In today’s news and commentary, an NLRB judge finds UPS violated federal labor law, Tennessee bans noncompetes for certain workers, and Colorado passes a bill limiting the use of AI to set prices and wages. 

On Friday, Administrative Law Judge Keltner W. Locke at the National Labor Relations Board (NLRB) found that the United Parcel Service, Inc. (UPS) violated federal labor law when it denied certain employees pay raises they were otherwise entitled to while the workers decided whether to join a union. Ordering the company to pay the employees the raises they would have received, Judge Locke found that UPS “denied these employees pay raises because of the upcoming election which resulted from their protected union activities.” Changing wages or benefits in the midst of union organizing efforts can be considered an unfair labor practice. Ironically, the situation arose after the company announced its intent to withhold raises to avoid unfair labor practice liability, but Judge Locke ultimately found that UPS failed to provide workers the “necessary assurances that they would receive the pay increases after the election, and regardless of the election’s outcome.”

On Friday, it was reported that Tennessee had banned noncompete agreements for workers earning less than $70,000 per year, and any prior such agreements subject to that income threshold will be voided. The law also directs courts to consider two-year restrictions for workers above that amount a “reasonable” time, empowering the judiciary to modify agreements as necessary to make them enforceable. The new law is part of a growing movement amongst states to restrict covenants in favor of labor market mobility, with at least ten other states having similar policies in place.

On Thursday, the Colorado legislature officially passed HB 26-1210, titled “Prohibit Surveillance Price & Wage Setting,” intended to curb the use of artificial intelligence to set prices and wages in the state. The bill specifically targets “surveillance pricing” and “algorithmic wage discrimination,” which advocates say are used to increase prices and decrease wages. To prevent this manipulation, the bill bans the use of personal characteristics such as genetic data, online behavior history, and biometric information from algorithmic consideration. The bill has some exceptions which hope to prevent adverse effects on customer loyalty or discount programs, as well as clearing the way for employers to use AI in determining compensation based on worker performance with the employee’s awareness. HB 26-1210 now heads to the desk of Governor Jared Polis.