On August 8, 2023, the Governor of Puerto Rico signed into law Act No. 85-2023, effective immediately. The statute amends Puerto Rico’s Workers’ Compensation Act by further incentivizing safe workplaces.

On January 8, 2021, the Pension Benefit Guaranty Corporation (PBGC) issued its final rule modifying the calculation of withdrawal liability by multiemployer pension plans.  This final rule amends the agency’s regulations on allocating unfunded vested benefits to withdrawing employers (29 C.F.R. § 4211) and notice, collection, and redetermination of withdrawal liability (29 C.F.R. § 4219).

On March 11, 2021, President Biden signed into law the $1.9 trillion American Rescue Plan Act of 2021, which includes the Butch Lewis Emergency Pension Plan Relief Act of 2021.  This law is designed to forestall the insolvency of approximately 100 multiemployer pension plans that were expected to run out of money necessary to pay vested benefits over the next 20 years.  Included among these funds is a particularly large fund that – absent congressional intervention – would have gone insolvent by 2025, leaving millions of retirees without their expected monthly pension. 

On March 10, 2021, the Department of Labor’s Employee Benefits Security Administration (EBSA) announced that it will not enforce or otherwise pursue enforcement actions with respect to two recently issued final rules amending the “investment duties” regulation under Title I of the Employee Retirement Income Security Act (ERISA).

A federal court in New Jersey recently applied the arbitrary and capricious standard of review for a denial of benefits claim despite the enactment of an anti-discretionary statute in Minnesota, which governed the benefit plan policy. Hocheiser v. Liberty Mut. Ins. Co., 2021 U.S. Dist. LEXIS 32154 (D.N.J. Feb. 22, 2021).

The Colorado Court of Appeals recently decided an issue of first impression regarding the Employee Retirement Income Security Act’s (ERISA) preemptive power over Colorado’s divorce-revocation statute. The decision in Ragan v. Ragan, 2021 COA 75, settled an open question in Colorado regarding whether ERISA preempts “post-distribution” lawsuits under Colorado’s divorce-revocation statute. Specifically, the court held that ERISA preempts lawsuits against a former spouse to recover plan benefits that were distributed to the former spouse as the named beneficiary.

The U.S. Supreme Court declined to review the Second Circuit’s decision in Laurent v. PricewaterhouseCoopers LLP, which held that retirees could receive money damages in the form of recalculated benefits in a class action over how the company’s cash balance pension plan calculated lump-sum benefits.

On Monday, January 24, 2022, the U.S. Supreme Court issued an opinion in a case of critical interest to employers offering 401(k) or other defined-contribution retirement plans.  In Hughes v. Northwestern University, Case No. 19-1401, the Court voted unanimously to vacate a decision from the U.S. Court of Appeals for the Seventh Circuit, temporarily reinstating allegations by employees of Northwestern University that the fiduciaries of Northwestern’s retirement plans had violated the duty of prudence required by ERISA.

On March 10, 2022, the Department of Labor issued guidance on the use of cryptocurrency in plans governed by ERISA.  The announcement applies to cryptocurrencies as well as digital assets, which include “tokens,” “coins,” “crypto assets” and any derivates thereof.

(November 3, 2022) – Littler, the world’s largest employment and labor law practice representing management, has earned “Law Firm of the Year” status in the category of Employment Law – Management on the 2023 U.S. News – Best Lawyers^® “Best Law Firms” list. The firm also received “National Tier 1” rankings for the 13th consecutive year in the following practice areas:

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

A recent federal appeals court case clarifies that, under ERISA, the regulations governing disability plans’ claims review procedures apply to claims that predate the 2018 changes to the regulations. The decision also serves as a reminder for plan administrators to review their claims review procedures to ensure compliance with the current requirements for a “full and fair review” benefits appeal process.

The Claims Review Regulations

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. 

Littler, the world’s largest employment and labor law practice representing management, was named “Law Firm of the Year” for Labor Law - Management in the 14th edition of Best Law Firms^®, ranked by Best Lawyers^®. The firm also earned “National Tier 1” rankings for the 14th consecutive year in the following practice areas:

As Pride Month comes to a close, we are celebrating with a very special podcast that features the personal stories and perspectives from two members of the Littler family.

Littler Knowledge Management Counsel, Betsy Cammarata (GSC – Kansas City) talks with Littler alum, Bennett Kaspar-Williams (Corporate Counsel for Labor Relations at Amazon Studios) about:

Before offering a foreign national a permanent position, an employer must demonstrate to the Department of Labor that it tested the market and could not find a U.S. worker to fill the role. How can an employer show it properly tested the U.S. labor market to satisfy the DOL’s requirements under the Program Electronic Review Management (PERM) process?

Labor force participation is falling, the skills gap is widening, and certain industries are struggling to recover post-pandemic. In this podcast, Michael Lotito, co-chair of Littler Workplace Policy Institute (WPI) and Shannon Meade, executive director of WPI, discuss the historic transformation of the American workforce and what needs to be done on a national level to address the challenges employers and employees are facing.
 

