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Texas Supreme Court Rules for Exxon: A New Day for Noncompete-Triggered Forfeitures in Texas?

On August 29, 2014, the Texas Supreme Court in Exxon Mobil Corp. v.




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Ontario, Canada: Appellate Court Decides Employee Rights to Shares on Termination Governed by Shareholders’ Agreement

Update 2: On March 12, 2021, in Mikelsteins v.




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Supreme Court Determines When the U.S. Government May Dismiss an FCA Action Over a Relator’s Objection

  • According to the Supreme Court, in False Claims Act “qui tam” suits, the federal government can move for dismissal of a case over the relator’s objection even outside of the “seal period.”
  • A key factor considered for government dismissal post-seal period may include burdensome discovery, which means employers facing qui tam actions should strategically consider this and other pressure points in the course of litigation.




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Joint Employment and the Cat’s Paw: Oregon Court of Appeals Sets Precedent

  • The Oregon Court of Appeals, for the first time, applied the “cat’s paw” theory of imputed liability between joint employers in a whistleblower case regardless of whether the alleged biased individual was subordinate to the co-employer’s decisionmaker or employed by the same entity.
  • This case could impact Oregon employers using staffing arrangements, contingent workers, and work-sharing agreements.




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The Supreme Court’s Affirmative Action Ruling Will Have Other Impacts

Alyesha Dotson says the U.S. Supreme Court’s decision on affirmative action may result in a less-diverse talent pool for employers in the coming decades. 

Forbes

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The Supreme Court overruled affirmative action. What’s next?

David Christlieb talks about the Supreme Court striking down affirmative action, as well as its decision in siding with an employee who refused to work.

WGN Radio

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Supreme Court’s 2024 Term Could Transform Labor and Employment Law

  • The Supreme Court issued four decisions narrowing agencies’ power to make policy through formal rulemaking and adjudication.
  • In the short term, these decisions could make it harder for agencies to defend major rules on overtime, joint employment, prevailing wages, pregnancy accommodation and noncompete agreements.




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High Court's SEC Decision Has Limited NLRB Impact, For Now

Alexander MacDonald says Jarkesy's biggest effect on the NLRB might come not from what the court ruled, but from what it decided not to rule on.

Law360 Employment Authority

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Agencies’ Influence over Employers May Erode After Supreme Court Decision

Alexander MacDonald says agencies may have to “regulate more modestly and litigate more often” after the U.S. Supreme Court overruled Chevron.

SHRM Online

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Supreme Court Scales Back Federal Agency Powers

Alex MacDonald says that federal agencies will have to look for new ways to advance their policy positions in the wake of SCOTUS overturning Chevron. 

Corporate Compliance Insights

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Supreme Court's 2024 term could transform labor and employment law

Alexander T. MacDonald and Michael J. Lotito review four decisions in the U.S. Supreme Court's recently completed term and discuss how the rulings may affect employment law.

Westlaw Today

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High Court’s Administrative Law Transformation and Its Impact on Federal Wage-and-Hour Law

Andrea M. Kirshenbaum discusses the 2023-24 SCOTUS opinions that promise to reshape administrative law in the United States for decades to come.

The Legal Intelligencer

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A Regression to Politics? Recent Court Decisions Could Give Partisanship Even More Influence at the NLRB

Alex MacDonald discusses recent court decisions that criticized the way the NLRB operates and that could transform American labor law.

Washington Legal Foundation

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USERRA Short-term Paid Military Leave Class Action Revived by Federal Appeals Court

On August 22, 2024, the U.S. Court of Appeals for the Ninth Circuit issued its decision in Synoracki v. Alaska Airlines, Inc., reviving a class action under the Uniformed Services Employment and Reemployment Rights Act (USERRA).1 The case was brought by pilots who served in the Air Force Reserves who were seeking from their civilian employer sick leave and vacation accruals during periods of military leave.




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OSHA rules in crosshairs after court ruling

In the wake of the Supreme Court’s Loper decision, Jamie Spataro says existing regulations and standards that went through extensive rulemaking are ripe for being challenged.

Business Insurance

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Illinois Federal Court Holds that a Pension Rehabilitation Plan Fund Used an Improper High-Contribution Rate in Withdrawal Liability Calculations

  • In a matter of first impression for federal courts, the Northern District of Illinois found that a pension fund cannot use post-2014 contribution rate increases made pursuant to a rehabilitation plan to calculate an employer’s withdrawal liability payment amount.
  • This decision represents a major victory for employers faced with inflated withdrawal liability demands.




