2023 RECAP Manufacturing
2023 Recap
Manufacturing Sector Gets Boost from AI Executive Order Recognizing that high-tech manufacturers will play a key role in developing the components that will power the artificial intelligence revolution, President Biden’s October executive order on AI provides a boost to the semiconductor manufacturing industry. The Commerce Department will be required to ensure that small businesses receive their fair share of the government subsidies to be paid out under the CHIPS and Science Act so that chip manufacturing is not consolidated among just a few large companies. These smaller companies will also be in line to receive mentoring through formal government programs, access to workforce development programs, funding for physical exxpansion where necessary, and a direct line to vast amounts of datasets to help them remain competitive. Severance Agreements in the Spotlight A February NLRB decision invalidated confidentiality and non-disparagement provisions in severance agreements – and will have far-reaching effects on employers that utilize them during layoffs or other involuntary terminations. But because manufacturing employers are enjoying robust economic times – with an industry unemployment rate of 3.2% as of September – you may not be focused on the language in your standard severance agreements. Since layoffs and other forms of involuntary terminations are an inevitable and cyclical part of the industry, however, it is important for manufacturers to pay heed to this significant decision and the Board’s clarifying Memorandum to ensure that future severance agreements withstand scrutiny should they face legal challenge. Manufacturers Looked Abroad for Talent Speaking of low unemployment rates, the manufacturing industry continued to face a significant skilled labor shortage in 2023. With the industry in constant need of skilled workers, manufacturers have begun to rely on foreign workers to fill critical roles now more than ever. Of course, navigating the complex immigration process can be challenging, but a well-planned, long-term immigration strategy can help your company access this critical workforce. We outlined the top five options manufacturing companies have when hiring foreign nationals to fill key roles.
Stephen Mitchell Regional Managing Partner Columbia smitchell@fisherphillips.com
Colin Calvert Partner Irvine calvert@fisherphillips.com
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