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In California, Not All Arbitration Agreements Are Created Equal

By Marianne C. Koepf Over the past several years, many California employers have implemented dispute resolution programs and imposed arbitration agreements as a condition of employment—after all, it’s less expensive than litigation! But as the California Court of Appeal recently explained, while arbitration agreements are generally valid, an employer must understand its limits.

Early communication about data mishaps saves employers’ cash and reputations

As the public grows somewhat used to data breaches, simply having to acknowledge one might no longer be devastating to customer relationships, but how and when to communicate remains critical to damage control, a data security expert said in a recent webinar. In 2005 or 2006, when customers would be notified of a breach, “many would […]

Why Does the NLRB Care About At-Will Policies?

Most employers have and use at-will provisions in their employment agreements, handbooks, and acknowledgements. These provisions tend to state that the at-will nature of the employment is not subject to modification. However, in the last year employers have found that these provisions may be in violation of NLRA Section 7. "The NLRB has now weighed […]

New OFCCP rule on sexual orientation, gender identity takes effect April 8

by Emily L. Bristol A new rule that adds “sexual orientation” and “gender identity” to the list of prohibited bases of discrimination under Executive Order 11246 goes into effect on April 8. The rule, from the U.S. Department of Labor’s (DOL) Office of Federal Contract Compliance Programs (OFCCP), will apply to federal contractors that hold […]

Could Taking on Unpaid Summer Interns Lead to Trouble Under the FLSA?

However, warns Evelyn Gentry, Faegre Baker Daniels LLP, there are downsides for employers that use unpaid interns, the most notable being potential violations of the FLSA. Misclassifying employees as unpaid interns, and thereby denying them federal minimum wage and overtime wages can result in costly litigation, civil fines, or both. Furthermore, employers who willfully violate […]

Opportunity for Employers to Give DOL Feedback on Provider Fee Disclosure

More than two years into the regulation’s implementation, the U.S. Department of Labor wants industry and plan sponsor comment on its regulation that requires retirement plan service providers to disclose fee information to fiduciaries. ERISA Section 408(b)(2) requires covered service providers to give fiduciaries information they need to assess the “reasonableness” of the administrators’ total compensation, […]

Should You Require Preemployment Knowledge-Based Tests?

Research indicates that 85% of job applicants lie on their résumés and job applications because employer application tracking systems expect exact matches from their applicant pools. So, applicants are getting smarter and tweaking their résumés to make it through these technological hurdles and to the first round of interviews.

Supreme Court in McCutchen: Clear Plan Terms Prevail Over Broad Equitable Remedies

Clear plan document terms in ERISA group health plans are the best defense against legal claims asserting broad equitable remedies, the U.S. Supreme Court reinforced in an April 16 decision. In its holding, the Court affirmed that equitable theories, such as make-whole, common fund, unjust enrichment and double-recovery doctrines should not be allowed to override […]

Advocacy groups challenge Trump’s 2-for-1 regulation requirement

Three liberal advocacy groups have filed a lawsuit alleging that President Donald Trump’s 2-for-1 regulation mandate violates the U.S. Constitution and directs agencies to violate federal law. In a January 30 Executive Order, Trump instructed federal agencies to cut two regulations for every new one issued during the current fiscal year. He said the order […]

Piece-rate Pay System Makes Class and FLSA Collective Action Infeasible, Says 7th Circuit

A class action allegation cannot succeed when each employee works a different schedule and has countless other fact-dependent duties and responsibilities. For one employer, thousands of employees with varied work schedules and pay rates could not demonstrate “class” status for Fair Labor Standards Act purposes. This was particularly true when the employees were paid on […]