Category: Employment litigation

The Epic Systems Decision: Where Do Employers Go from Here?

Emery Gullickson Richards

The U.S. Supreme Court’s decision in Epic Systems Corp. v. Lewis has significant ramifications for the scope of class action waivers in employee arbitration agreements. In each of the three consolidated cases that the Court’s opinion addressed, the plaintiffs were pursuing class/collective actions with Fair Labor Standards Act (“FLSA”) claims for unpaid overtime. Plaintiff Sheila Hobson’s FLSA claim in the Murphy Oil case had been dismissed by the trial court as a result of the arbitration provision in the employment agreement she signed when she started work at a gas station in Alabama. By contrast, plaintiff Jacob Lewis, a technical communications employee, had overcome a motion to dismiss his FLSA overtime class action in the Epic Systems case by arguing that a class action waiver in an arbitration agreement that had been emailed to him by his employer was unenforceable. In the Ernst & Young case, plaintiff Stephen Morris sought unpaid overtime under the FLSA and the California Labor Code for working long hours during audit season. As a result of the Supreme Court’s ruling, after remand, all of these claims now appear destined for arbitration unless they are resolved. The Epic Systems decision represents a broader affirmation, however, that arbitration agreements are enforceable regardless of the nature of an employee’s claim, even if the claims are brought pursuant to employment statutes that explicitly provide for class or collective actions. Continue reading “The Epic Systems Decision: Where Do Employers Go from Here?”

What #MeToo Means for the Maritime Sector

Susan L. Bickley, Emery Gullickson Richards, and Jeanne M. Grasso

The #MeToo movement has shone new light on issues for employers in the maritime industry seeking to ensure that seafarers and shore-based personnel can participate in a work environment free of sexual harassment and assault, both shipboard and shoreside. Employees at sea, often for months at a time, can face special challenges associated with a work environment that can be thousands of miles away from any home office, and that can lead to feelings of isolation, make communications difficult, involve close proximity between work spaces and living quarters and generally require employees to remain at the workplace during rest periods.

In other sectors of the global maritime industry, companies engaged in international business can find themselves navigating scenarios that arise from expectations regarding workplace interactions between men and women that are as diverse as their workforces. We examine here the unique legal framework that applies to sexual harassment in the maritime context, what to keep in mind for addressing incidents and recent trends regarding steps employers are currently taking in response. Continue reading “What #MeToo Means for the Maritime Sector”

Epic Shift: Supreme Court Enforces Class Action Waivers in Arbitration Agreements

Emery Gullickson Richards

The Supreme Court issued a landmark decision on May 21, 2018, which has widespread implications for all employers. In Epic Systems Corp. v. Lewis, a 5-4 opinion written by Justice Gorsuch, the Supreme Court held that arbitration agreements and class/collective action waivers are enforceable, putting to rest any argument that the National Labor Relations Act prevents or limits their enforceability. The decision provides employers further options for limiting litigation risk, particularly with respect to costly wage and hour collective actions. The decision also contains important implications for employers that maintain or are considering implementing arbitration agreements in the workplace, as there is no longer any identified legal impediment to the concept of an employer requiring its employees to waive the ability to bring a class or collective action under federal, state, and local employment laws. Continue reading “Epic Shift: Supreme Court Enforces Class Action Waivers in Arbitration Agreements”

Employers Should Take Notice of New Jersey’s Expected Equal Pay Law

Thomas J. Szymanski

The Diane B. Allen Equal Pay Act (“Act”), directed at remedying discriminatory pay practices in the workplace, was passed by both houses of New Jersey’s Legislature and awaits the signature of Governor Phil Murphy. This is not the first time that the New Jersey Legislature has passed a bill modeled after the federal Lilly Ledbetter Fair Pay Act of 2009, which made it easier to pursue pay-discrimination lawsuits—former Governor Chris Christie previously vetoed nearly identical versions of this bill, based on his stated belief that they were overly-expansive and bad for business. Governor Murphy has pledged to sign the current version of the Act into law, with an anticipated effective date of July 1, 2018. Some of the Act’s provisions, notably those providing for treble damages and a six-year look back period, could provide more employees with much greater relief for violations than the federal Ledbetter Act or other state equal pay laws. Continue reading “Employers Should Take Notice of New Jersey’s Expected Equal Pay Law”

New York #MeToo Initiatives—It’s No Longer Just an HR Issue

Stephen E. Tisman and Rither Alabre

Propelled by the Harvey Weinstein scandal and the “#MeToo” movement, New York government officials have taken new steps to protect victims of sexual misconduct in the workplace.

