Labor and Employment Lawyers Play Musical Chairs; Littler in the Hot Seat

“Amid a flurry of fresh lateral moves among labor and employment lawyers, one of the leading L&E firms is facing a lawsuit tied to hires it made several years ago from an industry group that counts many of its clients as members,” report Arriana McLymore and Sara Merken in Reuters’ Employment.

“Law firms have been grabbing labor and employment lawyers at a fast clip the past several weeks, with hires at Blank Rome, Ogletree Deakins, Dentons and Kaufman, Dolowich & Voluck.”

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Begley Awarded $1.8M in Settlement

Assistant Chief Mark Begley was awarded a $1.84 million lawsuit settlement against the County of Kaua‘i and Kaua‘i Police Department, reports Jason Blasco in The Garden Island.

“Begley was put on paid administrative leave in March 2012 when he filed a stress-based worker’s compensation claim, citing a hostile work environment. He was reinstated in June 2019.”

“In 2016, Begley initiated a federal lawsuit against the county, KPD and several senior officers, claiming that the now-retired KPD Chief Darryl Perry and his successor, former Acting Chief Michael Contrades, harassed and retaliated against him for reporting allegations that another assistant chief acted inappropriately toward a subordinate female officer.”

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Biglaw Firm Resolves Pay Bias Claim Over Bonuses Paid at Predecessor Firm

“After a routine compliance review by the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP), Locke Lord LLP – a federal contractor formerly known as Edwards Wildman – voluntarily entered into a conciliation agreement to resolve allegations of pay discrimination at its Providence, Rhode Island, office,” released the U.S. Department of Labor’s News Releases.

“In January 2015, Locke Lord LLP acquired Edwards Wildman. In fiscal years 2016 through 2020, Locke Lord LLP received payments totaling $4,915,638 due to federal contracts.”

“After a routine compliance evaluation, OFCCP alleged that Locke Lord LLP discriminated in its practice of issuing bonuses to 22 female associates. While not admitting the allegations, Locke Lord LLP agreed to provide relief for the affected associates totaling $150,000 in lost bonuses and interest, as well as assuring that all employees are afforded equal employment opportunities.”

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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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Baker Donelson Temporarily Cuts Pay, Furloughs Some Employees Because of COVID-19

“Baker Donelson is imposing temporary pay cuts, reducing partner draws, and furloughing some employees because of the financial impact of the COVID-19 epidemic,” reports Debra Cassens Weiss in ABA Journal’s Latest News.

“Baker Donelson confirmed the measures in this statement provided to the ABA Journal: ‘We have undertaken a number of measures to ensure the financial stability of the firm moving forward, which includes shareholder reduction in draws and salary that have already been implemented,’ the statement said. ‘This will be followed over the next few weeks by temporary salary reductions across the firm and with a furloughing of some employees. … Our hope is that, once this crisis subsides, we will eventually be able to bring the furloughed team members back to Baker Donelson. Until then, we are providing them with support to help minimize the impact of what we know is an extremely trying situation, particularly in these highly uncertain times.'”

Read the article to find what other law firms are following suit by taking temporary measures in response to work slowdowns.

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EY Lays Off Some U.S. Lawyers Who Came through Pangea3 Acquisition

“It was major legal industry news last April when international business and legal services powerhouse EY entered into an agreement with Thomson Reuters to acquire Pangea3, the legal managed services business.” reports Robert J. Ambrogi in LawSite’s blog.

“Now, 10 months later, EY has laid off at least some of the U.S.-based lawyers who came with the deal.”

“While precise details remain uncertain, reports indicate that EY has let go some 20-30 lawyers who work for it in the Minneapolis-St. Paul area of Minnesota and the Dallas-Fort Worth area of Texas.”

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Coinbase Goes on Legal Hiring Binge as Circle Attorneys Depart

“Coinbase Inc., a San Francisco-based digital currency exchange specializing in bitcoin transactions, has gone on an in-house hiring spree a little more than a year after recruiting former Fannie Mae general counsel Brian Brooks to serve as its chief legal officer.” reports Brian Baxter on Bloomberg Law’s Corporate Law News.

“Within the last three months Coinbase has brought on three more top in-house lawyers. One of those additions, former JPMorgan Chase & Co. assistant general counsel Rachel Nelson, was named in January to co-chair a new market integrity working group for the Blockchain Association, a trade association for the U.S. blockchain and cryptocurrency industry.”

“The additions by Coinbase come at the same time as a series of departures from Circle Internet Financial Ltd., a Boston-based blockchain payments company backed by The Goldman Sachs Group Inc. Several in-house lawyers have left Circle since last summer amid a series of layoffs and divestitures by the company as it reshapes its business around stablecoins.”

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In Collective Bargaining Agreement, Longevity Pay Increase Clause Can Outlive Contract

A recent case from the National Labor Relations Board shows that American labor law, including principles that apply to collective bargaining agreements, is not always as straight-forward as basic contract law, points out Barnes & Thornburg in a recent post.

The contract included a clause setting “longevity pay increases” for workers who reached certain tenure milestones with the company.

“The employer and union were meeting to negotiate a successor contract, and the agreement expired in the interim,” explains David J. Pryzbylski. “Once the labor agreement expired, the company ceased offering longevity pay increases on grounds that there was no agreement in effect that provided for such increases.”

The NLRB, however, found that a company generally must continue to offer employees the terms set forth under a collective bargaining agreement when it expires and while negotiations for a new contract are underway.

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Why This Group is Trying to Stop Amazon From Buying Whole Foods

Marc Perrone, president of the United Food and Commercial Workers International Union, sees Amazon the way some Rust Belt workers see global trade — as a threat to American jobs, reports The Washington Post.

Perrone was planning to file a complaint to the Federal Trade Commission, arguing that letting Amazon buy Whole Foods would trigger a wave of store closures and eventually quash customer choice, writes the Post‘s Danielle Paquette.

“The United Food and Commercial Workers International Union has roughly 1.3 million members across North America, working for retailers at a typical wage of about $18 an hour, including benefits,” according to Paquette. “Members are employed at stores such as Kroger, Safeway and Albertsons. Whole Foods, for contrast, isn’t unionized.”

Read the Post report.

 

 




Bankruptcy Law ‘Trumps’ the National Labor Relations Act in Casino Reorganization Case

In a case of first impression, the Third U.S. Court of Appeals recently ruled that federal bankruptcy courts may extinguish a Chapter 11 employer’s obligations under an expired collective bargaining agreement pursuant to Section 1113 of the Bankruptcy Code where such relief is necessary to permit reorganization, reports Buchanan Ingersoll & Rooney PC.

The case is In re: Trump Entertainment Resorts, 2016 WL 191926 (3d Cir. 2016).

“The Trump Entertainment case is significant for employers in reorganization, because it eliminates the need for union negotiations to reach an actual impasse before new terms can be implemented and, perhaps more importantly, it avoids the possibility that the NLRB could file a claim during the bankruptcy proceeding that would overturn a change in the employees’ terms and conditions of employment,” the firm writes.

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