By: Linda C. Schoonmaker and Julia M. Tape

Seyfarth Synopsis: Growth in women’s professional sports, including Houston’s anticipated return of a WNBA team, is drawing renewed focus on pregnancy‑related employment issues. Recent WNBA developments underscore how federal law, labor agreements, and enforcement trends are evolving in tandem. Employers across industries can draw key lessons on managing accommodation obligations and mitigating risk.

Women’s professional sports are experiencing rapid growth, investment, and visibility. Alongside that momentum has come increased scrutiny of employment practices—particularly those affecting pregnancy, caregiving, and performance expectations. Recent developments in the WNBA, including the ratification of a new collective bargaining agreement, offer a timely case study in how evolving federal law, labor agreements, and enforcement priorities intersect.

Notably, Houston is poised to regain a WNBA franchise following reports that Houston Rockets owner Tilman Fertitta is in the process of acquiring Connecticut’s team, further expanding women’s professional sports in Texas. That growth brings renewed attention to employment law issues that extend well beyond professional basketball—particularly pregnancy accommodations and regulatory compliance.

Pregnancy‑Related Protections Under Federal Law

Federal law has long prohibited discrimination based on pregnancy, childbirth, or related medical conditions. Title VII of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act, bars adverse employment actions motivated by pregnancy or by stereotypical assumptions about an employee’s commitment, availability, or ability to perform.

More recently, Congress expanded workplace protections through the Pregnant Workers Fairness Act (“PWFA”), which requires covered employers to provide reasonable accommodations for known limitations related to pregnancy, childbirth, or related medical conditions unless doing so would impose an undue hardship. Unlike the Americans with Disabilities Act, the PWFA does not require an employee to demonstrate that a condition rises to the level of a disability. Instead, it centers on whether the employer engaged in an interactive process with the pregnant employee and reasonably considered the accommodation request.

For employers, this framework means that decisions affecting job duties, schedules, travel, or assignments of pregnant employees should be carefully documented to demonstrate legitimate business justifications.

The WNBA’s New CBA as a Case Study in Pregnancy Protections

The WNBA’s newly ratified seven‑year collective bargaining agreement illustrates how pregnancy protections can be reinforced through collective bargaining. Among its most notable provisions is a rule prohibiting teams from trading a player during pregnancy without the player’s affirmative consent. Commonly referred to as the “Dearica Hamby Rule,” the provision arose from the controversial trade of Dearica Hamby while she was pregnant in 2023. Hamby subsequently filed a discrimination and retaliation lawsuit against the Las Vegas Aces and the WNBA. The WNBA was dismissed by a federal judge, and the remaining claims were ultimately dismissed by mutual agreement between Hamby and the Aces.

While a “trade” is unique to professional sports, the underlying concern is familiar across employment contexts. In traditional workplaces, similar scrutiny may arise from involuntary transfers, territory reassignments, or reductions in responsibility of pregnant employees. When such actions occur after pregnancy disclosure—or are justified by pregnancy‑related assumptions—they can raise significant discrimination concerns under federal law.

The broader lesson is that pregnancy‑related protections extend beyond hiring and termination decisions to include other ostensibly neutral “business” decisions that materially affect an employee’s work.

Collective Bargaining and Statutory Compliance

The WNBA’s labor structure highlights an important principle for unionized employers more generally: collective bargaining agreements do not displace federal employment statutes. Even where a CBA governs compensation, assignments, or discipline, employers remain subject to Title VII, the PWFA, the Family and Medical Leave Act, other federal anti-discrimination laws, and comparable state laws. Employers negotiating or administering collective bargaining agreements should ensure that negotiated provisions align with evolving statutory requirements and enforcement priorities.

Developing Law: The Fifth Circuit and the PWFA

Complicating compliance planning, the Pregnant Workers Fairness Act is currently under review by the United States Court of Appeals for the Fifth Circuit. After initially allowing enforcement, the court vacated its decision and agreed to rehear the case en banc in State of Texas v. Bondi, No. 24‑10386 (5th Cir. Jan. 14, 2026) (per curiam). The litigation focuses on whether Congress validly enacted the statute under the Constitution’s quorum requirements, rather than on the substance of the accommodation obligations themselves. The issue may ultimately reach the United States Supreme Court.

For now, the PWFA remains enforceable nationwide, including in Fifth Circuit states such as Texas. Employers should not view the pending litigation as a pause on compliance; maintaining policies and practices that align with the PWFA remains the prudent course.

Enforcement Trends: Increased EEOC Focus on Pregnancy‑Related Claims

At the same time courts are considering the contours of pregnancy accommodation law, the Equal Employment Opportunity Commission has made clear that pregnancy‑related claims are an enforcement priority. Since the PWFA took effect in 2023, the agency has increased its focus on pregnancy, childbirth, and related medical conditions through outreach, investigations, and early enforcement efforts.

The EEOC has emphasized that pregnancy‑related claims need not involve termination. Alleged failures to engage in an interactive process, denials of modified duties or schedules, and adverse actions following pregnancy disclosure—including lateral reassignment—may all draw scrutiny.

For employers in physically demanding, performance‑driven, or highly visible workplaces, this enforcement posture has significant implications. While these characteristics are common in professional sports, they are equally present in healthcare, manufacturing, logistics, and many client‑facing roles throughout Texas and beyond.

Why This Matters Beyond Women’s Sports

Women’s professional sports increasingly serve as a high‑visibility testing ground for workplace practices that later reverberate across industries. As leagues expand and gain prominence in markets like Texas, employment decisions that might once have drawn limited attention are now subject to greater scrutiny by regulators, employees, and the public.

For employers across industries, the takeaway is clear: pregnancy‑related compliance remains a focal point for both the courts and regulators, and missteps—particularly during periods of growth or increased visibility—can carry significant legal and reputational consequences.

By: Madeline Remish and Erin Dougherty Foley

Seyfarth Synopsis: Accommodation is not a free pass from discipline or termination. In Lewis v. Indiana Department of Transportation, No. 25-1776 (7th Cir. April 22, 2026), the Seventh Circuit reaffirmed that employers do not violate federal anti‑discrimination laws when they terminate an employee with a disability, provided they do so for legitimate performance and conduct‑related reasons. Even where an employer approves a requested accommodation, employees remain responsible for performing the essential functions of their jobs and meeting workplace expectations. The court’s decision is especially instructive for employers managing remote‑work accommodations, where flexibility and accountability often collide.

Background and Remote-Work Accommodation

Keisha Lewis worked for the Indiana Department of Transportation’s Real Estate Division from 2014 until her termination in December 2022. Her position involved reviewing and approving federal relocation vouchers, which was work that directly affected INDOT’s ability to meet project deadlines and maintain federal funding. Lewis suffers from a kidney condition and, following the agency’s return to in‑office operations after the COVID‑19 pandemic, requested to continue working remotely due to her compromised immune system.

INDOT granted Lewis a remote‑work accommodation. In addition to allowing her to work from home, the accommodation included flexibility around exchanging physical paperwork, such as permitting Lewis to meet supervisors outside the downtown office to drop off processed checks. At several points, INDOT also worked with Lewis on documentation issues related to her accommodation and ultimately confirmed that she did not need to continually re‑justify her request.

Put simply, this was not a case where an employer denied an accommodation request or immediately rushed to discipline after one was made. INDOT granted the accommodation and attempted to manage Lewis’s performance within that framework.

