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Federal Court Dismisses Case Alleging Breach of ERISA Fiduciary Duties in 401(k) Class Action

Fiduciaries of retirement plans continue to be plagued by class actions brought under the Employee Retirement Income Security Act (ERISA) challenging their fiduciary management of investment options and participant fees. A recent federal court decision, however, shows that fiduciaries of ERISA retirement plans may be able to attack and defeat complaints alleging breaches of ERISA fiduciary duties at the pleading stage if the right arguments are made and if certain fact patterns are present. 




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Michigan Court Dismisses ERISA Class Action

  • Class action lawsuits continue to target ERISA fiduciaries for their decisions about investment options and fees.
  • However, even class action complaints that seem supported by citations to comparator plans or investment funds can be vulnerable to attack at the pleading stage.




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Dutch Non-Compete Clauses Explained

Jasper Hoffstedde and Eric van Dam of Littler’s Amsterdam office discuss non-compete clauses in Dutch employment agreements. A non-compete clause may be agreed upon in writing in indefinite-term employment agreements with a person of age (18+). For fixed-term employment agreements, additional conditions apply. Such conditions are strict, which more often than not lead to invalidity or voidability of the clause.




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The Termination Clause in Dutch Employment Agreements Explained

Jasper Hoffstedde and Fleur van Lieshout of Littler’s Amsterdam office discuss the termination clause in Dutch employment agreements. The termination clause seems an easy and straightforward clause; you simply invoke the clause and terminate employment, right? For the employee that is indeed in the case, but the employer has another hoop to jump through if the employee doesn’t want to agree to termination. He then has the obligation to substantiate the reason for termination, the so-called valid ground.




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Celebrating Disability Pride Month: Adding Disability Inclusion to the Inclusion, Equity & Diversity Conversation

In celebration of Disability Pride Month, Jennifer Duke, Littler Learning Group Director and attorney, talks with Anna Curry Gualano, Littler Principal and co-chair of the firm’s Individuals with Disabilities affinity group, about the importance of disability inclusion and its impact in the workplace for both employers and employees.
  




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Celebrating Disability Pride Month: Image of Inclusion – Advocating for Inclusive Visual Representation

Littler’s Anna Curry Gualano is joined by her father, Ashley Curry, to discuss their advocacy work in Alabama to update the traditional accessibility symbol to one that is more inclusive and empowering.
  




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Puerto Rico Secretary of Labor Clarifies the Application of Act No. 27-2024

On September 10, 2024, the Puerto Rico Secretary of Labor issued an Opinion (No. 2024-02) to clarify and provide additional information about the application of Act No. 27-2024, known as the "Act to Facilitate the Implementation of Remote Work in the Private Sector and to Incentivize the Establishment of Airline Bases in Puerto Rico.” Act No. 27-2024 exempts from certain employment law coverage domiciled and non-domiciled employees working remotely from Puerto Rico for out-of-state employers with no business nexus to Puerto Rico, and certain unionized airline employees.  




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Michigan Supreme Court Clarifies Minimum Wage & Tipped Rates and Schedule for 2025 and Future Years

On September 18, 2024, at the request of the State of Michigan and its attorney general, the Michigan Supreme Court clarified issues relating to future minimum wage rates and minimum cash wage rates for tip-credit employees stemming from an earlier opinion.




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DOL Issues “AI & Inclusive Hiring Framework” Through Non-Governmental Organization

On September 24, 2024, the U.S.




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Supreme Court's ruling on workplace sexual harassment provides clarification

Ole Kristian Olsby and Nina Elisabeth Thjømøe clarify how to actively prevent sexual harassment and unwanted attention in the workplace through a recent Supreme Court ruling.

International Law Office (ILO)

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Success by the Numbers: The benefits and pitfalls of measuring Diversity, Equity & Inclusion

As more and more employers take steps to improve Diversity, Equity, and Inclusion in the workplace, there’s an increasing demand to know if those measures are successful. In this podcast, Alyesha Dotson, Littler Shareholder, discusses ways in which employers can track progress in their DE&I efforts without tripping over legal hazards, and gauge individual and organizational change.
  




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Inclusion Interrupted: Charting a Path for Reconnecting, Post-COVID

One year into a global pandemic, with vaccinations underway, we are eagerly preparing for social “re-entry.” But how do the isolating behaviors that we have now perfected – in the interest of sheer survival – bode for the concept of “inclusion” in a post-pandemic world?

Littler Principal Cindy-Ann Thomas and her guest, Enidio Magel, Managing Director and Founder of the Multicultural Institute, consider:




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Littler Appoints New Leadership to Its Affinity Groups and Diversity & Inclusion Council

(March 22, 2021) – Littler, the world’s largest employment and labor law practice representing management, is pleased to announce new leadership for its ‘Ohana and Reunión affinity groups. Additionally, the firm’s Diversity & Inclusion (D&I) Council added six new members.




