Labor & Employment Law Update

On March 10, 2014, the Treasury Department and the IRS published the final rules on the Affordable Care Act (ACA) information-reporting provisions for employers and insurers set to take effect in 2015. The final regulations on Sections 6055 and 6056 of the Internal Revenue Code are being touted by the agencies as simplifying the original reporting requirements, which had been criticized by many employer groups as unnecessarily onerous.

Some progress has been made toward simplification – moving to a single combined form capturing data required by both Sections 6055 ...

On March 3, 2014, the U.S. Supreme Court announced it will review Busk v. Integrity Staffing Solutions, Inc., in which the Ninth Circuit held that time spent in (and waiting for) post-shift security screenings is compensable under the federal Fair Labor Standards Act (“FLSA”).  The employees in Busk, who worked in a warehouse filling Amazon.com orders, were screened only at the end of their workdays for the purpose of preventing the theft of Amazon merchandise.  Accounting for time spent waiting to be screened, the screening process took approximately 25 minutes for ...

The U.S. Supreme Court ruled that the whistleblower protections of the Sarbanes Oxley Act (SOX) reach beyond publicly traded companies.  In a split decision, the Court held that employees of privately held companies that contract or subcontract with a publicly traded company covered by SOX are also protected by SOX’s whistleblower provision.

The case involved two employees of a private company that contracted to advise and manage mutual funds for a publicly traded company subject to SOX.  Both employees alleged they blew the whistle on putative fraud relating to the mutual ...

The number of DOL benefit plan audits held steady in 2013 with the Employee Benefit Security Administration (EBSA) recently announcing that 3,677 civil investigations were closed in 2013, resulting in $1.7B in corrections, restored plan assets and fines. With that in mind, it’s a good time for plan sponsors and administrators to turn their attention to some basic housekeeping.

If the thought of a DOL plan audit makes you nervous, there’s good reason! DOL investigations find a failure in over 70 percent of plan audits. Failures typically result from defects in plan ...

The Illinois State Police announced today that they have approved the first 5,000 applications for concealed carry licenses under Illinois law and will be mailing out concealed carry licenses today.

The approval of these licenses shows that the Illinois State Police have decided not to use the entire 90 day period that the law provides for them to review applications, which would have resulted in the first concealed carry licenses being issued in April 2014.

Businesses and employers should anticipate that customers, clients and employees could have a concealed carry license as ...

Recently, the Federal Seventh Circuit Court of Appeals (Illinois, Wisconsin, and Indiana) affirmed summary judgment for the employer in a Workers’ Compensation retaliation claim. Phillips v. Continental Tire The Americas, LLC, — F.3d —, 2014 WL 572339 (Feb. 14, 2014).  Employer Continental Tires (“Continental”) had a written substance abuse policy which required drug testing for several enumerated reasons, including initiation of a workers’ compensation claim.  The policy further provided that an employee’s refusal to be tested was grounds for immediate ...

Would you want to know if you were about to offer a job to a convicted felon? Most employers would say “of course,” but both seeking and acting on that information could land you in legal trouble.  Before obtaining criminal background information on all potential new hires, you should know that the U.S. Consumer Financial Protection Bureau, the EEOC, and your state government may have something to say about that practice.

As a general rule, it is legal to inquire into the criminal history of employees and potential employees; however, concerns about fraud and discrimination are ...

On Tuesday, February 11, 2014, Judge Sara L. Ellis of the United States District Court for the Northern District of Illinois ruled that the EEOC could continue to pursue its ADA claims and challenge the United Parcel Service, Inc.’s (“UPS”) return-to-work rule of discharging employees who cannot return to work after twelve (12) months of continuous leave (EEOC v. UPS, Inc., No. 09-CV-05291, N.D. Ill. 2/11/14).

In this case, UPS had maintained a leave of absence policy, which provided in part that employees will be “administratively separated from employment” after ...

I’m going to come right out and say it: I hate Valentine’s Day.  Polls taken around this time of year prove that I’m not alone.  If you’re unhappily single, it’s a month-long in-your-face reminder of the fact that you’re single.  If you’re in a relationship, there is tremendous pressure to make a grand romantic gesture that’s not too grand or too romantic and proportionately matches your partner’s feeling.  The all-time absolute worst possible way to try to celebrate Valentine’s Day, however, is at the office.  At best, it creates a distraction that eats into ...

The Affordable Care Act (“ACA”) originally scheduled the employer mandates to take effect in 2014.  Then, on July 2, 2013, the White House announced that it would delay enforcement of the employer mandate provisions from 2014 to 2015.  Now – in line with the over-arching theme of the ACA which seems to be last minute postponement of regulations frustrating those proactively trying to ensure compliance — the IRS has now released new guidance further delaying the employer mandate until 2016 for those employers with less than 100 full-time employees.

Employers ...