Performance Issues Persist Despite the Accommodation

Problems arose, however, once Lewis was working remotely. According to the summary judgment record, Lewis began refusing to perform certain aspects of her job, including processing vouchers for the Finance Department, despite being directed to continue that work. At one point, she emailed a manager outside her chain of command to say she would no longer assist with relocation vouchers at all.

Supervisors also became concerned about Lewis’s productivity and transparency. She developed a significant backlog of unfinished work, initially estimated at 100 to 150 parcels. When supervisors attempted to monitor her workload through regular check‑ins and requested reports detailing her outstanding assignments, Lewis resisted those requests and, in some instances, refused outright to provide the information. She also repeatedly arrived late to meetings or missed them altogether.

When managers attempted to understand what Lewis was working while working remotely, they discovered that the backlog was far larger than initially believed. A report compiled shortly before the termination of her employment showed the backlog to include more than 400 outstanding parcels, including work tied to some of INDOT’s largest projects. Management determined that the delays were placing federal funding at risk and required significant time and expense to remedy.

Throughout this period, INDOT documented concerns related to Lewis’s performance, refusal to follow instructions, and workplace conduct. By December 2022, INDOT concluded that her continued employment was no longer sustainable and terminated her for poor performance and insubordination.

Disability Discrimination Under the Rehabilitation Act

Lewis alleged that her termination violated Section 504 of the Rehabilitation Act. The Seventh Circuit emphasized that this statute imposes a demanding causation standard. Unlike claims under the ADA, a plaintiff must show that the adverse employment action occurred solely because of the employee’s disability.

That standard proved fatal to Lewis’ claim. The undisputed record showed multiple legitimate reasons for her termination, including persistent performance deficiencies and insubordinate conduct unrelated to her medical condition. Lewis also did not dispute that the decisionmaker recommended termination based on those issues. Because her disability was not the sole reason for her termination, the Court held no reasonable jury could find in her favor.

No Evidence of Pretext or Retaliation

Lewis argued that INDOT’s stated reasons were a pretext and that increased monitoring after she began working remotely showed discriminatory or retaliatory intent. The Seventh Circuit rejected that argument, reiterating that pretext requires evidence that an employer did not honestly believe the reasons it gave. Disagreements about management style or the level of oversight do not suffice to establish pretext.

Here, INDOT consistently cited specific, documented concerns about Lewis’s productivity, her refusal to complete assigned work, and her resistance to supervision. The court emphasized that it does not second‑guess an employer’s business judgment where there is no evidence the proffered reasons were dishonest.

Lewis’s retaliation claims under both the Rehabilitation Act and Title VII failed for similar reasons. Although requesting an accommodation and filing internal complaints are protected activities, INDOT articulated legitimate, non‑retaliatory reasons for terminating her employment. The court found no evidence of a causal link between Lewis’s protected activity and her termination, and it noted that poor performance and insubordination are not protected conduct.

Key Takeaways for Employers

For employers navigating remote‑work and accommodation requests, the Lewis decision offers a familiar and reassuring message: granting an accommodation does not mean abandoning performance standards or tolerating an employee’s refusal to perform essential duties. Employers may continue to monitor productivity, request reasonable accountability measures, and take corrective action when expectations are not met, even where an employee is working remotely for medical reasons.

The decision also underscores the value of consistent documentation and clear communication. INDOT’s ability to show that it granted accommodations, addressed concerns as they arose, and relied on well‑documented performance failures was central to its success. Courts will not convert accommodation discussions into immunity from discipline where employers can demonstrate honest, well‑supported reasons for their decisions.

For questions regarding potential impact or compliance considerations, please contact the authors of this post or your Seyfarth attorney.

Episode 03: Immigration as a Workplace Flashpoint: What Employers Should Be Ready For

Hosted by Dawn Solowey with special guest Leon Rodriguez

In Episode 3 of Cultural Flashpoints Vidcast: Conversations That Matter, host Dawn Solowey welcomes Leon Rodriguez, a leading member of the firm’s Immigration Compliance & Enforcement Team, for a timely discussion on immigration enforcement and its growing impact on the workplace.

As immigration has become an increasingly charged political and cultural issue during President Trump’s second term, Leon shares what employers are seeing on the ground, from heightened ICE activity to employee and stakeholder pressures, and how organizations can respond lawfully and thoughtfully. This conversation focuses on practical preparedness, including what to do if ICE appears at the workplace, the importance of clear escalation and communications plans, and how employers can navigate employee concerns without creating additional legal risk.

By: Michael Marino and Milo Young

Seyfarth Synopsis

On April 3, 2026, President Trump signed “Urgent National Action to Save College Sports,” his most comprehensive executive order on college athletics to date. The Order calls on the NCAA to establish transfer restrictions, eligibility caps, and NIL guardrails by August 1, 2026, backed by the threat of federal funding consequences for noncompliant schools. It is also limited in application to schools with over $20 million in athletics revenue. The NCAA and Power Four commissioners have praised the Order however, there are gaps: it does not address whether college athletes are employees, many of its provisions conflict with existing court rulings, and its long-term viability without Congressional legislation remains doubtful.

On April 3, 2026, President Trump signed “Urgent National Action to Save College Sports” — the most comprehensive federal intervention into collegiate athletics to date. The executive order (“the Order”) calls on the NCAA to overhaul its rules on transfers, eligibility, NIL, and revenue sharing by August 1, 2026. Noncompliant, covered schools face the potential loss of federal grants and contracts.

The NCAA and Power Four commissioners quickly expressed support. NCAA President Charlie Baker called it “a significant step forward.”[1] SEC Commissioner Greg Sankey, Big Ten Commissioner Tony Petitti, Big 12 Commissioner Brett Yormark, and ACC Commissioner Jim Phillips all praised the Trump administration, and urged Congress to pass the SCORE Act or other legislation.[2] The coordinated messaging was clear: major institutional stakeholders want legislation as the next step.

However, the Order has conspicuous gaps and significant legal vulnerabilities. First, it does not address whether college athletes are employees. Second, its own effectiveness depends on whether the NCAA adopts these rules by August 1 and whether those rules survive judicial challenge. Third, no student-athletes were consulted. Not surprisingly, athletes’ representatives are critical: co-lead plaintiff attorney Steve Berman called the order “an affront to the Sherman Act.”[3] The Order will almost certainly generate significant litigation and the Order’s purpose may be less about resolving college sports’ issues than pressuring Congress to act.

How We Got Here

This is the second executive order on college sports in less than a year, following the July 2025 “Saving College Sports” order whose practical impact proved limited. It arrives against the backdrop of the June 2025 House v. NCAA settlement (which allowed schools to share up to $20.5 million annually with athletes), two stalled Congressional bills (the SCORE Act and the SAFE Act), and a March 2026 White House roundtable that produced five presidential advisory committees but no legislation.

For our detailed analysis of the first executive order, the House settlement, and the competing legislative proposals, see our prior coverage: After House v. NCAA: Will Congress or the White House Bring Order to College Sports? (October 2025).

What the Executive Order Provides

The Order applies only to institutions generating at least $20 million in total athletics revenue during the preceding academic year, effectively limiting its coverage to Power Four programs and upper-tier Group of Six schools. For those institutions it operates on two tracks: it calls on the NCAA to update its rules by August 1, 2026, and it directs federal agencies to use grant and contract eligibility as the enforcement mechanism.

The proposed new NCAA rules are as follows:

1. Eligibility Caps

Participation in college athletics is limited to a five-year window, with limited exceptions for military service, missionary service, and other absences in the public interest. Athletes who have competed at the professional level cannot return to college athletics. This responds to the wave of eligibility lawsuits that have burdened the NCAA.

