California Court of Appeal Rejects Employee’s Attempt to Seek Derivative Wage Statement and Waiting Time Penalties Based on Alleged Meal and Rest Period Violations Continue Reading…

In bringing meal and rest period claims on behalf of their clients, the plaintiffs’ bar has long argued that merely because there was an alleged meal or rest period violation, there were also “derivative” statutory violations entitling their clients to additional penalties.  By arguing that an employer is also on the hook for such penalties, plaintiffs’ attorneys argue that the potential exposure is greater.  And with greater potential exposure, employers will be more inclined to settle – or so the rationale goes.

These purported “derivative” violations have come in at least two forms.  One type of “derivative” violation the plaintiffs’ bar has advanced is the theory that, because an employee was allegedly denied a meal or rest period, and because the employee would thus be owed an hour of “premium” pay for such a violation, the employee’s wage statement was not accurate because it did not show the premium pay the employee allegedly should have been paid, but was not.  That theory has been nonsensical from the get-go because it ignored the primary purpose of California’s wage statement law – that employees be provided a statement showing a calculation of the wages that they were actually paid.  Nevertheless, the plaintiffs’ bar continued to push this theory.  Understandably so – the maximum statutory penalty for wage statement violations is $4,000.  And that would be for just one employee.

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The Italian Code of Business Crisis

The Italian Code of Business Crisis
The article published in the last issue of EuroFenix, by Giorgio Cherubini and Giovanna Canale, analyzes the measures of the Italian Code of Business Crisis entered into force in March 2019, in particular articles 356, 375, 378 and 379.
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California Governor Signs Legislation Outlawing Mandatory Arbitration Agreements with Employees Continue Reading…

As employers with operations in California had feared, Governor Gavin Newsom has signed AB 51, which effectively outlaws mandatory arbitration agreements with employees – a new version of a bill that prior Governor Jerry Brown had vetoed repeatedly while he was in office.

The bill not only prohibits mandatory arbitration agreements, but it also outlaws arbitration agreements in which employees must take an affirmative action to escape arbitration, such as opting out.

And as the statute is written in broad terms that extend to waivers of statutory “procedures,” it appears to extend not just to arbitration of an employee’s claims, but also to waivers of jury trials and of class actions.

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Belief That Information Is a Trade Secret, Even If It Isn’t, Is Enough to Be Convicted for Attempted Theft of Trade Secrets

A federal judge in Chicago recently held that an individual can be convicted of attempting to steal a trade secret, even if the information at issue did not actually constitute a trade secret, so long as the individual believed that the information was a trade secret.

In United States of America v. Robert O’Rourke Opinion, Judge Andrea R. Wood denied a post-conviction motion for a new trial in a case involving attempted and actual trade secret theft.  The decision involved a metallurgical engineer and salesperson, Robert O’Rourke, who resigned his employment to take a position as vice president of research and development for a China-based competitor.  Shortly before his last day, he entered his employer’s facility and downloaded over 1900 documents from its network onto a personal hard drive.  His employer discovered this and alerted law enforcement, and O’Rourke was stopped by Customs and Border Patrol officials while attempting to board a flight to China with the hard drive containing the downloaded documents.  At trial, he was convicted of actual and attempted trade secret theft.

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Updated Job Accommodation Network Toolkit Available for Disability Accommodation Resources

Employers seeking information about potential reasonable accommodations, and tips on the interactive process, can turn to the newly updated Job Accommodation Network (JAN) Toolkit.

The Department of Labor provides funding for JAN as a free, comprehensive, online resource to assist businesses in complying with the Americans with Disabilities Act (ADA). According to the website, the Toolkit “provides resources to support organizational efforts to accommodate applicants, candidates, and employees with disabilities; to train those serving in roles critical to managing disability; and to promote disability inclusion throughout the workplace.”

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Arrangements, Exceptions, and Modifications – OIG and CMS Challenge the Status Quo

The Centers for Medicare & Medicaid Services (CMS) and the Department of Health and Human Services Office of Inspector General (OIG) issued their long-awaited proposed rules in connection with the Regulatory Sprint to Coordinated Care today.  Transforming our healthcare system to one that pays for value is one of the Department’s top four priorities, and the Deputy Secretary launched the Regulatory Sprint to remove potential regulatory barriers to care coordination and value-based care.

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Setting aside the municipalities’ exemption from liability for firefighting

By Benoît Chartier, from our Insurance Law Practice Group.

October 9, 2019 — As an incentive for municipalities to enhance their firefighting services, the Fire Safety Act grants them an exemption from lawsuits when they have implemented and followed a fire safety cover plan.

However, this exemption is not unconditional: certain principles of liability remain, as seen in the decision of the Superior Court of Québec in Royal & Sun Alliance du Canada, société d’assurances c. Ville de Trois Rivières, 2019 QCCS 3181.

Click here to read more (PDF).

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ILN Today Post

Singapore Summit to Gather Anti-Corruption Experts in Industry, Government

Anti-corruption enforcement has never been more aggressive or coordinated. In light of this current situation, multinational corporations have continued to emphasize investment in strong anti-corruption compliance programs. In the Asia-Pacific region, jurisdictions have taken strong steps to reinforce their anti-corruption legislative framework by requiring organizations and businesses to comply with internal policies and local regulations.

To address this issue, Duxes will host the 8th Anti-Corruption Compliance Asia Pacific Summit 2020 (ACAP) from February 20-21 in Singapore. The event is designed to help companies adapt to the new anti-corruption environment. The two-day summit will gather government officials and industry leaders to discuss important developments, including anti-corruption enforcement trends, third-party due diligence, and risk management, as well as best practices for compliance, internal communication and internal audits.

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U.S. DOL Announces Proposed New Rule On Tip Credits And Pooling

Rules relating to tip credit and pooling have resulted in significant debate among legislators, regulators, and the courts, leading to confusion, further litigation, and, in many cases, substantial liability or settlements involving employers that operate in the hospitality industry.  Today, the U.S. Department of Labor (“DOL”) published proposed rulemaking that aims to bring greater clarity to the morass of tip-related legislation, as well as previous agency rules and interpretations.  I describe below some of the notable elements of these proposed rules.

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In Adopting “Contract Coverage” Standard, NLRB Gives Employers Greater Flexibility to Act Unilaterally on Subjects Encompassed by Collective Bargaining Agreements

As summer turned to fall, the National Labor Relations Board (“NLRB” or the “Board”) issued a steady stream of decisions with significant and favorable implications for employers.  In the flurry of recent decisions, the Board addressed misclassification of workers as independent contractors, employers’ rights to control access to private property (Tobin Center for Performing Arts, UPMC, and Kroger Mid-Atlantic), the right to impose class action waivers in the wake of employment lawsuits, withdrawal of union recognition, the appropriate scope of bargaining units, and management’s right to make unilateral changes to terms and conditions of employment that are “covered by” a collective bargaining agreement (“CBA”).

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