Biglaw Firm is Punishing 5 Departing Partners in Bonus Clawback Dispute, Petition Says

“Five former Nixon Peabody partners allege that their former law firm tried to punish them for jumping to DLA Piper by trying to claw back bonuses and withholding money in support of the effort,” summarizes Debra Cassens Weiss in ABA Journal’s Law Firms.

“Their mediation petition, filed Tuesday in New York state court, claims that Nixon Peabody’s bonus clawback provision restricts partners from practicing law where they choose. As a result, the provision is unenforceable under New York law, the petition says.”

“The partners resigned from Nixon Peabody in June 2019, the same month their bonuses for fiscal year 2018 were paid in full, the petition says. The partners each were awarded a bonus of $100,000 or more for fiscal year 2018, which ended Jan. 31, 2019. Nixon Peabody did not allow the partners to begin work at their new firm until July 16, 2019, according to the petition.”

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Bankruptcy Settlement Could Pay Coal Workers $17.3 Million

“Some 1,700 employees of a bankrupt coal mining company would get up to $17.3 million in back pay under a proposed class-action settlement,” was reported in The Cheyenne Post.

“The former employees of Milton, West Virginia-based Blackjewel in Wyoming and Appalachia could get checks early next year depending on the outcome of bankruptcy court hearings this fall, said Ned Pillersdorf, an attorney for the employees.”

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Biglaw Firm Switches From Strict Lockstep Compensation for Partners to Modified System

“Davis Polk & Wardwell is changing to a more flexible compensation system, allowing it to pay more money to retain and attract rainmaking partners,” reports Debra Cassens Weiss in ABA Journal’s Daily News.

“Davis Polk has paid partners based on seniority under a lockstep compensation model. The law firm is changing to a modified lockstep system.”

“Only a few elite New York firms retain a strict lockstep pay structure, according to Bloomberg Law. Other firms that have used a lockstep system include Cravath Swaine & Moore, Cleary Gottlieb Steen & Hamilton, and Debevoise & Plimpton. Those firms typically were most profitable, enabling high partner compensation.”

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Layoffs Hit Furloughed Staffers at Two Biglaw Firms, Lawyers and Staffers at Another

“Baker McKenzie is laying off 6% of its workforce in the United States, Canada and Mexico. Those laid off include lawyers, other timekeepers and business professionals,” reports Debra Cassens Weiss in ABA Journal’s News.

“Davis Wright is laying off 39 staff members who had been furloughed. The staff members were in office services, legal assistance and other administrative positions.”

“Venable is laying off some furloughed employees, as well as some other professional staff members. The firm did not disclose numbers.”

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Invitation: SCCE’s 19th Annual Compliance & Ethics Institute

The annual Compliance & Ethics Institute (CEI) is our largest event of the year, focusing on providing insights and practical solutions to strengthen your organization’s compliance and ethics program.

This year’s virtual conference provides 100+ educational sessions across all compliance and ethics industries and will provide you with the opportunity to earn a maximum od 23.4 live Compliance Certification Board (CCB)® continuing education units (CEUs) from the convenience of your home or office.

Throughout the 3 days of sessions, you will have the ability to choose from a variety of sessions to attend, some of those included are discussion groups. These are sessions lead by the speaker as well as participants and you will have the opportunity to be on camera and interact in small group discussions. (note preregistration is required and session attendance is limited to 40 people per session.)

Get more information or register.

 

 




Attorney Fieger Sued for Discriminating Against Mother of Sick Child

“Attorney Geoffrey Fieger, one of Michigan’s most prominent lawyers, refused to let one of his employees work from home to care for her sick child during the coronavirus pandemic, according to a new lawsuit,” reports Tresa Baldas in Detroit Free Press.

“The woman says human resources approved her request to work remotely for two days, and, that she offered to take unpaid leave if necessary because her son was ill.”

“But Fieger — who for years has worked from his luxury Caribbean hotel that he has long referred to as home — wouldn’t budge. He fired her instead, she says, so she sued the legal giant in federal court.”

