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Update in ERISA Litigation Involving Breaches of Fiduciary Duty Claims

  • Several appellate courts over the past year have applied Supreme Court precedent to determine whether complaints properly allege a breach of fiduciary duty under ERISA to warrant relief.
  • Trends useful for employers defending such lawsuits have emerged.

Lawsuits against employers offering retirement benefit plans have been on the rise.  Recent suits, discussed in this update, have provided some guidance for employers. 




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Littler Lightbulb – July Employment Appellate Roundup

This Littler Lightbulb highlights some of the more significant employment law developments at the U.S. Supreme Court and federal courts of appeal in the last month.

At the Supreme Court




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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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In Advance of July 1 Compliance Deadlines, Chicago Agency Posts Updated Guidance and Notices for the City’s Minimum Wages, Paid Leave, Fair Workweek Thresholds, and Required Notices

The Chicago Department of Business Affairs and Consumer Protection (BACP) Office of Labor Standards (COLS) recently posted updates to its website regarding minimum wage obligations, paid leave and paid sick and safe leave, new fair work week thresholds, and updated required labor notices. The compliance deadline for these obligations is July 1, 2024.




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Michigan Supreme Court Voids Existing Minimum (Cash) Wage and Paid Sick Leave Laws and Revives Old Laws

UPDATE: On August 21, 2024, the Attorney General and State of Michigan asked the Michigan Supreme Court to clarify – no later than September 15, 2024 – various rulings in its July 31, 2024 decision, e.g.: 1) How the state should calculate CPI adjustments for the preset minimum wage rates in 2025 through 2028; 2) Whether, aside from in 2025, future minimum wage rates will take effect on February 21 or January 1; and 3) Whether the court intended to have the minimum cash wage increase from 80% (2028) to 100% (2029) rather than 80% (2028), 90%




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UK Legislation Round-up: What Was Passed in the Parliamentary Wash-up?

After the UK general election was announced, the following legislation was approved by Parliament during what is known as 'the wash-up' period towards the end of May 2024. Some of these require further regulations to bring them into force, and when (or if) they will be brought into force will be largely dependent upon the new government’s priorities and policies. 

Paternity Leave (Bereavement) Act 2024




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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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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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The Promise and Perils of Affinity Groups; Or, How Not to Bargain with your Employee Resource Group

A properly structured and implemented Affinity Group (AKA Employee Resource Group) is a powerful tool in an employer’s Diversity Equity & Inclusion tool belt. But, unwary employers may risk violating the National Labor Relations Act if they bargain with an Affinity Group. In this month’s podcast, Alyesha Asghar Dotson discusses the do’s and don’ts of interacting with an active Affinity Group within your organization.
  




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Littler Names Jeremy Hawpe as Pride Affinity Group Co-Chair

(June 3, 2021) – Littler, the world’s largest employment and labor law practice representing management, has selected Shareholder Jeremy Hawpe (Dallas) as co-chair of its Pride affinity group, joining Shareholder Lauren Schwartzreich (Denver), and succeeding Shareholder Darren Gibson (Austin) who is stepping down to focus on his growing and active practice.




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Minnesota Supreme Court Ruling is a Reminder to Think Twice Before Taking Deductions from Wages

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.




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Financial Services Roundtable: Update on Compensation Trends in the Financial Services Industry




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The Virginia Supreme Court on Damages, Equity Valuation, and the Significance of Delaware Corporations Law in the Termination and Removal of a Chairman and CEO

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




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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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ACA Update: Fees and Reporting Requirements




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2016 Employee Benefits Update - Rochester




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USCIS Announces Upcoming H-1B Cap Lottery Dates and New Beneficiary-Centric Selection Process

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).




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Summary of Upcoming Changes to USCIS Filing Requirements in April 2024

April 1, 2024, will mark the beginning of new changes to USCIS form editions, filing fees, and direct filing addresses for many common immigration applications and petitions.

Of particular note are the upcoming changes to the filing requirements for the Form I-129 and Form I-140. With the H-1B lottery filing window set to open on April 1 for those selected in the FY 2025 H-1B lottery, it is imperative for visa petitioners to be mindful of the upcoming changes to avoid any unnecessary rejections of their potentially time-sensitive filings.

Filing Fees




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Washington State Legislative Updates

UPDATE: Since publication, we made a clarifying edit concerning the reasons an employee will be able to use paid sick leave under the amended law.

The Washington state legislature and certain localities recently passed several bills affecting employers, some of which have already been signed into law. These measures address non-compete agreements, mandatory employer-sponsored meetings, immigration reporting, paid leave, and the minimum wage. Each new bill or ordinance is discussed below. 

