Hunton Employment & Labor Perspectives

The Seventh Circuit gave an unexpected answer when asked:  is the Age Discrimination in Employment Act (ADEA) the exclusive remedy for federal age discrimination?   Deciding an issue of first impression for that court, it said no.  Levin v. Madigan, 7th Circuit, No. 11-2820, August 17, 2012.   The Seventh Circuit is an outlier, as every other circuit to consider the question (the 1st, 4th, 5th, 9th, 10th and D.C. Circuits) has held the ADEA is the sole remedy for federal age discrimination claims.

The Texas Supreme Court just accepted certified questions from the Fifth Circuit on two Texas employment law issues of first impression for the high court.  Sawyer v. E.I. DuPont De Nemours & Co., No. 12-0626.  The Texas Supreme Court will decide:  (1) whether at-will employees may bring fraud claims against their employers relating to the loss of their employment; and (2) if not, whether employees subject to a 60-day cancellation-upon-notice collective bargaining agreement that limits their employer’s ability to discharge its employees only for just cause constitute at-will employees under Texas law.

On July 24, 2012, the Fifth Circuit Court of Appeals issued what may turn out to be one of the more significant Fair Labor Standards Act rulings in recent years.  In Martin v. Spring Break ’83 Productions, LLC, the Fifth Circuit held that, under certain circumstances, a settlement agreement between an employer and its employees involving FLSA claims is enforceable notwithstanding the fact that neither the Department of Labor nor a court approved the agreement.  This ruling is the first appellate-level decision enforcing a private FLSA settlement and potentially opens the door for other circuits and district courts to follow suit.

The U.S. District Court for the Western District of Pennsylvania held recently that the U.S. Equal Employment Opportunity Commission’s “pattern and practice” disability discrimination claims are subject to a 300-day limitations period, furthering a pronounced split among federal district courts on the issue.  In the case, the EEOC took the position that its pattern or practice claims under the Americans with Disabilities Act were not subject to the limitations period, or, in the alternative, that the employer’s violations constituted a “continuous violation” and the EEOC’s claims were, thus, exempt from the 300-day limitations period.  The court, however, agreed with the employer’s position that the EEOC’s claims were subject to the limitations period based upon the plain language of the statute.  The decision holds the EEOC subject to the same limitations period applicable to individual claimants in any Title VII context.

As reported on Hunton and Williams LLP’s Privacy and Information Security Law Blog, on August 8, 2012, the Federal Trade Commission announced a settlement agreement with employment screening company HireRight Solutions, Inc. (“HireRight”). In its first enforcement action against an employment background screening company for Fair Credit Reporting Act (“FCRA”) violations, the FTC alleged that HireRight functioned as a consumer reporting agency, but failed to comply with certain FCRA requirements. The proposed consent order imposes a $2.6 million penalty on ...

The NLRB has again asserted its willingness to encroach upon employers’ long standing legitimate employment policies in a non-unionized workforce.  In Banner Health System, 358 NLRB No. 93 (July 30, 2012), the Board held that a blanket policy prohibiting an employee from discussing an ongoing investigation violates section 8(a)(1) of the National Labor Relations Act.

Is your payroll system ready for the new reporting requirements for group health benefit costs under The Affordable Care Act?  Under IRS guidance, the Form W-2 reporting of group health plan coverage costs will become mandatory this year.  Beginning with the 2012 Forms W-2 due in 2013, employers must report the aggregate value of certain employer-provided health coverage in Box 12 (with Code DD).  For many employers, this will involve substantial groundwork and will generally require that any needed payroll reporting changes be done before year-end.

Section 302 of the Labor Management Relations Act (LMRA) is, and always has been, an odd law. Its bare terms — which make it unlawful for an employer to “pay, lend or deliver” money or any “other thing of value” to a labor union or official, or for a union to “request, demand, receive or accept” the same from an employer — can be read expansively. Its most commonly cited proscriptions carry nothing more than a general intent requirement, suggesting that one can violate its provisions inadvertently.

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