:
- Contractual provisions requiring workers to waive statutory protections
- Contractual provisions that purport to require employees to agree that they are independent contractors
- Indemnification-type provisions and related counterclaims purporting to shift liability for legal violations to workers or other entities
- ‘Loser pays’ provisions attempting to require employees to pay the employer's attorney's fees and costs if the employees do not prevail in litigation or arbitration
- ‘Stay or pay’ provisions, including some training repayment assistance provisions, that purport to require workers to pay damages to their employer for leaving a contract early
- Confidentiality, non-disclosure, and non-disparagement provisions
- Company policies that purport to require workers to report safety concerns to their employer before contacting any government agencies”
The report concludes, “the Department has well-established authority to bring enforcement actions on behalf of workers, regardless of whether those workers have agreed to arbitrate disputes with their employer.” The report also dovetails with NLRB General Counsel Jennifer Abruzzo’s recent memo targeting non-compete and other contractual provisions.
Source(s): Ogletree Deakins Beltway Buzz, received on October 18, 2024.