Jottings By An Employer's Lawyer |
Monday, March 31, 2003
Proposed Regulations for White Collar Exemptions - Major Changes In Store
Briefly, the two part test (the long and short form) which had $155 and $250 figures to distinguish between them are now gone. As a practical matter, the long form test had not been utilized in years. There will now be a three tiered system for salaried employees who perform non-manual jobs: up to $22,100, overtime is mandatory; from $22,100 to $65,000, new white collar exemption rules will determine eligibility for overtime; $65,000, no overtime, as long as employee performs one of the exempt duties listed under the executive, administrative or professional regulations. In addition to the new three tier system and changes in the basic rules for determining whether some one is exempt under one of the regulations, the rules of what constitutes a salaried employee (still a pre-requisite for the EAP exemptions) have changed to ease the danger of losing the exemption on a large of class of employees inadvertently. Employers would also be allowed the right to suspend exempt employees for disciplinary reasons. It should be stressed these are only proposed regulations and the Department of Labor has identified a number of areas where they specifically invite comments. The comment period runs through June 30th. Given the nature of the regulations and the major changes, there will almost certainly be a large number of comments. It is unlikely that the final regulations, which could possibly have substantial changes from this proposal, would be in effect before 2004 at the very earliest. Over the next few days I will take a look at some of the more specific provisions.
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Sunday, March 30, 2003
The Blogging Big Time!
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Saturday, March 29, 2003
Academician Weighs In On English Only Rules
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Helmsley Gets to Pay More In Attorneys Fees, Than Award
Labels: attorneys fees
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Friday, March 28, 2003
More On Wage and Hour Exemption Changes
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Dardinger Case Update - No Challenge to Unusual Ruling on Punitive Damages
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9 Lives for Duffield in the 9th Circuit?
Labels: arbitration
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Thursday, March 27, 2003
This Could Be Big News! White Collar Exemption Rules To Change
Update: According to BNA's Daily Labor Report, the regulations will be published on Monday, March 31. Details when they are released.
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Wednesday, March 26, 2003
Michigan Study Finds Discrimination Now More Subtle
Leslie Rose McDonald has a story about the impact of subtle, but not illegal, practices on employees in today's Syracuse's Post Standard. Unfortunately, the law is not nearly as good dealing with subtle issues as it is with blatant acts. I think both stories raise some of the reasons why many with different perspectives, employers, employees, courts and lawyers on both sides of the docket, are dissatisfied with the present system of employment law. Update: Thanks to Ed Finnerty here is a link to the Kalamazoo study. [pdf]
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Talk About A Contingency Fee!
During the course of the contempt proceedings, plaintiff discharged her counsel who promptly intervened for his attorneys fees. He sought not only the court awarded fees of over $36,000, but 35% of the $49,769.11 ($17,419.19) based on his contingency agreement. It provided he would be entitled to "thirty-five (35%) percent of any amount recovered or saved after suit if [sic] filed, excluding court awarded attorneys fees". Another part of the retainer agreement provided "[i]t is specifically understood that all court awarded attorneys fees are and shall remain the property of attorney." Both the district court and the Fifth Circuit enforced the contingency agreement. Gobert v. Williams (5th Cir. 3/26/03). The plaintiff employee tried to argue that her counsel was limited to a 'reasonable attorneys fees' under Title VII and that was the court determined amount. Noting that the Supreme Court had already decided this issue, the court replied that the question was not the reasonableness of what the defendant employer had been required to pay, but what she had agreed to pay her attorney. And as the Supreme Court had said, "there is nothing in [' 2000e-5(k)] to regulate what plaintiffs may or may not promise to pay their attorneys if they lose or if they win." Net result, one happy attorney; one unhappy, albeit promoted employee. To save you from doing the math, final totals: Plaintiff's lawyer -- $54,109 Plaintiff -- 32,349.92And of course the employer was not all that happy either. Labels: attorneys fees
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Employer's Evidence of Poor Performance Not Enough At Prima Facie Stage
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Blawgs Gathered At the Daily Whirl
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Climate for Complaints?
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How the Internet Is Changing the Employment Law World
Please note: if the information you fill in on the form for a pending class action does not match the description of the class, it will not be forwarded to the law firm handling that particular action. We will, however try to find a lawyer to review your complaint.All kinds of suits are included on this site, but just focusing on the employment law ones, there are classes for cases settled, cases pending and most intriguing "Join a group of people seeking a class action against" which is a list of both specific companies, or more generally, specific types of claim such as overtime violations or employers who allegedly practice race or sex based wage discrimination. Check here to see if you make the target list.
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Weird Things in the World of Employment Law? No Way!
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Tuesday, March 25, 2003
You Don't Need Sarbanes-Oxley For This
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Access to Internet At the Library - The Workplace Dimension
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Monday, March 24, 2003
U.S. Government to Argue That FLSA Cases Are Removable
In the brief, co-signed by the Acting Solicitor of Labor, the importance of having uniform interpretations of the FLSA is pointed out. Making the case even more important, it suggests that the outcome of the decision could also determine whether cases brought under the FMLA and the Employee Polygraph Protection Act can be removed since they contain similar language. Even more broadly, it raises the possibility it could impact removal under Title VII and the ADEA, even though those statutes have slightly different standards. Since it seems to me that removal is clearly appropriate, and because the Supreme Court has in the past taken a narrow view of removal statutes, it is certainly good for the Solicitor General to be weighing in, given the support for removal. Hopefully, this will be one case the Supreme Court grants writ where it does not reverse the lower court. Labels: FLSA
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Rights of Reservists - Timely Message
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Blawgistan - A Technical Challenge
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Sunday, March 23, 2003
New Mexico Passes Prohibition on Discrimination Against Gays
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Settle Not Fight, One Opinion
"It's not contagious," said Steven Adelman of Lord, Bissell & Brook. He also advised associations against going to litigation out of principle to counter claims of bias. "Don't fight just to fight. It's too expensive," he said.