2. Transfer Restrictions

Student-athletes are permitted one free transfer with immediate playing eligibility during their five-year participation window. A second transfer with immediate eligibility is available only if the athlete has obtained a four-year degree. Notably, since the Order takes effect August 1, the upcoming men’s basketball transfer portal window (which opens this week) will operate under existing rules.

3. NIL and Pay-for-Play

The Order prohibits “fraudulent NIL schemes,” which is defined as any arrangement to pay above actual fair market value in connection with an athlete’s participation in college athletics. Two safe harbors are carved out: revenue sharing consistent with NCAA/House settlement rules, and fair market value compensation by an unaffiliated third party for a valid business purpose, at rates comparable to non-athlete endorsers. The Order also defines and prohibits four categories of “improper financial activities,” including tortiously interfering with a student-athlete’s contract at another institution — a provision that targets the widespread issue of poaching in the transfer portal era.

4. Women’s and Olympic Sports Protections

Revenue sharing cannot be allocated in a way that reduces scholarships and opportunities in women’s and Olympic sports. The Department of Education is directed to require regular reporting on roster spots by team and total spending on athletic aid, broken out by men’s and women’s teams.

5. Medical Care for Student-Athletes

The Order calls for medical care for student-athletes who sustain athletics-related injuries during enrollment and for a reasonable period thereafter. While it does not define “reasonable period,” this provision could expand post-enrollment obligations for athletic departments. This requirement could also impact the ongoing question of employee classification status.

6. Agent Regulation

The Order calls for the creation of a national student-athlete agent registry, with protections against excessive commissions. The FTC is designated to enforce the Sports Agent Responsibility and Trust Act (SPARTA) against these agents and related entities.

7. Challenging State NIL Laws

The Attorney General is directed to bring legal actions to invalidate state laws that conflict with NCAA rules, invoking the dormant Commerce Clause, the Contracts Clause, and federal preemption. This is a direct attack on the patchwork of state NIL laws that the NCAA has long argued undermines uniform enforcement.

8. Enforcement: The Suspension and Debarment Framework

Federal agencies that contract with or provide grants to covered institutions are directed to evaluate whether violations of NCAA rules constitute a cause serious enough to affect the institution’s present responsibility as a federal grant or contract recipient. The Office of Management and Budget is directed to issue guidance reinforcing this suspension and debarment framework, and the General Services Administration is directed to establish regular data collection for compliance monitoring. This is the Order’s most consequential provision: universities that depend on federal research funding will take this threat seriously. Defining and applying enforcement will be a challenge.

Expect Litigation

The President himself predicted: “We’re going to put it forward, and we’re going to get sued.”[4] Multiple provisions address areas where courts have already ruled. Transfer restrictions have been struck down as unlawful, eligibility caps have been challenged through state court injunctions, and the antitrust framework from NCAA v. Alston through the House settlement reflects judicial reasoning an executive order cannot override. The Order’s severability clause — providing that if any provision is struck down the remainder survives — confirms the drafters expect parts to be invalidated.

This creates a dilemma. Schools that comply with the Order’s transfer or eligibility provisions risk running afoul of binding court orders, while schools that follow the courts risk the federal funding consequences the order threatens. The August 1 effective date provides an impossibly brief window for legal challenges to resolve this tension. Significant uncertainty will prevail in the meantime.

What This Means

The Order is a call for the NCAA to act, not a direct mandate. Thus, its effectiveness depends on whether the NCAA adopts its rules and whether those rules survive judicial challenge. Nevertheless, covered institutions should understand these rules and monitor related legal challenges to avoid potential cuts to their federal funding.

Universities and athletic departments face the most acute compliance challenge. The Order’s directives must be weighed against existing court orders, the House settlement, state NIL laws, and Title IX obligations. We recommend documenting compliance analysis carefully, and avoiding programmatic changes until courts weigh in. The women’s and Olympic sports protections carry the most practical teeth given Title IX and the federal funding lever; schools considering cutting non-revenue programs should proceed with extreme caution.

Coaches and athletic staff should note that the upcoming basketball transfer portal will operate under existing rules. However, if the prescribed rules are implemented by the NCAA and survive legal challenge, after August 1, coaches need to ensure compliance with the new transfer rules, eligibility rules, and tampering prohibitions. 

NIL collectives and investors should study the Order’s “fraudulent NIL scheme” definition closely. The safe harbor for legitimate deals — fair market value, valid business purpose, rates comparable to non-athlete endorsers — provides a clearer standard to structure against. Compliance documentation is more important than ever.

Agents face new regulatory exposure through the national agent registry and directed FTC enforcement of SPARTA.

The Bottom Line

This Order is an effort to address and frame the runaway status of college athletics in the NIL era. It is not a comprehensive long-term solution. Without an antitrust exemption the NCAA needs, it cannot override existing court rulings. The Order also leaves unaddressed the question that will ultimately define the next era of college athletics: are athletes employees? More to come.

Seyfarth’s Sports & Entertainment team will continue to monitor developments and provide updates as the order’s implications become clearer. For questions about how these changes may affect your institution or organization, please contact any of the authors.

Related Seyfarth Insights

[1] https://www.ncaa.org/news/2025/2/5/media-center-ncaa-president-charlie-baker-issues-statement-regarding-trump-administration-executive-order.aspx#:~:text=Today%2C%20NCAA%20President%20Charlie%20Baker,by%20changes%20in%20the%20policy.%22

[2] https://sports.yahoo.com/articles/greg-sankey-power-four-commissioners-230932706.html

[3] https://x.com/RossDellenger/status/2040216408043278746

[4] https://www.espn.com/college-sports/story/_/id/48126931/donald-trump-plans-executive-order-solve-every-problem-raised-college-sports-panel

By: Adam R. Young & Brent Clark 

Seyfarth Synopsis: California and New York will soon be requiring Narcan in some workplace first aid kits. While Narcan provides a meaningful, prompt, and potentially lifesaving response to opioid overdoses, effective implementation of a Narcan program may require employee training and an expanded first aid response structure.

The Centers for Disease Control and Prevention (CDC) estimated 54,000 to 57,000 opioid‑related deaths nationwide in 2025. Narcan (Naloxone) provides a potentially lifesaving solution to opioid overdoses that is simple to administer and has a very low probability of harming the recipient. No federal or state laws currently require Naloxone (Narcan) for first aid purposes outside of certain health care environments. Litigation exposure associated with offering Narcan remains limited, both because workers’ compensation laws cover most employee claims and because many states extend immunity through Good Samaritan statutes. Recent legislative activity in New York and California, however, signals growing regulatory interest, and employers should understand how these laws operate and consider whether Narcan can help protect employees.

1. Naloxone Offers Clear Life‑Saving Benefits

Naloxone (brand name Narcan) is an FDA‑approved, over‑the‑counter nasal spray used to reverse opioid overdoses. Opioid overdose causes:

  • respiratory arrest
  • cardiac arrest
  • and potentially death

According to 2024 guidance from the CDC, prompt Narcan administration dramatically increases overdose survival rates.

2. Opioid Risks Remain Prevalent Among Working‑Age Adults

While opioid positivity rates in employment drug tests have declined over the last five years, they remain elevated compared to historical norms. See https://www.questdiagnostics.com/content/dam/corporate/restricted/documents/drug-testing-index/DTI-2025-Tables.pdf.  Accordingly, risks of opioid use, positivity, and workplace overdose remain elevated in many workplaces.