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Return to Work COVID-19 Testing Considerations

“As employees increasingly transition back into the physical workplace, employers have begun to grapple with whether and how to deploy COVID-19 diagnostic testing as a return-to-work solution. Many employers want to avoid extended employee quarantine or isolation requirements that prevent their employees from returning to the office for weeks and disrupt their operations. But is this potential solution legal? And is it effective?” ask Danielle M. Bereznay, Michael S. Arnold, Corbin Carter in Mintz’ Insights Center.

In this post they discuss practical considerations for employers to consider for a return to work COVID-19 testing strategy.

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Former Reed Smith Lawyer Sues Law Firm for Alleged Discrimination After Receiving Concussion

“A lawsuit has accused Reed Smith of wrongly firing a lawyer after a ‘discriminatory chain of perceptions and events’ stemming from a concussion that the lawyer received while on vacation,” reports Debra Cassens Weiss in ABA Journal’s News.

“The lawsuit by former of counsel Aaron Chase, filed Wednesday in the Southern District of New York, alleges unlawful retaliation and disability discrimination by Reed Smith.”

“Chase says he received the concussion when he hit his head hard on the frame of a vehicle that he was entering while on vacation in September 2019. He returned to work the same month and informed his direct supervisor, partner Jennifer Achilles, about the injury soon afterward.”

Read the article.




New Prime Lawsuit Could End With $28 Million Settlement

“A trucking lawsuit against carrier New Prime that has lasted five years and prompted a decision by the U.S. Supreme Court could be nearing an end,” reports Mark Schremmer in Land Line.

“A $28 million settlement agreement in truck driver Dominic Oliveira’s class action lawsuit against New Prime was filed in Massachusetts federal court on Monday, July 20. The lawsuit alleged that the Springfield, Mo.-based trucking company violated the Fair Labor Standards Act. According to Oliveira, New Prime paid him less than minimum wage. After deductions for fuel and lease payments on the truck, Oliveira said he was occasionally left owing the company money at the end of the pay period.”

“If approved, funds will be distributed to the named plaintiffs, as well as about 40,000 potential class members who leased their trucks through New Prime at any time from Oct. 2, 2012, through May 8, 2020, or those who attended training in Missouri to become New Prime truck drivers at any time since March 4, 2010, through May 8, 2020.”

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Amazon, Google Tap Big Law to Bolster In-House Ranks

“Amazon.com Inc. and Alphabet Inc.’s Google LLC have hired a pair of public policy experts to expand their antitrust and energy capabilities,” reports Brian Baxter in Bloomberg Law’s Business and Practice.

“Sean Pugh and James ‘Jamey’ Goldin left Faegre Drinker Biddle & Reath and Nelson Mullins Riley & Scarborough, respectively, this month for in-house legal roles at the technology giants.”

“Pugh, a former Senate Judiciary Committee staffer who served as antitrust counsel to Sen. Mike Lee (R-Utah), confirmed in an email that he joined Amazon’s public policy shop July 6.”

“Pugh joined Amazon after five months at Faegre Drinker, a law firm that hired him as counsel in March for its litigation group in Washington. Faegre Drinker advised Boulder, Colo.-based warehouse robotics startup Canvas Technology LLC on its $100 million sale to Amazon in 2019.”

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Werner Student Drivers Deprived of Nearly $800,000 Jury Verdict

“Tens of thousands of former Werner student trucker drivers won’t see a dime of a six-figure verdict in a wage lawsuit after a federal court determined a report from a key witness for the plaintiffs is inadmissible,” reports Tyson Fisher in Land Line.

“On June 22, a judge for the U.S. District Court for the District of Nebraska denied the Werner student drivers a new trial. The case was remanded to the district court after Werner received a favorable ruling from the Eight Circuit Court of Appeals. The appellate court ruled that a key expert witness cannot be used by the drivers since the plaintiffs missed the disclosure deadline. With that turn of events, the district court determined that the drivers have no case without that expert’s report.”