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Friday, March 21, 2003
Are We Any DIfferent From the Brits?
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Not A Pretty Picture of the LAPD - Cost $3.5 Million
Labels: MDV
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Sarbanes-Oxley Whistleblower Final Regulations
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Wednesday, March 19, 2003
If Your Friendly EEOC Representative Seems A Little Distracted
Labels: EEOC
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Million Dollar Verdict Close to Home- Fired Seitel Executive Wins $4 million Award
Labels: MDV
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WARNing for Brobeck, and Maybe Morgan, Lewis & Bockius
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Tuesday, March 18, 2003
Violence in the Workplace - Abroad As Well
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An EEOC Press Release With A Difference - McDonald's Franchisee Sued for ADA Based On Birthmark
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Calculate the Cost and Benefit of a Layoff
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EEOC Investigations - What An Employer Should Know (According to the EEOC)
Labels: EEOC
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Facts Bearing Out All the Seminar Talk of Age Discrimination
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Monday, March 17, 2003
More Fun For Employers: If You Thought Napster Was A Problem
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Unhappy With Unemployment System in Texas?
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Basically, It's About Fairness
"They are a very, very big company with a lot of offices all across the country and, for the average worker I think it's important that an employer pay attention to the employee and is fair.... That's all anybody ever wants is fairness. That's basically what it was all about from beginning to end." The lesson to be learned is the importance of always remembering that no matter what legal question a jury is asked, in an employment law case, often the real question is: was this fair?
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Sunday, March 16, 2003
78th Texas Legislature - All Bills Now Filed
For all practical purposes, all legislation that will be considered this session has now been offered. House of Representatives H.B. 50 Sylvester Turner (D – Houston) Mandatory leave for employees to attend school conferences, and penalties against retaliation for exercising that right. Referred to Economic Development. Public hearing on March 19, 2003 left pending in committee. H.B. 105 Norma Chavez (D - El Paso) Provides for unemployment benefits, without charge to an employer's account, if an employee is forced to leave employment because of domestic violence. Referred to Economic Development. H.B. 126 Lon Burnam (D - Fort Worth) Requires parity for mental illness in disability insurance policies sold in state of Texas. Referred to Insurance. H.B. 152 Ron Wilson (D – Houston) Limits an employer's ability to obtain so called 'dead peasants insurance,' where an employer obtains a policy on lower paid employees with itself as a beneficiary. Referred to Insurance. Public hearing on March 10, 2003, pending in committee H.J.R. 18 Suzanna Hupp (R – Lampasas) A constitutional amendment to grant a broad right of privacy. In California, a similar constitutional amendment was used as a basis for finding the constitutional right of privacy extended to non-government employers. Referred to State Affairs. Testimony taken on March 3, 2003. Still pending in committee. H.B. 181 Jessica Farrar (D – Houston) Allows an individual who receives deferred adjudication to legally deny the arrest and prosecution, except for a subsequent criminal prosecution. This would impact information employers are able to obtain when hiring. The bill passed last legislative session, but was vetoed by Governor Perry. Correction of referral, now referred to Law Enforcement. Public hearing on March 17, 2003, committee substitute considered in committee, still pending in committee. H.B. 281 Paul Moreno (D – El Paso) This is not technically an employment bill, but is likely to be one of the most talked about and contested non-financial bills of this session. It would make it a misdemeanor (punishable by a $100 fine) to talk on a mobile phone when driving, unless the car is stopped or the phone is operated without the use of either hand. Referred to State Affairs. Testimony taken on March 3, 2003, still pending in committee. H.B. 328 Warren Chisum (R – Pampa) An attempt to allow employers the opportunity to obtain information from applicants about prior workers compensation claims and injuries. The legislation modifies the Texas Commission on Human Rights Act and the Texas Workers Compensation Act, but unfortunately can not shield employers from the Americans with Disabilities Act which prohibits such inquiries. Referred to Business & Industry. Testimony taken on March 4, 2003 still pending in committee. H.B. 355 and H.B. 356 Harold Dutton (D – Houston) These are two education leave bills, similar to some of the amendments that have been suggested for the federal Family Medical Leave Act. One would require employers to give time off to employees to meet with teachers, counselors or principals; the other to attend certain school activities. The bills also create new causes of actions against employers for refusing to provide the time off. Referred to Economic Development. Public hearing on March 19, 2003, pending in committee. H.B. 359 and H.B. 371 Harold Dutton (D – Houston) These two bills attempt to limit the use of mandatory arbitration. The first would prohibit arbitration of Texas Commission on Human Rights Act or Title VII claims, the second would prohibit mandatory arbitration until an employee had worked for an employer for at least 90 days. Even if these bills were to pass, if the agreement were covered by the Federal Arbitration Act, these restrictions would be pre-empted. Most, but not necessarily all, employment relationships will be covered by the FAA. Referred to Economic Development. Public hearing on March 19, 2003, left pending in committee. H.B. 379 Harold Dutton (D – Houston) Requires employers to allow employees to review their personnel files. Similar legislation has been offered for several sessions. It would make failure to comply by the employer an unfair employment practice, which is treated as a violation