Posts by: Editorial Board

SEC Awards Third Highest Whistleblower Award to Date

Whistle

On July 17, 2015, the SEC announced a whistleblower award of over $3 million to a company insider who provided information that “helped the SEC crack a complex fraud.”  This payout represents the third highest award under the SEC’s whistleblower program to date.  The SEC has made two of the three highest payments to clients of the same law firm – Phillips & Cohen LLP. (The SEC paid roughly $14 million to a whistleblower in October 2013, and nearly $30 million to a foreign whistleblower represented by Phillips & Cohen in September 2014.).  This latest multi-million dollar payout suggests that the SEC’s whistleblower program is in full swing, and that legal representation of whistleblowers may be on the rise.

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California State Legislature Gives Employers Prescription(Rx) for New Sick Leave Law

On Monday, July 13, 2015, California Governor Jerry Brown signed a much anticipated “fix it” bill that amends the Healthy Workplaces, Healthy Families Act of 2014, clarifying the requirements of California’s sick leave law.

The fixes bring welcome clarity and revisions to key provisions that, for most employers, will make the law easier to administer. Yes, it’s two weeks late—the intent was for the bill to pass before the July 1 deadline for employers to implement the bulk of the original law’s requirements. But the delay was due in large part to several revisions that the legislature made in hopes of getting it right this time. And thanks to an urgency provision, the amendments go into effect immediately. The full text of the amendment (AB 304) is available here, but we’ve highlighted a few key provisions below. You should also visit our prior blogs on this subject here to make sure you’re keeping up with the feverish pace of things.

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Medical Marijuana Cards: A New Scarlet Letter? First-of-its-Kind Lawsuit in Rhode Island Claims that Employer Discriminated on Basis of Medical Marijuana Cardholder Status

A Rhode Island graduate student has filed a lawsuit against a textile company, alleging that it discriminated against her because she used medical marijuana.  The complaint, filed by the local ACLU chapter on behalf of University of Rhode Island student Christine Callaghan, alleges that Darlington Fabrics Corporation rescinded a paid internship offer because Callaghan was a registered medical marijuana cardholder.  According to the complaint, it appeared that Callaghan was going to be given the internship until, during a meeting with a Darlington HR representative, Callaghan disclosed that she suffered from migraines and used medical marijuana to treat her condition—but that she would not bring marijuana with her onto the premises or show up for work after having taken marijuana.  A few days after the meeting, the representative contacted Callaghan and told her that Darlington would not be offering her the internship because of her status as a medical marijuana patient.  The suit is believed to be the first to invoke the anti-discrimination provisions of Rhode Island’s medical marijuana law.  Under the law, schools, employers, and landlords may not “refuse to enroll, employ, or lease to, or otherwise penalize, a person solely for his or her status as a cardholder.” G.L. § 21-28.6-4(c).

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Don’t Let California’s Sick Leave Law Leave You Sick this New Year’s: Be Prepared to Comply on January 1!

California employers are facing a healthy dose of new requirements next month as the notice and posting provisions in the state’s recently enacted paid sick leave law take effect.  To help employers comply before ringing in the New Year, the California Labor Commissioner has published a revised Wage Theft Notice and a new workplace poster.

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Including PAGA Representative Action Waivers in Arbitration Agreements Post-Iskanian

After the California Supreme Court’s recent decision in Iskanian v. CLS Transportation, which held that PAGA representative action waivers are unenforceable under California law, employers have struggled with whether to retain such waivers in their arbitration agreements.  The answer to whether such waivers should be retained is not as straightforward as one might expect.

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Federal Preemption Defense Running Out of Gas? 

Recent decisions by the Ninth Circuit Court of Appeals and the California Supreme Court have thrown a road block in the way of employers relying on a federal statute to preempt certain state wage-and-hour law claims.  At issue is whether the Federal Aviation Administration Authorization Act (“FAAAA”) precludes truck drivers from asserting claims for meal and rest break, minimum wage, and other violations under California law.  At least for now, the road is clear for such claims.

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The German Federal Labor Court (Bundesarbeitsgericht – BAG) rejects doubtful discrimination complaints

Even if a potential Employer does not know that an applicant is unsuitable for the offered job from an objective point of view, compensation claims based on discrimination would not be granted.

The first comprehensive anti-discrimination law, regulated in the General Equal Treatment Act (Allgemeines Gleichbehandlungsgesetz – “AGG”), was introduced in Germany in 2006. In the early years of this Act, many so called “AGG-Hoppers” have abused this situation by applying for discriminatory job offers to assert a compensation claim against inexperienced employers as a second step.

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Extra! Extra! Read All About It: California Supreme Court Affirms Reversal of Class Certification Denial for Class of Newspaper Carriers

The California Supreme Court in Ayala v. Antelope Valley Newspapers, Inc. recently affirmed and remanded the reversal of a denial of class certification in an independent contractor misclassification case, emphasizing the standard terms of the contractual agreements between the parties. The plaintiffs were newspaper carriers for the defendant newspaper publisher who were contracted pursuant to two preprinted standard form contracts. Based on the theory that they were misclassified as independent contractors, plaintiffs alleged overtime, meal and rest break violations, and sought reimbursement for expenses and penalties. READ MORE

Appointment of a Data Protection Officer in Germany: You Wanna Avoid Trouble? Then Make Sure You Appoint the Right Person!

Data Privacy

Data protection law is on the rise. Courts as well as local authorities become increasingly sensitive to the misuse of any individual’s personal data that applicable statutory provisions in Germany, such as the Federal Data Protection Act (Bundesdatenschutzgesetz, “BDSG”), intend to prevent. READ MORE

Germany: When is a New Hire too old to join a Company Pension Scheme?

Map and Gavel

In Germany, all employees are mandatorily covered by the statutory pension insurance which provides the main source of income during retirement. In addition, many companies grant company pension benefits to their employees, subject to the terms and conditions of the company pension scheme established for this purpose. The amount of the company pension payable after retirement increases with the length of service. READ MORE