“The nearly 10-year-old class action lawsuit is based on Werner’s eight-week training program. Former student drivers accuse the company of violating federal and state wage laws. The complaint alleges that Werner failed to compensate trainees for short-term breaks or for time spent resting in the sleeper.”

“The original complaint was filed in September 2011. Although a jury trial was initially scheduled for October 2014, litigation kicked the can down the road for several years. A trial and verdict was finally reached in May 2017. A jury found that Werner owed drivers for breaks of 20 minutes or less. However, the jury also relieved Werner of wages owed for sleeper berth time.”

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Law Grads Have Had Job Offers Rescinded at 49% of Surveyed Law Schools 

“Law grads have had employment offers rescinded at 49% of the law schools surveyed by the National Association for Law Placement,” reports Debra Cassens Weiss in ABA Journal’s Latest News.

“Hardest hit were graduates of schools in the Southeast region, where 57.5% of the schools reported rescinded offers; and schools with more than 750 students, where 61% reported rescinded offers. ”

“Rescinded offers were most common in private practice. Among schools that reported rescinded offers, 85% said private sector employers had done so.”

Read the article for more findings.

Read the article.




Female Construction Workers Get $1.5M Settlement in Sexual Harassment Case

“New York Attorney General Letitia James announced … that a group of female construction workers who experienced years of sexual harassment at a Long Island contracting firm will receive a $1.5 million settlement, after James’ office discovered not only harassment but retaliation for reporting it,” reports Rebecca Baird-Remba in Commercial Observer.

“James’ office found that the 18 women, the majority of whom are Black, endured a hostile and discriminatory work environment while working as general laborers for TradeOff, a Lynbrook, Long Island-based firm which provides nonunion labor for major construction sites across the city, including Hudson Yards.”

“Union representatives from Local 79 referred to TradeOff as a ‘body shop’ because it recruits most of its workers through prison reentry programs and pays them a fraction of what union laborers earn.”

Read the article.




Am Law 50 Firm To Lay Off Lawyers And Staff, Close Office

“Bryan Cave Leighton Paisner co-chairs Steve Baumer and Lisa Mayhew sent a firmwide email letting everyone know that it will be laying off attorneys and staff as a result of the coronavirus crisis. On top of that, the firm will be shuttering its Beijing office,” reports Staci Zaretsky in Above the Law’s Biglaw.

“BCLP will offer severance to the affected lawyers and staff based on the higher salaries they received prior to the cuts that the firm instituted in April and reimburse the 15 percent salary cuts to those who are laid off before they leave the firm. The firm will also offer outplacement coaching and counseling to those who are let go.”

“Sources have already told us that associates in the firm’s Phoenix and Dallas offices have been affected by the layoffs. Let us know if your office has been impacted.”

Read the article.




Many Public Defenders in Indiana Getting Compensated Less Than Minimum Wage

“Many attorneys doing public defender work do so under contract with counties – meaning they get paid a flat amount, regardless of the number of hours they work. And that’s the primary method of public defense in about a third of Indiana,” reports Brandon Smith in Indiana Public Media.

“Many lawyers in Indiana doing public defender work earn less than minimum wage, after accounting for overhead costs.”

“Those attorneys have significant overhead costs that public defenders who are employees of the counties don’t have, staffing and office space the most significant.”

“And when taking into account those overhead costs, the Public Defender Commission’s survey says contract attorneys earn less than $6 per hour.”

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Judge Denies American Women’s Soccer Immediate Appeal

“A federal judge has denied a request by American women’s soccer players to allow an immediate appeal of his decision to throw out their claim of unequal pay against the U.S. Soccer Federation,” reports Ronald Blum in StarTribune’s Loons.

“Lawyers for the women had asked him to enter a final judgment on his decision to dismiss the pay claim, which would have allowed them to take the case to the 9th U.S. Circuit Court of Appeals in San Francisco.”

