Philadelphia, PA/ March 20, 2009 -- Littler Mendelson (Littler), the nation's largest employment and labor law firm representing management, is pleased to announce the arrival of shareholders Warren E. Fusfeld and Melissa B. Kurtzman to the firm’s Philadelphia office, both formerly of WolfBlock LLP.

In Schachter v. Citigroup, Inc.,¹ the California Supreme Court rejected claims that an incentive plan that conditioned the earning of restricted stock based on continued service was unlawful where the employee voluntarily elected to participate in the plan, and the employee quit before the date on which the incentive was earned. The plan was lawful even though the incentive plan was funded from wages that the employee would have otherwise received in cash.

On July 21, 2010, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act (H.R. 4173) (the "Act"), which is intended "to promote the financial stability of the United States by improving accountability and transparency in the financial system" and "to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes." While the Act is directed at the financial system, it incorporates broad executive compensation provisions that apply beyond the financial services industry.

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.

Enacted on Friday, March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (H.R. 748, the “CARES Act” or the “Act”) is intended to stimulate the U.S. economy in light of the COVID-19 pandemic. The CARES Act contains a number of provisions relating to employee benefits and executive compensation, which are summarized below.

Retirement Plan Provisions

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.

In the Chancellor of the Exchequer’s Autumn Statement, Jeremy Hunt promised that “the government will expand the business Visitor rules to allow businesspeople to engage in a wider range of permitted activities and paid engagements, to take effect from January 2024. The government will also explore further reforms to the business visitor rules during 2024.”

The first of these changes took effect from January 31, 2024. They were not a major reform of the business and other permitted activities that can be carried out on a visit visa, but there are some important changes.

In this pro bono podcast, Littler’s Lavanga Wijekoon speaks with Ellen Miller of the National Immigrant Justice Center, Jodi Ziesemer of the New York Legal Assistance Group and Laura Lunn of the Rocky Mountain Immigrant Advocacy Network about the work being done across the country to help immigrants and their families who are in desperate need of immigration protections.
   

The Department of Homeland Security (DHS) announced that the agency will establish a new process to consider, on a case-by-case basis, requests from eligible noncitizen spouses of U.S. citizens for parole-in-place status.  Parole-in-place allows noncitizens who entered the United States without the authorization of an immigration officer to remain in the United States for a certain period.  If paroled, eligible noncitizen spouses will be able to apply for permanent residence without having to leave the United States to be processed for an Immigrant Visa at a U.S.

To tackle illegal employment through subcontracting more effectively, the Flemish government improved chain liability, and introduced a duty of care. According to this duty of care, companies working with subcontractors in the Flemish Region are obliged to request certain data from these subcontractors (Cf. Decree of 27/10/2023).  

The Flemish Government's Implementing Decree was published in the Belgian Official Gazette on June 4, 2024, containing a checklist of the specific data to be requested. The decision will enter into force on January 1, 2025. 

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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Alexander Thomas MacDonald explains how, through a century of trial and error, labor law has been wildly successful in giving us the most peaceful labor market in history. 

The Federalist Society

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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 the future decisions and direction of the NLRB depend on whether Chair Lauren McFerran is confirmed to remain in her current position for another five years.

Law360 Employment Authority

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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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Counsel representing banks in employment litigation need to understand the special privileges and rules regarding access to bank records and disclosures to regulators.

By Philip M. Berkowitz | July 13, 2022

Paweł Sych explains how an employee's actions on social media, even after working hours, can harm the entire organization and cause trouble for employers. 

Prawo.pl

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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

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

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.

Earlier this month, President Biden released his COVID-19 Action Plan, Path Out of the Pandemic (Plan) with the stated goal of getting more people vaccinated.¹ As part of the Plan, President Biden signed Executive Order 14042, Ensuring Adequate COVID Safety Protocols for Federal Contractors (Order).

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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Update: The vaccination deadline for covered federal contractors has been extended until January 18, 2022.

The federal government’s complicated multi-pronged approach to implementing COVID-19 safeguards related to federal contractors has left many confused.  We offer this brief guide to help contractors understand their obligations and the timelines for implementation.

On October 11, 2021, Texas Governor Greg Abbott issued Executive Order GA-40, which states that no entity in Texas can “compel” any individual, including any employee or consumer, to receive a COVID-19 vaccination who objects “for any reason of personal conscience, based on a religious belief, or for medical reasons, including prior recovery from COVID-19.”  The order also establishes a maximum criminal penalty of $1,000 but expressly exclude

On September 9, 2021, President Biden signed Executive Order 14042, Ensuring Adequate COVID Safety Protocols for Federal Contractors (“Order”), which directed the executive agencies to begin amending federal contracts to require federal contractors to take specific actions to combat COVID-19 and to, in turn, require covered subcontractors to take the same actions (the federal contractor COVID-19 workplace

The White House on November 4 announced that the deadline for employers covered by the federal contractor vaccine requirement to comply with the vaccine mandate will be extended from December 8, 2021 to January 4, 2022.

It was all very well to say ‘Drink me,’ but the wise little Alice was not going to do that in a hurry. ‘No, I’ll look first,’ she said, ‘and see whether it’s marked “poison” or not’; for […] she had never forgotten that, if you drink much from a bottle marked ‘poison,’ it is almost certain to disagree with you, sooner or later.

                                           —Lewis Carroll, Alice in Wonderland, Chapter 1, Down the Rabbit Hole

On February 1, 2022, the Office of Federal Contract Compliance Programs (OFCCP) presented a webinar on its new contractor portal through which covered contractors are being asked to certify whether they are meeting their requirement to develop and maintain annual affirmative action programs.

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.

We’re thinking about rolling out some IE&D initiatives – is that the same thing as an Affirmative Action Plan?

The short answer is no, and there is often confusion between an Affirmative Action Plan, or AAP, and more general and voluntary IE&D initiatives.

On June 5, 2023, the Office of Federal Contract Compliance Programs (OFCCP) published its FY 2023 Construction Corporate Scheduling Announcement List (CSAL). The CSAL includes 250 employers that OFCCP has identified as federal or federally assisted construction contractors.

Alyesha Dotson and David Goldstein said the U.S. Supreme Court's ruling striking down affirmative action admissions policies at Harvard and the University of North Carolina offers an opportunity for employers to review their DEI programs and possibly establish more robust ones to help offset any effects of the ruling.

Law360

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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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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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On August 24, 2023, the Office of Management and Budget approved a request from the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) to revise the “Itemized Listing” that OFCCP uses to collect information from federal contractors that are selected for supply or service audits. Among the changes that have been approved is a new requirement that audited contractors:

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.

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.