Federal law—specifically, Title VII of the Civil Rights Act of 1964—prohibits employers from discriminating against employees based on a number of protected characteristics, including sex, race, national origin, and religion.
One major open question, however, is whether Title VII prohibits employers from discriminating based on sexual orientation. For example, if a job candidate is openly gay, can the employee refuse to hire that person because of his sexual orientation without violating federal law?
The Supreme Court has never spoken on the issue.
In our last post, we detailed how Sanford Wadler, the former general counsel of Bio-Rad Laboratories, won a $14.5 million verdict against Bio-Rad.
Before Wadler could get to a jury, however, he had to surmount a significant hurdle: Bio-Rad asked the judge to exclude any testimony based on information Wadler learned in his role as in-house counsel. Bio-Rad relied on an attorney’s ethical duty to protect client confidences unless the client is threatening criminal activity that could lead to death or serious bodily harm.
Companies entrust their in-house attorneys with sensitive and confidential information in order to obtain legal advice on important matters. Thus, when an in-house attorney turns on his or her employer, the repercussions can be significant.
In a recent case involving just this situation, a jury awarded Sanford Wadler, the former general counsel for Bio-Rad Laboratories, an $8 million verdict for wrongful termination. The jury found that Wadler raised concerns about violations of the Foreign Corrupt Practices Act (FCPA) at Bio-Rad, and that the company violated the Sarbanes-Oxley Act and California public policy when it terminated him after he raised those concerns.
The board of directors controls a corporation, but individual directors don’t always agree on the future direction of the company. Sometimes, boards can split into factions. A company’s CEO may align himself with one side and oppose the other.
In rarer circumstances, these disagreements can develop into corporate gridlock. This happens when the warring factions on a board are equally divided.
What can a court do to fix this situation?
As a new administration arrives in the nation’s capital amid heightened scrutiny over conflicts between government service and personal business interests, a little-used law—the Stop Trading on Congressional Knowledge Act (the “STOCK Act”)—is deservedly getting renewed attention.
Although enacted in 2012 primarily to eliminate the then-existing doubt that insider trading prohibitions applied to congressional members and their staff, the STOCK Act also explicitly confirmed the ban on insider trading by members of the executive (and judicial) branch as well.
Sergey Aleynikov, a former computer programmer at Goldman, Sachs & Co., has been on a legal roller coaster for the past few years. In the span of few days, that roller coaster plummeted steeply—twice.
First, on January 20, 2017, the Delaware Supreme Court affirmed a trial court decision that Aleynikov could not recover advancement and indemnification for the legal expenses he is incurring in defending himself against counterclaims brought by two Goldman Sachs entities in New Jersey federal court.
Then, on January 24, a New York appellate court reinstated a jury verdict finding Aleynikov guilty of misappropriating computer code from Goldman.
If you're an employee and you work more than 40 hours a week, you typically have the right to receive time-and-a-half overtime pay for those extra hours.
But there's a significant exception to this rule: it does not apply to white-collar workers, such as executives. As summarized on the Department of Labor's website, to be considered a white-collar worker and thus exempt from the overtime requirement, you have to be paid a salary and not by the hour; you have to make more than $455 per week; and you have to work in a certain kind of job, such as a managerial or professional role.
It’s been a tough few months for Baylor football and its former coach Art Briles. Baylor fired Briles in May of this year, after an outside law firm investigated the school’s response to alleged sexual assaults by football players and other students.
In early December, Briles fought back, filing a lawsuit against four of the University’s regents.
The first question that may occur to you is why this lawsuit isn’t against Baylor for wrongful termination. But as Briles’s complaint explains, he already filed that lawsuit; Baylor settled the case quickly on confidential terms.
Numerous decisions from the Delaware courts establish that a company cannot abandon its promise to advance legal fees and expenses when the covered director, officer, or employee properly invokes it.
The Delaware Supreme Court recently issued yet another decision upholding this principle, ruling in Trascent Management Consulting, LLC v. Bouri that an employer could not escape its promise to provide advancement by claiming that it was induced to provide the promise by the employee’s fraud.
Well, we made it!
In the 10th annual Blawg 100, ABA Journal named Suits by Suits among “the 100 most compelling” blogs in the legal market. We’re thrilled to be recognized and listed alongside some great writers, blogs, and firms.
From ABA Journal:
Every year since 2007, we ABA Journal staffers have assembled a list of our 100 favorite legal blogs for the December issue. Here, you can scroll down to peruse our selections from every past year as well as this one. Some blogs listed over the years are still thriving after a decade or more, while others went dark long ago. And of course, many excellent blogs are absent from later lists only because they’ve been retired to our Blawg 100 Hall of Fame….
Suits by Suits
NEW: Lawyer-bloggers from Zuckerman Spaeder cover disputes between companies and their executives—often in the context of criminal investigations into possible corporate wrongdoing. Can a “suit” be fired for taking the Fifth or otherwise not cooperating with an investigation? If your client is accused of misappropriating trade secrets and his or her computer is seized, what recourse is there? If former company directors or officers face legal claims, can they demand the company advance legal fees?
Thanks to our readers for your support. We hope you find Suits by Suits informative and insightful, and we’re looking forward to another year of writing and posting in 2017.
Check out the complete Blawg 100 list.
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.