Hunton Employment & Labor Perspectives

Section 302 of the Labor Management Relations Act (LMRA) is, and always has been, an odd law. Its bare terms — which make it unlawful for an employer to “pay, lend or deliver” money or any “other thing of value” to a labor union or official, or for a union to “request, demand, receive or accept” the same from an employer — can be read expansively. Its most commonly cited proscriptions carry nothing more than a general intent requirement, suggesting that one can violate its provisions inadvertently.

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Hunton & Williams client Sodexo Inc. announced last week that it has settled its civil RICO lawsuit against the Service Employees International Union, marking the end of the SEIU's contentious two year corporate campaign against the company.  Sodexo had alleged that the union conduct constituted extortion under RICO. Earlier this summer, the U.S. District Court for the Eastern District of Virginia, in which the case was pending, denied the SEIU's motion to dismiss the case, finding that Sodexo had stated viable RICO claims.

Sodexo's racketeering suit is the latest in a series of ...

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.