3. Narcan Is Safe, Low‑Risk, and Simple to Use

Per 2024 CDC guidance, the Narcan nasal spray format is straightforward to administer and extremely unlikely to harm a person who is not experiencing an opioid overdose. Emergency medical technicians (EMTs) universally carry naloxone, and their response often follows workplace administration.

4. No Federal Requirement to Stock Narcan—But NIOSH Provides Helpful Guidance

There is no federal OSHA standard requiring employers to stock naloxone or maintain opioid‑response programs. However, NIOSH published a non‑mandatory factsheet for employers evaluating the use of Narcan onsite that remains available. See https://www.cdc.gov/niosh/docs/2019-101/pdfs/2019-101.pdf. The guidance highlights considerations such as hazard assessments, responder training, PPE, and integration with existing emergency plans.

5. New York’s New Narcan Statute — and Its Dependence on Federal OSHA Requirements

In 2025, New York enacted Labor Law § 27‑f, requiring employers to maintain an “opioid antagonist” (e.g., naloxone) in their first aid supplies, but only when the employer is “federally mandated to have first aid supplies readily available for the treatment of all employees.” N.Y. Labor Law § 27‑f.

The federal mandate limitation means employers who are required to provide first aid services, normally covering rural facilities. New York’s Senate Bill materials clarify that “federally mandated” refers to workplaces where OSHA requires first aid kits. But OSHA only mandates first aid supplies when medical services are not available in “near proximity.” Under 29 C.F.R. § 1910.151(b), an employer must maintain “adequate first aid supplies” when no hospital, clinic, or infirmary is nearby, and when employees are designated and trained to provide first aid.

Many employers maintain aid kits and allow self‑care or Good‑Samaritan assistance but do not operate formal first aid response teams. Such employers have a strong argument that New York’s statute does not obligate them to stock Narcan.

6. California’s Forthcoming Cal/OSHA Regulations

On September 27, 2024, California Governor Gavin Newsom signed Assembly Bill (AB) 1976, On September 27, 2024, California Governor Gavin Newsom signed Assembly Bill (AB) 1976, requiring Cal/OSHA to implement a standard requiring workplace Narcan. Before December 1, 2027, Cal/OSHA must submit a draft rulemaking proposal to the Standards Board to revise regulations on first aid materials and emergency medical services, to require first aid materials in a workplace to include Narcan (naloxone).  The Standards Board is required to adopt revised standards by December 1, 2028.  While California has not yet issued proposed language, the direction is clear: the state intends to impose some form of Narcan‑related requirement via Cal/OSHA regulation.

For multistate employers, these emerging state trends warrant careful monitoring—especially given California’s track record of influencing national safety expectations, and the track record of Cal/OSHA officials becoming federal OSHA leadership during Democratic administrations.

7. Employers Should Review Their Injury and Illness History

For employers who wish to better understand potential benefits from adding Narcan (Naloxone) to first aid kids, we recommend assessing:

  • known overdoses
  • suspected overdoses
  • EMS calls referencing drug events
  • five‑year trends

A history of prior incidents may support the addition of Narcan (Naloxone) voluntarily as part of a broader first aid and emergency‑response strategy.

8. Safety Considerations for Employees Administering Narcan (Naloxone)

Employers need to protect employees who respond to overdose incidents and attempt to administer Narcan (Naloxone). Responders who administer Narcan (Naloxone) may encounter:

  • powder or liquid opioids
  • unsafe environments
  • respiratory hazards
  • the need for PPE (gloves, masks)
  • the need to perform cardio-pulmonary resuscitation after administration

If administering Narcan becomes part of responders’ assigned duties, OSHA may require compliance with the Bloodborne Pathogens (BBP) standard. Most employers with designated responders already maintain BBP programs, but others may need to expand training.

9. Tort Liability Remains Limited

Individuals who become injured or ill during an administration of Narcan (Naloxone) could bring tort or worker’s compensation claims against the employer. Worker’s compensation claims may be limited by the compensability of drug overdose under state law. Potential negligence claims related to Narcan administration (or failure to administer it) are mitigated by:

  • Workers’ compensation exclusive remedy –> employees generally cannot bring tort claims for workplace injuries.
  • Good Samaritan protections –>Most states provide robust immunity for individuals who respond in good faith to suspected overdoses.

Contractors and non-employees could theoretically pursue negligence claims, but Good Samaritan statutes and the high threshold for proving causation make such claims unlikely to succeed.

10. Additional Employer Recommendations

New York’s Narcan requirement applies only to employers federally mandated under OSHA to maintain first aid supplies—a narrow category that often excludes urban, suburban, and in-town worksites. California is moving toward a similar requirement, but rulemaking may be two years away. Although no federal mandate exists, employers may still find value in voluntarily adding Narcan (Naloxone) to first aid kits, provided they implement appropriate training and hazard‑mitigation measures. Many employers with industry-leading safety programs have adopted Narcan (Naloxone) at their worksites in recent years.

If you are evaluating whether to implement a Narcan program or need a multi‑state compliance strategy, the Seyfarth Workplace Safety & Environmental team is ready to assist.

By: Shardé Skahan, Dawn Solowey, Mackenzie Mullin and Melissa Ortega

Seyfarth Synopsis: With the US on the brink of losing its elimination-of-measles status, forward-thinking employers should take the time to review their policies regarding vaccines and workplace health. Shardé Skahan, Dawn Solowey, Mackenzie Mullin & Melissa Ortega explore what companies need to know as the nation once again faces the potential return of a vaccine-preventable illness.

With the global Covid-19 pandemic in the rear-view mirror, employers are not eager to confront another infectious disease outbreak; they may not have a choice. 2025 had the highest number of measles cases in the US in 20 years, and already in 2026, measles is surging in several states.

Employers should proactively plan to respond to measles outbreaks that affect the workplace.

How much are measles outbreaks increasing?

The US is at risk of losing its measles elimination status, the New York Times reported in January, as 2025 saw the highest number of measles infections in the country in more than two decades. Across 45 states last year, more than 2,200 people were infected with the highly contagious viral respiratory disease. A meeting to review the elimination status of both the US and Mexico has been set for November.

And so far this year, according to the latest available CDC data, as of March 20, there have been nearly 1,500 confirmed cases of measles across the majority of states: Alaska, Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Texas, Utah, Vermont, Virginia, Washington and Wisconsin. A total of 14 new outbreaks have been reported so far this year, the CDC said, with more than 90% of cases being outbreak-related.

The agency warns that measles can have serious complications including death, hospitalization, pneumonia, swelling of the brain (encephalitis) and pregnancy complications. 

What are the OSHA considerations?

Unfortunately, federal public health guidance from the CDC is limited on the exact steps an employer needs to take if an employee is exposed to or contracts the measles. However, health officials in some locations, including Los Angeles and New Mexico, have conducted contract tracing and worked with employers to protect and inform employees.

