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Employment
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June 17, 2024
Consulting Firms To Pay $11.3M Over Rent Help Site Breach
A consulting firm and its subcontractor have agreed to pay $11.3 million to resolve a False Claims Act suit alleging that they allowed the personal data of low-income New Yorkers to be compromised while operating a pandemic-era rental assistance program website.
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June 17, 2024
IRS Asks Court To Leave Alone Worker Retention Credit Pause
An Arizona federal court should reject a tax advisory firm's request to lift the IRS' moratorium on processing claims for the pandemic-era employee retention credit, the agency argued, saying the agency should be allowed to continue to run the program as it sees fit.
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June 17, 2024
Tesla Slaps Supplier With $1B EV Battery Trade Secrets Suit
Tesla is accusing one of its suppliers of corporate espionage in a $1 billion California federal lawsuit, saying that Matthews International has even tried to claim it invented the stolen trade secrets for manufacturing electric vehicle batteries by incorporating the confidential information into patent filings.
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June 17, 2024
Conn. Worker Gets $144K Counsel Fee After Bias Trial Win
The Connecticut Department of Energy and Environmental Protection must pay nearly $139,000 in attorney fees to W. Martyn Philpot Jr. after a Black employee won a federal jury verdict on racial hostility claims, including accusations that he found a noose hanging near his desk in a state office building.
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June 17, 2024
Ga. Judge Shuts Down Bond Bid From Convicted Fla. Atty
A Georgia federal judge has denied a Florida attorney's request to remain free on bond while she appeals her conviction and more than six-year prison sentence for fraudulently obtaining federal pandemic-relief loans meant for businesses, calling her request "the latest chapter in her attempt to dodge the consequences of her malevolence."
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June 17, 2024
CFTC Fines Trafigura $55M In Novel Whistleblower Action
The U.S. Commodity Futures Trading Commission announced a first-of-its-kind settlement Monday with Trafigura Trading LLC, which agreed to pay a $55 million penalty over allegations that it manipulated oil derivatives prices while discouraging employees from reporting potentially illegal activity.
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June 17, 2024
Don't Let Farm Org Rewrite Wage Rule Suit, DOL Tells Judge
A farm group shouldn't be allowed to revise its challenge to the U.S. Department of Labor's new wage rule for certain temporary workers, the agency told a Charlotte, North Carolina, federal judge, saying the revision attempt comes too late as the matter is already awaiting the judge's decision.
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June 17, 2024
Catching Up With Delaware's Chancery Court
Proposed amendments to Delaware's General Corporation Law that were prompted by several recent Chancery Court rulings sailed through the state Senate last week despite loud opposition from corporate law professors and other Chancery Court watchers, and Tesla shareholders filed two new suits against CEO Elon Musk.
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June 17, 2024
Ex-LSU Coach Says School Tanked Hall Of Fame Chances
Former Louisiana State University football coach Les Miles filed a lawsuit against the school and the NCAA on Monday, alleging they dashed his Hall of Fame hopes by striking dozens of victories from his record after a recruiting investigation during his tenure.
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June 17, 2024
Texas High Court Restores Fossil Win Over Harassment Suit
The Texas Supreme Court reinstated Fossil Group Inc.'s defeat of a former sales associate's lawsuit alleging it did nothing to curb a supervisor's lewd online comments and sexual harassment, finding the fashion company took swift action when it learned of the misconduct.
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June 17, 2024
Nursing Home Co. Owes Fees On Staffing Deal, Recruiter Says
An international recruiter has accused the owners of nursing homes and assisted living communities in several states of failing to fork over fees for placing nurses and nursing assistants in their facilities, saying they owe over $3.4 million in outstanding fees.
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June 17, 2024
Amazon Fired Worker For Flagging Sex Harassment, Suit Says
A former Amazon employee who described himself as "not heterosexual" filed a suit in Illinois federal court claiming the company allowed a co-worker to use homophobic slurs and harass him, then fired him after he complained.
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June 17, 2024
High Court Will Mull Proof Needed For Wage-Hour Carveout
The U.S. Supreme Court said Monday it will hear a wage and hour case from a supermarket distributor, teeing up an opportunity for the justices to articulate the standard by which an employer must demonstrate workers are exempt from overtime.
