Category Archives: Employment Law

Families First Coronavirus Response Act

On March 18, 2020, the 118th Congress of the United States signed into law the Families First Coronavirus Response Act, which will go into effect on April 2, 2020. The primary details of this newly enacted law are as follows: EMERGENCY FAMILY AND MEDICAL LEAVE EXPANSION ACT (Section 3101) Applies to employers with fewer than 500 employees, but more than 25... Read More >

SCOTUS Opinion: No Pre-emption for States to Use Federal Immigration Information to Enforce State Identity Theft Law

Under federal law, employers must verify, through an I-9 form, that they have “verified” that each new employee “is not an unauthorized alien.” In Kansas v. Garcia, three persons who were living in the United States illegally used the same false Social Security number on their I-9 forms, as well as their tax withholding forms, and were prosecuted under... Read More >

SCOTUS Opinion: Court Strictly Interprets “Actual Knowledge” For ERISA Limitations Period

Under the Employee Retirement Income Security Act of 1974, a person with “actual knowledge” of an alleged fiduciary breach by the administrator of a pension plan must file suit within three years of gaining such knowledge—otherwise, a six-year limitations period applies. In Intel Corp. Investment Policy Committee v. Sulyma, Intel argued that its former employee filed such a claim... Read More >

SCOTUS Opinion: Court Enforces Removal Jurisdiction In Vacating Orders Against The Catholic Church

The case of Roman Catholic Archdiocese of San Yuan, Puerto Rico v. Feliciano concerned complaints filed by employees of Catholic schools in Puerto Rico alleging wrongful termination of their pension plan. Initially, the Puerto Rico trial court determined that the Roman Catholic and Apostolic Church in Puerto Rico was the proper entity that owed obligations to the plan, and... Read More >

Employers Receive Additional Guidance with the New Department of Labor Rule, Making It Easier to Avoid Classification as a Joint-Employer

The Department of Labor issued a final rule on January 12, 2020 regarding the interpretation of joint employer status under the Fair Labor Standards Act (FLSA). The FLSA requires employers to pay employees the federal minimum wage for every hour worked and to pay overtime for every additional hour worked over 40 during a workweek. Liability for making such payments falls... Read More >

SCOTUS Opinion: ERISA Case Remanded To Consider Alternative Arguments

Retirement Plans Committee of IBM v. Jander concerned a claim by Employee Retirement Income Security Act of 1974 (ERISA) plan beneficiaries that the fiduciaries in control breached their duty of prudence on the basis of insider information. The standard for stating such a claim had been previously set forth by the Court in Fifth Third Bancorp v. Dudenhoeffer,... Read More >

SCOTUS Opinion: Court Holds Outer Continental Shelf Lands Act Preempts State Employment Law

Brian Newton worked on a drilling platform off the California coast, where his employer paid him for time on duty but not for his time on standby, when he could not leave the platform. He filed a class action in California state court, arguing that state law required the employer pay for standby time. The employer removed the case to... Read More >

SCOTUS Opinion: Ambiguous Arbitration Provision Not Sufficient To Compel Class Arbitration

In a 2010 case, the U.S. Supreme Court ruled that a court could not compel class arbitration under the Federal Arbitration Act when the agreement was silent on that issue, since class arbitration was fundamentally different from “traditional individualized arbitration.” In Lamps Plus, Inc. v. Varela, the arbitration provision did not expressly state that the parties agreed to... Read More >

Changes to Paid Leave Policy Go into Effect for District of Columbia Employers

Employers in Washington, D.C. have been waiting for the Universal Paid Leave Amendments Act of 2016 (the Act) to go into effect. Much to the chagrin of many small employers, that time is here. The Act creates a mandatory, employer-funded, paid leave program, which provides up to eight weeks of paid leave to covered employees working in the District of Columbia... Read More >

Department of Labor Proposes New Overtime Rules

Employers will recall during the Obama administration that the salary threshold for determining overtime eligibility under the Fair Labor Standards Act was changed from $23,660 per year to $47,476.00 per year. Many employers modified their own employment policies to meet the new standard despite the federal regulations never being implemented due to a successful court challenge. The Trump administration has... Read More >

SCOTUS Opinion: Lost Wages Awarded Under Railroad Retirement Tax Act Are Compensation Subject To IRS Taxation

Michael Loos was injured while working for BNSF Railway Company. He sued his employer, and after trial was awarded $85,000 in pain and suffering, $11,212.78 in medical expenses, and $30,000 in lost wages as a result of him not being able to work from the injury. BNSF then argued that the lost wages award was “compensation . . . for... Read More >

Private Arbitration Agreements Preclude Employee Class Actions

In Epic Systems Corp. v. Lewis, employees sued their employer in a class action for violation of the Fair Labor Standards Act. Those employees each had signed an agreement to arbitrate employment disputes under the Federal Arbitration Act, and the employer invoked those agreements to preclude the class actions. The employees argued that the National Labor Relations Act triggered... Read More >