Hunton Profile

Administrative Law Task Force

The Administrative Task Force plays a critical role in keeping our OSHA practice current and vibrant.  We follow developments daily and we work together to analyze the impact that proposed and actual changes will have on the law in general and specifically on our client’s industries. Employers today face an unprecedented range of workplace safety and OSHA legal issues as government increases worker safety and health regulation and demands meticulous reviews by its OSHA inspection force.

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Proposed Bills Seek To Loosen Pleading Requirements For Claims In Federal Court

Earlier this year, the U.S. Supreme Court issued a decision in Ashcroft v. Iqbal that clarified and, indeed, amplified the pleading requirements in federal lawsuits.  Essentially, the decision held that a complaint is insufficient to state a claim if it merely states legal conclusions and does not include specific factual allegations supporting the claim.

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Solis Announces New "We Can Help" Enforcement and Education Campaign - Hires 250 Additional Wage & Hour Investigators

Last week, Secretary of Labor Hilda Solis announced the Department of Labor's planned launch of an ambitious new public awareness campaign called "We Can Help."  The campaign, set to debut in early 2010, is designed to help inform workers about their rights under federal wage and hour laws.

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Union Election Win Rate Continues Upward In 2009 - 73% Win Rate Casts Further Doubt On Need For EFCA

According to data from BNA PLUS, unions have won more than 73% of the elections in which they participated in the first half of 2009. This is up from 66% for the same time period in 2008. The Teamsters led the way by participating in 164 elections and winning 70% of them, while the SEIU was second, winning 75% of 44 elections.  Although the number of elections conducted by the NLRB thus far in 2009 is down from the number in 2008, the union's win rate in each year of this decade has been over 50% and getting better as the decade progresses. The numbers out today indicate that currently unions are overwhelmingly successful when employees are allowed to vote on the question of union representation. Opponents of the Employee Free Choice Act will question why Congress needs to eliminate the secret ballot for employees in order to help unions succeed when unions are obviously faring very well under the current system.

NLRB Remedy Shows Agency Clout - $41 Million Settlement Unprecedented

In one of the largest back pay awards in the agency's history, the National Labor Relations Board (NLRB) concluded a settlement with five Michigan beer distributors that required the companies to pay $41 million in back pay to employees and the Teamsters. Findings from an ALJ, supported by the NLRB and the 6th Circuit Court of Appeals, concluded that the five companies colluded to systematically oust the union by separately engaging in bad faith bargaining, unlawfully declaring impasse, and then implementing their respective labor contracts with substantially lower wages and benefits.

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Restrictions On Use Of Genetic Information Become Effective November 21, 2009

Title II of the Genetic Information Non-Discrimination Act of 2008 (GINA) covering employment goes into effect on November 21, 2009.  GINA, which was enacted in May 2008, prohibits employers from discriminating on the basis of genetic information and from intentionally acquiring genetic information from employees or applicants.  The Act also imposes strict confidentiality requirements on employers, and requires them to segregate and maintain all such information in compliance with the Americans with Disabilities Act.

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ENDA Moves Closer To Passage

On November 5, 2009, the U.S. Senate Committee on Health, Education, Labor, and Pensions held an initial hearing on the Employment Non-Discrimination Act of 2009, S. 1584 (“ENDA” or “the Act”).  ENDA would prohibit discrimination in employment on the basis of sexual orientation and gender identity, which currently are not prohibited factors under federal law or under the laws of a majority of states.

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California Appellate Court Rules That Trade Secrets Must Be Identified with Reasonable Particularity

In California, employers litigating claims for misappropriation of trade secrets must identify those trade secrets with “reasonable particularity” before pursuing discovery.  See Cal. Civ. Proc. Code § 2010.210.  There is frequently an early litigation battle over what "reasonable particularity" means.  Earlier this month, a California Appellate Court recently analyzed this principle in Perlan Therapeutics, Inc. v. Superior Court (Nexbio, Inc.).  The Court initially emphasized the trial court’s broad discretion under section 2019.210.  The Court also warned against the use of catch-all language in the identification statement to preserve the ability to add additional trade secrets to the list after the plaintiff has commenced discovery.

