Department of Labor

U.S. Department of Labor Advances Regulatory Agenda with Final Rule Barring Federal Contractors from Discriminating against LGBT Workers

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On December 3, 2014, the U.S. Department of Labor (DOL) released its final rule barring federal contractors from discriminating on the basis of sexual orientation and gender identity.  The final rule implements an Executive Order signed by President Obama in July 2014 amending Executive Order 11,246 to include sexual orientation and gender identity as prohibited bases of employment discrimination by federal contractors and subcontractors.

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No Good Deed Goes Unpunished: Document Preservation Notices Can Lead to SOX Violation!

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On November 12, 2014, the Fifth Circuit affirmed a Department of Labor finding that Halliburton retaliated against a whistleblower by including his name in a document preservation notice.  The court also held that emotional distress damages are available under SOX.

In Halliburton, Inc. v. Administrative Review Board, the whistleblower, Anthony Menendez, claimed that he was ostracized and isolated in violation of SOX after Halliburton’s General Counsel sent out a litigation hold notice stating that the SEC had opened an investigation into concerns raised by Menendez about alleged accounting improprieties.  Menendez had previously raised these concerns internally to management.

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Federal Contractors: In the Line of Regulatory Fire

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On October 10, 2014, the White House hosted a listening session regarding President Obama’s “Fair Pay and Safe Workplaces” Executive Order (discussed in detail in a prior Orrick Employment blog post here), one of many new laws imposing significant new requirements on federal contractors. Representatives of the Professional Services Council met with Secretary of Labor Tom Perez and White House officials to urge changes to the Order, which (among other things) requires prospective federal contractors and subcontractors to track and report a comprehensive list of labor and employment law violations, bars larger existing contractors from requiring pre-dispute arbitration agreements of certain claims (including claims under Title VII), and requires contractors to provide employees with additional information on overtime and hours worked in paychecks. READ MORE →

Let’s Talk About Sex: U.S. Department of Labor Targets Transgender & Gender Identity Discrimination

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On Tuesday, August 19, 2014, the U.S. Department of Labor issued a directive to “clarify that existing agency guidance on discrimination on the basis of sex . . . includes discrimination on the bases of gender identity and transgender status.”  This directive follows President Obama’s Executive Order 13672, issued on July 21, 2014, amending existing orders to specifically prohibit federal contractors from discriminating based on gender identity.

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Mind the Gap: Obama Takes New Executive Action on Pay Equity in the Workplace

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Last week President Obama continued his administration’s push to tackle pay equity issues by taking executive action to put federal contractors’ compensation practices under greater scrutiny. On April 8, 2014, the President signed a memorandum and executive order designed to address race and gender-based disparities in compensation. The memorandum directs the Department of Labor (“DOL”) to propose a rule within 120 days requiring federal contractors and subcontractors to submit “summary data” on employee compensation by race and sex to the DOL using a “tool” to be developed by the agency. The executive order signed along with the memorandum bans federal contractors from retaliating against employees for discussing their compensation with each another in an effort to “enhance the ability of Federal contractors and their employees to detect and remediate unlawful discriminatory practices” in pay. READ MORE →

SOX Gone Wild: Misappropriation and Transmission of Confidential Company/Employee Data to the Government Protected under SOX

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Whistle

A whistleblower who took sensitive company data from his employer and turned it over to the IRS has won his retaliation claim at the Department of Labor under the Sarbanes-Oxley Act’s (“SOX”) whistleblower protection provisions. In Vannoy v. Celanese Corp., ALJ Case No. 2008-SOX-00064, ARB Case No. 09-118 (ALJ July 24, 2013), an Administrative Law Judge was presented with the question of whether Vannoy’s removal of highly sensitive company data and transmission of that data to the IRS constituted protected activity under SOX. Vannoy, who was formerly employed as the administrator of Celanese’s corporate credit card program, first allegedly complained internally that the company “misstated their financial records and underestimated their required tax burden potentially in millions.” Vannoy sought legal counsel and eventually reported the company’s alleged accounting misconduct to the IRS.  READ MORE →

The Affordable Care Act – Consider Yourself on Notice

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Gavel and Hundred-Dollar Bill

Under the Affordable Care Act, employers subject to the Fair Labor Standards Act must provide a “Notice of Coverage Options” to each employee. The purpose of this Notice is to inform employees that they may obtain health insurance through their states’ Health Insurance Marketplace. For current employees, the Notice must be distributed before October 1, 2013.  For new employees, the Notice must be given within 14 days after work begins.  READ MORE →

The High Cost of Hiring Unpaid Interns

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Given the difficulty of finding a job in today’s economy, unpaid internships are becoming increasingly popular, particularly for students looking to gain resume-boosting experience. Yet just because someone is willing to work for free and will derive some benefit from an unpaid internship, it does not make it legal under state and federal law. Class litigation regarding unpaid interns is on the rise, and likely will increase even more given the recent ruling in Glatt v. Fox Searchlight Pictures.  READ MORE →

Department of Labor Clarifies When an Employee May Take FMLA Leave to Care for Adult Children

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The ADA Amendments Act (“ADAAA”) expanded more than just employer liability for disability claims; it also broadened the scope of FMLA leave that employees may take to care for their adult children. On January 14, 2013, the Department of Labor clarified that the age of the onset of a disability is irrelevant to determining whether an individual is considered a “son or daughter” under the FMLA. See Dept. of Labor Wage and Hour Div., Administrator’s Interpretation No. 2013-1. READ MORE →