While there is no specific OSHA standard covering measles directly, guidance indicates other OSHA standards may apply to the prevention of occupational exposure to measles, creating obligations for employers. Those OSHA standards are the following:

  • Record keeping and reporting: Measles acquired in the workplace is a recordable illness on an OSHA 300 log. Like all work-related injuries and illnesses that result in an in-patient hospitalization within 24 hours of a workplace exposure, employers must report the hospitalization to OSHA within 24 hours of learning of the hospitalization.
  • Personal protective equipment (PPE): OSHA’s PPE standards require that an employer must assess the workplace to determine if hazards are present or are likely to be present and select PPE that will protect affected employees. The employer must provide this PPE and train workers how to use it. For measles, selected PPE may include gloves, eye and face protection and respiratory protection, as determined by the task and hazards identified.
  • Bloodborne pathogens (BBP): OSHA’s BBP standard applies to occupational exposure to some human body fluids, including saliva in dental procedures, which can transmit measles. The BBP standard also describes measures that could serve as a framework to control non-bloodborne exposures that can transmit measles, including exposures to body fluids (e.g., sputum, respiratory and nasal secretions and saliva, outside of dental procedures) to which the standard does not apply. When BBP applies, employers must use universal precautions, maintain a written exposure control program and provide training, PPE and engineering controls to limit or prevent exposure.
  • General duty clause: OSHA’s general duty clause requires employers to furnish to each worker “employment and a place of employment, which are free from recognized hazards that are causing or are likely to cause death or serious physical harm.” The general duty clause is OSHA’s “catch-all,” and employers can be cited under this standard if they fail to prevent workplace exposure of a recognized hazard. Employers should implement feasible hazard controls.

OSHA also identifies certain workplaces that increase the likelihood of worker exposure to measles, including:

  • Healthcare facilities
  • Laboratories
  • Congregate settings (i.e. schools, daycares, detention facilities, assisted living facilities, etc.)
  • High-density workplaces
  • Conducting work outside of the US.
  • In addition, workers who are not vaccinated or have a weakened immune system are more likely to contract measles.

State government agencies may also provide public health information about measles, including state-specific updates. For example, in December 2025, Massachusetts published an alert regarding particular exposures to measles that also provided pertinent public health information, including about vaccination. Employers can consider tasking certain personnel to track such updates.

What should employers do? 

Preparing a plan for a potential measles outbreak for employers can help keep employees and others safe, as well as reduce legal risk.

There are a few steps to consider when managing measles exposure in the workplace.

  • Notify local health departments and the CDC. If an employee contracts measles, it is important to immediately contact your local health department and the CDC. The CDC specifies to notify them of an outbreak within 24 hours by emailing measlesreport@cdc.gov. Local health departments will also likely help with contract tracing, provide resources and further guidance,
  • Send the Infected employee home. Employers should also review the applicable sick time, FMLA, leave and other applicable policies to ensure compliance while employees are out of work.
  • Notify exposed employees and maintain employee privacy. While it is important to notify potentially exposed employees, it is also crucial that employers maintain the privacy of the employee infected with the measles.
  • Follow OSHA guidelines. If a measles outbreak triggers OSHA standards, it is important to review OSHA guidelines and adhere to them. This includes recording cases of measles that are acquired in the workplace, potentially providing PPE and other engineering controls, having BBP measures in place, if applicable, and generally providing a safe working environment for employees.

There are additional acceptable actions available to employers, including:

  • Educating employees. Employers may educate employees on the measles, how to prevent infections, the MMR vaccine, symptoms and exposure. The CDC also offers resources and fliers that can be posted in the workplace.
  • Voluntary vaccinations. Employers may also encourage employees voluntarily to get vaccinated. Employers can provide practical information to employees, such as where to get vaccinated and whether vaccines may be available without cost. Reimbursing for vaccinations is also likely permissible.
  • Train HR. Training can be helpful; conduct training for HR and managers on what to do if a measles exposure is reported so no one is caught flat-footed.
  • Consider remote work options. Where practical, consider remote work options (even on a temporary basis) for those who are quarantined after a measles exposure.

Can an employer require MMR vaccines?

Certain employers, such as healthcare organizations, have long required the MMR vaccine as a condition of employment. However, in recent years there has been increasing polarization around vaccines and, in turn, litigation around mandatory vaccination programs. 

The employer will want to weigh carefully the workplace risk associated with measles and the health and safety benefits of requiring the MMR vaccine. This may involve, for example, reviewing the particular workplace setting, any contact between employees and vulnerable populations and the vaccination rate of the workforce and community.   

Any mandatory vaccination policy should be carefully considered in consultation with counsel, to ensure that it is compliant with federal law as well as the growing number of intersecting laws that have been enacted since the start of the Covid-19 pandemic.

By: Anthony Califano, Christina Duszlak, Reeves Gillis, and Nicole Ricker

Seyfarth Synopsis: Connecticut’s new warehouse quota law—effective July 1, 2026—requires employers operating warehouse distribution centers to disclose productivity quotas to non-exempt workers and to maintain detailed work speed data. Employers who fail to provide the required notice may not take an adverse action against an employee for failing to satisfy a quota. The law also prohibits quotas that interfere with meal or bathroom breaks and creates strong anti- retaliation protections for employees. With steep penalties and a private right of action, covered employers must act quickly to review their quota practices, prepare written disclosures, and implement compliant data tracking and notification systems.

On March 3, 2026, Connecticut enacted emergency legislation (S.B. 298) requiring employers that operate warehouse distribution centers in the state to make certain disclosures to non-exempt employees who are subject to production quotas.  This law becomes effective on July 1, 2026, but employers have until August 1, 2026 to distribute mandatory notices.  Violation of the law has significant consequences for employers, including damages incurred by impacted employees due to employer violations, civil penalties, and attorney’s fees.  For covered employers, preparation and caution are advisable.

What this Law Requires

Covered employers must provide employees with a written description of each quota to which they are subject, including any potential adverse employment action that may result from failure to meet each quota.  Current employees must receive this information by August 1, 2026, while employees hired after that date must receive the required notice upon hire.

Whenever an employer makes changes to an existing quota, the employer must notify affected employees as soon as practicable and before the effective date of the new quota.  The employer must also provide a written description of the new quota within two business days after the change is made, either directly to the employee or by email.

Covered employers must also establish, maintain, and preserve (for a period of 3 years) records of the following: (1) each employee’s work speed data, (2) the aggregated work speed data for similar employees at the same warehouse distribution center, and (3) the written description of the quota provided to each employee.  An employer need not retain records of such data if the employer does not assign or require quotas or collect, store, analyze or interpret work speed data.

If an employee believes that satisfying a quota would violate the law, the employee can request copies of these retained records, including each quota to which they are subject and both their individual and the aggregated work speed data from the prior 90 days.  The employer must provide the requested records within 10 calendar days following the employee’s request, and the records must be provided both in English and in the requesting employee’s primary language.  The law does not expressly require that an employee’s request for such records be in writing.

What this Law Prohibits

Productivity quotas may not interfere with an employee’s meal breaks or their use of bathroom facilities (including reasonable travel to and from those facilities).  Further, quotas may not set a performance standard that measures an employee’s total output over an increment of time that is shorter than the employee’s workday or that is based solely on a ranking of the employee’s performance in relation to the performance of other employees.

An employer may not take an adverse action against an employee for failing to satisfy a quota that violates these restrictions or that was not properly disclosed to the employee in accordance with the law’s requirements.

Also, an employer cannot retaliate against an employee for requesting the quota information outlined above or for filing a civil action under the law.  The law creates a rebuttable presumption of retaliation for adverse action occurring within 90 days of the employee’s first records request of the calendar year or within 90 days of the employee’s filing of a lawsuit.  If the rebuttable presumption applies, the employer carries the burden of proof to establish, by clear and convincing evidence, that the adverse action was not retaliatory.