“Klauser ruled May 1 the women could not prove discrimination over pay and granted in part the USSF’s motion for a partial summary judgment. He said the union for the women’s national team rejected an offer to be paid under the same pay-to-play structure as the men’s national team’s collective bargaining agreement and the women accepted guaranteed salaries and greater benefits along with a different bonus structure.”

“He also refused to let go to trial allegations the women were discriminated against because they played more games on artificial turf.”

Read the article.




2 More Law Firms Announce Pay Cuts; Are They a Stopgap Measure Before Layoffs?

“Two more law firms announced pay cuts in the past week, marking a third slow week of bad news,” reports Debra Cassens Weiss in ABA Journal’s News.

“If larger law firms lose the same percentage of lawyers as in 2008 to 2010 during the financial downturn, there will be 20,000 jobs lost, Simons wrote. Most of the departures—17,000 of them—would be in the nation’s top 100 grossing law firms, he said. The other 3,000 departures would be in second hundred firms.”

“The entire legal services sector has already surpassed that number in job losses. According to the U.S. Bureau of Labor Statistics, the sector lost 64,000 jobs in April.”

“The two firms that announced cuts in the past week are Reed Smith and Stroock & Stroock & Lavan.”

Read the article.




Concerns as Companies Reopen Workplaces Amid COVID-19, Littler Survey Finds

Littler, the world’s largest employment and labor law practice representing management, has released the results of its COVID-19 Return to Work Survey Report, completed by 1,010 in-house counsel, human resources professionals and C-suite executives.

As states increasingly relax stay-at-home orders, Littler’s survey highlights the range of complex issues facing employers as they plan to reopen their workplaces in the wake of COVID-19. Employers’ concerns centered on when to bring employees back and how to do so safely, how to accommodate increasing remote-work requests and liability concerns stemming from the rise in COVID-19-related employment claims and lawsuits.

“While many businesses and their employees are eager to return to a sense of normalcy and resume in-office operations, they face a host of unknowns when it comes to what the workplace looks like in a COVID-19 era,” said Alka Ramchandani-Raj, a leader of Littler’s COVID-19 Task Force. “Particularly given the wide-ranging, and often conflicting, guidelines from state and local officials, employers are left to balance multiple logistical, emotional and legal concerns in determining whether, when and how to reopen their workplaces.”

Timing to Reopen and Safety Concerns

Most respondents from businesses not considered essential – and thus not already open – appear ready to return to the physical workplace. More than three-quarters (78 percent) say they will reopen within three months, with 34 percent of those respondents planning to do so within one month.

At the same time, employers are moving forward with caution, as only 18 percent plan to bring employees back immediately after stay-at-home orders expire. Another 33 percent will wait a few weeks and 42 percent plan to take a “wait and see” approach to gauge the outcome of other business’ reopening efforts.

Employers are also taking numerous steps to maintain employees’ safety, including increased cleaning (90 percent), limiting employee contact in common areas (87 percent), providing and/or encouraging the use of face coverings or other protective gear (86 percent) and modifying workspaces to maintain safe distances (78 percent). In written feedback, many respondents expressed concern about the difficulty of ensuring employees follow new safety guidelines, as well as upholding their workplace culture and employee morale while implementing safety measures.

More than half (58 percent) of respondents also plan to conduct testing or health screenings on employees, with most referring to temperature checks (89 percent) and symptom screenings (72 percent) and a small number selecting antibody (8 percent) and antigen (7 percent) tests. Yet while the U.S. Equal Employment Opportunity Commission has released some guidance about screening employees for COVID-19, uncertainty remains around implementation, privacy matters and litigation risks.

“There is no ‘one-size-fits-all’ approach to returning to work, which makes the process all the more challenging for employers,” said Melissa Peters, a leader of Littler’s COVID-19 Task Force. “However, in the health and safety realm, communications and training have always played a vital role and are especially paramount now given the stress and anxiety everyone is under as the pandemic continues to unfold.”