In this How to Do Business in the Americas podcast series installment, Littler attorneys Lori Brown, Jorge Sales Boyoli and Juan Carlos Varela discuss relevant labor and employment issues employers will face in the Americas in 2023.

Topics include managing “wandering workers,” making staffing decisions in this period of economic uncertainty, and addressing the impact of labor law reform and union activism in multiple countries, among other issues multinational employers can anticipate at this post-pandemic stage.
 

An increasing number of employers, especially those in the tech industry, are conducting layoffs or reductions in force. What happens to foreign workers in these situations, whose work visas are often tied to their jobs? What options are available to foreign nationals who are in the process of obtaining permanent residency or are seeking to retain employment so as not to jeopardize their visa status? What notification requirements do employers have in these situations?

In continued celebration of AAPI Heritage Month, Littler's Jennifer Maguire, Sarah Sorensen, and Daniel Kim discuss how their individual experiences in the U.S. Military – as a JAG officer, a military spouse, and an officer – shaped them as leaders, ultimately leading to careers in labor and employment law.
  

In celebration of Pride Month, Littler shareholder Mattheus Stephens and associates Trevor Hardy and Jessica Wimsatt discuss their advocacy work for LGBTQIA+ individuals in their local communities. The group also highlights the importance of how being authentically you and sharing your story can help others find community and feel connected.
  

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.
  

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.  

On August 26, 2024, the U.S. District Court for the District of Maryland decided in Teamsters Local Union No. 355 v. Total Distribution Services, Inc., that the Maryland Economic Stabilization Act (“Maryland WARN Act” or “Act”) does not provide individuals with the right to file suit in their personal capacity to enforce a legal claim under the Act. The Maryland WARN Act still may be enforced by the Maryland Department of Labor.  The Act is based, in part, on its federal counterpart, the Worker Adjustment and Retraining Notification (WARN) Act, with important differences. 

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.

If you have employees working in Oregon, chances are you have heard about Oregon’s Paid Family and Medical Leave Insurance Program also known as Paid Leave Oregon (“PLO”). In addition to PLO, eligible Oregon employees may be entitled to leave under the Oregon Family Medical Leave Act (“OFLA”), Oregon Sick Time law (“OSTL”), and the federal Family Medical Leave Act (“FMLA”).

Following Disability Pride Month, we look to the past, present and future to examine how rights for people with disabilities in the workplace have developed in the UK and could develop further, before giving some practical steps for employers.

A brief history of disability laws

On July 26, 1990, the Americans with Disabilities Act (ADA) was signed into law. On the recent 34th anniversary of the ADA, U.S. Equal Employment Opportunity Commission (EEOC) General Counsel Karla Gilbride and U.S.

Bradford J. Kelley and Sean O'Brien discuss how, on the 34th anniversary of the Americans with Disabilities Act (ADA), the Equal Employment Opportunity Commission and Justice Department emphasize their commitment to ensuring that emerging technologies and AI comply with ADA standards.

Westlaw Today

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Littler Principal Cindy-Ann Thomas and her special guest, author and Professor of Sociology at Washington University in St. Louis, Adia Harvey Wingfield, explore:

LONG ISLAND, N.Y. (February 25, 2021) – William Ng, a shareholder in the Long Island office of Littler, the world’s largest employment and labor law practice representing management, has been named president-elect of the Asian American Bar Association of New York (AABANY) effective April 1, 2021.

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.
  

Erin Webber and Zoe Argento discuss the effect the pandemic has had on working mothers and the impact on women in the workforce generally.
 

Helene Wasserman shares her view on how mentorships can positively impact career paths.

The National Law Review

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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.
  

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.
  

Racially offensive symbols, such as Confederate flags, displayed in the workplace can constitute evidence of a racially hostile work environment. In light of this and our ever-increasing efforts to foster harassment-free workplaces, Alyesha Asghar Dotson discusses how employers can prepare for and respond when potentially offensive symbols appear in their workplace.
  

Littler's Chief Inclusion, Equity and Diversity Officer Paul Bateman leads a conversation with Shareholders Dionysia Johnson-Massie (Atlanta), LaToi Mayo (Lexington), Lindbergh Porter (San Francisco), and Charles Wilson (Houston) as they discuss the trail to Juneteenth, its importance and how various acts impacted slavery in the U.S.
  

Teresa Trigueros discusses workplace harassment and its protocols.

Confilegal

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"How Obama's Cap on Exec Salaries Could Cause as Many Problems as it Solves," The National Law Journal

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.

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.

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").

Littler's Bruce McNeil explains the “rabbi trust" and how it has evolved as a way for employers to provide employees with a higher level of security with respect to nonqualified deferred compensation payment. He discusses further how it is beneficial for both employers and employees.

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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