Hunton Employment & Labor Perspectives

Fairly or not, America’s commercial banks have been vilified by many as the cause of the nation’s financial meltdown. The CEOs of America’s most venerable financial institutions have been called to Washington and excoriated by an angry Congress, and on talk shows across the nation their salaries have been contrasted with those of hourly-paid financial workers. The new administration has called for tighter regulation of the financial sector and even appointed a “pay czar” to review the compensation structures of banks that have received bailout funds. While most of the attention over the banking crisis is focused on whether, and to what extent, the industry is in need of reform, far less attention has been placed on the veritable “perfect storm” the current political and economic climate has created for unions eager to make inroads into an industry that has been largely untouched by big labor.

Recently a woman found out just how serious social media can be when she lost her benefits as a result of photos she had uploaded to her Facebook page.  She posted photos on her Facebook page that showed her having fun on vacation and also enjoying a “Chippendales” show.  The problem was that she was on extended sick leave from her job at the time, purportedly because she was suffering from depression.  Her employer’s insurance company saw the photos and discontinued her benefit payments, concluding that she was not unable to work due to depression.  She argued her doctor recommended that she try to have fun to help her forget about her problems.

The Office of Federal Contract Compliance Programs (OFCCP),  recently signaled that it may conduct more evaluations of multi-facility employers.  Its recently revised standard Corporate Scheduling Announcement Letter (CSAL) describes new and different practices that will accompany compliance audits of federal contractors.

Last week, Secretary of Labor Hilda Solis announced the Department of Labor's planned launch of an ambitious new public awareness campaign called "We Can Help."  The campaign, set to debut in early 2010, is designed to help inform workers about their rights under federal wage and hour laws.

In one of the largest back pay awards in the agency's history, the National Labor Relations Board (NLRB) concluded a settlement with five Michigan beer distributors that required the companies to pay $41 million in back pay to employees and the Teamsters. Findings from an ALJ, supported by the NLRB and the 6th Circuit Court of Appeals, concluded that the five companies colluded to systematically oust the union by separately engaging in bad faith bargaining, unlawfully declaring impasse, and then implementing their respective labor contracts with substantially lower wages and benefits.

The Supreme Court agreed on November 2, 2009 to decide whether decisions of the National Labor Relations Board (NLRB) are valid if they were reached by only two members when other NLRB seats were vacant.  In New Process Steel, LP v. NLRB, the Seventh Circuit concluded that the NLRB’s two-member decision in that case was appropriate and binding.  The Supreme Court is expected to hold oral argument early next year and decide the case in June 2010. 

President Obama recently announced his intent to nominate P. David Lopez for the position of General Counsel of the Equal Employment Opportunity Commission (EEOC).  Lopez currently holds the position of Supervisory Trial Attorney for the EEOC’s Phoenix District Office.

H1N1 flu has become as widespread as feared.  For the period of August 30 to October 24, 2009, the Centers for Disease Control (CDC) reports 12,466 confirmed U.S. H1N1 hospitalizations and 530 confirmed deaths.  The CDC attributes 1339 deaths to H1N1 since the outbreak began in the Spring.  The Countries that are experiencing the worst outbreaks are the US, Mexico, and China.

This public health crisis is expected to get worse.  Any employer who has not yet put together a pandemic flu plan should do so immediately.  The details regarding such a plan are contained in the April 2009 "Swine Flu Pandemic Preparedness" and the May 2009 "H1N1 Update" Client Alerts.

In August 2009, the Obama administration named Patricia A. Shiu the new Director of the Office of Federal Contract Compliance Programs (OFCCP).  The OFCCP, part of the Department of Labor (DOL), enforces the non-discrimination and affirmative action obligations of federal contractors under Executive Order 11246, the Vietnam Era Veterans’ Readjustment Assistance Act, and the Rehabilitation Act.

At the recent AFL-CIO Constitutional Convention, Secretary of Labor Hilda L. Solis declared that the Department of Labor (DOL) is “back in the enforcement business.”  The DOL chief vowed to increase the DOL’s workplace enforcement of the nation’s labor laws because vigorous enforcement “is not only our responsibility, it’s our moral obligation.”

On July 15, 2009, the EEOC issued guidance entitled "Understanding Waivers of Discrimination Claims in Employee Severance Agreements." In this guidance, the EEOC generally explains the waiver of discrimination claims through release agreements and answers questions employees may have about the effect of those agreements on the filing of charges of discrimination and on severance pay. These questions include the following: "May I still file a charge with the EEOC if I believe I have been discriminated against based on my age, race, sex or disability, even if I signed a waiver ...

President Obama recently nominated Victoria A. Lipnic for a seat on the five-member Equal Employment Opportunity Commission (EEOC).  Lipnic is Republican, with an extensive background in employment law.  During the prior Administration, she served as Assistant Secretary of Labor for Employment Standards from 2002-2009.  In that capacity, Lipnic oversaw the Department of Labor’s largest agency, and led the teams that revised the Part 541 overtime regulations under the Fair Labor Standards Act (FLSA), and the Family and Medical Leave Act (FMLA) regulations.
 

The five-member National Labor Relations Board (NLRB) will undergo a dramatic makeover with the appointment of a new chairman, Wilma Liebman, and three new members, Craig Becker, Mark Pearce, and Brian Hayes.  Typically the Board consists of three members from the sitting President’s party and two from the other party.

The Administrative Task Force plays a critical role in keeping our OSHA practice current and vibrant.  We follow developments daily and we work together to analyze the impact that proposed and actual changes will have on the law in general and specifically on our client’s industries. Employers today face an unprecedented range of workplace safety and OSHA legal issues as government increases worker safety and health regulation and demands meticulous reviews by its OSHA inspection force.