October 23, 2024
On October 15, 2024, the Solicitor of Labor of the U.S. Department of Labor (DOL) published a “Special Enforcement Report” declaring the DOL’s intention to oppose and deter seven contractual provisions that the DOL describes as “coercive.”
For those unfamiliar with the position, the Solicitor of Labor (SOL) serves as legal advisor to the DOL and is authorized to sue employers for violations of laws enforced by the DOL.
The contract provisions the SOL is targeting are as follows:
Provisions requiring workers to waive rights under wage and hour laws
Misclassification of workers as independent contractors
Indemnification provisions that shift liability to workers
“Loser pays” provisions
“Stay-or-pay” provisions
Confidentiality, non-disclosure, and non-disparagement provisions
Requirements that workers report safety concerns to their employer before contacting a government agency
Here is the crux of the provisions the SOL takes issue with and why:
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