A recent Michigan Court of Appeals case emphasizes the importance for employers in carefully drafting arbitration agreements, to ensure that clear notice is provided to an employee that he or she is waiving the right to litigate statutory discrimination claims in court. In the case, Shaya v. City of Hamtramck, plaintiff Steve Shaya was employed by the City of Hamtramck as its Director of Public Services under a written employment agreement. Shaya was later terminated by the City, based on allegations of malfeasance in the performance of his duties. Shaya sued in state court, alleging ethnicity discrimination in violation of Michigan’s Civil Rights Act (CRA) and its Whistleblowers’ Protection Act (WPA).
On November 16, 2016, a federal court in Texas issued an order permanently prohibiting the Department of Labor (DOL) from enforcing its new “Persuader Rule.” The DOL’s Persuader Rule interprets a provision of the federal Labor-Management Reporting and Disclosure Act (LMRDA) that requires employers and consultants hired to assist in communicating and advising employees of their rights and the law during a union campaign, to report their business relationship.
Now that the election is over and President-elect Trump will take office, employers may be wondering how they will be affected. Who Trump will nominate to the U.S. Supreme Court, what legislation will be passed by Congress, and what regulatory rollbacks will occur are currently all up in the air. One way he can make an immediate impact from day one is through Executive Orders (EOs). Executive Orders have long been used by Presidents to manage operations within the federal government. President Obama used them to make sweeping changes in requirements for federal contractors. President-elect Trump has indicated that reversing many of Obama’s Executive Orders will be among his first acts.
Fast food giant McDonald’s recently agreed to pay $3.75 million to settle a lawsuit for wage and hour violations allegedly committed by one of its California franchisees. The federal lawsuit, filed in 2014 by franchisee employees, alleged that McDonald’s was liable as a joint employer under California law.
Barely two months before the Department of Labor’s (“DOL”) new overtime regulations become effective on December 1, 2016, Michigan and 20 other states are collectively challenging their constitutionality and legality. The lawsuit, along with a similar lawsuit filed by 56 local, regional and national business groups, seeks a court order holding that the regulations are unlawful and unenforceable.
Bills have also been introduced in the House of Representatives and the Senate that would delay the December 1 effective date by 6 months.
Is it back to school or back to work for private college and university teaching assistants, research assistants and fellows? An historic August 23rd ruling by the NLRB said, in essence, these categories are employees first and students second. The case stems from a Columbia University group that sought to unionize. The NLRB’s decision, which overturns a decision from Brown University ten years ago, means if this category pursues and obtains union recognition, they can engage in collective bargaining activities and even go on strike. Nemeth Law attorney Kellen Myers offers highlights of the decision and a word of caution for Michigan’s more than 30 private colleges and universities.
Remember the I-9 forms you are supposed to have your employees sign within three days of their start date? If you haven’t been taking them seriously, now’s the time to do so. Effective August 1, 2016 the minimum penalty per violation increased from $110 to $216 and the maximum penalty soared to $2,056 from $1,100 per violation. It’s a rapid way to adjust for inflation! The financial penalty increase presents a strong reason to conduct an internal I-9 form audit; Nemeth Law founder Patricia Nemeth explains.
Unions can now petition to hold a union election with temporary and staffing company employees, along with the permanent employees of a company contracting with the staffing company, in a single union election. Because the employment services industry, which includes employment placement agencies and temporary help services, is “one of the largest and fastest growing industries in terms of employment,” the significance of this decision cannot be overstated.
The routine process of filling out an I-9 form when hiring a new worker could soon become costly for unwary employers. Starting August 1, 2016, penalties for I-9 paperwork violations will nearly double. The increased penalties were spurred by a new law which required federal agencies to increase the level of civil monetary penalties they issue to adjust for inflation. (See, the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015)
Pokémon NO? Nemeth Law looks at the latest fad and its impact on employers. Is the new craze cutting into your workplace productivity? With more users than Twitter, the game likely has at least some of your employees distracted. What to do? Nemeth Law attorney Kellen Myers encourages employers to review and update mobile phone use policies, discipline employees consistently when necessary and, don’t be a killjoy, allow employees to enjoy the fun on breaks and at lunch.