How this Law Defines Employee, Employer, Quota, and Warehouse Distribution Center

Under this new law, an “employee” is defined as a non-exempt individual who is employed at a warehouse distribution center.  Warehouse employees who are exempt from minimum wage and overtime requirements are therefore not protected by this law even if subject to quotas.  Non-exempt status shall be determined under this law by reference to the requirements of the federal Fair Labor Standards Act.  Regardless of non-exempt and exempt status, drivers and couriers traveling to or from a warehouse distribution center are excluded from the definition of “employee” under this law.

And “Employer” is defined under this law as an individual or business entity that “directly or indirectly” “employs or exercises control over the wages, hours or working conditions of two hundred fifty or more employees at a single warehouse distribution center in [Connecticut] or one thousand or more employees at any one or more warehouse distribution centers in [Connecticut].”

For purposes of this law, a “quota” is defined broadly as a performance standard where:

  • An employee is required to perform at a specified productivity speed or a quantified number of tasks or to handle or produce a quantified amount of within a defined time period;
  • Actions by an employee are categorized or measured between time performing tasks and not performing tasks within a defined time period;
  • Increments of time within a defined time period during which an employee is or is not doing a particular activity are measured, recorded or tallied, or
  • An employee’s performance is ranked in relation to the performance of other employees.

Use of the word “or” in this part of the statute is noteworthy because the disjunctive construction means that any of the above amounts to a “quota.”  It is not necessary for all of them to be present for the law to apply. 

Unlike analogous statutes in other states, such as California, Oregon, and Washington, the language of this Connecticut law does not appear to require the performance standard to be tied to an adverse employment action in order for it to meet the definition of a “quota.”  This means that even when an employee’s failure to meet a performance standard does not have the potential to lead to discipline, a description of that standard must still be provided to the employee.

Also, a “warehouse distribution center” is defined under this law as a warehouse or warehouse complex owned or leased by a company with operations that fall within the scope of certain North American Industry Classification System (“NAICS”) Codes.  The NAICS codes classify business establishments by their primary economic activity and are used by the federal government to analyze and publish statistical data about the economy.  Establishments that own or lease a warehouse or warehouse complex in Connecticut include:

  • General Warehousing and Storage (NAICS Code 493110);
  • Merchant Wholesalers, Durable Goods (NAICS Code 423);
  • Merchant Wholesalers, Nondurable Goods (NAICS Code 424);
  • Electronic Shopping and Mail-Order Houses (NAICS Code 454110);
  • Couriers and Express Delivery Services (NAICS Code 492110);
  • Warehouse Clubs and Supercenters (NAICS Code 452311);
  • All Other General Merchandise Stores (NAICS Code 452319); and
  • Home Centers (NAICS Code 444110).

An employer can determine whether its business falls into any of these classifications by looking to the NAICS code on its IRS filings or by searching filings for its Connecticut entities here.

Consequences of Non-Compliance by Covered Employers

Employers that violate these new requirements may face civil penalties starting at $1,000 per violation and increasing up to $3,000 per violation.  

The law also creates a private right of action for aggrieved current and former employees, who can recover damages, civil penalties, and injunctive relief.  Attorney’s fees and costs are among the damages available to a prevailing plaintiff in an action under this law.  And the Connecticut Attorney General is authorized to bring claims on behalf of groups of employees.

What Employers Should Do to Prepare

Employers should consider taking proactive steps to prepare for compliance ahead of the July 1, 2026 effective date and the August 1, 2026 notice deadline.  Among those potential steps are the following:

  • Evaluate coverage under this law based on the classification of facilities, number of employees, and quota practices.
  • If covered, prepare written quota disclosures for impacted current and prospective employees prior to the August 1, 2026 compliance deadline.
  • Develop compliant productivity and disciplinary standards.
  • Establish a system for providing written descriptions of new quotas to affected employees whenever quotas are updated.
  • Evaluate or develop protocols for gathering, maintaining, and preserving work speed data.
  • Develop protocols for compliant responses to employee record requests under this law.

By: Ala Salameh and Chelsea Hoffman

Seyfarth Synopsis: In the thick of college basketball season, it’s not just teams updating their playbooks- employers should also take a hard look at their handbooks as well. With rapidly evolving rules around AI, immigration, paid leave, social media, and workplace accommodations, now is the perfect time for a strategic review to avoid running a-foul of local and national laws.

Much like the tournament bracket, the 2026 employment-law landscape is full of new contenders and shifting strategies. States and regulatory agencies are rolling out fresh rules challenging even the best-conditioned teams- particularly in areas shaped by new technologies, political shifts, and changing workplace expectations. We highlight several major developments hitting the workplace in 2026 as consideration for this season’s policy refresh.

  • Artificial Intelligence: Despite the risk of losing federal funding under the Trump Administration’s federal AI Action plan (learn more here), states continue to enact and implement AI laws – several of which take effect this year. Colorado’s AI law, for example, is slated to go live in June 2026, notwithstanding further developments from Colorado’s strained legislature. Under the law, employers using AI may be deemed “deployers” of high-risk AI systems that create the risk of discriminatory employment decisions based on potential bias in the systems’ algorithms (a.k.a. “algorithmic bias”). As such, Colorado employers may demonstrate compliance through adoption of a risk management policy and program, impact assessment, and notice distribution. Similarly, the Illinois Department of Human Rights (“IDHR”) issued draft rules that went into effect in January 2026 governing employers’ use of AI in recruitment, employment opportunity, discipline, and separation. Pursuant to the draft rules, employers are required to provide notice to employees and candidates regarding the use of AI within 30 days of adopting AI-enabled technologies. Texas’ Responsible Artificial Intelligence Governance Act (“TRAIGA”) came online in January 2026 as well, barring employers’ use of AI for intentionally discriminatory purposes. Many more states have introduced bills or formed commissions to assess the evolving risks of using artificial intelligence in the employment context. We anticipate that regulation of AI will only expand from here. As AI becomes increasingly integrated across employment-related technologies ranging from targeted recruitment to audio transcription of interviews and meetings, employers should take stock of their systems and ensure corresponding policies are current and compliant.
  • Immigration Protections: In response to the Trump administration’s focus on immigration enforcement, many states enacted laws with heightened immigrant worker protections. As of February 1, 2026, California employers are required to provide all employees and new hires with a “Know Your Rights” notice. The Notice must include a description of workers’ rights as relating to workers’ compensation benefits; right to notice of inspection by immigration agencies; the right to organize a union or otherwise engage in protected activity; fourth and fifth amendment rights when interacting with law enforcement in the workplace; among others. Illinois created and expanded a series of laws including the Public Higher Education Act and the Health Care Sanctity and Privacy Law requiring employer policies and procedures governing workplace interactions with law enforcement agents, and expanded employee protections based on actual or perceived immigration status. In Washington, employees may now used paid sick leave to prepare or appear for their own or a family member’s immigration proceedings. These expanding protections will continue to impact employer obligations relating to privacy, safety planning, remote work accommodations, and leave provisions, requiring employer vigilance in maintaining accurate policies and training.
  • Paid Leave: Because each state may choose its own paid leave adventure, leave policies should also be routinely audited to ensure compliance. In 2026, Delaware, Minnesota, and Maine’s Paid Family and Medical Leave (“PFML”) laws go live. Broadly, PFML programs provide wage replacement during leave taken for medical and safety-related issues of employees and their covered family members. Unlike the unpaid leave granted under the federal Family and Medical Leave Act (“FMLA”), PFML programs are typically funded through shared employer-employee contributions. Delaware and Minnesota employees began receiving PFML benefits as of January 1, 2026. Maine-based employees will receive their benefits beginning May 1, 2026. Maryland employers will begin withholding employee contributions in January 2027, with benefits becoming available the following year.

