Clarifying the SCOTUS American Pipe Decision: Pending Motion for Class Certification does not toll Limitations Period

The United States Supreme Court recently handed the defense bar a useful tool in stemming the tide of class action lawsuits. In the area of employment law, claims for violations of federal wage and hour laws, violations of state and local regulations governing employees, and systemic workplace discrimination are prone to class action claims. More ›

Unpacking the Supreme Court's Janus Decision

The United States Supreme Court issued its long-anticipated decision in Janus v. American Federation of State, County and Municipal Employee Council 31 on June 27, 2018.  The five to four majority held that requiring public-sector employees who are not union members to pay union agency fees violates the First Amendment.  In the final paragraphs of the majority opinion, the Court made it clear that in the context of a public sector employer-union relationship, non-member employees in the bargaining unit must provide express consent before union dues can be deducted from their paychecks.  Janus' implications for public employers are wide-ranging. However, the immediate question that unionized public-sector employers must address is how to administer existing agency fee provisions in collective bargaining agreements and distinguish between union members and non-members, whose express consent is now required before union dues can be deducted from their paychecks.  It is important to note that this decision is grounded in constitutional principles and only applies to public sector unionized employees. More ›

SCOTUS Green Lights Class Action Waivers in Major Win for Employers

The United States Supreme Court ruled earlier this week that employees must submit claims to arbitration on an individualized basis when their employment agreements require it, even when those claims could be brought as class or collective action under federal legislation such as the Fair Labor Standards Act. Writing for the majority, Justice Neil Gorsuch held that parties to an arbitration agreement are bound by their agreement, as the Federal Arbitration Act envisioned. The Court cited the long history of supporting private arbitration agreements as an efficient and cost-effective means of handling disputes between parties, including parties to an employment agreement who have a dispute over wages. More ›

U.S. Supreme Court Rejects Narrow Reading in Favor of "Fair" Reading of FLSA Exemptions

The US Supreme Court recently issued a five-four decision addressing whether service advisers of a car dealership fell within the automobile sales exemption. While the opinion may not seem particularly helpful for businesses that do not sell cars, a deeper reading reveals that it is a positive case for employers. More ›

Whistleblowers Now Actually Have to Report to The SEC For Dodd-Frank Protection

On February 21, 2018, the U.S. Supreme Court ruled that provisions of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act that protect whistleblowers from being fired, demoted, or harassed by their employers only apply to people who actually make a report of a violation of the federal securities laws to the Securities and Exchange Commission. The Dodd-Frank Act established a whistleblower program that was designed to motivate individuals to report securities laws violations to the SEC by providing whistleblowers with incentives and protections. Individuals who voluntarily report information to the SEC may be entitled to a cash award of 10 to 30% of the monetary sanctions collected in enforcement actions, and they are protected from retaliation by their employers for having provided that information. More ›

SCOTUS Aligns Application of Statute of Limitations in Constructive Discharge and Actual Discharge Cases

The U.S. Supreme Court held in Green v. Brennan that the statute of limitations for a constructive discharge begins to run on the date of resignation, not the date of the employer’s last discriminatory act, resolving a circuit split. As a result, in determining the deadline for filing a charge of discrimination with the EEOC, constructive discharge cases will be treated the same way as actual discharge cases. More ›

Perception is Everything: Supreme Court Expands First Amendment Protections for Public Employees

In a decision that may expand the "zone of interest" protected by the First Amendment via 42 U.S.C. §1983, the Supreme Court in Heffernan v. City of Paterson, strengthened free speech rights for public employees by holding a public employee may bring a suit premised on his engagement in protected political activities, even when the employee did not engage in those activities, and the employer was mistaken in its belief that he had.

The Case

The city demoted a police officer (Heffernan) after it believed Heffernan was holding a campaign sign supporting a mayoral candidate and speaking to the candidate’s campaign staff. The demotion was intended as punishment for Heffernan's "overt involvement" in the campaign. However, the city was mistaken about his political activity, because Heffernan was only transporting the challenger's sign to his sick mother, at her request. More ›

U.S. Supreme Court Rules Employers Cannot Avoid Class Actions By Offering Complete Relief to Plaintiffs

In a 5-3 decision, the United States Supreme Court affirmed the Ninth Circuit’s decision in Campbell-Ewald Co. v. Gomez, holding that an unaccepted settlement offer or offer of judgment providing for an individual plaintiff complete relief does not moot a class action complaint, resolving a split among circuits. However, the Court limited its holding by declining to address “whether the result would be different if a defendant deposits the full amount of the plaintiff's individual claim in an account payable to the plaintiff, and the court then enters judgment for the plaintiff in that amount.” The Court’s dissenting opinions and concurring opinions suggest actual tender would moot the plaintiff’s claim. More ›

Of Interest: U.S. Supreme Court Finds Constitutional Support For Same-Sex Marriage

Note: Though the Supreme Court's decision in Obergefell v. Hodges (issued today) does not directly implicate an employment issue, the opinion represents a significant shift in U.S. culture and society, and therefore is likely of import to many employers. Thus, we share a summary of the opinion.

In a monumental decision, the United States Supreme Court ruled today that same-sex marriage is a fundamental right protected by the 14th Amendment of the United States Constitution. The laws of Michigan, Kentucky, Ohio and Tennessee defining marriage as a union between a man and a woman were upheld by the United States Court of Appeals for the Sixth Circuit but then struck down by the Supreme Court's decision.  More ›

Of Interest: U.S. Supreme Court Saves Obamacare a Second Time

Note: Though the Supreme Court's decision in King v. Burwell (issued today) does not directly implicate an employment issue, the opinion is quite significant and likely of interest to many employers who have been following the developments of the Affordable Care Act. Thus, we share a summary of the opinion addressing the latest challenge to the ACA prepared by our colleagues in Hinshaw's national Appellate Practice Group.

By a 6-3 margin, the Supreme Court has ruled in King v. Burwell that the provision in the Affordable Care Act (also known as "Obamacare") that offered tax credits to people who purchase health insurance on a health insurance exchange created under the ACA applied whether or not the exchange was established by a State or by the federal government. In doing so the Court saved the ACA from the consequences of what was largely thought to be a "scrivener's error," that is, a drafting mistake in a bill that was nearly 1,000 pages long. More ›