As most employers are certainly aware, on July 24, 2009, the current Federal Minimum Wage rate was increased to $7.25 per hour. This new change must now be reflected in a poster mandated by the Fair Labor Standards Act. Similarly, the Federal Government recently revised the language of a poster required by the Family and Medical Leave Act to reflect changes in the Act that were finalized in November. Consequently, now is the perfect time to remind all employers of the need to comply with the federally mandated posting requirements of various employment rights in the workplace.

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Employers Can Save Litigation Costs of Discrimination Claims by Using Properly Drafted Arbitration Clauses in Employment Contracts

The Supreme Court recently held under the Federal Arbitration Act that agreements to arbitrate statutory discrimination claims entered into by employers and employees are enforceable. In 14 Penn Plaza LLC v. Pyett, U.S. No. 07-581, the company’s union filed grievances on behalf of the respondents claiming age discrimination and other contract violations. However, the union withdrew the age discrimination claim because it believed it could not legitimately pursue the claim after having consented to the change in contractors. Thereafter, the respondents filed an ADEA complaint with the EEOC which later dismissed the complaint and issued a right to sue letter.

When the respondents later filed an ADEA suit in federal court, 14 Penn Plaza moved to compel arbitration. The motion was ultimately denied by the Second Circuit which held that a union could not waive a litigant's right to a judicial forum under the ADEA even though an individual employee may do so for his or her own claims. The Court rejected the majority view of the Circuit Courts of Appeal that employers and unions were not free to agree to a collective bargaining agreement that required the arbitration of the individual statutory discrimination claims of covered employees. However, the Supreme Court held that a union may waive the individual employee’s right to a judicial forum for the litigation of a federal age discrimination claim.

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