Wage & Hour

Expert Analysis

• Avoiding Surprise Taxation Of Employment Settlements

  Excerpt from Practical Guidance

  

  Sandra Cohen at Cohen & Buckmann discusses how to avoid unwelcome tax-related payments in connection with settling an employment claim, as the extra cost can significantly decrease the perceived value of an offer and push the parties further apart.

• Mass. 7-Eleven Ruling May Threaten Some Franchise Models

  

  A recent ruling by Massachusetts’ highest court in Patel v. 7-Eleven — holding that franchisees can be classified as employees entitled to wage and hour benefits — may hint at the future of U.S. franchise law, and means that control exerted over franchisees must be carefully scrutinized going forward, say Peter Loh and Betsy Stone at Foley & Lardner.

• Justices Must Apply Law Evenly In Shadow Docket Rulings

  

  In recent shadow docket decisions, the U.S. Supreme Court has inconsistently applied the requirement that parties demonstrate irreparable harm to obtain injunctive relief, which is problematic for two separate but related reasons, says David Hopkins at Benesch.

• Employer's Agenda

  

  In this Expert Analysis series, in-house employment attorneys discuss the most important issues companies and counsel should plan for amid the current business landscape, and offer practical advice for how to address the year's unique challenges.

• Conservative Justices' Silence May Hint At Fate Of PAGA Case

  

  Though the tone of recent oral arguments in Viking River Cruises v. Moriana suggested skepticism that California Private Attorneys General Act claims are comparable to class actions and thus can’t escape arbitration, the reticence of the conservative justices may point to a different outcome, say Corinne Spencer and Antwoin Wall at Pearlman Brown.

• Calif. Wage And Hour Reminders As Telework Endures

  

  More than two years after the COVID-19 pandemic began, remote work arrangements remain prevalent in California, and employers in the state face ongoing compliance risks due to myriad laws requiring minimum and overtime wages, meal periods and rest breaks, and postings for teleworking employees, says Michael Nader at Ogletree.

• Threat To False Claims Act Lurks In High Court PAGA Case

  

  At Wednesday's oral arguments in Viking River Cruises v. Moriana, the U.S. Supreme Court considered whether employees may waive their right to pursue representative actions under the California Private Attorneys General Act, but the decision could imperil the future of False Claims Act qui tam actions, says R. Scott Oswald at The Employment Law Group.

• And Now A Word From The Panel: Doing The MDL Math

  

  A recent decision by the Judicial Panel on Multidistrict Litigation in a labor case illustrates the hurdles faced by those seeking MDL centralization when there are relatively few underlying cases — but other factors may also influence the panel's decision on whether to create an MDL, says Alan Rothman at Sidley.

• The Stakes Are High In Supreme Court Arbitration Rights Case

  

  Recent oral arguments before the U.S. Supreme Court in Morgan v. Sundance highlight how the justices’ eventual ruling could engraft a prejudice requirement into a party’s waiver defense when the Federal Arbitration Act is implicated, and potentially define how early in a proceeding the right to arbitrate must be asserted, says Kate Dodoo at McAfee & Taft.

• 2nd Circ. Title VII Ruling Guides On Joint Employer Doctrine

  

  Although the Second Circuit recently affirmed the dismissal of Felder v. U.S. Tennis Association, it clarified how courts can determine whether two employers are jointly liable for Title VII claims, so entities that use staffing companies or contract workers should follow several best practices to limit joint employer liability, say William Manuel and Anne Yuengert at Bradley Arant.

• Next Steps For Hospitality Cos. After DOL Tip Credit Rule Win

  

  A Texas federal court recently denied a motion in Restaurant Law Center v. U.S. Department of Labor seeking to enjoin enforcement of the DOL's new rule limiting when businesses can take tip credits against their employees' wages, so industry employers should take certain steps to avoid liability while the litigation continues to unfold, say attorneys at Greenberg Traurig.

• Contractor Compliance Hurdles In USDA Labor Rule Proposal

  

  Given the U.S. Department of Agriculture’s recent proposal to revive the so-called blacklisting rule requiring certification of compliance with certain labor laws, federal contractors may want to revamp their processes for tracking violations and conducting due diligence in order to avoid the potential for making false representations to the government, says Jack Blum at Polsinelli.

• Employer's Agenda: IHG Counsel Talks Remote Investigations

  

  The pandemic and shift to remote work have drastically altered workplace investigations, making it imperative for in-house counsel to ensure interim actions, witness interviews and attorney-client privilege are addressed in accordance with the unique challenges posed by the telework landscape, says Sherry Nielsen, senior corporate counsel for labor and employment at IHG Hotels & Resorts.