Posts by: Michael Weil

The Supreme Court Hears Oral Argument in Busk: Could Employers Have to Pay for Employee Time Spent Passing Through Security?

On October 8, 2014, the U.S. Supreme Court heard oral argument in Integrity Staffing Solutions, Inc. v. Busk. In Busk, plaintiffs allege that, under the FLSA, their employer should have compensated them and other warehouse employees for time spent passing through the employer’s security clearance at the end of their shifts, including their time spent waiting in line to be searched. Busk is an important case to watch because the Court may provide employers with wide-ranging guidance on what pre-work or post-work tasks are compensable.

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Employers Should Act Now to Avoid Potential Data Minefields: The OFCCP’s New Proposed Rules for Collecting Compensation Data from Federal Contractors

Money Bag

On August 8, 2014, the Office of Federal Contract Compliance (“OFCCP”) proposed new annual reporting requirements for federal contractors and subcontractors.  The proposal requires additional pay information and will become effective in early 2015, unless the OFCCP decides to amend them.

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The EEOC Takes Aim, Once Again, at Employers’ Separation Agreements

On April 30, 2014, the U.S. Equal Employment Opportunity Commission filed suit against a private college, charging for the second time in two months that an employer’s severance agreement was unlawful. The EEOC alleged that CollegeAmerica, Inc.’s Separation and Release Agreements violated federal law by conditioning the receipt of severance payments and benefits on the employee’s promise not to file a charge with, or cooperate in investigations by, the EEOC against CollegeAmerica. READ MORE

Sick Employees in New York City? There’s an Expanded Sick Leave Ordinance for That

Late last month, New York City Mayor Bill de Blasio signed amendments expanding the scope of the City’s Earned Sick Time Act. Starting April 1, 2014, all covered employees must begin accruing earned sick time. The amendments also imposed several other material changes: READ MORE

Will California Be The Next Battlefront For An Onslaught of Whistleblower Claims?

Whistle

Last week, we identified five important questions employers should ask themselves to test whether they are ready for key changes in California law that are coming in 2014. Here, we take a closer look at one of those changes: additional whistleblower protections under Labor Code section 1102.5. READ MORE

Party Foul! NLRB Orders Reinstatement and Back Pay for Party Bus Guide After Finding Facebook Postings Amount to Protected Union Organizing Activity

Email

Providing yet another example of how online social networking can amount to protected conduct under the National Labor Relations Act, the NLRB ruled earlier this month in New York Party Shuttle, LLC and Fred Pflantzer, CN: 02-CA-073340 that a New York City tour guide’s Facebook postings constituted protected union organizing activities. The board held that New York Party Shuttle LLC unlawfully discharged Fred Pflantzer when it refused to give him new assignments after he posted Facebook messages criticizing the company’s employment practices. READ MORE

New York City Passes Bill Treating the Unemployed as a Protected Class

New York City has amended its Administrative Code to create a new protected class of workers. Beginning in June 2013, the New York City Administrative Code will prohibit discrimination based on an individual’s unemployment status. READ MORE

California Court of Appeal: Employer Cannot Compel Arbitration Unless There Is A Signed Arbitration Agreement

Chairs Around a Table

Since the United States Supreme Court’s decision in AT&T Mobility v. Concepcion, more and more employers have sought to get out of court and into arbitration when dealing with employee disputes. The California Courts of Appeal, however, are not making that easy when it comes to an employer’s burden to show the existence of a valid agreement to arbitrate. Several months ago, the Second Appellate District held in Sparks v. Vista Del Mar Child and Family Services that an arbitration policy in an employee handbook was not enough to force arbitration. Similar decisions have reached the same conclusion, e.g., Carey v. 24 Hour Fitness USA, Inc., (5th Cir. Jan. 25, 2012). READ MORE

California Court of Appeal Reads Employment Agreement in Conjunction with a Sale of Business Transaction Yet Refuses to Apply “Sale of Business” Exception to its Non-Compete Clause

People at a Table

On August 24, 2012, a California Court of Appeal clarified when an employment agreement can satisfy the “sale of business” exception to California’s general ban on post-employment non-compete provisions. The Court held that when a stock purchase agreement’s non-compete clause already adequately protects the goodwill of the sold business, any inconsistent and additional non-compete protection in a related employment agreement with the purchasing company may not be enforceable. The holding signals that an employment agreement’s non-compete covenant does not automatically qualify for the “sale of business” exception  simply because it is part of the same transaction as a stock purchase agreement. READ MORE

California Court of Appeal Rules that Advanced Sales Commissions May Be Recovered By the Employer

Coins and Hourglass

On July 10, 2012, a California court of appeal held that an employer’s practice and policy of charging back advanced sales commissions following a canceled service agreement does not violate California law. The Court held that these advanced commissions are not wages; thus they do not come within the ambit of California Code of Civil Procedure section 223 which prohibits the secret payment of lower wages and exposes the employer to PAGA penalties. READ MORE