OSHA, Employment, and Antitrust: New Compliance Strategies for Luxury Retail Companies.

Recent labor laws, workplace safety regulations, and the development of antitrust enforcement are creating a difficult regulatory environment for employers in the retail industry. Companies must face a number of federal and state regulatory compliance challenges, including the new Occupational Safety and Health Administration’s (OSHA’s) policy and evolving labor laws such as the Fair Workweek and wage disclosure mandates.

Employers face intense antitrust scrutiny from agencies such as the US Department of Justice (DOJ) and the Federal Trade Commission (FTC) as well as federal antitrust authorities and private prosecutors, so they must comply new security extension and standards under Express Delivery. Maternity Protection Act (PUMP). Employers of luxury stores, in conjunction with legal counsel, should do everything in their power to minimize risks in this dynamic environment and ensure that they and their employees are properly informed and trained in the latest developments. new OSHA, labor and labor and antitrust regulations.

COMPLIANCE WITH OSHA AND THE NEW UNION TRAVEL ACT

A major change in OSHA’s inspection procedures is the new Employee Representative Walkaround Act, or “organizational walkaround law” (see our April 2024 LawFlash), which allows administrative officials to bring representatives of third parties for workplace monitoring, even in unknown places. This gives union organizers and labor advocacy groups access to previously restricted areas of luxury stores and manufacturing facilities during an OSHA visit. This includes when customers are in the store during business hours.

Best practices for luxury retail tenants to prepare for this change include the following:

• Improving OSHA’s inspection policies and procedures, including guidance for frontline managers on how to respond if an inspector arrives with a third-party representative.
• Considering whether to require warrants for inspection rather than allowing voluntary access
• Creating website privacy agreements for all visitors to protect trade secrets and sensitive information
• Training managers on how to interact with third party representatives while protecting the company’s interests
• Reviewing security protocols and site access, particularly in non-public areas such as supply rooms and product handling areas

While legal challenges to the law are pending, luxury retail tenants still need to prepare for changes as the law takes effect. Having clear policies and well-trained staff can help reduce disruption if inspectors arrive with union representatives or other individuals.

INCREASED VISIBILITY AND ACCOMMODATION: THE DEVELOPMENT OF LABOR LAW IN THE LARGE MEMBERS

Good Workweek Rules

An increasing number of cities and states are implementing scheduling laws that require advanced notice of work times, limits on schedule changes, and/or additional compensation for last-minute schedule changes.

Employers working in these areas should:

• Implement scheduling procedures prior to the work week in accordance with applicable law
• Train managers on posting requirements for available hours, shifts and schedules; permissible reasons for changing and modifying the schedule; and any compensation required for such changes
• If necessary, improve hiring practices to provide additional hours to existing employees before hiring new employees
• Maintain detailed records of schedules, changes, and employee approvals

Rules of Distribution of Prizes

Many states (see May 2024 (Maryland) and July 2024 (Vermont) LawFlashes) and local jurisdictions are implementing laws requiring employers to disclose salary ranges for jobs.

Employers working in these areas should:

• Review compensation and recruiting practices
• Create salary ranges for all positions
• Improve job posting templates and processes to include salary information
• Train HR and hiring managers in compliance practices
• Monitor compliance across all recruitment channels (internal, external, online, etc.)

Fair Labor Standards Change Full-Time Standards

The Department of Labor has proposed major disasters to the minimum wage for overtime exemptions (see our April 2024 LawFlash). The first increase took effect on July 1, 2024 and the next increase is scheduled to begin on January 1, 2025.

To ensure compliance with the new rules, employers should:

• Assess current employees who are not expected to identify those who are below new standards
• Think about the costs associated with raising wages or setting indefinite terms
• Be prepared to explain any changes in categories or compensation
• Train newly released employees and their supervisors in time-saving techniques

Lactation Accommodation

The PUMP Act increases breastfeeding break requirements. To ensure compliance with the PUMP Act, employers must:

• Designate separate areas for breastfeeding breaks in all areas
• Update policies regarding time off and compensation procedures
• Training managers on lactation rights and accommodations under the PUMP Act and the Pregnant Workers Fairness Act (see LawFlashes for January 2023 and April 2024 respectively)

Non-compete agreements

The FTC has proposed stricter limits on non-compete agreements (see our May and July 2024 LawFlashes). While legal challenges are pending, employers should:

• Review existing non-compete agreements
• Consider other ways to protect trade secrets and customer relationships
• Be prepared to provide some form of notice to employees if the law goes into effect

FAST ANTITRUST SCRUTINY FOR TENANTS OF PRIVATE INDUSTRIAL TENANTS

Antitrust scrutiny of the luxury retail sector is increasing, with regulators and private prosecutors focusing on several key areas:

No-Poach Agreements and Settlement Fees

The DOJ is scrutinizing companies for agreements not to hire competitors or fix wages (see our January 2024 LawFlash). Employers must:

• Train HR staff and hiring managers on antitrust risks in the labor market
• Avoid sharing compensation information or discussing hiring practices with competitors
• Implement compliance and trust programs related to personnel matters

Distribution of Information

Sharing important competitive information with competitors or third parties can create a presumption of dishonesty (see our April 2024 LawFlash). Employers must:

• Reassess participation in trade unions and scale industries to necessary, competitive jobs
• If you participate in benchmarking, implement safeguards regarding competitively sensitive data (eg, using aggregate and historical data, third-party regulators)
• Train employees on the antitrust risks of exchanging information with competitors

Cooperative analysis

The FTC has launched an intense investigation into mergers in the grocery industry (see our May 2024 ML BeneBits post). Chains considering acquisition should:

• Conduct a thorough antitrust risk assessment prior to sales planning
• Be prepared for many requests for documents and data from authorities
• Consider potential remedies such as retail divestitures carefully

Robinson-Patman Enforcement Act

Because regulators are reinstating enforcement of this depression-era price discrimination law (see the April 2024 LawFlash), employers should:

• Examine pricing and marketing strategies, especially the differences between large and small customers
• Analyze the reasons for any price differences (cost differences, conference competition)
• Consider the potential effects of the Robinson-Patman Act on bids and other forms of corporate advertising.
• Do not only review sales processes but also product acquisition processes because liability under the Robinson-Patman Act can extend to customers as well as vendors

Employers in the luxury retail industry can maintain a harmonious and productive workplace by taking proactive measures including evaluation of the screening policy, training of managers and employees, compliance with privacy laws, and organized employee scheduling. , transparent compensation systems, and careful record keeping, among others. Legal advice can help employers in the retail industry protect their interests and maintain good relations with employees and comply with regulatory agencies and federal and state laws.