A proposed executive order could require certain government contractors to provide paid sick leave to certain employees at certain times, resulting to a new benefit for 437,000 employees who currently get no such benefit, and possibly augmenting the leave of about 400,000 more workers, according to U.S. Secretary of Labor Thomas Perez.

In a report written by the Federal Contractor Compliance Practice Group and Wage and Hour Practice Group of Paul Hastings LLP, contractors who disregard the new requirements beginning in 2017 can be subject to debarment, among other penalties, so it is important that contractors understand the proposed rules and plan to ensure compliance.

“Federal contractors certainly should examine their policies in light of the proposed regulations, but all employers operating in jurisdictions with paid sick leave laws should review their policies for compliance with state and local laws,” according to the article.

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A New Jersey court recently used the so-called contract “disclaimer” language in an employer’s handbook to preclude the employer from enforcing a mandatory arbitration program contained in that same handbook, reports Kevin C. Donovan in a Wilson Elser client alert.

He writes that employers who wish to enforce alternate dispute resolution procedures without falling into the same trap should consider the ruling. But, he wrote, the decision appears contrary to federal policy, enforced by a series of U.S. Supreme Court decisions that strongly favor enforcement of arbitration agreements.

In New Jersey, as in most states, employment is presumed to be “at will,” meaning that either the employer or the employee can freely terminate the employment relationship without a reason (cause) to do so. Under certain circumstances, however, express promises contained in an employer handbook can result in contractually binding terms and conditions of employment.

“While [the ruling] is a New Jersey decision, rulings in other states have also limited an employer’s ability to enforce an arbitration agreement in employee handbooks under some circumstances,” Donovan wrote.

Read the article.

Practical Law will present a free 75-minute webinar on Wednesday, March 9, at 1 p.m. EST to discuss key employment laws, practices, and policies of particular concern for startups.

Startup founders focused on financing, developing, and marketing their business may not prioritize complying with the panoply of federal, state, and local employment laws, the company says in a release. However, as an early-stage startup grows and hires more staff, non-compliance with these laws can pose substantial legal risks. To avoid potentially devastating liability and reputational damage, startups must have a plan for identifying and managing employment and human resources-related issues.

Philip M. Berkowitz, a shareholder with Littler Mendelson P.C., and his colleague, Christine L. Hogan, will lead the discussion.

In this program, attendees will:
* Obtain an overview of key steps startups should take before hiring their first employees, and the ones they can’t afford not to take.
* Review best practices for documenting a startup’s relationship with its founders and employees.
* Learn how startups can avoid common employment law pitfalls, including employee misclassification, noncompliance with minimum wage and overtime regulations, and more.
* Explore critical workplace policies and compliance areas.

Presenters will be:
* Philip M. Berkowitz, Shareholder, Littler Mendelson P.C.
* Christine L. Hogan, Associate, Littler Mendelson P.C.
* Barbara Harris, Senior Legal Editor, Labor & Employment Service, Practical Law
* Joe Green, Senior Legal Editor, Capital Markets & Corporate Governance Service, Practical Law

Check the registration page for CLE availability.

Register for the webinar.

Shawn E. Lampron, a partner with Fenwick & West LLP, and her colleague, Marshall Mort, will discuss the types of equity awards commonly used by early-stage startups and highlight key reasons why certain types of awards are used at various stages of a startup’s development when they lead a Practical Law free 75-minute webinar.

The webinar will be Wednesday, March 2, 2016, beginning at 1 p.m. EST.

Equity compensation can be particularly useful to a startup company, which may not have the cash necessary to adequately attract, retain, and motivate employees with market-rate salaries. In certain industries, it is standard practice for a startup to include equity as a part of every employee’s compensation package. To make the best use of an equity compensation program, a startup must understand the legal implications, tax consequences, and accounting treatment of granting each type of equity award.

CLE credit is available for: Arizona, California, Colorado, Georgia, Hawaii, Illinois, Missouri, New Hampshire, New Jersey, New York, Pennsylvania, Vermont, Washington, Wisconsin. CLE credit is being sought for: Indiana, Minnesota, North Carolina, Oregon, Tennessee, Texas, Virginia. CLE can be self-applied for in: Florida.

In this program, attendees will:
Obtain an overview of the types of equity compensation startups commonly grant.
Gain an understanding of the basic characteristics, Section 409A and other federal tax consequences, accounting treatment, and advantages and disadvantages of these types of awards.

Explore other issues a startup and its counsel should consider when granting equity compensation, including the scope of an equity compensation program and appropriate vesting conditions and valuation methods.
A short Q&A session will follow.

Presenters:
Shawn E. Lampron, Partner, Fenwick & West LLP
Marshall Mort, Associate, Fenwick & West LLP
Amy Adams, Senior Legal Editor, Employee Benefits & Executive Compensation Service, Practical Law
Joe Green, Senior Legal Editor, Capital Markets & Corporate Governance Service, Practical Law

Register for the webinar.

A federal jury in New Hampshire ordered Wal-Mart Stores Inc. to pay $31.22 million to a pharmacist who claimed she was fired because of her gender and in retaliation for complaining about safety conditions, Reuters reports.

Maureen McPadden claimed that Wal-Mart used her loss of a pharmacy key as a pretext for firing her in November 2012, when she was 47, after more than 13 years at the retailer.

“McPadden said she was fired in retaliation for her raising concerns that customers at the Wal-Mart store in Seabrook, New Hampshire, where she worked were getting prescriptions filled improperly because of inadequate staff training,” Reuters reports.

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The insurance relationship is contractual, but when policyholders claim insurers failed to honor their obligations, they typically invoke the tort of “bad faith,” writes Robert D. Helfand of Carlton Fields Jorden Burt.

“When courts try to explain this anomaly, they cite features of insurance making it uniquely important that parties respect each other’s interests. Courts often say these features make the duty of good faith ‘reciprocal,’ ” he explains.

He discusses some cases that provide another reason for asserting that the insured’s bad faith injured the insurer in ways that were foreseeable when the contract was made. Even if the argument falls short, it might still create a basis for reducing the insurer’s exposure.

Read the article.