    Beyond PFML, Alaska and Nebraska implemented paid sick leave mandates, both allowing employees to earn up to 40 or 56 hours of paid sick time annually depending on the employer’s size. Under both laws, accrued and unused sick time must be carried from one year to the next. Employers with workers in California, Michigan, Minnesota, Missouri, and Cook County (IL) should also be mindful of recent changes to their paid leave laws.
  • Protected Characteristics & Shifting Enforcement Priorities: Following the EEOC’s restored quorum in late 2025, the Commission released updated guidance on its enforcement priorities. Specifically, the Commission is shifting its focus to protecting U.S. citizen workers alleging less favorable treatment relative to immigrant workers under Title VII’s national origin protections. The Commission is also pursuing discrimination claims on behalf of white male workers and applicants, and reasserting the right to religious accommodations for faith-based observances and practices. Meanwhile, states and localities continue expanding the characteristics that are protected from adverse employment decisions including hair texture, type, and style (Gwinnett County, GA); height and weight; housing status; justice-impacted status (Wisconsin; Minneapolis, MN); among others. Employers’ policies are charged with reconciling the demands of their localities with the evolving federal regulatory landscape.
    • Social Media: Social and political polarization inevitably spills into the workplace – even when workers post online off-duty. Particularly with both federal and local enforcement priorities noted above, workers across the gamut may feel emboldened to make statements online that are not shared or deemed offensive by colleagues, customers, and community members. Meanwhile, states like California, Connecticut, Colorado, New York, South Carolina, and Wyoming protect employees from discipline for off-duty conduct or political activity. Employers have the unenviable tasks of creating and effectuating policies that can balance what are often competing interests and claims on the head of a pin. Carefully crafted and contemplated social media policies can help navigate this challenging landscape.

As employers advance through this year’s compliance tournament, now is the time to make sure workplace policies are ready for the full-court press. From AI governance to immigration protections, paid leave expansion, evolving antidiscrimination standards, and employee speech, the compliance demands on employers continue to rise. Seyfarth’s Handbooks & Policy Development team is equipped to support employers in reviewing their playbooks and executing the right strategy to come out on top this season.

By Gary D. Friedman, Esteban Shardonofsky, Linda C. Schoonmaker, and Julia M. Tape

This blog has been updated to slightly modify content.

In a decision that is likely to surprise many employers who have mandatory pre-dispute arbitration programs where they have obtained the unequivocal assent of their employees to arbitrate their disputes, a federal appeals court held that notwithstanding that assent, the failure of an employer to countersign the agreement where the arbitration contract specifically called for mutual signatures rendered the agreement unenforceable, and therefore permitted the case to proceed in court. Specifically, in Mertens v. Benelux Corp., No. 24‑50954 (5th Cir. Dec. 17, 2025), the U.S. Court of Appeals for the Fifth Circuit held that a non-countersigned arbitration agreement was unenforceable where the agreement expressly required signatures from both the employee and employer, and the employer never signed it, even though its failure to do so was purely an administrative error. The historically pro-arbitration Fifth Circuit found unavailing that the employer’s failure to countersign was inadvertent and that both parties’ conduct evidenced acceptance of the arbitration agreement. This decision is a cautionary tale for employers that courts will, indeed, construe language in an arbitration agreement against the drafter (typically the employer) and that failure to comply with its terms, even where both parties otherwise indicate an intent to be bound, will result in the agreement being rendered unenforceable.

Factual and Procedural Background

Mertens involved an FLSA collective action brought by waitstaff employees against Benelux Corporation, which operated a business in Austin, Texas. The Fifth Circuit addressed the arbitration agreement issues only as to representative plaintiffs, Mertens and Cadena, whose agreements were the ones containing the signature defects at issue.

Benelux distributed an arbitration agreement (the “Agreement”) which, on the last page, provided, in pertinent part, that:

By signing this arbitration agreement, Employee and the Club’s representative represent that:

  • They have fully read this agreement prior to signing it;
  • They have been provided a copy of this agreement and have had opportunities to ask questions regarding its content and have it reviewed by persons of their choice, including by attorneys and accountants, before they have signed it; and
  • They understand the terms of this agreement and agree to be bound by them. (emphasis added).

Significantly, the mutual representations that were recited and the fact that there were two signature blocks—one for the employee and one for the employer’s representative—would prove significant in the Court’s decision. Representative plaintiffs, Mertens and Cadena, mistakenly signed both signature boxes in the document—the one designated for employees as well as the one designated for the employer. As a result of that error, Benelux’s general manager—who customarily countersigned these Agreements—did not sign in the employer box, later testifying that he mistakenly believed another company representative had already done so.

Both the magistrate judge and the district court concluded that the Agreement unambiguously required signatures from both parties to be effective.

The Fifth Circuit’s Analysis: When a Contract Requires Dual Signatures, Both Must Be Present

In reviewing the issue, the Fifth Circuit focused on the contract’s express language, homing in on the mutual intent to be bound and execution elements for contract formation. Looking at the parties’ mutual intent, the Fifth Circuit stated that, although signatures are not a requirement of mutual intent, when the express language indicates that both signatures are required, a missing signature renders the agreement unenforceable. The Court found several textual indicators in the Agreement that mutual signatures were required: (1) The Agreement repeatedly referred to representations made “by signing” by “Employee and the Club’s representative;” (2) the use of the plural—“they”—signaled mutual obligations; and (3) two signature blocks appeared at the bottom of the Agreement.

Importantly, the Court rejected Benelux’s argument that requiring both signatures could not be a condition precedent because the Agreement did not expressly state that both parties “must” or “shall” sign. The Fifth Circuit explained that Texas law does not require such magic words; rather, the Agreement’s own language—stating that both the “Employee and the Club’s representative” make certain representations “by signing”—was enough to demonstrate that mutual signatures were required.

Benelux also argued that its conduct—drafting, distributing, collecting, and seeking to enforce the Agreement—demonstrated its intent to be bound. The Fifth Circuit rejected this argument outright. The Court stated that when a contract itself specifies that signatures are required, extrinsic evidence of conduct cannot substitute for the missing execution. The Fifth Circuit was also not moved by the fact that the two representative plaintiffs clearly intended to be bound by the arbitration agreement, including signing in both boxes and initialing each page.  Even though there was “offer and acceptance,” the “execution” element was missing to make the contract binding.

Why This Case Matters: The Practical Problem Many Employers Face

Mertens stands out because, as noted above, the Fifth Circuit is traditionally arbitration‑friendly. Yet the Court refused to compel arbitration because the Agreement’s own language required signatures from both parties—even though both plaintiffs admitted they signed both signature blocks.

Another notable point is that the Court did not lean on any presumption in favor of arbitration. Instead, it first addressed formation—whether a valid arbitration agreement existed. In doing so, the Court did not apply the presumption of arbitrability.

This is a harsh reminder that courts will enforce signature requirements as written, even when the failure to sign appears to be a simple administrative mistake and both parties have otherwise indicated an intent to be bound by the agreement. The decision also reflects heightened judicial scrutiny of formation and consent before courts will apply the presumption favoring arbitrability.