  • The New York County District Attorney’s Office has created a special “Work-Related Sexual Violence Team” of prosecutors to investigate reports of work-related sexual violence.
  • The New York Attorney General filed suit, in response to the announcement of the proposed sale of the Weinstein Company, for civil penalties and an order of “restitution” to victims.

These actions make clear that new layers of scrutiny are being imposed to examine how employers handle sexual harassment claims. Importantly, companies and individuals faced with such claims will confront new areas of exposure—outside of traditional human resources procedures and concerns—which must be analyzed and addressed. Continue reading “New York #MeToo Initiatives—It’s No Longer Just an HR Issue”

Sexual Harassment and the #MeToo Movement: Immediate Action Items for Employers

Scott F. Cooper and Brooke T. Iley

As the breaking news reaffirms in graphic detail on an almost daily basis, we are in a transformative time when it comes to how claims of harassment are reported and handled in the workplace. From Hollywood to Rockefeller Center, and everywhere in-between, employers must be prepared. On December 15, 2017, Blank Rome’s Labor and Employment co-chairs, Scott Cooper and Brooke Iley, held an emergency briefing by webinar entitled: “The #MeToo Movement: Are You Prepared?” Continue reading “Sexual Harassment and the #MeToo Movement: Immediate Action Items for Employers”

Employers Score Major Win as Predicted Changes at National Labor Relations Board Start to Come True

NLRB Reverses Landmark Browning-Ferris Decision and Loosens Test for Joint Employer Status

Scott F. Cooper

On Thursday, December 14, 2017, employers scored a significant victory at the National Labor Relations Board. The Board, in a straight 3-2 partisan vote, reversed its 2015 decision in Browning-Ferris Industries and eliminated the rule that employers and their contractors or franchisees can be deemed a “joint employer” even when one company does not exert direct control over the second entity’s workers.

In Hy-Brand Industrial Contractors Ltd. and Brandt Construction Co., NLRB Chair Philip Miscimarra, joined by the two newest NLRB board members, William Emanuel and Marvin Kaplan, significantly reduced the scope of joint employer status in reversing BFI. The issue over the scope of joint employer status at the Board has been simmering for some time, as NLRB Chair Miscimarra wrote a dissenting opinion in the 2015 BFI decision, which was issued under the Obama administration when Democrat members held the Board majority. Continue reading “Employers Score Major Win as Predicted Changes at National Labor Relations Board Start to Come True”

DOJ Reverses Course—Title VII Does Not Cover Gender Identity

Susan L. Bickley and Emery Gullickson Richards

On October 5, 2017, Attorney General Jeff Sessions reversed the Department of Justice’s (“DOJ”) stance that gender identity is protected as part of the prohibition against “sex” discrimination in Title VII of the Civil Rights Act of 1964. Sessions issued a letter outlining this position to all U.S. attorneys and the leading officials of all federal agencies, stating that while Title VII provides various protections for transgender individuals, the statute “does not prohibit discrimination based on gender identity per se, including transgender status.” Continue reading “DOJ Reverses Course—Title VII Does Not Cover Gender Identity”

Trick or Treat? New York City Salary History Ban Becomes Effective October 31

Anthony A. Mingione

Earlier this year, New York City amended its Human Rights Law to make it unlawful for an employer to ask about or rely on a prospective employee’s prior salary history in making hiring decisions. The amendment bans both direct inquiries from applicants and attempts at learning applicants’ previous salaries from indirect sources, such as independent research or third party conversations.

The legislation becomes effective on October 31, 2017, so New York City employers should take advantage of the remaining time before the effective date to conform their hiring practices to the new restrictions. Continue reading “Trick or Treat? New York City Salary History Ban Becomes Effective October 31”

Seventh Circuit Rebukes EEOC—Extended Leave Is Not a Reasonable Accommodation under the ADA

Susan L. Bickley and Emery G. Richards

In a victory for employers in Illinois, Indiana, and Wisconsin, the Seventh Circuit ruled recently that the Americans with Disabilities Act (“ADA”) does not require employers to give workers extended additional leave after their allotment under the Family and Medical Leave Act (“FMLA”) runs out. The Court’s ruling in Severson v. Heartland Woodcraft, Inc. is the strongest rejection of the U.S. Equal Employment Opportunity Commission’s (“EEOC”) long-held and vigorously advocated position that long-term leaves are a required form of reasonable accommodation. Continue reading “Seventh Circuit Rebukes EEOC—Extended Leave Is Not a Reasonable Accommodation under the ADA”