employees are exempt from these laws, and the rules applying this system are often complex and easily misapplied. Worse still, misclassifying workers as exempt is a top cause of lawsuits. US law also requires compensation for all hours worked. Permitting workers to clean and organize their workplace pre- or post-shift can also lead to costly liability for uncompensated time. Example: The same California case included overtime and wage-statement claims, illustrating how wage/hour issues are fertile ground for class actions. Action Item: Work with your legal counsel to carefully audit job classifications and actual work performance. When in doubt, compensate hourly employees for all hours worked and treat employees as overtime-eligible. 4. Anti-Discrimination Laws Create Legal Obligations What to Know: US law at both the federal and state level protects employees against discrimination on many bases: race, sex, age, disability, religion, sexual orientation, gender identity, and more. In addition, even if the alleged discrimination is meritless, an employer is prohibited from retaliating against (disciplining, suspending, terminating, etc.) the employee for bringing the claim. Example: Mitsuwa Marketplace, a large Japanese market located in New Jersey, paid $250,000 to settle an EEOC case alleging Latino employees were paid less than others for the same work. Action Item: Provide anti-harassment, anti-bias, and prohibited retaliation training to all managers – in English and Japanese – to ensure cultural alignment with US law. 5. Be Aware of Strong Union Rights and Labor Relations Issues What to Know: Employees across the country have rights to organize into workplace unions, and even non-unionized workers are protected by law if they engage in “concerted activity” (such as discussing pay or protesting working conditions). In addition, protected “concerted activity” includes negative speech about the company as long as it addresses the terms and conditions of employment. Even small US worksites (or a portion of a larger worksite) can unionize, so you are never immune from a potential organizing drive. Example: Large Japanese automakers have repeatedly faced union organizing drives in their US plants, especially in the South and Southeastern US. Action Item: Train managers early on legal union-avoidance practices and unfair labor practices. Also, adopt open communication systems to resolve grievances quickly. These could help to forestall unionization efforts. 6. Employees Expect Benefits Offerings – and Are Entitled to Protected Work Leave What to Know: The US has no national paid leave mandate, but a federal law protects workers for taking up to several months of unpaid leave for medical or family caregiving reasons, if certain conditions are met. Moreover, many states and cities require paid sick or family leave. Finally, benefits
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