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Supreme Court Will Decide if Former Employees Can Sue Over Post-Employment Benefits

Ellen Donovan McCann says post-employment benefits are often the first to be amended when businesses experience budget challenges, but employers may have to take more care in changing them if SCOTUS decides that former employees can sue over those benefits.

SHRM

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Corporate Board Diversity: Next Steps for Employers After Court Strikes Down California Board Diversity Law

On April 1, 2022, a Los Angeles County Superior Court ruled that California Assembly Bill 979—a bill designed to increase diversity and improve the persistently low number of underrepresented groups on corporate boards—violated the Equal Protection Clause of the California Constitution and was therefore unenforceable. In its ruling, the court acknowledged the pitfalls of homogeneity in business and communities, but it cautioned against quotas and specific number requirements.




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What Does the Supreme Court’s Decision Not to Review the Standard for Attorney-Client Privilege Mean for Employers?

As workplace issues have become more complex, human resource professionals and managers often turn to employment lawyers for advice in sorting out matters involving the interaction between business requirements and the requirements of employment laws and regulations. When is such advice protected from disclosure under the attorney-client privilege?




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Supreme Court: False Claims Act Liability Depends on Defendant’s Subjective Belief

On June 1, 2023, in United States ex rel.




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Ontario, Canada Court Reinforces Waksdale’s Impact on Enforceability of Termination Provisions and Provides Guidance on Proving Failure to Mitigate

  • Ontario’s Superior Court of Justice held that because a termination for cause provision in an employment contract defined “cause” more broadly than does the Employment Standards Act, 2000 it was unenforceable.
  • Court also held the employer failed to prove the employee did not mitigate her damages.




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High Court to Review Standard Applied to “Reverse Discrimination” Cases

On October 4, 2024, the U.S. Supreme Court granted certiorari in Ames v. Ohio Department of Youth Services (Case No. 23-1039) to decide whether plaintiffs who are members of historically majority communities asserting “reverse discrimination” claims under Title VII must show there are “background circumstances” that support the inference that the defendant is the “unusual employer who discriminates against the majority.”

The “Background Circumstances” Requirement




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Ontario, Canada Court Orders Independent Medical Examination of Employee Claiming Indefinite Inability to Mitigate Due to Mental Health Condition

Marshall v. Mercantile Exchange Corporation, 2024 CanLII 71128  (ONSC), is an action for wrongful dismissal where the employee claimed he could not mitigate his damages by seeking alternative employment indefinitely because of a mental health condition (i.e., stress and depression) allegedly arising out of his termination. He claimed a 26-month notice period. The employer sought an independent medical examination (IME) of the employee pursuant to s.




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Wisconsin Supreme Court Eases the Burden for Employers Defending Arrest and Conviction Record Discrimination Claims Under State Law

The Wisconsin Fair Employment Act (WFEA) prohibits employers from discriminating against applicants and employees on the basis of their arrest and conviction records.1  Generally, an employer cannot make decisions on the basis of an arrest or conviction record unless the crimes “substantially relate” to the circumstances of the job at issue.2  For many years, the state agencies responsible for enforcing this law—the Wisconsin Department of Workforce Development (DWD) and the Labor and Industry Review Commission (LIRC)—have taken the view that crimes of domestic violen




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California Court of Appeal Thwarts Efforts to Conceal Important Driving History Information from Employers

Employers with operations in California are all too familiar with how state and local officials continue to restrict the access employers have to public records, including criminal history information.1 For example, lengthy delays in completing standard criminal background checks are now routine in California.2 Apart from criminal background checks, many employers rely on motor vehicle record checks (MVRs) to vet candidates for positions that require driving as part of the job.  In Doe v. California Dept.




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Court Holds Backup Withholding Required by Law Does Not Violate a Settlement Agreement

In Escano v. Innovative Financial Partners, LLC,1 a magistrate judge held that the defendants’ decision to withhold funds from a payment required under a settlement agreement when the plaintiff refused to provide a Form W-9 did not violate the agreement.




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Employer Tab for Exiting Pensions at Stake in High Court Appeal

Sarah Bryan Fask says a decision clarifying when employers can exit union-brokered pension plans “potentially opens up the floodgates for a lot of employer uncertainty.”

