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The U.S. Supreme Court is currently considering a case of great importance to employers, <i>Ledbetter v. Goodyear Tire & Rubber Co., Inc.</i> It will decide when the statute of limitations begins to run under Title VII of the Civil Rights Act of 1964 (as amended) ('Title VII') for certain types of disparate pay claims.
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It has often been said that the most frequently violated federal employment-related statute is the Fair Labor Standards Act ('FLSA'), 29 U.S.C. '' 201-19 (Supp. 2006). This law, enacted in 1938, regulates, among other things, the payment of overtime to employees who work for employers. Our experience indicates that most, if not all, employers do not intend to violate the provisions contained in the FLSA but, instead, do so out of ignorance of its requirements. This article highlights some of the key provisions of the FLSA, makes reference to recent pronouncements by the United States Department of Labor (the federal agency principally responsible for interpretation of the statute) and presents advice on how to avoid the pitfalls inherent in the FLSA.
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An end-of-year (Nov. 29) Delaware Chancery Court decision, <i>Esopus Creek Value LP v. Hauf</i>, No. 2487-N (Del. Ch. Nov. 29, 2006), is receiving a great deal of attention from corporate transactional and corporate restructuring attorneys alike. In <i>Esopus</i>, the Delaware Chancery Court prevented a financially sound company that was prohibited by federal securities law from holding a shareholder vote, because it failed to meet its reporting requirements, from executing an agreement outside of bankruptcy to sell substantially all of its assets under Section 363 of the Bankruptcy Code without first obtaining common stockholder approval as required under Section 271(a) of the Delaware General Company Law ('DGCL').
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Thirty-four states have enacted security breach notification laws. And Michigan passed such a law with an effective date of July 2, 2007. These laws cover the notification that a company must make in the event of a breach of security of its system with respect to computerized personal information. How are these laws enforced in the event of a violation? These laws vary in terms of enforcement and penalties, as more particularly described below. This article provides an overview of the enforcement of these laws and describes examples of penalties.
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In today's litigation world, corporate counsel struggle to contain the ever-increasing costs of document discovery. The explosion of electronically stored information ('ESI') is often a huge contributor to the expense of discovery. Consultants, vendors, and e-discovery software can help bring greater efficiencies and cost-savings to the process. But while there is a dizzying array of options available, they are not all created equal. Finding the right solution requires that you do your homework.
A federal judge sitting in Philadelphia has struck down the 1998 Child Online Protection Act ('COPA') on March 22. The Act was challenged as unconstitutionally vague by health Web sites and the American Civil Liberties Union ('ACLU').
On Jan. 22, 2007, after more than a decade of study, the FTC released its long-anticipated new Federal Trade Commission Rule on Franchising. This article outlines the key elements of the New Rule. The New Rule changes the coverage of the existing FTC Rule.
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Recent rulings that may affect your business.
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Employers go to great lengths and expense to reduce their potential exposure to employment-related claims. Most employers implement policies to address the myriad and growing federal, state, and local employment laws; regularly conduct employee EEO training; hire qualified human resources professionals and in-house attorneys with expertise in employment law; and regularly seek advice and assistance from outside counsel concerning these prophylactic measures. The purpose of this article is to apprise readers of a fast, simple, and inexpensive way to reduce their exposure to certain types of employment-related claims through the inclusion of an express waiver ('Waiver') in an employment application or other document signed by applicants or employees. The Waiver contractually reduces to six (6) months the time period within which certain types of employment-related claims must be filed and waives any statute of limitations to the contrary, thereby significantly reducing the number of timely-filed claims and, consequently, the employer's potential exposure.
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The Privacy Rights Clearinghouse estimates that over 100 million records containing sensitive personal information have been involved in security breaches. This non-profit consumer organization has tracked these breaches on its website (www.privacyrights.org) beginning with the significant and well-publicized ChoicePoint breach in February 2005. As a result, over two-thirds of states enacted security breach notification laws governing the notification that a company must make in the event of a security breach. This article outlines the requirements for providing notification of a security breach under state security breach notification law by any company and the factors that a public company needs to take into account regarding whether to disclose a security breach under federal securities law.