of the Texas Commission on Human Rights Act. Referred to State Affairs. H.B. 570 Fred Brown (R –Bryan) For non-subscribers to workers compensation, the bill would cap liability at $250,000 for work place injuries to employees. In order to qualify for the cap, the employer must have insurance meeting certain limits. Referred to Business & Industry. Public hearing of April 1, 2003 withdrawn from the schedule. H.B. 574 Jessica Farrar (D – Houston) Amends the Texas Commission on Human Rights Act to prohibit discrimination against individuals on the basis of their sexual orientation or gender identity. It would also protect anyone from being treated differently because of the sexual identity of individuals with whom the employee associates. Referred to Business & Industry. Public hearing on March 25, 2003, left pending in committee. H.B. 624 Jose Menendez (D - San Antonio). Basically a refined version of Representative Moreno's H.B. 281 which prohibits use of mobile phones while driving. This version has more definitions, some exceptions for emergency calls, and a range of fines that increases if the violation occurs in a school zone. Referred to State Affairs. Testimony taken on March 3, 2003, still pending in committee. H.B. 643 Arlene Wohlgemuth (R - Burleson) A technical amendment to the punitive damages cap. Currently, the cap is not applicable where the defendant engages in certain criminal activity. The amendment would require a conviction before the cap would not be applicable. Under the current law, plaintiffs are able to argue that certain conduct should be outside the cap because it meets the literal language of the current statute, even though there has been no criminal prosecution. Referred to Civil Practices. H.B. 705 Burt Solomons (R - Carrollton) Provides a defense against a claim of negligent hiring for employers whose employees enter another's home for purposes of repairs or delivery of goods. The defense would only be available if the employer obtained a criminal record from the Department of Public Safety. The bill gives the employer the right to have that access. Referred to Civil Practices. Public hearing held on April 2, 2003, left pending in committee. H.B. 772 Dawnna Dukes (D - Austin) Similar to H.B.105, would allow an employee to quit a job if advised to by a law enforcement officer, a licensed medical practitioner or a licensed counselor because of domestic violence or stalking and still receive unemployment benefits. The employer's account would not be charged. Referred to Economic Development. H.B. 804 Charlie Geren (R - Fort Worth) Amends Texas minimum wage law to pre-empt any city ordinance setting a minimum wage. It does not apply to government contracts or tax-abatement agreements. In light of recent adoption of a living wage ordinance by Santa Fe, New Mexico, this bill may now get more attention.Referred to Economic Development. Passed on April 8, 2003 and sent to the Senate. Legislative exchange made it clear that it does not apply to living wage ordinances which set a higher minimum wage for any local governmental entity. H.B. 810 Eddie Rodriguez (D - Austin) Prohibits discrimination by state agencies on the basis of sexual orientation or gender identity. Referred to State Affairs. H.B. 812 Roberto Gutierrez (D - McAllen) Provides that 75% of any award of punitive damage award will go to the Permanent University Fund. The plaintiff would receive 15% and plaintiff's attorney 10%, notwithstanding any other contractual agreement. Referred to Civil Practices. H.B. 826 Yvonne Davis (D - Dallas) Requires employers to turn over any abandoned wage payments to the State Comptroller. Referred to Economic Development. Scheduled for public hearing on April 9, 2003. H.B. 945 Lon Burnam (D - Fort Worth) Would set a minimum wage for state and local governments. The minimum wage would be the higher of the federal minimum wage or one calculated based on the federal poverty guidelines. Based on the 2002 guidelines, the minimum wage would be $8.70. Referred to State Affairs. Public hearing on April 7, 2003, pending in committee. H.B. 978 Dawnna Dukes (D - Austin) Restrictions on certain business entities being the designated beneficiary of life insurance policies. Referred to Insurance. H.B. 995 Ken Mercer (R – San Antonio). Expands the public whistle blower statute to also include protection from retaliation for reporting a waste of funds to an appropriate governmental agency. Referred to Government Reform. Public hearing on April 8, 2003, pending in committee. H.B. 1018 Mike Villarreal (D – San Antonio) Would provide a preference by state and local governments for vendors who were certified as family friendly by the Texas Workforce Commission for providing employee dependent care benefits. Public hearing on March 10, 2003, pending in committee. H.B. 1045 Joe Deshotel (D – Port Arthur) Creates an alternative base period for computation of unemployment compensation benefits to remove a period of extended medical disability. Referred to Economic Development. Public hearing on March 12, 2003, pending in committee. H.B. 1136 Mike Villarreal (D – San Antonio) Prohibits discrimination in employment, housing or public accommodations because of sexual orientation. Referred to State Affairs. Scheduled for public hearing on April 16, 2003. H.B. 1142 Glenn Lewis (D – Fort Worth) Requires health insurance plans to provide for an annual physical with certain basic lab tests. Referred to Insurance. H.B. 1221 Barry Telford Prevents a chargeback to an employer's account if unemployment benefits are provided because the employer was called to active duty military service after January 1, 2003. Referred to Defense Affairs & State-Federal Relations. Passed the House on April 3, 2003. Referred to Veteran Affairs and Military Installations. H.B. 1244 Senfronia Thompson (D - Houston) A repackaged version of comparable worth. Prohibits discrimination in compensation by paying less to a person in a protected class for a person in an equivalent jobs under similar conditions. The amount of litigation and control of the workplace that this would create is almost unimaginable. It was a bad idea when first introduced and has gotten no better over time. Referred to Economic Development. H.B. 1245 Terri Hodge (D - Dallas) Amends the unemployment statute to allow workers who are locked out by their employer, or who are idled because of a work stoppage at another location to receive unemployment compensation benefits. Referred to Economic