Bloomberg Law

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Supreme Court of Puerto Rico Validates Implicit Consent for Arbitration Agreements in the Employment Context

In Aponte Valentín v. Pfizer Pharmaceuticals, CC-2018-748,1 the Puerto Rico Supreme Court reinforced the strong public policy favoring arbitration agreements in Puerto Rico, validating continued employment as implicit consent for such agreements.




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Supreme Court finds exclusive arbitral jurisdiction in Manitoba human rights disputes

Rhonda B. Levy and Douglas Sanderson examine Northern Regional Health Authority v. Horrocks, in which the Supreme Court of Canada decided that in Manitoba, human rights disputes arising from the interpretation, application or alleged violation of a collective agreement fall within the exclusive jurisdiction of a labour arbitrator.

Human Resources Director Canada

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Supreme Court Permits Arbitration of Individual PAGA Claims

The United States Supreme Court’s decision in Viking River Cruises v. Moriana will dramatically impact employers’ rights to enforce arbitration agreements related to claims under California’s Private Attorneys General Act (PAGA).1  This decision, which is a significant win for employers with interests in California, will allow employers to compel arbitration of a PAGA plaintiff’s individual PAGA claims.




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Savings Clause Results in Oregon Supreme Court Affirming Enforceability of Arbitration Provision

On July 8, 2022, in Gist v. ZoAn Management, Inc., the Oregon Supreme Court affirmed the decisions of the trial court and court of appeals granting the defendants’ motion to compel arbitration.  The court concluded that because nothing in the arbitration agreement prohibited the plaintiff from being awarded any relief he might be entitled to under Oregon’s wage and hour statutes, the arbitration provision was not unconscionable and therefore enforceable.

Background




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Oregon Supreme Court Affirms Enforceability of Arbitration Provision

Christine Sargent writes about an Oregon Supreme Court case that affirmed the importance of implementing enforceable arbitration agreements.

SHRM Online

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California Supreme Court Holds Plaintiffs with Arbitration Agreements Retain Standing to Pursue Non-Individual PAGA Claims in Court

  • The California Supreme Court determined that plaintiffs seeking civil penalties under California’s Private Attorneys General Act (PAGA) retain standing to pursue representative PAGA claims on behalf of other alleged aggrieved employees in court despite being bound to arbitrate their individual PAGA claims.




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    California Appellate Court Decision Limits Power of Arbitrators to Cure Late Arbitration Payments

    On June 28, 2023, the California Second District Court of Appeal issued a decision interpreting the scope of California Code of Civil Procedure section 1281.98(a)(1), a recently amended California statute that requires employers to pay all arbitration costs and fees within 30 days of the due date, or risk being in material breach of the arbitration agreement.  In Cvejic v. Skyview Capital, the court held that an arbitrator cannot cure a missed or late arbitration fee payment.




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    U.S. Supreme Court Clarifies When the Federal Arbitration Act’s “Transportation Exemption” Applies

    On April 12, 2024, the U.S. Supreme Court addressed whether the Federal Arbitration Act’s (FAA) transportation exemption—meaning the FAA would not apply—only relates to workers within the transportation industry. In Bissonnette v. LePage Bakeries Park St., LLC,1 the Supreme Court unanimously held Section 1 of the FAA exempts classes of workers who are actively engaged in interstate transportation, even if the individuals are not employed by a company in the transportation industry (the “Transportation Exemption”).




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    Illinois Court Temporarily Blocks Mandated COVID-19 Mitigation Measures at Nearly 170 School Districts

    In the midst of declining infection rates and increasing debate over mask and vaccine mandates, on February 7, 2022, Sangamon County Circuit Court Judge Raylene DeWitte Grischow temporarily enjoined COVID-19 mitigation measure mandates that had been imposed by order of Governor Pritzker and related administrative agency rules, affecting nearly 170 school districts. Echoing the concern expressed by the Eleventh Circuit, in its December 2021 Georgia v.




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    How Will the Supreme Court’s Review of Two Affirmative Action Cases Affect Employers?

    • On October 31, 2022, the U.S. Supreme Court heard two cases that will determine the legality of affirmative action in college admissions decisions.
    • During oral arguments, Justice Elena Kagan raised the issue of whether employers may consider the benefits of diversity when making hiring decisions.




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    U.S. Supreme Court Strikes Down Race-Conscious Admissions – What Does it Mean for Employers?