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June 17, 2024
Supreme Court Won't Revisit Calif. Law Arbitration Issue
The U.S. Supreme Court declined on Monday to revisit a case dealing with the arbitration of claims brought under a California law enabling workers to sue on behalf of the state and other workers for labor violations, an issue the justices decided on in 2022.
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June 17, 2024
Justices Pass On Revisiting PAGA Arbitration Issue
The U.S. Supreme Court declined on Monday to take another look at the fate of nonindividual claims under California's Private Attorneys General Act when individual claims go to arbitration in a case involving Uber that was previously before the high court.
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June 14, 2024
Tata Must Pay $168M For Trade Secret Theft, Texas Judge Says
A Texas federal judge has ordered Tata Consultancy to pay $168 million for willfully misappropriating an IT company's trade secrets concerning source code and life insurance software documentation, plus $25 million in prejudgment interest.
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June 14, 2024
No Associational Shield In Conn. Employment Law, Panel Says
Connecticut's key employment practices law does not create a cause of action for discriminating against a worker because they associate with a person who has disabilities, according to a Friday opinion by the Connecticut Appellate Court.
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June 14, 2024
FCA Boss' N-Word Use Not Enough For Racial Bias Suit
A Black FCA worker's allegations that his supervisor used the N-word twice and that it was written on the bathroom wall are not enough to prove he experienced a hostile work environment or was prevented from doing his job, a Michigan appeal panel has ruled.
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June 14, 2024
Publishing Exec's Family Says Ohio Law Allowed His Ouster
The board of an Ohio-based media company have said state law empowered them to oust former CEO Allan Block from his family's namesake company and urged an Ohio state court to dismiss the suit he brought over the potential sale of the company that publishes newspapers in Toledo and Pittsburgh.
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June 14, 2024
GOP AGs Demand Stay For DOL's H-2A Protections Rule
Seventeen Republican attorneys general requested a pause on the effective date for the U.S. Department of Labor's final rule covering foreign farmworkers within the H-2A visa program, telling the court that the rule provides protections that U.S. citizen agricultural workers lack under federal labor law.
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June 14, 2024
9th Circ. Revives Union Pacific Workers' Disability Bias Suits
The Ninth Circuit on Friday reversed Union Pacific Railroad's wins in three worker disability discrimination lawsuits involving plaintiffs with color-vision concerns, saying the lower court incorrectly determined that their individual claims were time-barred after an Eighth Circuit decision decertifying a thousands-strong class in similar litigation against the company.
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June 14, 2024
Employment Authority: High Court's NLRB Injunction Shift
Law360 Employment Authority covers the biggest employment cases and trends. Catch up this week with coverage on the U.S. Supreme Court's opinion involving Starbucks that standardized the National Labor Relations Board's injunction test, a look at Law360's pay disclosure law tracker and a review of the U.S. Equal Employment Opportunity Commission's amicus briefs in the first half of 2024.
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June 14, 2024
Red States Look To Block ACA Trans Discrimination Rule
A group of 15 conservative states urged a Mississippi federal court to halt recently finalized regulations clarifying gender identity-based discrimination under the Affordable Care Act from taking effect, saying the new rule strips the states of their right to oversee medical ethics.
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June 14, 2024
Off The Bench: Ex-Players Claim NIL, Loss For Trans Swimmer
In this week's Off The Bench, the 1983 men's college basketball champions want a piece of the loot the NCAA made off of their names, swimmer Lia Thomas loses in her bid to overturn an international trans athlete ban, and the House gets a bill through committee that would keep college athletes from becoming employees.
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June 14, 2024
Popeyes Accused Of Skimping On Breaks And Wages
Popeyes made employees in California work through lunch and rest breaks without appropriate pay and provided them with "confusing" wage statements, according to a putative class action lodged in a Los Angeles court.
Expert Analysis
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Rebuttal
Time For Congress To Let Qualified Older Pilots Keep Flying
While a previous Law360 guest article affirmed the current law requiring airline pilots to retire at age 65, the facts suggest that the pilots, their unions, the airlines and the flying public will all benefit if Congress allows experienced, medically qualified aviators to stay in the cockpit, say Allen Baker and Bo Ellis at Let Experienced Pilots Fly.
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What's Notable In JAMS' New Mass Arbitration Rules
The Judicial Arbitration and Mediation Services’ recently released guidelines, coming on the heels of similar American Arbitration Association amendments, suggests that mass arbitrations will remain an efficient means for consumers to vindicate their rights against companies, say Jonathan Waisnor and Brandon Heitmann at Labaton Keller.
