North America

Overtime: DOL Proposes to Raise Salary Level for Overtime Exemption to $35,308

The U.S. Department of Labor has released a proposal to update the overtime rules under the federal Fair Labor Standards Act. Employers should be prepared to raise salaries to meet the minimum thresholds, pay overtime when appropriate, and otherwise adhere to the new rules if they go into effect.

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Restaurant Group Severs Relationship with Mario Batali, Highlighting Long-Lasting Impact of Sexual Misconduct Allegations in the Hospitality Industry

On March 6, 2019, the 20-year business partnership between celebrity chef Mario Batali and the Bastianich family of restaurateurs, Batali & Bastianich Hospitality Group, was formally dissolved following allegations by several women more than a year ago that he sexually assaulted and harassed them at his restaurants years earlier. Tanya Bastianich Manueli and her brother Joe Bastianich have bought all of Mr. Batali’s shares in the restaurants. As a result, Mr. Batali has been fully divested and will no longer profit from his former restaurant group, and his name already has been removed from the group’s website. A new company (not yet named) has been formed to replace the now defunct Batali & Bastianich Hospitality Group. Ms. Bastianich Manueli will run day-to-day operations at the new company.

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Follow the Leader: California Paves the Way for other States to Strengthen Privacy Protections

Consumer privacy protection continues to be top of mind for regulators given a climate where technology companies face scrutiny for lax data governance and poor data stewardship.  Less than a year ago, California passed the California Consumer Privacy Act (CCPA) of 2018, to strengthen its privacy laws.  In many regards, the CCPA served as a watershed moment in privacy due to its breadth and similarities to the E.U. sweeping General Data Protection Regulation (GDPR) law.

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William F. Griffin, Jr. Featured in Strafford Webinar on Structuring Foreign Investment in U.S. Real Estate

On March 6, 2019, Davis Malm shareholder William F. Griffin, Jr. was featured in the Strafford webinar, “Structuring Foreign Investment in U.S. Real Estate: Entity Selection and Transaction Structures.” Mr. Griffin provided a thorough and practical guide to structuring strategies and tax considerations for foreign investors in U.S. real estate, outlined best practices for determining the purchasing entity, and reviewed tax planning opportunities in structuring the deal. Mr. Griffin was joined by co-presenter Richard S. LeVine, Special Counsel at Withersworldwide.

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New York State Department of Labor Scraps Proposed “Call-In Pay” Regulations – For Now

On March 1, 2019, the New York State Department of Labor (NYSDOL) announced that it is no longer pursuing predictive scheduling regulations (or “call-in pay”) that would have affected most employers in the state. For the time being, New York employers do not have to worry about pending statewide regulations regarding call-in pay. Keep in mind, however, that New York City employers are still subject to the Fair Workweek Law.

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The Third Circuit Defines the Requirements for Orders Certifying Wage Hour Class Actions

The obligations of a district court to analyze conflicting evidence regarding class and collective action certification was recently addressed by the Third Circuit Court of Appeals in Reinig v. RBS Citizens N.A., 912 F.3d 115, (3d Cir. 2018) (“Citizens”). In that case, the Third Circuit opined that Fed.R.Civ.P. 23 class certification orders (i) must explicitly define the classes and claims that are the subject of a certification order and (ii) provide an analysis of how the court reconciled any conflicting evidence supporting class certification.

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Shutts & Bowen’s Rachel Nordby Appointed to Florida Supreme Court’s Judicial Management Council

Shutts & Bowen LLP is pleased to announce that Tallahassee partner Rachel Nordby has been appointed by Chief Justice Charles Canady to the Florida Judicial Management Council of the Florida Supreme Court.

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Restrictive covenants and legally protecting your business in a tight labor market

With unemployment in the United States continuing at a historic low – reported at 4 percent last month by Trading Economics – employees are more mobile than ever. A consequence of employee mobility is the unauthorized “mobility” of a company’s business assets with those employees. Now more than ever, employers must look to protect their business assets from unfair competition through the use of reasonable restrictive covenant agreements. However, a restrictive covenant agreement is only as good as it is legal. It is imperative in using restrictive covenants to recognize the fundamentals in drafting a legally enforceable document.

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OIG Evaluates Remote Patient Monitoring Arrangement

The Office of Inspector General (“OIG”) for the Department of Health and Human Services recently issued an Advisory Opinion that provides insight into how the agency evaluates arrangements that deal with the integration of technology, medicine, and patient monitoring under the federal Anti-Kickback Statute (“AKS”). In Advisory Opinion No. 19-02, OIG evaluated whether a pharmaceutical manufacturer could temporarily loan a limited-functionality smartphone to financially needy patients enrolled in federal health care programs. OIG concluded that the proposed arrangement could violate federal health care fraud laws but OIG would not impose civil monetary penalties or administrative sanctions in light of the purpose of the arrangement and certain safeguards in place. This Advisory Opinion related to the promotion of remote patient monitoring and is useful to telehealth providers and other pharmaceutical manufacturers to evaluate how OIG might analyze similar arrangements.

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Davis & Gilbert is proud to welcome Thomas A. Engelhardt to the firm’s Corporate Practice Group

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