An employer pays its managers an annual salary and in addition provides monthly advances based on an estimate of the incentive bonus the employee appears likely to have earned by the end of the year. However, if the employee's performance declines over time so that the earned bonus ends up being less than the amounts advanced over the course of the year, it seems obvious that the employer should be able to deduct the overpayments from future paychecks.

The focus of this 2011 Littler Report is to provide employers with information to prepare and plan for regulations recently passed and those currently making their way through the agency rulemaking process. Part One of this Littler Report will set the stage and define the challenge employers will face in the coming years as the Obama Administration enters the second half of its term.

The Virginia Supreme Court has spoken again on the calculation of damages in a complex employment contract case. In Online Resources Corp. v. Lawlor, No. 120208 (Va. Jan. 10, 2013), the court addressed the expert qualifications required for the valuation of equity following the termination of the chairman and chief executive officer (CEO) ("executive") of a publicly-traded company, as well as the applicability of Delaware Corporations Law to related change in control (CIC) provisions. 

Background

As we enter the New Year, Littler's international practice has identified a number of key employment and labor law issues for multinational companies (MNCs).  The past year has brought to the fore some challenging issues likely to grow in importance in 2015, among them the increasing strength of global unions as well as the ever-growing importance of corporate compliance.  While some of these topics are certainly familiar—data privacy and whistleblower protection, for example—the continuing importance and expansion of these issues highlight their increased complexity and correspondingly in

The Securities and Exchange Commission (SEC) has adopted a final rule requiring publicly traded corporations to disclose, to the SEC and shareholders, the ratio of CEO compensation to the "median compensation" of the corporation's employees (except the CEO).

Monica Schiaffino contributed an overview of the primary sources of law that govern or affect executive compensation arrangements or employee benefits in Mexico.

Getting the Deal Through

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Updates: On November 12, 2020, in James Anthony Manastersky v.

As many employers are on the way to normalizing their business practices and re-engaging their employees, they should not overlook the many potential pitfalls in the administration of their retirement, health and welfare plans and their executive compensation arrangements. The risks of missteps are high, and include loss of tax-qualification of retirement plans, penalty taxes in connection with the Affordable Care Act’s (ACA) employer mandate rules, other IRS penalties, employee lawsuits and Department of Labor enforcement actions.

Financial services firms regulated in the UK by both the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have long caused confusion, particularly in international financial services groups, with their complex regulatory pay structures and infamous bonus cap.

The current administration and multiple members of Congress seek to grant protections to H-2B non-agricultural temporary workers who are employed in the United States to fill temporary labor shortages in the U.S. market. Multiple bills have been introduced in both the Senate and House of Representatives calling for protection against exploitation and abuse, including for employer violations of wage and hour laws and retaliation.

USCIS has officially announced the dates for the fiscal year (FY) 2025 H-1B cap lottery, which will open on Wednesday, March 6, 2024 at noon ET and end on Friday, March 22, 2024, at noon ET. This annual lottery is meant to select new H-1B candidates, who will be eligible to file an H-1B petition and, if approved, begin H-1B employment on October 1, 2024 (the first day of FY 2025).

In February 2024, Poland’s government revealed that it is working on a comprehensive migration strategy for the years 2025-2030, advertised as a “responsible and safe” approach. The Ministry of Interior and Administration plans to spend the first half of 2024 conducting consultations to learn the preferences and expectations on migration and foreigners’ employment from various stakeholders, including the country’s biggest employers and their organizations, as well the trade unions.

Stephan Swinkels and Michael Lotito discuss the intersection of employment and geopolitics and offer key considerations for the C-suite of global companies. 

Chief Executive

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On August 9, 2024, Illinois Governor JB Pritzker signed Senate Bill 0508 (“SB0508”) into law. This new law provides additional employment protections for individuals flagged by an employment eligibility verification system, including federal E-Verify, as having identification discrepancies. The new rights and protections created by SB0508 will take effect on January 1, 2025. This evaluation does not address whether the state law directly restricts or curtails the use of E Verify.

Deepti Orekondy and Jorge R. Lopez discuss the new rights and protections provided under lllinois’ new Senate Bill 0508, which provides additional employment protections for individuals flagged by an employment eligibility verification system.

SHRM

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Alex MacDonald discusses how a new study reveals how some union practices prioritize maintaining their political influence over delivering benefits.

U.S. Chamber of Commerce

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Michael Lotito says captive audience meeting bans passed by more than half a dozen states are “intrusive” and “against fundamental First Amendment principles.”

Bloomberg Law

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Alexander T. MacDonald says predistributional labor policies do none of the things they’re supposed to do and, in fact, amplify the problems they’re supposed to solve.

The Federalist Society

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In this article, we share a round-up of the key developments from a regulatory perspective for HR Professionals in UK financial services firms. This covers expected changes to the SMCR regime, regulatory remuneration requirements and whistleblowing framework. We also look at the increasing focus of the regulator on culture and conduct within financial services firms in the wake of recent sexual harassment allegations within a UK asset manager. 

SMCR

Zoe Argento talks about the two main types of valuable and sensitive information that employees typically steal and offers ways employers can prevent workplace theft.

SHRM Online

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UPDATE: This law took effect on February 8, 2024.

