Unemployment is low and the job market is currently tight. In this environment, talented employees are in high demand. Your best and brightest employees could jump ship for “greener pastures.” If your industry is highly competitive, the loss of talent to a competitor could be a real threat. Assuming you have confidentiality, non-solicitation, and (where legal) non-compete agreements in place, that threat could be reduced. But even with these agreements in place, employers must have a plan in…
Three Things Employers Should Do When an Employee Resigns
School’s Out For Summer…Are you Hiring?
With schools across the country about to wrap up for the year, many teenagers will be looking for jobs to earn some extra spending money or keep themselves occupied this summer. And many employers–in particular restaurants, retail establishments, hospitality, and amusement/recreational facilities–whose businesses pick up in the summer rely upon this short-term labor force to fill voids. If your business anticipates hiring workers under the age of 18, here are some things to keep in…
Comp Time In Lieu of Overtime
Offering an employee additional time off in lieu of paying overtime wages is something that, for the most part, is currently limited to government employers. While some private sector employers mistakenly offer such a benefit, it is—with a few exceptions—something that is prohibited under the Fair Labor Standards Act. That could change in the near future now that the U.S. House of Representatives has passed a bill that permits private employers and employees the option…
Supreme Court Deals Blow to Ninth Circuit Power to Review EEOC Subpoena Orders
Yesterday, the Supreme Court held 7-1 that a federal appellate court may only conduct an abuse of discretion review of orders for enforcement of EEOC subpoenas. The case is McLane Co. Inc. v. Equal Employment Opportunity Commission, 581 U.S. — (2017). Because the Supreme Court reversed the Ninth Circuit Court of Appeals, which covers almost 20% of the U.S. population, this is a major holding. The Ninth Circuit had employed a de novo standard affording…
Do You Need Employment Practices Liability Insurance?
As employment related claims continue to rise, businesses must evaluate all available options to attempt to mitigate costs and risks associated with these claims. One common way to address these issues is to obtain an Employment Practices Liability Insurance policy, commonly referred to as EPLI. This post provides a brief overview of the purpose of EPLI coverage and the potential advantages to obtaining an EPLI policy. What is EPLI? EPLI policies provide businesses with coverage…
ERISA 5500 Audits – Who Do They Protect?
By Marcy L. Rothman and Daniel Guerra – The Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code generally require employee benefit plans to file Form 5500 Annual Report/Report of Employee Benefit Plan. If a plan has more than 100 participants it is considered a “large” plan and the Form 5500 must be filed with a 401(k) audit. An internet search will reveal countless CPAs who perform “employee benefit plan,” “401(k)…
Judge Blocks Overtime New Rules. So now what?
The stunning news: The new overtime regulations set to go into effect on December 1, 2016, are now on hold due to a Texas judge’s ruling yesterday November 22, 2016, barring implementation nationwide. How did we get here? So now what do employers do? In my little corner of the law, overtime has been a central focus—in individual and class action lawsuits and, for over two years, in predicting and then ciphering the new regulations…
What Trump’s Win Means For Employers
After pulling off a victory more surprising than Truman’s, Donald Trump will have the opportunity over the next four years to–among other things–change the landscape of employment law in the United States. With Republicans now controlling the House, Senate, and White House, there will undoubtedly be significant changes that will last well beyond Trump’s term. And regardless of your political, philosophical, or moral takes on the issue, Trump’s victory will largely be viewed as favorable by…
DOJ And FTC Issue Joint Guidelines For Human Resource Professionals
On October 20, 2016, the Department of Justice (“DOJ”) and the Federal Trade Commission (“FTC”) (collectively the “Agencies”), who jointly enforce the antitrust laws, alerted human resource (“H.R.”) professionals that they might violate the antitrust laws by agreeing with competitors on the terms on which they will hire potential employees. The Guidelines are a reminder to H.R. professionals that they are competing with each other in the hiring of potential employees. The antitrust laws therefore…
Implementation of DOL’s New Overtime Regulations May Be Delayed
The new overtime regulations announced in May, which among other things raised the salary for the white collar exemptions from $23,660 to $47,476, were set to go in effect on December 1, 2016. But on Wednesday, the Republican-controlled U.S. House of Representatives voted 246-177 to pass a bill that would delay implementation of the new regulations to June 2017. The Senate, also controlled by Republicans, will likely pass the bill as well. But because changes…