As the regulatory and business environments in which our clients operate grow increasingly complex, we identify and offer perspectives on significant legal developments affecting businesses, organizations, and individuals. Each post aims to address timely issues and trends by evaluating impactful decisions, sharing observations of key enforcement changes, or distilling best practices drawn from experience. InsightZS also features personal interest pieces about the impact of our legal work in our communities and about associate life at Zuckerman Spaeder.
Information provided on InsightZS should not be considered legal advice and expressed views are those of the authors alone. Readers should seek specific legal guidance before acting in any particular circumstance.
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Supreme Court Deals Another Blow to Class Arbitration of Employment Claims
A class action allows a plaintiff to sue not only on his own behalf, but also on behalf of others similarly affected by a defendant’s misconduct. In the employment context, for example, plaintiffs can bring class actions against employers for violations of labor codes, wage and hour laws, and discrimination laws.
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Bakery Says Employee’s FMLA Claims Don’t Rise to the Occasion
Under the Family Medical Leave Act (“FMLA”), employers are required to provide 12 weeks of unpaid leave to employees with certain family or medical issues. These issues include attending to serious health conditions that make the employee unable to work, or caring for newborns or family members.
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Is a Twitter Account an Employer’s Trade Secret? Yes, Says Media Company
Companies zealously guard their trade secrets and other information that gives them a competitive edge. And as we’ve covered in prior posts, companies often resort to the courts to protect this kind of information.
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Promises Made, Promises Enforced: D&O Advancement Rights Vindicated Again (This Time in Ohio)
This post deals with two related protections that state laws and companies provide for directors and officers—indemnification and advancement. Corporations usually commit to indemnify officers and directors (and sometimes employees) when, because of their connection to the company, they are pulled into legal proceedings. Corporation also usually agree to advancement – paying legal fees and costs in advance of a final determination about the individual’s right to indemnification – so that officers and directors don’t have to foot the legal bills themselves while such a matter is going on.
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Can You Fire Someone For Racist Tweets?
On May 29, Roseanne Barr posted a tweet comparing former Obama adviser Valerie Jarrett to an ape. ABC’s reaction was swift and decisive: it fired Barr and cancelled her show.
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Can Employees Agree to Arbitration and Give Up Their Right to Bring Class Actions? Yes, Says Supreme Court
Companies and individuals frequently enter into arbitration agreements requiring that claims be brought before a private arbitrator, rather than a judge and jury. Arbitration has various benefits: it can provide quicker resolutions, reduced costs, the right to participate in the selection of the arbitrator, and arbitral expertise. In addition, some parties prefer arbitration because it offers a cloak of confidentiality that does not exist in the state and federal courts.
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Gone Phishing: Employer Faces Liability for Mistakenly Disclosing W-2 Forms to Scammer
Phishing. Spoofing.
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Is Employee Out of Commission? Not So Fast, Says Appellate Court
When an employer changes its contract with an employee, the change should be communicated clearly—and preferably, in writing. Otherwise, the employer may be at risk of finding that the old terms still control.
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If You Didn’t Report, You Can’t Retort: Supreme Court Limits Dodd-Frank Remedy to External Whistleblowers
Tell the Securities and Exchange Commission (SEC). That’s the message the United States Supreme Court sent to whistleblowers with its decision yesterday in Digital Realty Trust, Inc. v. Somers.
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The Safety Net of Delaware
Companies want to attract talented leadership, and protections for officers and directors against lawsuits can be part of the total package.
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Four Employment Law Issues to Watch in 2018
When the calendar flips from December to January, it’s a good time to take stock of what to expect over the next 12 months. Here are four major issues in employment law that we’ll be watching in 2018:
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Give Me One “Good Reason”: Employee Resignations and Severance
Tracy Chapman famously sang about needing “one reason to stay here.” But when severance is involved, employees may look for one reason to leave—one “Good Reason.”
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The CEO of iGate Had an Affair with An Employee, Was Fired and Is Now Suing the Company for Severance – Putting at Issue the Classic Question of “Cause” and Reminding Us of a Few Best Practices
In May, iGate sacked its CEO Phaneesh Murthy, claiming that the Board decided to do so after its outside legal counsel found that Mr. Murthy’s failure to report his relationship with a subordinate employee violated iGate’s policy. Outside counsel made that finding as part of their investigation of the relationship and the employee’s claim of sexual harassment. (For spicier accounts of the office affair check out the news stories from the time) Last week, Mr. Murthy sued iGate in California state court claiming that his termination was not with cause and that he is therefore entitled under his employment agreement and company stock plans to compensation and benefits that the company has refused to pay.
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Where the Whistle Blows: Justices Express Doubt That Dodd-Frank Protection Shields Internal Whistleblowing
When Congress passed the Dodd-Frank Act in 2010, it bolstered protections for whistleblowers who report certain kinds of misconduct, such as violations of securities law. At the time, the Sarbanes-Oxley Act already provided many of these whistleblowers with a cause of action for retaliation. But the new Dodd-Frank cause of action included a longer statute of limitations, a more generous damages remedy, and a right to proceed straight to federal court rather than first bringing the claim to the Department of Labor (as Sarbanes-Oxley requires).
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Segway Competitor Rolls Away from Former CEO’s Attempt to Force Arbitration
A party seeking to enforce a contract has to show mutual assent, also referred to as “a meeting of the minds.” In other words, both parties actually have to agree on the same thing. If the parties don’t agree, then a contract does not exist.
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Sales Representative Who Was Paid $900,000 Can Still Claim Violation of Overtime Law, Says Federal Court
Under federal law, employers must pay employees time-and-a-half if they work over 40 hours in a workweek, unless the employees are exempt from the overtime law. Employers don’t usually think of an employee who takes home $900,000 in a year as a non-exempt employee who needs to receive overtime pay. But the case of Pierce v. Wyndham Vacation Resorts Inc. shows that these employers may need to think again, especially when those employees are mainly paid on commission.
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Pro Wrestling Photo Not Enough to Pin Employer
An employer isn’t immune from a discrimination claim when an employee quits instead of being fired. An employee who quits can still bring a “constructive discharge” claim, arguing that his working conditions were intolerable and that he had no other option but to quit.
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Swimming Pool Company’s Non-Compete Claim Takes a Dive
When a company believes that an employee has breached a non-compete agreement by going to work for a competitor, one remedy it can seek is a preliminary injunction. A preliminary injunction is meant to preserve the status quo in a case pending a trial on the merits. In the context of non-compete litigation, this means that an employer can file a lawsuit and quickly obtain an order barring its competitor from hiring the employee.
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Fifth Circuit Derails Reverse Discrimination Claims Against Amtrak
White male discontent has been a major media talking point since the presidential election, and even long before. This talking point has made its way into the workplace, where tech firms are now being targeted for allegedly discriminating against white males in favor of women or non-white males.
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Commodity Futures Trading Commission Launches Cooperation Initiative
When investigating potential wrongdoing, government investigators have powerful tools that they can use to obtain information. As the U.S. Attorneys’ Manual explains, one such tool is the ability to enter into non-prosecution agreements (NPAs) in exchange for cooperation from companies and individuals.