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In the first major action of 2024, the Department of Justice (DOJ) announced it had entered into a three-year deferred prosecution agreement (DPA) with a publicly traded global software company for alleged violations of the Foreign Corrupt Practices Act (FCPA). The January 10, 2024 announcement described the company’s agreement to pay more than $220 million in connection with the investigation, consisting of just under $120 million in criminal penalties.  While significant, these fines were reduced based on the pilot program announced by the DOJ last spring, as described below.

On August 31, 2021, the Office of Management and Budget (OMB) approved the Affirmative Action Program Verification Interface (AAVI) proposed by the Office of Federal Contract Compliance Programs (OFCCP) for the verification and upload of federal contractor affirmative action plans.

Meredith Shoop talks about the Affirmative Action Program Verification Interface where covered federal contractors can upload their affirmative action plans for review.

Government Executive

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On May 20, 2022, the Office of Federal Contract Compliance Programs (OFCCP) published its FY 2022 Corporate Scheduling Announcement List (CSAL) for supply and service contractors. OFCCP has stated that it will immediately begin to send out scheduling letters to some of the contractors on the new list.  This is a change from the past when OFCCP would wait at least 45 days from publication of the list before beginning audits.  See U.S.

On January 20, 2023, the Office of Federal Contract Compliance Programs (OFCCP) published its FY 2023 Corporate Scheduling Announcement List (CSAL) for supply and service contractors. The CSAL includes 452 establishment reviews, 24 Corporate Management Compliance Evaluation reviews, and 24 Functional Affirmative Action Program (FAAP) reviews.

In December 2021, the Office of Federal Contract Compliance Programs (OFCCP) implemented a new requirement that all covered federal contractors and subcontractors annually certify that they have current affirmative action plans in place for each of their establishments or functional units as applicable.  The Process for Certification, which was to be made through a new Contractor Portal, was rolled out over a five-month period beginning on February

On April 25, 2023, the Office of Management and Budget approved the Office of Federal Contract Compliance Programs’ (OFCCP) updated form prospective and current employees must use to voluntarily self-identify as an individual with a disability.  The form is applicable to federal contractors and subcontractors subject to Section 503 of the Rehabilitation Act, which requires contractors to invite applicants to self-identify as disabled at the pre-offer stage, and to invi

On December 14, 2023, the U.S. Department of Labor issued final regulations requiring the so-called “nondisplacement” of workers performing work on contracts for the federal government under the Service Contract Act (SCA). These regulations implement Executive Order 14055, “Nondisplacement of Qualified Workers Under Service Contracts,” President Biden signed on November 18, 2021.

In 2022 the Office of Federal Contract Compliance Programs (OFCCP) began requiring that federal contractors and subcontractors subject to the affirmative action requirements of Executive Order 11246 annually certify that they are meeting their requirement to develop and maintain annual affirmative plans (AAPs).  In rolling out this program, OFCCP warned that covered contractors that failed to certify by a deadline would be at a higher risk for audit.  OFCCP made good on this warning when it published its 2023 Corporate Scheduling Announcement List (CSAL), which is a courtesy notice of cont

On March 29, 2024, the Office of Management and Budget (OMB) published revisions to Statistical Policy Directive No. 15: Standards for Maintaining, Collecting, and Presenting Federal Data on Race and Ethnicity (SPD 15). These changes will impact how companies collect the race and ethnicity data for their federal reporting. 

On June 7, 2024, the Office of Federal Contract Compliance Programs (OFCCP) published its FY 2024 Corporate Scheduling Announcement List (CSAL) for Supply and Service Contractors. The CSAL is a courtesy notification, and the review will start once the establishment receives OFCCP’s Office of Management and Budget (OMB) approved scheduling letter.

Michael Lotito says the U.S. Supreme Court’s decision to nix Chevron deference sends a message to federal agencies that the days of administrative overreach are over.

Law360 Employment Authority

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Alexander MacDonald says without Chevron, agency rulemakings will likely stick closer to the statute or take “fewer big swings” when it comes to interpreting the law.

Bloomberg Law

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The Connecticut Supreme Court recently adopted the U.S. Supreme Court's relatively narrow definition of “supervisor” for use in determining when employers are liable under the Connecticut Fair Employment Practices Act (CFEPA) for creating or failing to remedy a hostile work environment. The decision provides employers with clarity as the term is not defined by the CFEPA.

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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In July, the Third Circuit upheld a District of New Jersey decision to throw out a withdrawal liability assessment, finding the multiemployer pension fund was barred from pursuing its claim because the fund unreasonably delayed notification of a withdrawal liability assessment for 12 years.

Withdrawal Liability Assessments Under ERISA

While the Department of Justice (DOJ) has initiated at least two new Foreign Corrupt Practices Act (FCPA) enforcement actions against U.S. companies, it has also announced several decisions not to prosecute—most recently involving a U.S. biotech firm and its subsidiaries. The November 16, 2023, declination letter is instructive for companies concerned about protecting themselves against the consequences of employees who take it upon themselves to flout internal anti-bribery policies.

Ellen Donovan McCann, Alice Kokodis and Jim Paretti explain the Massachusetts Department of Family and Medical Leave’s new, more employer-friendly guidance.

SHRM Online

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