    • On June 29, 2023, the U.S. Supreme Court found that Harvard’s and UNC’s race-conscious admissions practices are unconstitutional.




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    How The High Court Shook Up Workplace Bias Law In 2023

    Jim Paretti says two U.S. Supreme Court rulings on discrimination law that changed how employers evaluate religious accommodation requests and ended affirmative action in higher education will affect employers for years to come.

    Law360 Employment Authority

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    Supreme Court of Canada Confirms “Owners” of Construction Projects Are “Employers” Under OHSA

    • Supreme Court of Canada lets stand decision finding an “owner” of a construction project can be considered an “employer” within the meaning of the Occupational Health and Safety Act (OHSA).
    • This decision has significant implications for the construction sector, as a project owner can now be liable for OHSA violations of its contractor, subject to a due diligence defence.  




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    Connecticut Employers Can Terminate Employees Impaired by Medical Marijuana While Working; Appellate Court Also Provides Guidance for Reasonable Suspicion Drug Tests

    In a significant decision about workplace drug use, the Connecticut Appellate Court backed an employer’s right to terminate a worker who was impaired on the job by medical marijuana. The decision also clarified the factual basis an employer must possess to justify ordering a drug test based on suspicion of impairment.




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    What do recent Supreme Court decisions mean for OSHA and other safety agencies?

    Commenting on a SCOTUS decision, Alka Ramchandani-Raj said a type of OSHA matter that could see a future change in venue may be those involving certain General Duty Clause citations. 

    Safety+Health

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    Ontario, Canada Court Affirms City Lacked Control of Workplace and Exercised Due Diligence, Upholding Acquittal of OHSA Charges

    In R. v. Greater Sudbury (City), 2024 ONSC 3959, the Ontario Superior Court of Justice (OSCJ) dismissed an appeal of the trial judge’s decision in which she acquitted the City of Sudbury (City) of various charges under the Occupational Health and Safety Act (OHSA).




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    Employer Zero-Tolerance Marijuana Policy Justified Termination, Federal District Court Agrees

    • A recent federal court decision agreed an Illinois employer had the right to enforce a zero-tolerance policy on marijuana use.
    • Off-the-job marijuana use can trigger employee discipline so long as it is not unreasonable or discriminatory.




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    Employer Zero-Tolerance Marijuana Policy Justified Termination, Federal District Court Agrees

    Grant Goerke and Jennifer Chierek Znosko discuss a recent federal court decision that agreed an Illinois employer had the right to enforce a zero-tolerance policy on marijuana use.

    Westlaw Today

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    Court finds employers' discretion in awarding bonuses must be exercised fairly

    Rhonda B. Levy and George Vassos discuss an Ontario Court of Appeal decision that puts employers on notice that their discretion in awarding bonuses is not unconstrained and must be exercised fairly and reasonably.

    Human Resources Director Canada

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    #MeToo: New York State Court Allows Actor’s Claims Against Entertainment Companies to Proceed Based on Alleged Conduct in 1995 by Weinstein

    A New York state judge has denied motions to dismiss actor Julia Ormond's claims against a film company, its parent company, and a talent agency based on conduct by film producer Harvey Weinstein, who Ormond alleges assaulted her in December 1995 in her Manhattan apartment. In her lawsuit, Ormond alleges that these entities knew about Harvey Weinstein's predatory behavior before he sexually assaulted her in 1995 and failed to protect her. The ruling allows the case to proceed, highlighting the potential scope of liability of these companies.




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    Leading Business Coalition Urges Supreme Court Review in Key Case on Government-Forced Union Representation

    Littler’s Workplace Policy Institute files brief for the Coalition for a Democratic Workplace urging court to grant review of Goldstein v. Professional Staff Congress and reaffirm Constitutional protections against compulsory union representation




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    High Court to Review Standard Applied to ‘Reverse Discrimination’ Cases

    Alyesha Asghar and Julian G.G. Wolfson explain “background circumstances,” which are required as evidence in cases of reverse discrimination, and the implications for employers and IE&D.

    Wolters Kluwer

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    Ontario, Canada Appellate Court Provides Guidance to Employers on How to Draft Employment Settlement Documents

    • The Court of Appeal for Ontario found that settlement documents signed after an employee separated from employment prevented him from suing for the value of vested stock options.
    • The OCA emphasized that the employee had executed the settlement documents with the benefit of legal advice and that they clearly released the employee’s entitlement to the damages claimed.