(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.

Teresa Trigueros discusses workplace harassment and its protocols.

Confilegal

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Arizona recently expanded provisions of the Arizona Civil Rights Act (ACRA) to cover pregnancy and pregnancy-related conditions. Additionally, following a national trend in response to perceived state and federal inaction, cities in Arizona on their own passed new ordinances that expands protected categories and coverage.

ACRA Expansion

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.

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.

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 recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank") mandates, for publicly traded companies, shareholder advisory votes on compensation packages provided to top executives and on "golden parachute" packages payable in connection with corporate transactions.

The Securities and Exchange Commission (SEC) released proposed rules on March 2, 2011, in connection with provisions of the Dodd-Frank Act that prohibit "covered financial institutions" from providing incentive-based compensation that encourages inappropriate risks, by providing either excessive compensation or incentives that could lead to material financial loss to the institution.

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.

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.

By now, most lawyers advising international companies on compensation packages for expatriates that include deferred compensation are familiar with section 409A of the United States Internal Revenue Code ("US tax code" or "Code").

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

On August 29, 2014, the Texas Supreme Court in Exxon Mobil Corp. v.

The Internal Revenue Service recently issued proposed regulations under Section 457 of the Internal Revenue Code (the “Code”) that prescribe rules regarding deferred compensation plans sponsored by state and local governments and tax-exempt organizations.  These regulations relate primarily to the taxes imposed (under Code Section 457(f)) on the organization at the time the individual’s right to compensation vests, without regard to actual time of payment. 

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.

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.

The Department of Homeland Security (DHS) has recently announced a streamlined process for foreign workers to request deferred action. Deferred action is a type of prosecutorial discretion to defer removal action (deportation) for a noncitizen for a certain time period.  The new process will apply where these workers are participating in or otherwise involved an investigation or enforcement action by a federal, state, or local labor and employment agency.    

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).

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

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.
   

Immigration associates George Thompson and Deepti Orekondy discuss the nuances and intricacies of filing of an H-1B visa application, including H-1B Cap petitions, and how to help employers maintain H-1B compliance. This podcast delves into common pitfalls and strategic considerations for an employer filing an H-1B petition.
   

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.

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 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

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.

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

SHRM Online

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Jesús Lahera offers a detailed analysis of Spain’s Whistleblowing Directive and its impact on employers and employees.

Observatorio de RRHH

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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

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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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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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 March 31, 2022, the Office of Federal Contract Compliance Programs (OFCCP) issued a new Directive 2022-02.  Its stated purpose is to provide “transparency on OFCCP’s compliance evaluation policies and expectations for contractors”—but upon review, it appears to be a retreat from the standards of transparency, certainty, and efficiency that guided OFCCP from 2017 through 2020.  The new directive radically alters OFCCP’s approach toward compliance reviews and removes guardrails that had been put in place t

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.

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.

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.

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.”

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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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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