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Pink quotas, inclusion and conciliation: what 11 women at the top think

Erin Webber shares how inclusion, equity and diversity has positively impacted her legal career at Littler. 

L'Economia

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Recruitment and Staffing Agency Quandaries: Avoiding Claims of Reverse Discrimination in Hiring a Diverse Workforce

An effective way to increase diversity hiring is to require diverse candidate slates for interviewing. Such slates include at least two diverse or women candidates in the pool of finalists. Employers should take heed, however, because there are limits to which a recruiter or a staffing agency can go in building such a slate. Alyesha Dotson discusses the avenues to intentionally recruit for diversity in a fair and smart manner to avoid violating antidiscrimination laws.
  




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Moving Diversity, Equity and Inclusion Programs Forward - Part 1




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Moving Diversity, Equity and Inclusion Programs Forward - Part 2: A DE&I Training Session - Fostering a Diverse, Inclusive and Respectful Culture




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Is Your Company Ready for Diversity, Equity, and Inclusion?




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Is Your Company Ready for Diversity, Equity, and Inclusion?




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IRS Proposed Regulations Clarify Certain Equity Compensation Rules Under IRC Section 162(m)

Section 162(m) of the Internal Revenue Code (the "Code") generally limits the deductibility of compensation paid by a publicly traded corporation to its top executive officers (the "covered employees") to $1 million annually (the "Million Dollar Cap"). However, this limit will not apply to certain amounts that qualify as "performance-based compensation." Compensation attributable to stock options, stock appreciation rights ("SARs") and restricted stock grants may qualify as performance-based compensation if they meet certain requirements.




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New Compensation Disclosures for Public Companies

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).




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Publicly Traded Employers Will Need to Claw Back Incentive Pay from Former and Current Executive Officers

  • An SEC final rule governing clawback policies takes effect on January 27, 2023.
  • The rule requires that national securities exchanges and associations listing securities issue new listing standards with clawback requirements, which must take effect no later than November 28, 2023.
  • Employers with stock listed on a national security exchange will need to implement a policy that provides for the recovery of erroneous payments to current and former executive officers.




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Is a Bonus Clawback Provision a Restraint of Trade in the UK?

In a reassuring decision for employers, the UK High Court has confirmed that an employer’s use of a contractual provision to claw back an employee’s bonus was lawful. The ruling in Steel v Spencer Road LLP provides helpful guidance on the circumstances in which a bonus clawback will not constitute a restraint of trade, though employers should be mindful that not all such provisions will be enforceable.




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Growing scrutiny of stay-or-pay clauses trapping US workers

Johane Severin discusses the growing practice of “stay-or-pay” contracts, which some argue force workers to pay if they resign ahead of a stipulated date.

International Employment Lawyer

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How to Avoid a Claim of 'Pretaliation'

Jeff Nowak and Rich Falcone talk through a hypothetical HR dilemma involving a workplace complaint.

SHRM Online

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When Will a Settlement Agreement Preclude a False Claims Act Action?

A recent District of Columbia federal court ruling reminds employers that a severance agreement containing a release of claims under the False Claims Act does not guarantee dismissal of a suit on those grounds.

Background on the FCA




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SEC Continues to Attack Non-Disclosure Agreements and Personnel Policy Provisions that Could Impede Employees from Reporting Potential Violations of U.S. Securities Law

  • Recent SEC cease-and-desist Orders indicate how publicly traded and other SEC-regulated employers should be on alert to the agency’s ongoing attention to enforcement actions under Rule 21F-17.
  • The SEC has been examining whether non-disclosure agreements and other confidential business information provisions could impede whistleblowers from communicating with the SEC.




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SEC Attacks Non-Disclosure Agreements

The SEC recently issued imposed significant and costly sanctions against companies that require employees to sign non-disclosure agreements containing certain language either limiting employees from disclosing company confidential information without company approval, or representing that they have not filed complaints with government entities.

By Philip M. Berkowitz | November 08, 2023 at 10:00 AM

 




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SCOTUS: Retaliatory Intent Not an Element of SOX Retaliation Claim

  • Supreme Court decision clarifies framework for whistleblowers filing claims under the Sarbanes-Oxley Act.
  • Plaintiffs need to prove only that their whistleblower activity was a contributing factor in their termination, but still must ultimately show causation.




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OFCCP Revises Compensation Analysis Directive But Leaves Questions About Documentation Created Under Attorney-Client Privilege

On August 18, 2022, the Office of Federal Contract Compliance Programs (OFCCP) issued a revised version of its Directive 2022-01 - Advancing Pay Equity Through Compensation Analysis, which was originally issued on March 15, 2022.




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OFCCP Plans to Disclose Confidential Employer EEO-1 Data: Can Employers Protect Their Information?