Development. H.B. 1282 Brian McCall (R - Plano) This is not an employment bill, but an anti-spam one, so certainly one worthy of watching from at least my mailbox's perspective. Referred to Economic Development. Passed by the House on April 3, 2003. Referred to Business and Commerce. H.B.1359 Aaron Pena (D - Edinburgh) Would make it more difficult to offer evidence of past sexual conduct in civil related cases by adopting the standards and procedures of Rule 412 of the Federal Rules of Evidence. This is the first employment related bill offered by Representative Pena, who in his day job, is the leading plaintiff's employment lawyer in the Valley. Referred to Civil Practices. Scheduled for public hearing on April 16, 2003. H.B. 1360 Aaron Pena (D - Edinburgh) Amends existing state law with respect to penalties for discrimination against national guard personnel, by removing the current cap on damages which was limited to six months pay, adding punitive damages and utilizing the caps applicable to TCHR claims based on number of employees, with a maximum of $300,000 for compensatory and punitive damages by employers with more than 500 employees. An interesting choice, since it will be hard to argue against increasing penalties against employers who discriminate against those who might be called to serve in the Iraq conflict. Referred to Defense Affairs and State-Federal Relations. Public hearing on March 20, 2003, left pending in committee. H.B. 1496 Burt Solomons (R - Carrollton) Establishes a study to review and propose legislation to strengthen the anti-abuse provisions of the unemployment compensation laws, including increasing collections of overpayments. Referred to Economic Development. Scheduled for public hearing on April 9, 2003. H.B. 1524 Senfronia Thompson(D - Houston) Amends the Texas Commission on Human Rights Act to make it illegal to inquire of an applicant, or of any person who knows the applicant, about their sexual orientation. Referred to State Affairs. H.B. 1550 Bill Zedler (R - Arlington) Prohibits unions from spending any portions of dues for political purposes without obtaining a specific authorization from the union member. Referred to Economic Development. H.B. 1645 Kevin Bailey (D - Houston) Would remove the restriction on subdivisions of the state from entering into collective bargaining agreements. Although this would not directly impact private sector employers, if it were to pass, it could improve the climate for unions in Texas. Referred to County Affairs. H.B. 1684 Beverly Woolley (R – Houston). Amends the TCHRA so that the issuance of a right to sue letter by the EEOC would also trigger the 60 day deadline for filing a lawsuit under the TCHRA. This would be extremely helpful in making sure that lawsuits are timely filed and eliminate a major flaw in the current situation. Referred to Economic Development. Set for public hearing on April 9, 2003. H.B. 1819 Rene Oliveira(D - Corpus Christi) Allows unemployment compensation for those who lose their jobs because of a disaster declared by the Governor. Referred to Economic Development. Passed by the House on April 3. 2003. Referred to Business & Commerce. H. B. 2001 Harold Dutton (D - Houston) Adds a federal medical support notice to the requirement that employer’s must follow in withholding from their employee’s. Referred to Juvenile Justice & Family Issues. Reported favorably by Committee and sent to Local & Consent Calendar on April 11, 2003. H.B. 2028 Aaron Pena (D - Edinburg) Although applicable only to local governments, this is noteworthy of the type of legislation that may be offered by Representative Pena, who is also an employment lawyer representing employees. This legislation establishes a Sabine Pilot cause of action for employees who are required to commit an illegal act. Unlike the common law version, it does not have a sole cause standard. It also establishes punitive damage caps tied to the size of the agency, provides for civil penalties and under certain circumstances would require an audit of a local government that has been found liable and assessed damages of more than $10,000. Referred to State Affairs. H.B. 2170 Burt Solomons(R - Carrollton) Sunset legislation concerning the renewal of the Texas Workforce Commission. Contains a number of substantive changes. Referred to Economic Development. Set for public hearing on April 9, 2003. H.B. 2347 Sid Miller (R - Stephenville) Provides that all punitive damages go to the state general fund. Referred to Civil Practices. H.B. 2395 Frank Corte (R - San Antonio) Would substantially rewrite the common law of defamation by requiring that there be a request for correction or clarification of defamatory statements, and limiting recovery to actual damages if a correction or clarification were made in a timely manner. Referred to Civil Practices. Scheduled for public hearing on April 16, 2003. H.B. 2698 Ryan Guillen (D - Rio Grande City) Eliminates the 7 day waiting period for unemployment compensation. Referred to Economic Development. H.B. 2933 Kino Flores (D - Mission) Transfers the Texas Commission on Human Rights to the Attorney General. Referred to Government Reform. H.B. 2949 Reuben Hope (R - Conroe) Requires that a waiver of right to a jury trial use specific language and be in 16 point type. Part of the required statement is that the waiver is not required by law. Referred to Civil Practices. Public hearing held on April 9, 2003, pending in committee. H.B. 3060 Kino Flores (D - Mission) Limits liability of employer utilizing a staff leasing company to those items for which it has contracted to pay. Correction in referral, now referred to Licensing & Administrative Procedures. H.B. 3065 Joe Deshotel (D - Port Arthur) Would require that any jury mirror the racial and ethnic make up of the county in which it is picked. Referred to State Affairs. H.B. 3160 Jaime Capelo (D - Corpus Christi) Would remove the restriction on subdivisions of the state from entering into collective bargaining agreements. Although this would not directly impact private sector employers, if it were to pass, it could improve the climate for unions in Texas. Referred to County Affairs. Public hearing scheduled for April 9, 2003. H.B. 3220 Dwayne Bohac (R - Houston) Amends the workers compensation statutes to allow for a request for clarification on a determination of maximum medical improvement and related technical changes. Public hearing scheduled for April 15, 2003. Referred to Business & Industry. H.B. 3278 Ryan Guillen (D - Rio Grande City) Creates a cause of action for employees terminated because they are served or comply with a subpoena. Referred to Business & Industry. H.B. 3308 Jaime Capelo (D - Corpus Christi) Amends the Texas Payday Act to allow payment by direct deposit. Referred to Economic Development. H.B. 3379 Norma Chavez (D - El Paso) Amends the Texas Commission on Human Rights Act to prohibit an English only rule, with certain exceptions. Referred to Economic Development. H.B. 3401 Bill Zedler (R - Arlington) Repeals the little "Davis Bacon" laws which require a prevailing wage for certain governmental contracts. Referred to Economic Development. H.B. 3430 Trey Martinez Fisher (D - San Antonio) Amends the Texas Arbitration Act to make it more difficult to require arbitration of consumer matters where less than $50,000 is involved, adds additional standards for appeal, including an additional standard of review based on the correctness of the arbitration award itself, and allowing an appeal of denial of a motion to compel even when the Federal Arbitration Act is applicable. Referred to Civil Practices. H.B. 3462 Mike Villarreal (D - San Antonio) Amends the Texas Commission on Human Rights Act and the Workers Compensation Act to make it clear that an employee's immigration status alone does not bar him from being covered. Referred to Border and International Affairs. Public hearing held on April 2, 2003. Committee substitute reported favorably on April 2, 2003. Vote reconsidered on April 3, 2003 and left pending in committee. H.B. 3463 Mike Villarreal (D - San Antonio) Couples a prohibition against sexual orientation or gender identity discrimination (including a prohibition against discrimination because of the gender identity or sexual orientation of those the employee associates with) with a prohibition against recognition of same sex marriages. Referred to State Affairs.Senate S.B. 33 Judy Zaffirini (D – Laredo) Establishes a right to leave to attend certain school functions for employees. Referred to Business & Commerce. S.B. 61 Judy Zaffirini (D – Laredo) Modifies the existing law on criminal background checks for nursing home employees and applicants. Referred to Health and Human Services. S.B.137 Rodney Ellis – (D- Houston) Prevents employers from obtaining 'dead peasant's insurance.' Referred to State Affairs. S.B. 328 Royce West (D - Dallas) Requires an arbitrator and/or arbitration services provider to file a public disclosure within 30 days of the entry of the award by the arbitrator. Failure to do so could result in a fine, and multiple failures could result in the arbitrator being barred from court ordered arbitrations and being listed on a public list maintained by the Office of Court Administration. The disclosure would require the names of the parties, the general nature of the claim and the relief sought, the award by the arbitrator and the costs charged by the arbitrator and the arbitration services provider. It is designed to be a supplement to existing arbitration laws, including the Federal Arbitration Act. Referred to Jurisprudence. S.B. 374 Tommy Williams (R - Woodlands). Limits liability of employer utilizing a staff leasing company to those items for which it has contracted to pay. Passed the Senate and sent to the House. Correction in referral, now in Licensing & Administrative Procedures. S.B. 390 Rodney Ellis (D - Houston) The first Senate bill to prohibit use of a cell phone while driving. Referred to Criminal Justice. S.B. 819 Troy Fraser (R - Horseshoe Bay) Amend workers compensation statute so insurance carrier can challenge compensability even if it misses the seven day deadline for beginning benefits or contesting the injury. Although able to challenge compensability, missing the deadline would constitute an administrative violation. Referred to State Affairs. S.B. 820 Troy Fraser (R - Horseshoe Bay) Amends workers compensation statute to make first impairment rating final if an objection is not filed within 90 days. Referred to State Affairs. S.B. 844 Gonzalo Barrientos (D - Austin) Would remove the restriction on local governments from entering into collective bargaining agreements. Although this would not directly impact private sector employers, if it were to pass, it could improve the climate for unions in Texas. Referred to Intergovernmental Relations. S.B. 956 Robert Duncan (R - Lubbock) Directs the state auditor to study ways of improving collection of overpayments of unemployment compensation and for the Texas Workforce Commission to implement those methods. Referred to Business & Commerce. S.B. 981 Kim Brimer (R - Fort Worth) Amends the unemployment compensation statute to remove disqualification because of a labor dispute at another facility. Referred to Business & Commerce. S.B. 997 Royce West (D - Dallas) Requires an arbitrator to provide certain information about an arbitration, including a copy of the award, to the Office of Court Administration within 31 days of the award. Would allow parties to request that the record be sealed under the same standard applicable to court documents. Referred to Jurisprudence. S.B. 1190 S.B. 1298 Frank Madla (D - San Antonio) Requires hospitals to adopt policies to improve the workplace for nurses and other employees including more use of ergonomics and plans for workplace violence. Referred to Health & Human Services. S.B. 1333 Gonzalo Barrientos (D - Austin) Transfers the Texas Commission on Human Rights to the Attorney General. Referred to Government Organization. S.B. 1478 Royce West (D - Dallas) Amends the whistleblower statute applicable to public entities by permitting a report to be made not only to an appropriate law enforcement authority but also an employee within the employing governmental agency who has the authority to act on the complaint. Substitutes an amount of ten times the annual salary (not including overtime) of the employee for the existing damage caps which are tied to the size of the governmental entity. Referred to Jurisprudence. S.B. 1648 Kyle Janek (R - Houston) Amends TCHRA to start time for filing suit run from receipt of right to sue notice from either the EEOC or the TCHR. Referred to Jurisprudence. S.B. 1740 Rodney Ellis (D - Houston) Requires a jury to have the same racial and ethnic composition as the county in which it is selected. Referred to Jurisprudence. S.B. 1806 Chris Harris (R - Arlington) Provides penalties for an employer failing to comply with a national medical support order. Referred to Jurisprudence.
