Articles Posted in Employment

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AdobeStock_790253626-300x158Artificial intelligence (“AI”) is rapidly transforming the workplace, with significant implications for hiring and employment practices. While AI can offer potential benefits such as efficient and streamlined operations boosted workforce productivity, improved decision-making, and enhanced employee experience, it can also introduce significant legal challenges. This article examines the key legal considerations that businesses operating in Texas should address as they navigate the evolving AI landscape for hiring and employment practices. By understanding these challenges and implementing proactive strategies, Texas-based businesses can harness the power of AI while mitigating legal risks and ensuring fair employment practices.

The Growing Use of AI in Employment

Employers are increasingly utilizing AI-powered platforms in recruitment to identify potential candidates, often relying on data from social media. Algorithms are used to assess candidate profiles, sometimes making initial decisions about their suitability for a role. Automated interviews conducted entirely or partially by AI are becoming more common, employing natural language processing and facial recognition to analyze candidate responses. Beyond hiring, AI tools are also being used in performance evaluations, helping to assess employee strengths, weaknesses, and potential areas for development.

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AdobeStock_505784791_Editorial_Use_Only-300x200Although platforms like Slack and Teams have become indispensable tools for modern collaboration, their widespread adoption raises crucial legal and compliance challenges for organizations. These platforms store a vast amount of user data, including messages, files and even employee metadata. They are subject to stringent data privacy regulations like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). The GDPR has stricter regulations for EU citizen data privacy, demands explicit opt-in consent and grants extensive data subject rights like access and erasure. On the other hand, the CCPA, which is focused more on California residents, prioritizes data transparency and consumer control through access, deletion and opt-out mechanisms for data sales. Yet/overall, both regulations emphasize the importance of user empowerment regarding their data, requiring organizations to implement robust data protection measures and obtain informed consent for data storage and usage.

While conversation platforms offer significant collaboration benefits, their use necessitates navigating data privacy and compliance complexities. As such, organizations must prioritize user rights by:

  • Informed User Consent: Organizations must obtain explicit user agreement for data storage and usage. This involves clearly outlining the types of personal data collected, the purpose of collection, and how the data will be used in accordance with data privacy regulations.
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AdobeStock_300361069-300x200Texas is an at-will employment state, meaning at-will employees may be terminated at any time for any reason, as long as it is not an illegal reason when the decision is in the best interest of an employer. Terminating employees is rarely an easy decision, and any business struggling with employment decisions should work with an Austin employment lawyer.

The Texas Workforce Commission (TWC) notes that no advance notice of termination or resignation is necessary, but when advance notice of resignation is given, it may be accepted, rejected, or modified by an employer. When a notice period is rejected, an employer does not have to pay for the time not worked by an employee since the duty to pay ends on the date a work separation becomes effective.

Planning Terminations

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AdobeStock_295110466-300x132Sexual harassment training is not necessary for non-government workers in Texas but is required for all state employees. If you are dealing with sexual harassment concerns in your workplace, makes sure you speak to a Texas employment attorney.

Changes to Texas sexual harassment laws last year have now made more companies view sexual harassment training as being more of a necessity. Sexual harassment training in the workplace may help employers avoid costly lawsuits and reduce potential employer liability.

New Texas Sexual Harassment Laws

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AdobeStock_439234126-300x155The key to any successful Silicon Valley business is hiring the right people. Indeed, the decision to hire a new employee is an important task for any business, whether it is a startup or a multinational corporation. But what are the legal issues you need to consider before you decide to bring a new person into your company?

SLG offers counseling on a wide range of California employment law issues to businesses in San Jose and throughout Northern California. Here are just a few of the key issues you need to think about when it comes to new employees.

Employee or Contractor?

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AdobeStock_621812775-300x200As we step into 2024, California employers need to brace themselves for a wave of new employment laws that will shape the dynamics between businesses and their workforces. A series of new legislation, along with revisions to existing laws, demand the attention of all employers. If you have particular inquiries about the implications of these new laws on your business, the California employment lawyers at Structure Law Group stand ready to assist you.

Here’s a concise overview of some pivotal new employment laws to consider as your business navigates 2024:

Non-Compete Clauses & Unfair Competition (Effective January 1, 2024):

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AdobeStock_523210302-300x200One tool that employers have traditionally used to protect their business interests is to have key employees sign non-compete agreements. Such contracts are controversial and recently, the U.S. Federal Trade Commission proposed a new rule that would ban non-compete agreements nationwide.

Here in Los Angeles, California state law already heavily restricts the use of non-compete agreements. So if your business has questions or concerns about whether it can effectively use a non-compete, it is best to contact the Los Angeles employment attorneys at SLG to learn more about this area of law as well as other strategies used to protect a company’s interests.

In Los Angeles Most Non-Competes Are Illegal

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AdobeStock_102097403-300x200As of January 1, 2024, all entities that are not exempt in California must file reports on their “beneficial ownership” with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). These reporting rules were part of the Corporate Transparency Act (CTA), which itself was enacted by Congress as part of the 2021 Department of Defense authorization bill. The Los Angeles corporate law attorneys at Structure Law Group, LLP, can advise you on your company’s obligation under the new rules and how to avoid potential regulatory issues with FinCEN.

New Requirements for Disclosing “Beneficial Owners” of Foreign and Domestic Companies

At its core, the CTA is an effort to enhance the Treasury Department’s ability to identify and take legal action against potential money laundering activities. In adopting the CTA, Congress determined that many actors involved in illegal activities like terrorist and tax fraud used “shell” companies to conceal their identities and move their illegally obtained proceeds through the U.S. financial system undetected. Given that corporation law varies from state-to-state, there were no uniform national requirements for reporting the actual or “beneficial” owners of many corporate entities.

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AdobeStock_209619567-300x181For many employers, paying employees with cryptocurrency is probably something you’ve never considered before. But these days, cryptocurrency is inching closer and closer to the mainstream.

Proof of how quickly cryptocurrency is becoming the new normal was evident when New York mayor Eric Adams vowed to accept his first three paychecks in bitcoin, and Miami Mayor Francis Suarez essentially did the same.

In April 2022, the Laredo Morning Times reported that Vantage Bank was planning to offer a new way for their employees to have a savings plan with the company, stepping away from traditional savings plans and offering a digital currency savings plan using bitcoin. While the bank was offering the new savings plan, it planned to continue to provide a traditional savings plan as well.

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AdobeStock_610212747-300x200In July 2022, CNBC ranked Texas within the top 5 states in the country for business based on 88 metrics in 10 different categories of competitiveness. Texas scored high in areas like workforce, technology and innovation, and the economy. While this is an exciting time to be doing business in Texas, employers must stay current on federal and the state labor and employment laws at the forefront of their mind to avoid costly penalties.

If you are looking for an employment lawyer, look no further than Structure Law Group, LLP. Our Texas attorneys can help you overcome your company’s workplace challenges and navigate a wide range of employment issues.

At-Will Employment

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