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Fostering Employee Retention Amid Shaky DEI Landscape
Ongoing challenges to the legality of corporate diversity, equity and inclusion programs are complicating efforts to use DEI as an employee retention tool, but with the right strategic approach employers can continue to recruit and retain diverse talent — even after the FTC’s ban on noncompetes, says Ally Coll at the Purple Method.
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Justices Clarify FAA But Leave Behind Important Questions
The U.S. Supreme Court's decision last month in Bissonnette v. LePage firmly shuts the door on any argument that the Federal Arbitration Act's Section 1 exemption is limited to transportation workers whose employers transport goods on behalf of others, but two major issues remain unresolved, say Joshua Wesneski and Crystal Weeks at Weil.
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Series
Swimming Makes Me A Better Lawyer
Years of participation in swimming events, especially in the open water, have proven to be ideal preparation for appellate arguments in court — just as you must put your trust in the ocean when competing in a swim event, you must do the same with the judicial process, says John Kulewicz at Vorys.
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What 100 Federal Cases Suggest About Changes To Chevron
With the U.S. Supreme Court poised to overturn or narrow its 40-year-old doctrine of Chevron deference, a review of 100 recent federal district court decisions confirm that changes to the Chevron framework will have broad ramifications — but the magnitude of the impact will depend on the details of the high court's ruling, say Kali Schellenberg and Jon Cochran at LeVan Stapleton.
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FTC Noncompete Rule May Still Face Historical Hurdles
The Federal Trade Commission's final rule banning noncompetes might face challenges that could have been avoided with more cautious consideration of the commission's long history of failed lawsuits that went beyond the agency's statutory authority, as well as the mountain of judicial precedent justifying noncompete agreements in employment contracts, say attorneys at BakerHostetler.
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Justices' Title VII Ruling Requires Greater Employer Vigilance
The U.S. Supreme Court’s recent Muldrow v. St. Louis ruling expands the types of employment decisions that can be challenged under Title VII, so employers will need to carefully review decisions that affect a term, condition or privilege of employment, say attorneys at Morgan Lewis.
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Game-Changing Decisions Call For New Rules At The NCAA
From a newly formed college players union to coaches transferring at the drop of a hat, the National College Athletic Association needs an overhaul, including federal supervision, says Frank Darras at DarrasLaw.
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What Makes Unionization In Financial Services Unique
Only around 1% of financial services employees are part of a union, but that number is on the rise, presenting both unique opportunities and challenges for the employers and employees that make up a sector typically devoid of union activity, say Amanda Fugazy and Steven Nevolis at Ellenoff Grossman.
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A Guide To Using The DTSA For Misappropriation Recourse
Excerpt from Practical Guidance
Nicholas Armington at Mintz explains the ins and outs of drafting a misappropriation complaint under the Defend Trade Secrets Act, and how and why companies should think strategically about federal and state law when filing a claim.
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6th Circ. Bias Ruling Shows Job Evaluations Are Key Defense
In Wehrly v. Allstate, the Sixth Circuit recently declined to revive a terminated employee’s federal and state religious discrimination and retaliation claims, illustrating that an employer’s strongest defense in such cases is a documented employment evaluation history that justifies an adverse action, says Michael Luchsinger at Segal Mccambridge.
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How Cos. Can Protect IP In Light Of FTC Noncompete Rule
While several groups are challenging the Federal Trade Commission’s recently approved rule banning noncompetition agreements, employers should begin planning other ways to protect their valuable trade secrets, confidential information and other intellectual property, says Thomas Duston at Marshall Gerstein.
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Navigating Harassment Complaints From Trans Employees
The Eleventh Circuit's recent decision in Copeland v. Georgia Department of Corrections, concerning the harassment of a transgender employee, should serve as a cautionary tale for employers, but there are steps that companies can take to create a more inclusive workplace and mitigate the risks of claims from transgender and nonbinary employees, say Patricia Konopka and Ann Thomas at Stinson.
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Don't Use The Same Template For Every Client Alert
As the old marketing adage goes, consistency is key, but law firm style guides need consistency that contemplates variety when it comes to client alert formats, allowing attorneys to tailor alerts to best fit the audience and subject matter, says Jessica Kaplan at Legally Penned.