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Ever Wondered What An Adequate Background Check Was?
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Friday, March 14, 2003
Update On Million Dollar Verdict in the Making
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Thursday, March 13, 2003
Blogs At Work
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Case to Be Stayed, Not Dismissed Following Motion to Compel Arbitration
Labels: arbitration
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Another Sarbanes Oxley Headache - April 26 Deadline For Employee Hotline
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Wednesday, March 12, 2003
Million Dollar Verdict In the Making?
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'Redneck Country' Not An Excuse
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Million Dollar Minnesota, But Not So in Toledo
Although they are much less prominently reported, occasionally a defense verdict makes the headlines. And the Toledo Blade has this one. Often, as in the case of besieged former Sheriff H. Weldin Neff of Seneca County, Ohio, they involve public officials. In this case though the jury quickly rejected the three million dollar harassment claim of Alice Dohner, a former employee who claimed she was forced from her job when the Sheriff had another employee stalk and intimidate her. The most surprised person, with the possible exception of Ms. Dohner, was her lawyer: "It was the most disappointing decision I’ve had in 46 years as a lawyer," he said. "We had all the evidence that was necessary, including smoking-gun evidence, and we thought the case was a winner, and it was only a question of how much. So that verdict for the defense, in less than two hours, was quite a shock. Now I know how [O.J. Simpson prosecutor] Marcia Clark feels." Labels: MDV
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Tuesday, March 11, 2003
Million Dollar Verdicts - Do They Ever End?
In Columbus, a jury was even more incensed with the employer, Phillips Medical Systems which discharged 56 year old Thomas Sadowski as part of a reduction in force. According to his lawyer, he was one of three in his department released, all over the age of 54. But what may well have contributed more to the award according to the AP story in the Dayton Daily News was that "he asked to be rehired after he learned the company had openings. He offered evidence that there were almost 20 engineering jobs available and that, despite a company policy of transferring laid off workers into openings, it refused to consider him when he applied for a six of them." According to the jury, that refusal was worth $1.8 in compensatory damages, $6 million in punitive damages plus attorneys fees. Labels: MDV
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Monday, March 10, 2003
Intersection of Rule 68 and Title VII on Costs and Attorneys Fees
We hold that a defendant in a Title VII civil rights suit can never recover its attorneys' fees under Rule 68, because the triggering event of that rule alters the potential costs that are 'properly awardable' to a defendant under [Section] 1988.The triggering event of Rule 68, an award for the plaintiff, means that defendant's can never meet the standard of showing the cause of action was frivolous. Among the cases cited in support of its is one from the Fifth Circuit. EEOC. v. Bailey Ford, Inc., 26 F.3d 570, 571 (5th Cir. 1994). And to make matters worse, the defendant was still required to pay $34,000 for the plaintiff's attorney fees incurred before the offer. Labels: attorneys fees
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Weekly Update of Action in the 78th Texas Legislature
House of Representatives H.B. 50 Sylvester Turner (D – Houston) Mandatory leave for employees to attend school conferences, and penalties against retaliation for exercising that right. Referred to Economic Development. H.B. 105 Norma Chavez (D - El Paso) Provides for unemployment benefits, without charge to an employer's account, if an employee is forced to leave employment because of domestic violence. Referred to Economic Development. H.B. 126 Lon Burnam (D - Fort Worth) Requires parity for mental illness in disability insurance policies sold in state of Texas. Referred to Insurance. H.B. 152 Ron Wilson (D – Houston) Limits an employer's ability to obtain so called 'dead peasants insurance,' where an employer obtains a policy on lower paid employees with itself as a beneficiary. Referred to Insurance. Scheduled for public hearing on March 10, 2003. H.J.R. 18 Suzanna Hupp (R – Lampasas) A constitutional amendment to grant a broad right of privacy. In California, a similar constitutional amendment was used as a basis for finding the constitutional right of privacy extended to non-government employers. Referred to State Affairs. Testimony taken on March 3, 2003. Still pending in committee. H.B. 181 Jessica Farrar (D – Houston) Allows an individual who receives deferred adjudication to legally deny the arrest and prosecution, except for a subsequent criminal prosecution. This would impact information employers are able to obtain when hiring. The bill passed last legislative session, but was vetoed by Governor Perry. Correction of referral, now referred to Law Enforcement. H.B. 281 Paul Moreno (D – El Paso) This is not technically an employment bill, but is likely to be one of the most talked about and contested non-financial bills of this session. It would make it a misdemeanor (punishable by a $100 fine) to talk on a mobile phone when driving, unless the car is stopped or the phone is operated without the use of either hand. Referred to State Affairs. Testimony taken on March 3, 2003, still pending in committee. H.B. 328 Warren Chisum (R – Pampa) An attempt to allow employers the opportunity to obtain information from applicants about prior workers compensation claims and injuries. The