New Law Expands and Clarifies Non-Compete Statute




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DOL Shifts Wage Data Source for Occupations

As of July 1, 2024, the Foreign Labor Certification (FLC) Data Center website (FLCDataCenter.com) will be discontinued and will not be available for providing prevailing wage data for occupations. Prevailing wage information is required for permanent and temporary foreign labor certification processes as well as for various non-immigrant temporary work visas such as H-1B, H-1B1 and E-3.




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How ongoing worker shortages highlight an ‘urgent need’ for upskilling

Shannon Meade and Michael Lotito discuss key issues that employers are facing now, according to Littler’s Workplace Policy Institute’s 2024 Labor Day Report.

Human Resource Executive

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Littler World Cup Matchups Part 5: Whistleblower Protections

Welcome back to our World Cup series, where we compare various aspects of labor and employment law in some of the participating countries.1  We kicked off Parts One and Two of this series with vacation and sick leave entitlements.




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Regulatory Roundup – Key Developments in UK Financial Services

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




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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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EU Whistleblowing Directive – An Implementation Update

Protection of whistleblowers has been on the EU’s agenda for quite some time. Four years ago the EU issued the EU Whistleblowing Directive throughout its Member States.




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Whistle(Blowing) While You Work: An Update on Federal and Virginia State Whistleblower Retaliation Laws




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Costa Rica Passes First “Whistleblower Law” to Protect Complainants and Witnesses of Possible Acts of Corruption

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

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Littler Lightbulb: February Appellate Roundup

This Littler Lightbulb highlights some of the more significant employment law developments at the U.S. Supreme Court and federal courts of appeal in the last month.

At the Supreme Court




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DOJ Announces New Program to Garner Employee Cooperation in Anti-Corruption Investigations

D. Porpoise Evans examines a new DOJ whistleblower program that will complement last year’s focus on corporate voluntary disclosure programs and offers whistleblower awards to motivate employees to report misconduct.

HR Daily Advisor

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UK Whistleblowing Update: Three Key Cases

2024 has been a fruitful year in the UK for whistleblowing law so far, with three key cases employers should be aware of:

Can an external job applicant qualify as a whistleblower?

One of the very first questions to ask when presented with a whistleblowing claim in the UK is whether the person who made the disclosure was entitled to protection. The Employment Rights Act 1996 protects employees from dismissal, and protects employees and workers from detriment, for having made protected disclosures. But does it cover job applicants?




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2021 Upper Midwest Virtual Regional Employer Conference




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OFCCP Identifies 400 Supply & Service Contractor Establishments to be Audited Beginning in June

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.




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OFCCP Identifies 500 Compliance Evaluations for Supply & Service Contractors

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.




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5th Circuit Finds Religious Freedoms Supersede LGBTQ+ Protections

Alyesha Dotson weighs in on the 5th U.S. Circuit Court of Appeals’ ruling that private businesses with religious convictions don’t have to follow antidiscrimination laws that protect LGBTQ+.

SHRM Online

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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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OFCCP Identifies 500 Compliance Evaluations for Supply & Service Contractors

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.




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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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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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Littler Lightbulb: June Appellate Roundup

This Littler Lightbulb highlights some of the more significant employment law developments at the U.S. Supreme Court and federal courts of appeal in the last month.

At the Supreme Court




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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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Littler Lightbulb: July Appellate Roundup

This Littler Lightbulb highlights some of the more significant employment law developments in federal courts of appeal in the last month.




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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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Littler Lightbulb: August Appellate Roundup

This Littler Lightbulb highlights some of the more significant employment law developments in federal courts of appeal in the last month.

Fifth Circuit Vacates DOL Tip Credit Rule




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Proper Planning and Swift Action Can Help Employers Avoid Foreign Corrupt Practices Act Prosecution

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.




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Sponsoring a Group Health Plan for Employees? What Employers Need to Know About the Consolidated Appropriations Act

  • Employers sponsoring group health plans must understand and comply with new requirements imposed by the Consolidated Appropriations Act.
  • On the plus side, the new compliance requirements can provide sponsors with valuable insights into the operation of their group health plans.
  • To avoid potential liabilities, however, sponsors should act proactively to avoid allegations of imprudent fiduciary processes.   




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Statutory paternity pay uptake falls amid financial pressures, stats show

Mark Callaghan says the new UK government should increase Statutory Paternity Pay “in excess of inflation,” because it would benefit businesses and families alike.

People Management

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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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