On August 19, 2022, OFCCP published a notice in the Federal Register for the stated purpose of advising employers that in response to a Freedom of Information Act (FOIA) request, it is planning to produce confidential information that is protected from disclosure pursuant to a statutory exemption.




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OFCCP Extends Deadline for Objecting to Proposed Disclosures of EEO-1 Data

As outlined in our August 22 Insight, OFCCP announced an intention to produce federal contractors’ Type 2 EEO-1 data in response to a FOIA request from the Center for Investigative Reporting (CIR).  Employers were given until September 19, 2022, to file their objections. On September 15, 2022, OFCCP extended the deadline for filing objections to October 19, 2022.




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Growing trend of Diversity and Inclusion (D&I); global development pushing India too

Alecia Winfield explains what diversity means in corporate America and says the ‘Black Lives Matter’ protests fueled a drive for change in corporate America, similar to that of the #MeToo movement. 

Apparel Resources

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OFCCP Provides Employers with Five Business Days to Submit Objections to the Disclosure of Confidential Data

OFCCP issued yet another notice today regarding its handling of a FOIA request for production of all federal contractors’ EEO-1 Type 2 data from 2016 through 2020.

The request keeps in place a February 17, 2023, deadline for submitting objections, but expands the grounds upon which employers may object, but only if the contractor includes an explanation as to why it did not object “in response to previous notices that we have issued, and why there is good cause for us to accept the objection at this point.”




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OFCCP Again Extends Deadline for Submitting Objections to EEO-1 Disclosure, But New Wrinkles Added

On February 14, 2023, OFCCP announced that it was again extending the deadline for employers to file objections to the disclosure of their EEO-1 data in response to a FOIA request from the Center for Investigative Reporting. The deadline for submitting objections is now March 3, 2023. 




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OFCCP Quietly Extends Deadline for Submitting Objections to EEO-1 Disclosures and Reveals Intention to Post EEO-1 Data on its Website

Last August OFCCP published a notice in the Federal Register advising employers that in response to a Freedom of Information Act (FOIA) request, the agency was planning to produce confidential information that is ordinarily protected from dis




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OFCCP Announces a New Certification Cycle

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




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2024 OFCCP Certification Cycle Announced

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




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Expert Insights – Minnesota Now Recognizes Claims for Negligent Selection of Independent Contractors

Ben Sandahl discusses a Minnesota case that raises several issues for companies working with independent contractors.

Westlaw Today

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Connecticut Adopts Narrow Definition of “Supervisor” for Hostile Work Environment Claims

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.




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Third Circuit Holds Multiemployer Pension Fund Claim Cannot Be Enforced due to Unreasonable Delay in Providing Notice of Withdrawal Liability Assessment

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




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Are Non-compete Agreements Dead? A Discussion with Attorney Shawn Matthew Clark

Shawn Matthew Clark discusses the basics of noncompetes and what employers need to consider regarding noncompetes, as well as why the FTC wants to ban them and how recent SCOTUS decisions may affect the FTC’s rule.

New York County Lawyers Association

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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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Legal Battles Cloud Tipped Wage Limits After Fifth Cir. Ruling

David Jordan discusses the framework of the 80/20 tip-credit rule and its current impact on employers after the Fifth Circuit’s recent decision leaves a version of the rule up for questioning.

Bloomberg Law

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Alex MacDonald Explains How Unions' Right to "Exclusive Representation" May Be Unconstitutional

Alexander MacDonald discusses the filing of an amicus brief with the U.S. Supreme Court asking the court to clarify a prior 1984 decision which, if successful, could weaken a new form of “exclusive representation” for unions.

Labor Union News (Podcast)

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Why employers should make sure health care plans are inclusive to transgender employees

The Supreme Court has ruled that transgender people are protected under the Civil Rights Act, and so Joycelyn Stevenson and Sarah Belchic say employers need to ensure that their health care plans are inclusive.

The Tennessean

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D.C.’s Pay Transparency Law Aims to Close Severe Gaps

As Washington, D.C., prepares to join a growing group of state and local jurisdictions requiring pay transparency in job postings and recruiting practices, Joy Rosenquist comments on how the D.C. law is different. 

WorldatWork

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Insight: Puerto Rico Labor secretary clarifies application of Act 27-2024

Verónica M. Torres-Torres explains new guidance on exemptions for remote workers and airline staff in Puerto Rico.

News is My Business

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Avoiding Whistleblower Claims In The COVID-19 Era

Jeanine Conley Daves and Alexa Laborda Nelson explain how employers can take steps to ensure they are in compliance with the recent COVID-19 relief plans and avoid potential whistleblower litigation.

Chief Executive

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FCA diversity plans: 'My client said, don't let them know you’re gay’

Natasha Adom discusses measures FCA, PRA and BoE regulators are considering to improve diversity and inclusion in the financial services sector. 

Investment Week

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