legislation modifies the Texas Commission on Human Rights Act and the Texas Workers Compensation Act, but unfortunately can not shield employers from the Americans with Disabilities Act which prohibits such inquiries. Referred to Business & Industry. Testimony taken on March 4, 2003 still pending in committee. H.B. 355 and H.B. 356 Harold Dutton (D – Houston) These are two education leave bills, similar to some of the amendments that have been suggested for the federal Family Medical Leave Act. One would require employers to give time off to employees to meet with teachers, counselors or principals; the other to attend certain school activities. The bills also create new causes of actions against employers for refusing to provide the time off. Referred to Economic Development. H.B. 359 and H.B. 371 Harold Dutton (D – Houston) These two bills attempt to limit the use of mandatory arbitration. The first would prohibit arbitration of Texas Commission on Human Rights Act or Title VII claims, the second would prohibit mandatory arbitration until an employee had worked for an employer for at least 90 days. Even if these bills were to pass, if the agreement were covered by the Federal Arbitration Act, these restrictions would be pre-empted. Most, but not necessarily all, employment relationships will be covered by the FAA. Referred to Economic Development. H.B. 379 Harold Dutton (D – Houston) Requires employers to allow employees to review their personnel files. Similar legislation has been offered for several sessions. It would make failure to comply by the employer an unfair employment practice, which is treated as a violation of the Texas Commission on Human Rights Act. Referred to State Affairs. H.B. 570 Fred Brown (R –Bryan) For non-subscribers to workers compensation, the bill would cap liability at $250,000 for work place injuries to employees. In order to qualify for the cap, the employer must have insurance meeting certain limits. Referred to Business & Industry. H.B. 574 Jessica Farrar (D – Houston) Amends the Texas Commission on Human Rights Act to prohibit discrimination against individuals on the basis of their sexual orientation or gender identity. It would also protect anyone from being treated differently because of the sexual identity of individuals with whom the employee associates. Referred to Business & Industry. H.B. 624 Jose Menendez (D - San Antonio). Basically a refined version of Representative Moreno's H.B. 281 which prohibits use of mobile phones while driving. This version has more definitions, some exceptions for emergency calls, and a range of fines that increases if the violation occurs in a school zone. Referred to State Affairs. Testimony taken on March 3, 2003, still pending in committee. H.B. 643 Arlene Wohlgemuth (R - Burleson) A technical amendment to the punitive damages cap. Currently, the cap is not applicable where the defendant engages in certain criminal activity. The amendment would require a conviction before the cap would not be applicable. Under the current law, plaintiffs are able to argue that certain conduct should be outside the cap because it meets the literal language of the current statute, even though there has been no criminal prosecution. Referred to Civil Practices. H.B. 705 Burt Solomons (R - Carrollton) Provides a defense against a claim of negligent hiring for employers whose employees enter another's home for purposes of repairs or delivery of goods. The defense would only be available if the employer obtained a criminal record from the Department of Public Safety. The bill gives the employer the right to have that access. Referred to Civil Practices. H.B. 772 Dawnna Dukes (D - Austin) Similar to H.B.105, would allow an employee to quit a job if advised to by a law enforcement officer, a licensed medical practitioner or a licensed counselor because of domestic violence or stalking and still receive unemployment benefits. The employer's account would not be charged. Referred to Economic Development. H.B. 804 Charlie Geren (R - Fort Worth) Amends Texas minimum wage law to pre-empt any city ordinance setting a minimum wage. It does not apply to government contracts or tax-abatement agreements. Referred to Economic Development. Set for public hearing on March 12, 2003. In light of recent adoption of a living wage ordinance by Santa Fe, New Mexico, this bill may now get more attention. H.B. 810 Eddie Rodriguez (D - Austin) Prohibits discrimination by state agencies on the basis of sexual orientation or gender identity. Referred to State Affairs. H.B. 812 Roberto Gutierrez (D - McAllen) Provides that 75% of any award of punitive damage award will go to the Permanent University Fund. The plaintiff would receive 15% and plaintiff's attorney 10%, notwithstanding any other contractual agreement. Referred to Civil Practices. H.B. 826 Yvonne Davis (D -145,408 Dallas) Requires employers to turn over any abandoned wage payments to the State Comptroller. Referred to Economic Development. H.B. 978 Dawnna Dukes (D - Austin) Restrictions on certain business entities being the designated beneficiary of life insurance policies. Referred to Insurance. H.B. 995 Ken Mercer (R – San Antonio). Expands the public whistle blower statute to also include protection from retaliation for reporting a waste of funds to an appropriate governmental agency. Referred to Government Reform. H.B. 1018 Mike Villarreal (D – San Antonio) Would provide a preference by state and local governments for vendors who were certified as family friendly by the Texas Workforce Commission for providing employee dependent care benefits. Set for public hearing on March 10, 2003. H.B. 1045 Joe Deshotel (D – Port Arthur) Creates an alternative base period for computation of unemployment compensation benefits to remove a period of extended medical disability. Referred to Economic Development. Set for public hearing on March 12, 2003. H.B. 