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Supreme Court Will Decide Validity of NLRB's Two-Member Rulings

The Supreme Court agreed on November 2, 2009 to decide whether decisions of the National Labor Relations Board (NLRB) are valid if they were reached by only two members when other NLRB seats were vacant.  In New Process Steel, LP v. NLRB, the Seventh Circuit concluded that the NLRB’s two-member decision in that case was appropriate and binding.  The Supreme Court is expected to hold oral argument early next year and decide the case in June 2010. 

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OSHA Vows To Be "Back In The Enforcement Business"

At the recent AFL-CIO Constitutional Convention, Secretary of Labor Hilda L. Solis declared that the Department of Labor (DOL) is “back in the enforcement business.”  The DOL chief vowed to increase the DOL’s workplace enforcement of the nation’s labor laws because vigorous enforcement “is not only our responsibility, it’s our moral obligation.”

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New OFCCP Director Named

In August 2009, the Obama administration named Patricia A. Shiu the new Director of the Office of Federal Contract Compliance Programs (OFCCP).  The OFCCP, part of the Department of Labor (DOL), enforces the non-discrimination and affirmative action obligations of federal contractors under Executive Order 11246, the Vietnam Era Veterans’ Readjustment Assistance Act, and the Rehabilitation Act.

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David Lopez Selected as General Counsel of EEOC

President Obama recently announced his intent to nominate P. David Lopez for the position of General Counsel of the Equal Employment Opportunity Commission (EEOC).  Lopez currently holds the position of Supervisory Trial Attorney for the EEOC’s Phoenix District Office.

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Texas Court Makes Inferences to Enforce Non-Compete Agreement

In Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding, 2009 WL 1028051 (Tex. April 17, 2009), the Texas Supreme Court held that the covenant not to compete at issue was enforceable because the agreement to furnish consideration (confidential information) for the covenant could be inferred due to the nature of the contract.  The Mann Frankfort Court held that a promise can be inferred when the employee was hired to perform work that necessarily required the receipt of confidential information.  Specifically, the Court stated:

We hold that if the nature of the employment for which the employee is hired will reasonably require the employer to provide confidential information to the employee for the employee to accomplish the contemplated job duties, then the employer impliedly promises to provide confidential information and the covenant is enforceable so long as the other requirements of the Covenant Not to Compete Act are satisfied.

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New FMLA Amendments Further Expand Military Leave Rights

Employees who have family members serving in the armed forces will have new expanded rights under Section 565 of the recently-enacted National Defense Authorization Act for Fiscal Year 2010.  This provision further amends the Family and Medical Leave Act (FMLA), which was amended only a year ago to allow leave to care for family members with needs relating to military service.

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H1N1 Update

H1N1 flu has become as widespread as feared.  For the period of August 30 to October 24, 2009, the Centers for Disease Control (CDC) reports 12,466 confirmed U.S. H1N1 hospitalizations and 530 confirmed deaths.  The CDC attributes 1339 deaths to H1N1 since the outbreak began in the Spring.  The Countries that are experiencing the worst outbreaks are the US, Mexico, and China.

This public health crisis is expected to get worse.  Any employer who has not yet put together a pandemic flu plan should do so immediately.  The details regarding such a plan are contained in the April 2009 "Swine Flu Pandemic Preparedness" and the May 2009 "H1N1 Update" Client Alerts.

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Health Care Reform... What Is the Impact On Employers?

These days, massive and often confusing legislative proposals seem to be the norm on Capitol Hill.  One bill that has generated significant debate -- and controversy -- is the House's current version of the health care bill, H.R. 3200.  Although it is vague in many respects, employers trying to predict the future can draw some conclusions now about what life under a government-run healthcare system might be like.

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