The U.S. Court of Appeals for the Fifth Circuit concluded on June 14, 2016 that an employer may not deduct more than the actual credit card fees associated with liquidated credit card tips for employees without compromising the tip credit taken by the employer against the employee’s wages. Steele v. Leasing Enterprises, Ltd., No. 15, 20139 is an important decision for employers with operations in the Fifth Circuit because it endorses for the first time other courts’ conclusions that certain deductions may be made against an employee’s tips by an employer without disturbing the tip credit, but illustrates the danger in overreaching in those deductions.
Articles on U.S. Labor, Employment, Benefits & Immigration Law
New DOL “White Collar” Overtime Exemptions Rule to be Put on Hold in Puerto Rico Under PROMESA
On June 30, 2016, President Obama signed the Puerto Rico Oversight, Management, and Economic Stability Act (S. 2328), commonly known as “PROMESA.” This measure, which was enacted with bipartisan support, effectively delays application of the U.S. Department of Labor’s (DOL) new overtime rule to employees in Puerto Rico.
Good News for Employers: Implementation of the New Union “Persuader” Rules Has Been Delayed for Now
A district court in Texas has issued a nationwide injunction prohibiting the U.S. Labor Department (DOL) from implementing the new “persuader” rules that were set to take effect July 1, marking a significant victory for employers.
OSHA Penalties Increase by 78.156% Effective August 1, 2016
The two-year bipartisan budget President Obama signed on November 2, 2015, required OSHA to raise its citation penalties for the first time in 25 years. Since 1990, OSHA has been one of only three federal agencies that were specifically exempted from a law that required federal agencies to raise their fines to keep pace with inflation. A section of the budget bill – entitled the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 – eliminates this exemption for OSHA. This provision will be implemented through an interim final rule scheduled for publication in the July 1, 2016 edition of the Federal Register. OSHA will assess the new penalty amounts starting August 1, 2016.
Jackson Lewis Class Action Trends Report Summer 2016 Now Available
Below is a link to the latest issue of the Jackson Lewis Class Action Trends Report. This report is published on a quarterly basis by our firm’s class action practice group in conjunction with Wolters Kluwer. We hope you will find this issue to be informative and insightful. Using our considerable experience in defending hundreds of class actions over the last few years alone, we have generated another comprehensive, informative and timely piece with practice insights and tactical tips to consider concerning employment law class actions.
Handling Intermittent, Unpredictable Leave Requests after FMLA Ends: Additional Analysis of My Webinar with EEOC Commissioner Feldblum (Part II)
Thanks again to those who attended my June 23 webinar with EEOC Commissioner Chai Feldblum on the topic of “leave” as an ADA reasonable accommodation in light of the EEOC’s new technical resource issued on this topic in early May 2016. If you missed the program, you can access the webinar and materials here.
EEOC Increases Penalty for Violating Notice Posting Requirements by 150 Percent
Executive Summary: The EEOC is increasing the penalty for failure to post the required workplace notices under Title VII, the ADA, and GINA by 150 percent. This increase means the maximum penalty for notice violations will increase to $525 per violation effective July 5, 2016. The increase will only apply to penalties issued after the July 5th effective date.
Taking Workplace Training to the Next Level: EEOC Task Force Recommends Live, Interactive Harassment Prevention Training
On June 20, 2016, the U.S. Equal Employment Opportunity Commission released a 130-page report (“the Report”)1 on harassment in the workplace. The Report contains 45 specific recommendations and identifies 12 “risk factors” concerning workplace harassment and its prevention. Notably, the Report devoted the bulk of its recommendations to the need for effective compliance training and related efforts.
D.C. Circuit Affirms NLRB’s Order to Employer to Reimburse All of Union’s Bargaining Expenses as Remedy for Unfair Labor Practices
In HTH Corporation v. NLRB, the U.S. Court of Appeals for the D.C. Circuit rejected the National Labor Relations Board’s attempt to expand the remedies under the National Labor Relations Act for unfair labor practices to include an award of litigation expenses (attorneys’ fees and costs). In Camelot Terrace, Inc. and Galesburg Terrace, Inc. v. NLRB, decided June 10, 2016, the court again rejected the Board’s award of litigation expenses, relying on its decision in HTH Corp. However, the court affirmed the Board’s order that Camelot Terrace, Inc. and Galesburg Terrace, Inc. (the Companies) reimburse the bargaining expenses incurred by the Service Employees International Union (SEIU) as an appropriate remedial measure for having engaged in bad faith bargaining with the union, addressing the question directly for the first time.
Employers Gain Support For Additional Defense to Class Actions After Court Denies Class Certification for Union Members in Light of “Individualized Questions” Necessary To Resolve Claims
Employers recently gained support for one of their defenses to class claims, and in a case against a union no less, after a federal court in Illinois found that union members’ claims may require individualized questions and therefore were not appropriate for class treatment. See Riffey v. Rauner, et al., 10-cv-02477 (N.D. Ill. June 7, 2016).
Employer’s Honest Belief That Employee Could Not Perform Job Due to Use of Opioid Medications Did Not Constitute Disability Discrimination
An employer’s decision to bypass an employee for a position based on the employee’s use of opioids was not enough to prove the employee’s disability discrimination claim, according to the Sixth Circuit Court of Appeals. Ferrari v. Ford Motor Company, Case No. 15-1479 (6th Cir. June 23, 2016). The Court affirmed summary judgment in favor of the employer on the employee’s disability discrimination claims, as well as his Family and Medical Leave Act retaliation claim.
Managing Repeated Requests for Leave as an ADA Reasonable Accommodation: Takeaways from My Webinar with EEOC Commissioner Feldblum (Part I)
Last Thursday, I had the pleasure of conducting a webinar with EEOC Commissioner Chai Feldblum on the topic of “leave” as an ADA reasonable accommodation in light of the EEOC’s new technical resource issued on this topic in early May 2016. If you missed the program, you can access the webinar and materials here. In addition to covering information contained in the EEOC’s new resource document, we also identified some practical approaches in determining whether and how much leave employers are obligated to provide when it comes to the ADA.
What Does the Supreme Court’s Spokeo Decision Mean in the ERISA Litigation Context?
ERISA practitioners should be aware of the extent to which the United States Supreme Court’s decision in Spokeo, Inc. v. Robins may touch on ERISA claims and defenses. In Spokeo, decided 6 to 2 last month, the Supreme Court addressed the issue of constitutional standing under the Fair Credit Reporting Act (“FCRA”), and our FCRA litigation practice group has commented recently on the decision. However, the Spokeo decision likely will have a unique impact in the ERISA litigation context.
Employee Benefits for the Generations
In her latest video, Sue discusses how to meet the needs of the diverse workforce and different generations, including:
New DOL Rules Heighten Disclosure Requirements for Labor “Persuaders”
The U.S. Department of Labor (DOL) recently announced significant revisions to the “persuader” rules set forth in the Labor Management Reporting & Disclosure Act of 1959 (LMRDA). The new rules impose increased disclosure requirements for employers and any “labor relations consultants” they hire to provide direct or indirect “persuader” advice regarding unionization and other labor-related issues. While the current legal status of the rules remains in flux, employers should consider their potential disclosure responsibilities and related options.