1136 Mike Villarreal (D – San Antonio) Prohibits discrimination in employment, housing or public accommodations because of sexual orientation. Referred to State Affairs. H.B. 1142 Glenn Lewis (D – Fort Worth) Requires health insurance plans to provide for an annual physical with certain basic lab tests. Referred to Insurance. H.B. 1244 Senfronia Thompson (D - Houston) A repackaged version of comparable worth. Prohibits discrimination in compensation by paying less to a person in a protected class for a person in an equivalent jobs under similar conditions. The amount of litigation and control of the workplace that this would create is almost unimaginable. It was a bad idea when first introduced and has gotten no better over time. Referred to Economic Development. H.B. 1245 Terri Hodge (D - Dallas) Amends the unemployment statute to allow workers who are locked out by their employer, or who are idled because of a work stoppage at another location to receive unemployment compensation benefits. Referred to Economic Development. H.B. 1282 Brian McCall (R - Plano) This is not an employment bill, but an anti-spam one, so certainly one worthy of watching from at least my mailbox's perspective. Set for public hearing on March 12, 2003. H.B.1359 Aaron Pena (D - Edinburgh) Would make it more difficult to offer evidence of past sexual conduct in civil related cases by adopting the standards and procedures of Rule 412 of the Federal Rules of Evidence. This is the first employment related bill offered by Representative Pena, who in his day job, is the leading plaintiff's employment lawyer in the Valley. Referred to Civil Practices. H.B. 1360 Aaron Pena (D - Edinburgh) Amends existing state law with respect to penalties for discrimination against national guard personnel, by removing the current cap on damages which was limited to six months pay, adding punitive damages and utilizing the caps applicable to TCHR claims based on number of employees, with a maximum of $300,000 for compensatory and punitive damages by employers with more than 500 employees. An interesting choice, since it will be hard to argue against increasing penalties against employers who discriminate against those who might be called to serve in the Iraq conflict. Referred to Defense Affairs and State-Federal Relations. H.B. 1496 Burt Solomons (R - Carrollton) Establishes a study to review and propose legislation to strengthen the anti-abuse provisions of the unemployment compensation laws, including increasing collections of overpayments. Referred to Economic Development. H.B. 1684 Beverly Woolley (R – Houston). Amends the TCHRA so that the issuance of a right to sue letter by the EEOC would also trigger the 60 day deadline for filing a lawsuit under the TCHRA. This would be extremely helpful in making sure that lawsuits are timely filed and eliminate a major flaw in the current situation. H. B. 2001 Harold Dutton (D - Houston) Adds a federal medical support notice to the requirement that employer’s must follow in withholding from their employee’s. Senate S.B. 33 Judy Zaffirini (D – Laredo) Establishes a right to leave to attend certain school functions for employees. Referred to Business & Commerce. S.B. 61 Judy Zaffirini (D – Laredo) Modifies the existing law on criminal background checks for nursing home employees and applicants. Referred to Health and Human Services. S.B.137 Rodney Ellis – (D- Houston) Prevents employers from obtaining 'dead peasant's insurance.' Referred to State Affairs. S.B. 328 Royce West (D - Dallas) Requires an arbitrator and/or arbitration services provider to file a public disclosure within 30 days of the entry of the award by the arbitrator. Failure to do so could result in a fine, and multiple failures could result in the arbitrator being barred from court ordered arbitrations and being listed on a public list maintained by the Office of Court Administration. The disclosure would require the names of the parties, the general nature of the claim and the relief sought, the award by the arbitrator and the costs charged by the arbitrator and the arbitration services provider. It is designed to be a supplement to existing arbitration laws, including the Federal Arbitration Act. Referred to Jurisprudence. S.B. 374 Tommy Williams (R - Woodlands). Limits liability of employer utilizing a staff leasing company to those items for which it has contracted to pay. Referred to Business & Commerce. Committee Substitute reported out of committee favorably on March 5, 2003 and recommended for Local and Uncontested Calendar. S.B. 390 Rodney Ellis (D - Houston) The first Senate bill to prohibit use of a cell phone while driving. Referred to Criminal Justice. S.B. 819 Troy Fraser (R - Horseshoe Bay) Amend workers compensation statute so insurance carrier can challenge compensability even if it misses the seven day deadline for beginning benefits or contesting the injury. Although able to challenge compensability, missing the deadline would constitute an administrative violation. S.B. 820 Troy Fraser (R - Horseshoe Bay) Amends workers compensation statute to make first impairment rating final if an objection is not filed within 90 days. S.B. 956 Robert Duncan (R - Lubbock) Directs the state auditor to study ways of improving collection of overpayments of unemployment compensation and for the Texas Workforce Commission to implement those methods. S.B. 981 Kim Brimer (R - Fort Worth) Amends the unemployment compensation statute to remove disqualification because of a labor dispute at another facility. S.B. 997 Royce West (D - Dallas) Requires an arbitrator to provide certain information about an arbitration, including a copy of the award, to the Office of Court Administration within 31 days of the award. Would allow parties to request that the record be sealed under the same standard applicable to court documents.
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