Managing Remote Work Accommodations

The pandemic has drastically shifted the remote work landscape, and for some workers, the shift could be permanent. Half of survey respondents are considering requiring more employees to work remotely to reduce physical office costs. Most employers surveyed also report being amenable to accommodating work from home requests: 52 percent are willing to be flexible on granting valid requests until the pandemic subsides, while 30 percent are open to changing their remote work policies and allowing employees to remain remote if they have proven effective working outside of the office.

“Managing employee leave and accommodation requests was already an area fraught with difficulty and potential liabilities for employers, and COVID-19 has only exacerbated that,” said Michelle Barrett Falconer, Co-Chair of Littler’s Leaves of Absence and Disability Accommodation Practice Group. “Effectively handling these issues will require adhering to an ever-evolving patchwork of federal, state and local laws while ensuring procedures for remote work are applied consistently, without any discriminatory impact on certain groups.”

Employer Liability Concerns

As the debate over granting employers “liability shields” to protect against COVID-19 lawsuits rages on in Congress, 71 percent of in-house counsel respondents report being at least somewhat concerned about potential lawsuits upon reopening. Only 6 percent say that they are not concerned at all. As for the bevy of claims and lawsuits employers could face, respondents ranked leaves of absence entitlements (68 percent), unsafe working conditions (59 percent) and workers’ compensation (43 percent) as the top three areas in which they expect to see an uptick.

“The wave of COVID-19 litigation has begun in haste and poses a real threat to employers, most of whom are already grappling with the economic fallout from this pandemic,” said Michael Lotito, Co-Chair of Littler’s Workplace Policy Institute. “In the face of so much uncertainty, legislative safeguards and clear guidance from federal and state agencies are important in providing employers with sufficient confidence to reopen their workplaces – and to do so in compliance with the law.”

Download the Littler COVID-19 Return to Work Survey Report.

View the survey infographic.




Facebook will Pay $52 Million in Settlement with Moderators who Developed PTSD on the Job

“In a landmark acknowledgment of the toll that content moderation takes on its workforce, Facebook has agreed to pay $52 million to current and former moderators to compensate them for mental health issues developed on the job. In a preliminary settlement filed on Friday in San Mateo Superior Court, the social network agreed to pay damages to American moderators and provide more counseling to them while they work,” reported Casey Newton in The Verge’s Tech.

“Each moderator will receive a minimum of $1,000 and will be eligible for additional compensation if they are diagnosed with post-traumatic stress disorder or related conditions. The settlement covers 11,250 moderators, and lawyers in the case believe that as many as half of them may be eligible for extra pay related to mental health issues associated with their time working for Facebook, including depression and addiction.”

“In September 2018, former Facebook moderator Selena Scola sued Facebook, alleging that she developed PTSD after being placed in a role that required her to regularly view photos and images of rape, murder, and suicide. Scola developed symptoms of PTSD after nine months on the job. The complaint, which was ultimately joined by several other former Facebook moderators working in four states, alleged that Facebook had failed to provide them with a safe workspace.”

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Law Firm Fires Employee After ‘Threatening’ Post About his Gun, COVID-19 Mask Requirements

“A Dallas law firm fired an employee after he wrote in a Facebook post that lambasted businesses that require customers to wear masks during the COVID-19 pandemic and made references to firearms and ammunition,” report Dana Branham in The Dallas Morning News’ Public Health.

“The law firm, Thompson & Knight, called the post ‘threatening and offensive’ in a statement.”

“The firm’s chief marketing officer, Kelby Luther, confirmed Monday that the terminated employee is Kevin Bain, who had worked as a document services manager based in Dallas.”

“Luther said the firm’s statement refers to a widely shared Facebook post in which Bain referred to the Whole Foods grocery store on Lomo Alto Drive in Highland Park, saying that any business that insists he wear a mask ‘will get told to kiss my Corona ass and will lose my business forever.'”

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