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Category: Legal Insights

Posted March 8, 2019

U.S. Supreme Court Deems FELA Payments as Taxable

Earlier this week, the United States Supreme Court issued an opinion in BNSF Railway Co. v. Loos, holding that a railroad’s payment to an injured worker for lost wages is taxable under the Railroad Retirement Tax Act (RRTA). In so …

Posted February 28, 2019

Heath Care in the Minnesota Legislature: Update

Things are heating up in the Minnesota legislature for nonprofit health care entities. Here are breakdowns of local bills that may affect these types of businesses should they become law.

Newsroom image for the post Appellate Court Rules that Age Bias Disparate Impact Theory Pertains to Employees, Not Applicants

Posted January 25, 2019 with Tags , , , , ,

Appellate Court Rules that Age Bias Disparate Impact Theory Pertains to Employees, Not Applicants

The 7th Circuit Court of Appeals ruled on January 23, 2019, that assertions of age discrimination arising from facially neutral hiring policies can be brought only by a company’s employees, not by job applicants. In Kleber v. CareFusion Corporation, the court agreed with recent rulings by other courts – most recently the 11th Circuit Court of Appeals in Villareal v. R.J. Tobacco Co. – holding that under the federal Age Discrimination in Employment Act (ADEA), only employees can state a claim that a company’s actions or policies resulted in an unlawful “disparate impact” due to age.

Posted January 24, 2019

Minnesota Skiers and Snowboarders Now Liable for Injuries on the Slopes; Are Other Sports Next?

On January 23, the Minnesota Supreme Court issued a decision that impacts the assumption of risk for skiers and snowboarders within recreational areas. Since the early 19th century, Minnesota has recognized a doctrine about who is responsible for protecting against harm associated with activities that have well-known risks. The “doctrine of implied primary assumption” of risk states that when a person enters into an activity that has well-known risks that are either expressed or implied, the individual assumes the risks associated with the activity. However, the Minnesota Supreme Court decision in Soderberg v. Anderson held that collisions with other skiers or snowboarders is not a risk of the sport that participants impliedly assume.

Posted January 18, 2019 with Tags , , , , ,

“Freedom to Compete Act” Aims to Wipe Out Most Non-Compete Agreements

In reaction to the recent proliferation of non-compete agreements, courts and legislatures are increasingly trying to find ways to limit their use. The latest attempt is at the federal congressional level. This week, Florida Senator Marco Rubio introduced the “Freedom to Compete Act” aimed at prohibiting non-compete agreements for lower wage workers. The Act would amend the Fair Labor Standards Act to ban non-competes for most non-exempt workers.

Newsroom image for the post Employers Should Immediately Review Recruitment Ad Practices Due to Facebook Class Litigation

Posted January 17, 2019 with Tags , ,

Employers Should Immediately Review Recruitment Ad Practices Due to Facebook Class Litigation

A little over a year ago, three major employers—T-Mobile, Amazon, and Cox Communications—were sued for allegedly discriminating on the basis of age in the way they recruited new employees via Facebook. The plaintiffs’ lawyers targeted not only these three employers but also asserted claims against a “defendant class” of every employer that used age restrictions in their recruiting advertisements on Facebook. They also sent demand letters to scores of employers and filed charges of discrimination against yet more. Though the lawsuit and charge investigations are ongoing, the plaintiffs’ lawyers are now sending a new wave of demands to more employers and filing more charges of discrimination with the EEOC and state enforcement agencies. Employers who have not yet been targeted should take steps now to prepare.

Posted January 10, 2019 with Tags , , , ,

Avoid Getting SLAPPed on Your Next Non-Compete Case

Your employee quits without notice or explanation. You discover that she moved to a competitor in violation of her non-compete agreement, and what’s worse, days before her resignation, she downloaded your trade secrets onto a thumb drive. You file suit and request an immediate injunction from the court. The last thing you expect is a counter-suit and motion to dismiss claiming you have interfered with the employee’s free speech rights. But that aggressive defense to restrictive covenant and trade secret litigation is becoming far more prevalent. Employers should be prepared for this defense when considering how to enforce their rights against former employees.

Newsroom image for the post Michigan Passes Paid Sick Leave Requirements

Posted December 7, 2018 with Tags , , , , , ,

Michigan Passes Paid Sick Leave Requirements

On December 5, 2018, Michigan lawmakers presented a bill to the governor's desk to roll back paid sick leave requirements that were set to go into effect next year. Although opponents challenge the move as unconstitutional, Gov. Rick Snyder is expected to sign the scaled-back bill into law. If he does, the new law will take effect 90 days after lawmakers adjourn the 2018 session, sometime in March 2019.

Newsroom image for the post San Antonio Becomes Second City in Texas to Require Paid Sick Leave

Posted August 21, 2018 with Tags , , ,

San Antonio Becomes Second City in Texas to Require Paid Sick Leave

On August 16, 2018, San Antonio became the second city in Texas to pass a paid sick leave ordinance, which requires that employers provide one hour of paid sick leave for every 30 hours worked. While the ordinance takes effect on January 1, 2019, most of the requirements do not become effective until August 2019.

Posted July 27, 2018

California Employers On the Hook for Tracking Employee Time

On Thursday, July 26, the California Supreme Court held that California employers may no longer ignore or fail to compensate for small amounts of time that non-exempt employees work simply because recording that time is administratively difficult. This is an alarming departure from the de minimis defense employers have for federal wage-and-hour claims and warrants immediate attention by California employers.

Newsroom image for the post Massachusetts Reforms Employment Laws to Include Generous Paid Family Leave Program

Posted July 16, 2018 with Tags , , ,

Massachusetts Reforms Employment Laws to Include Generous Paid Family Leave Program

On June 28, 2018, Massachusetts Governor Charlie Baker signed a bill reforming several employment laws and creates one of the most employee-generous paid family and medical leave programs in the country. The program, which will be funded by a combination of payroll deductions and employer contributions, guarantees up to 26 weeks of paid leave for current and some former employees, and allows self-employed contractors to opt into the program.

Newsroom image for the post Duluth Adopts Paid Sick and Safe Leave Beginning in 2020

Posted June 1, 2018 with Tags , , , , , ,

Duluth Adopts Paid Sick and Safe Leave Beginning in 2020

On May 30, 2018, the Duluth City Council passed an ordinance requiring private employers to provide paid sick and safe leave to employees, following other Minnesota cities like Minneapolis and St. Paul. The ordinance takes effect on January 1, 2020. Because this is a contentious issue, we expect to see additional amendments before the ordinance takes effect.

Posted May 22, 2018

Supreme Court Gifts Employers with Big Arbitration Win

On May 21, 2018, the U.S. Supreme Court handed down a huge win to employers in its much-anticipated decision in Epic Systems Corp. v. Lewis. Writing for a five-person majority, Justice Gorsuch upheld the validity of agreements that require employees to arbitrate claims against their employer or an individual—as opposed to a class or collective—basis. The court had been called to determine whether such class/collective waivers violate an employee’s right to engage in “concerted activities” as provided in the National Labor Relations Act (NLRA). Federal courts had been at odds on this issue, and the Supreme Court consolidated three cases to resolve the disagreement.

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