Class Action Fairness Act Raises Issues for Employment Litigation
March 29, 2005
In February, President Bush signed his first piece of "tort reform" legislation, the Class Action Fairness Act (the Act), into law. The Act expands federal diversity jurisdiction to encompass most large class actions, including employment law related class actions. One area of employment litigation that the Act may likely impact is in the wage and hour class action context where, as discussed below, litigants file wage and hour class actions in state court while also pursuing Fair Labor Standards Act (FLSA) collective actions in federal court.
Rights of Disability Insurance Claimants Boosted with Decision
March 29, 2005
There are significant differences in the rights afforded to an insured under a disability insurance policy depending upon whether the insurance is provided pursuant to an individual policy or under an employer-sponsored plan covered by the Employee Retirement Income Security Act of 1974 (ERISA), 29 USC ' 1001 <i>et seq</i>. While individual policies are traditionally governed by applicable state common law contract principles, ERISA preempts any and all state laws "insofar as they may now or hereafter relate to" a covered disability plan, and such state laws encompass "all laws, decisions, rules, regulations, or other state actions having the affect of law, of any State" as well as statutory provisions and common law claims.
Whistleblowing: SOX's Unintended Victims
March 29, 2005
It seems fitting to recall Samuel Morse's first telegraph message now that his telecommunications progeny Bernie Ebbers, former chief executive of WorldCom, has been convicted on all nine counts claiming that he helped mastermind an $11 billion accounting fraud at his former firm, now known as MCI. Ebbers had been charged with one count of conspiracy, one count of securities fraud, and seven counts of filing false statements with securities regulators. He could serve up to 85 years in prison. Meanwhile, another senior executive of a major corporation has been undone -- not by business fraud, but by a personal affair.
Avoiding Alimony Tax Pitfalls
February 25, 2005
The purpose of making payments to a spouse or former spouse as alimony under the Internal Revenue Code (the Code) is so that such payments will be taxable to the payee and deductible to the payor. This article reviews the rules and the pitfalls.
Overseeing Overtime Practices
February 25, 2005
Overtime eligibility has developed into a snake pit for employers. The rate of claims for unpaid overtime compensation in court cases and agency proceedings has been increasing faster than that of any other type of employment litigation for several years now. During this period the number of federal overtime collective actions has been more than the number of federal class actions for all types of employment discrimination combined. The cumulative damages awarded to current and former employees for these claims have been enormous.
Love As a Matter of Contract?
February 25, 2005
With Americans spending more time at work, and with large numbers of women joining the workforce since World War II, the workplace has become a principal place where men and women seek and find their romantic partners, whether for a fling or a long-term relationship ending in marriage. Indeed, by some reports, nearly 60% of employees acknowledge engaging in a workplace romance. At the same time, however, American employers have been tempted to cultivate a near zero-tolerance culture for workplace romance given the development of sexual harassment law and the explosion of discrimination lawsuits alleging harassment. In many ways, it is impracticable for employers to maintain an outright ban on workplace romance: love will find a way, and employees may well hide relationships, which could end up being more problematic for the employer and just as likely to lead to an eventual lawsuit.