Practice Pointers for Employers

1. Avoid drafting arbitration agreements that expressly require both parties’ signatures.

If an agreement states that “by signing” both parties agree to be bound, a missing signature from either party may render the agreement unenforceable. Consider drafting the agreement as a unilateral agreement by removing the employer’s signature block to avoid potential ambiguity on this issue—as long as there is already clear language in the agreement of the employer’s intention to be bound. Once the agreement is signed by the employee, both parties should be bound by the agreement.

2. If signatures are required, assign responsibility and implement controls.

Designate a company representative to sign these agreements and ensure they are consistently executed. Administrative oversights or a potential mutual mistake cannot be cured after the fact.

3. Recognize that different language could lead to a different outcome.

Had the agreement indicated acceptance by continued employment or required only the employee’s signature, the result may have been different.

4. Audit your forms and onboarding processes.

This case highlights a common problem: employers rely on employee signatures and assume their silence or issuance of the form conveys acceptance. Under agreements like this one, that assumption can prove costly.

By Gina Gi and Daniel Whang

Seyfarth Synopsis: In Steven Kruitbosch v. Bakersfield Recovery Services, 114 Cal.App.5th 200 (2025), the California Court of Appeal for the Fifth District held that an employer’s response, or lack thereof, to an employee complaint of offsite harassment is sufficient to state a claim for hostile work environment, even when that off-site harassment by a nonsupervisory employee was not work-related and not imputable to the employer. Human Resources’ mocking and management’s refusal to act were enough to create a cognizable hostile work environment claim under the Fair Employment and Housing Act (“FEHA”).

The Alleged Harassment Occurred Offsite and Off-Duty

The plaintiff worked as an assistant corporate compliance officer for Bakersfield Recovery Services (“BRS”), which provides substance abuse treatment to recovering alcoholics and drug addicts. Plaintiff’s responsibilities required him to oversee client services, train staff, and to oversee the construction of a new facility being designed for clients.

Plaintiff was responsible for training and overseeing the alleged harasser, Sanders, at a new BRS facility. In 2023, while Plaintiff was on a leave of absence, Sanders sent Plaintiff multiple unsolicited nude pictures and stated that she wanted to have sex with him. Sanders also went to Plaintiff’s home uninvited and indicated she was there to have sex with him. Sanders eventually departed, but left a cucumber with a condom attached on his driveway. Sanders also texted Plaintiff and invited him to a hotel room to have sex and offered him drugs. In all these occasions, Plaintiff firmly rejected her advances and told her to leave him alone and stop harassing him.

Immediately upon returning from leave, Plaintiff complained to the program director, who told him that there was not much she could do about Sanders’ behavior. He also complained to a human resources representative, who later posted a video on social media depicting whining dogs and stated, “This is a work day at the office … lmbo [laughing my butt off].”  There was nothing suggesting that this post was referring to Plaintiff’s complaint. Plaintiff merely felt that it was directed at him. The program manager and human resources representative did not take any steps to separate Plaintiff from Sanders to prevent future harassment, nor take any disciplinary action as to Sanders. Plaintiff went to great lengths to try to avoid contact with Sanders after, but feared he would see her at the worksite. Plaintiff resigned just one week after his complaint, claiming extreme distress, anger, and humiliation, as BRS did not do anything to condemn Sanders’ conduct.

Totality of Circumstances Test In Deciding Whether Harassing Conduct Is Imputable to The Employer

As a matter of first impression, the Court noted that it found no cases arising under the FEHA which explored whether the harassing conduct of a nonsupervisory coworker occurring away from the workplace is imputable to the employer. As a result, it turned to analogous federal authority under the Title VII context for instruction. Like FEHA, under Title VII, for conduct to be imputable to the employer, it must bear a sufficient nexus to the workplace. The Court analyzed various federal court cases finding liability for offsite conduct, including where the employer airline company paid for a block of hotel rooms for the flight crew where the rape eventually occurred during off-duty hours, and another where the plaintiff and her coworker attended training and then drank at a bar at the employer’s training facility, and was later raped offsite after a coworker offered her a ride back to her hotel, since the bar was part of the training facility and the event could be said to have grown out of the workplace environment.  Together, these cases provide persuasive guidance that the work-related nature of conduct is examined under the totality of circumstances.

From the federal authorities, the Court gleaned a number of nondispositive factors relevant to the assessment: (1) whether the harassing conduct occurred in or through a venue or modality that was paid for or hosted by the employer, (2) from circumstances the employer arranged, sanctioned, or approved, (3) in a context where the employer could be expected to obtain some benefit, or (4) in the context of employment-related social circumstances where it would be expected the employees would interact and socialize. The Ninth Circuit has emphasized that in the Title VII context, the relevant question is not whether the harassing conduct occurred on or off the physical or digital worksite, but whether, under the totality of the circumstances, the “harassing conduct had an unreasonable effect on the working environment and, if so, to consider whether and how the employer responded to that effect.”  Okonowsky v. Garland, 109 F.4th 1166, 1180 (9th Cir. 2024).

Here, the Court analyzed these nondispositive factors and found the harassment could not be imputed to BRS because the allegations concerning Sanders’ conduct did not occur from a workplace modality that BRS provided or sanctioned explicitly or implicitly – i.e., a cell phone or email provided by the employer, and Sanders’ unwanted sexual advances did not occur in the context of a work-related event or derive from work-related social circumstances where employees would foreseeably interact. The mere fact that Sanders and Plaintiff knew each other only through work did not make Sanders’ conduct work related. Finally, the Court was unpersuaded by the argument that Plaintiff’s complaint to his supervisors retroactively rendered Sanders’ conduct work-related. If that were the case, anything an employee did outside of work would be work related so long as a coworker subsequently reported it.

The Employer’s Failure To Act And HR’s Conduct Could Support A Hostile Work Environment Claim

Again looking to guidance from federal cases analyzing Title VII, the Court found that in the context of FEHA cases, an employer’s response to harassment occurring outside the physical or digital work environment can independently create a hostile work environment.  In Fuller v. Idaho Dept. of Corrections, 865 F.3d 1154, 1162 (9th Cir. 2017), the plaintiff was raped outside the workplace by her coworker, and the Court held the plaintiff raised triable issues of fact as to the existence of a hostile work environment by alleging the employer’s reactions to the rapes – effectively punishing plaintiff for taking time off, while both vocally and financially supporting her rapist – and that this could have altered her work environment.

Relying on Fuller, the Court found that Plaintiff’s allegations that human resources’ comment and social media post mocking him, in conjunction with BRS’ ratification of Sanders’ conduct through inaction, through his supervisor’s comment that the company would not take any action in response to the complaint because it occurred offsite, materially altered his working conditions.

The Court acknowledged that while Sanders’ conduct did not amount to sexual assault like the rape alleged in Fuller, the totality of the circumstances alleged was sufficient to have altered the Plaintiff’s working environment in an objectively severe manner, thereby stating a hostile work environment claim that should survive a demurrer. The totality of the circumstances included Plaintiff’s supervisor’s statement that there was not much that could be done, the lack of investigation and admonition to Sanders, the alleged mocking and sarcastic comments by human resources, and the failure to take any steps to shield Plaintiff from having to interact with Sanders. The Court concluded that a reasonable person could understand from BRS’ response that it viewed what Sanders had done as not serious; that Plaintiff, as a man, should not be affected by sexual advances from a woman; and that Plaintiff’s well-being in the workplace was of no import to BRS. 

Employers should not dismiss complaints simply because the conduct occurred offsite and off-duty. Responses to such complaints should always be considered on a case-by-case basis and should consider all of the circumstances.