Hunton Employment & Labor Perspectives

On November 4, the state of Texas sued the Equal Employment Opportunity Commission and Jacqueline A. Berrien (in her official capacity as chair of the EEOC), requesting a federal district court to declare invalid the EEOC’s enforcement guidance on employers’ use of arrest and conviction records and to enjoin the EEOC from using this guidance against the state and its agencies. Texas v. EEOC, No. 5:13-cv-00255-C (N.D. Tex.).

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Even before passage of the Affordable Care Act (ACA), group health plan sponsors and administrators faced a significant array of notice and disclosure obligations.  Those obligations have only increased with passage of the ACA, and in many cases existing disclosure requirements have been revised.  For this reason, we are providing a table summarizing the principal notice and disclosure obligations currently applicable to group health plans, including those required under the ACA.  The first part of the table summarizes disclosure rules applicable to all welfare benefit plans ...

While much attention has been paid this year to the EEOC’s agenda and litigation over criminal background checks (the agency asserts such background checks have a disparate impact on minority groups), a parallel challenge kept pace in the form of private class action litigation under the Fair Credit Reporting Act (“FCRA”). 2013 saw a number of significant class action settlements against both employers and consumer reporting agencies (“CRAs”) for alleged violations of the Act in the use of criminal background checks:

On Monday, January 6, 2014, the National Labor Relations Board (“NLRB”) announced that it declined to seek U.S. Supreme Court review of two adverse rulings concerning its rule requiring employers to display posters informing employees of their right to unionize.  Under the rule, an employer’s failure to display the poster would have constituted an unfair labor practice.

On December 11, 2013, the Internal Revenue Service issued Notice 2013-74, which provides additional guidance for 401(k), 403(b) and governmental 457(b) plan sponsors on permitting in-plan Roth conversions (called “rollovers”) of pre-tax amounts.

In several recent cases in California, courts have applied Brinker Restaurant Corp., et al. v. Superior Court to reverse trial court decisions denying class certification.  Brinker is the ground breaking case in California where the California Supreme Court held that employers are only required to provide the opportunity for employees to take 30 minute meal breaks, but are not required to ensure those breaks are actually taken.  The Brinker court also held that where an employer has a uniformly-applied policy that is unlawful, class certification may be appropriate.  The recent ...

Recently, the United States Court of Appeals for the Fifth Circuit handed down a significant ruling in the continuing conflict over the ability of employers to require employees to arbitrate employment disputes and to waive the right to class arbitration.  In a long-awaited – and, in many circles, expected – decision, the Court overturned the National Labor Relations Board’s ruling that employers violate the National Labor Relations Act by forcing employees to submit employment disputes to individual arbitration.  The Court’s decision may pave the way for employers to enforce class arbitration waivers without fear of NLRB enforcement action….at least not anytime soon.

Employers across the Country are relying on Wal-Mart Stores, Inc. v. Dukes (2011) 131 S.Ct. 2541 to fight class certification or to file decertification motions.  Many are finding success, and for good reason.  Dukes is a major obstacle to class certification.  However, in a recent California appeals decision, Williams v. Superior Court (Allstate Insurance Company), December 6, 2013, Second District, Div. Eight, 2013 S.O.S. B244043, the appellate court found that the trial court abused its discretion when it decertified a class based on Dukes.  The trial court found that Dukes

Employers' use of criminal background checks in the hiring process is creating growing exposure to liability on several fronts.

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On October 31, 2013, the Internal Revenue Service issued Notice 2013-71, which modifies the “use or lose” rule for flexible spending accounts (FSAs) and permits employers to amend their section 125 “cafeteria” plans to allow employees to carry over up to $500 in unused FSA contributions to the next plan year.