May 2022 Legal Industry News: Law Firm Additions, Industry Awards and Recognition, and Pro Bono Efforts

Happy May! As the weather gets warmer, we hope you are remaining safe, relaxed, and healthy. Please read on to find the latest news in law firm hiring and expansion, legal industry recognition, and pro bono and legal aid efforts.

Law Firm Hiring and Expansion

Sidley Austin LLP has expanded its Emerging Companies practice with the addition of Cynthia Bai and Nicholas Frey, both of whom are located in the firm’s Palo Alto office. Ms. Bai, who also joins Sidley’s Global Finance group, focuses her practice on debt financing transactions across a variety of sectors, including healthcare, life science, and technology. Mr. Frey, who also joins the firm’s Employee Benefits and Executive Compensation group, focuses his practice on capital markets transaction support, equity plan and award design, mergers and acquisitions, and more.

Martin Wellington, leader of Sidley’s Emerging Companies and Venture Capital practice and a member of the firm’s Executive Committee, said:

“With over a dozen new partners nationally in the emerging growth practice over the past several years, our strategic investment in this sector is only gaining momentum. Cynthia and Nic bring the Silicon Valley-native expertise that entrepreneurial technology and life sciences companies expect in credit and executive compensation matters, as they are intimately familiar with the bespoke practices and market norms that have grown up in this sector.”

Kennedys Law LLP has promoted 22 new attorneys to partner, a record-high number for the firm. With these additions, the firm’s total worldwide partner count stands at 293. The following attorneys have been selected for promotion:

“I am delighted to recognise and reward a record number of new partners this year and to see that success shared so widely across our global offices,” said senior partner Nick Thomas. “We are incredibly fortunate to have such a dedicated and diverse workforce, which not only enables us to be where our clients need us most but has allowed us to continue growing even during a challenging couple of years.”

Akin Gump Strauss Hauer & Feld LLP has added Uri Itkin as a partner in the Investment Funds Litigation practice group. Mr. Itkin, a nationally recognized litigator and trial attorney, represents investment funds in all types of securities and commercial matters, such as real estate transactions, distressed corporate debt, and structured finance.

“Uri’s arrival is another outstanding addition to our litigation practice,” said Akin Gump chairperson Kim Koopersmith. “Uri is at the intersection of funds, litigation and regulatory, all market leading practices at our firm. He is perfectly situated to add tremendous value to our clients.”

“I am looking forward to continuing to grow my practice and building relationships with Akin Gump’s investment fund clients and my new colleagues at the firm,” said Mr. Itkin. “I am particularly excited about the firm’s wide range of knowledge and experience and its collaborative approach. They give clients valuable access to Akin Gump’s established team of knowledgeable attorneys who are experienced in a wide cross-section of investment fund practices.”

Industry Awards and Recognition

Sordum Ndam and Richard W.F. Swor, attorneys at Bradley Arant Boult Cummings LLP, have been recognized as Top 30 Under 30 professionals by the Cystic Fibrosis Foundation’s Tennessee Chapter. The honor is awarded to individuals who have shown dedication to their local communities and reached noteworthy achievements in their careers.

Ms. Ndam, an associate in the firm’s Economic Development and Environmental Law practice groups, is a member of the 2022 spring cohort of the Arts Board Matching for nonprofit board service experience in Nashville. Mr. Swor, an associate in the firm’s Litigation and Intellectual Property practice groups, serves on the board of the Belmont Wesley Fellowship and on the LGBT Law Executive Council of the Tennessee Bar Association.

“We are proud of Sordum and Richard for their professional and philanthropic efforts and for their recognition by such an important organization,” said Bradley Nashville Office Managing Partner Lauren B. Jacques.

Keith Hebeisen, a partner at Clifford Law Offices PC, is set to receive the Illinois Trial Lawyers Association (ITLA) Leonard M. Ring Lifetime Achievement Award. Each year, an ITLA committee selects one lawyer who has dedicated “a substantial part” of their work to the organization; Hebeisen has been an ITLA member since his induction as a lawyer in 1983. He also served as ITLA President in 2005-06, and has been a member of the ITLA Executive Committee for decades.

Mr. Hebeisen, a longtime medical malpractice attorney in Chicago, has represented clients in a wide array of industries, including but not limited to transportation, product liability and toxic torts. He is a Fellow in the International Academy of Trial Lawyers, and he additionally serves on the Board of Governors of the American Association of Justice.

Wilson Elser Moskowitz Edelman & Dicker LLP has been nominated for the Cyber Law Firm of the Year 2022 award by Advisen, a leading provider of data, media and technology solutions for the commercial property.

Every year, the award is presented to law firms and legal professionals who are deemed most influential in the cyber risk and cybersecurity industry. The winner will be announced on June 16th, 2022 at Gotham Hall in New York City.

Pro Bono and Legal Aid Efforts

Gilbert LLP, a complex dispute resolution-focused law firm in Washington D.C., has announced a new pro bono project, focused on assisting victims of this winter’s deadly tornadoes in Kentucky. The firm has partnered with Disaster Relief at Work and the town of Mayfield, Kentucky to rebuild the local park, which was heavily damaged by the weather. Gilbert will also make a significant financial contribution to ensure that the park is restored to its former condition.

“Mayfield Mayor Kathy Stewart O’Nan realized that rebuilding the park would help revitalize their town and give residents a spirit of hope going forward,” said Craig LitherlandGilbert’s Managing Partner and Chief Operating Officer.  “Our attorneys decided that we wanted to be a part of Mayfield’s rebuilding efforts, and we are pleased to have been able to help in multiple ways.”

Partnering with Lawyers for Good Government (L4GG), law firm Katten Muchin Rosenman LLP is providing pro bono legal aid for Ukrainian citizens seeking Temporary Protected Status in the United States. Participating through L4GG’s TPS Pro Bono Project for Ukraine, the firm will offer free legal assistance from volunteer attorneys, who will assist in applying for TPS and answer any legal questions necessary.

Presently, Katten is also working with ongoing pro bono partner Airlink, providing monetary assistance through donation-matching efforts. Airlink developed a response plan to assist refugees of Ukraine through the delivery of aid and the transportation of emergency response teams into neighboring countries.

The Legal Aid Service of Broward County and the Coast to Coast Legal Aid of South Florida recently honored several legal professionals for their commitment to seeking justice for the most vulnerable members in their communities. The Annual Recognition Awards, held May 2-6, 2022, aim to promote a better understanding of the law and its role in society.

2022 Award Recipients are as follows:

Copyright ©2022 National Law Forum, LLC

New Jersey Employers Are Now Required to Provide Written Notice Before Using Tracking Devices in Employee-Operated Vehicles

Earlier this year, New Jersey Governor Phil Murphy signed into law Assembly Bill No. 3950, which requires employers in the State to provide written notice to an employee before using a tracking device on a vehicle used by the employee. The new law, which went into effect on April 18, 2022, recognizes that employers may have a legitimate business interest in being able to track their workforce’s whereabouts—particularly when traveling or working offsite—while also reconciling that with the protection of workers’ privacy rights. At the very least, the days of covertly tracking employee vehicles appear to be a thing of the past.

The law defines “tracking device” as any “electronic or mechanical device which is designed or intended to be used for the sole purpose of tracking the movement of a vehicle, person, or device,” with a specific carveout for devices used solely for the purpose of documenting employee expense reimbursement.

Significantly, the written notice requirement applies to the use of tracking devices in any vehicles used by an employee. It does not matter whether it is an employee’s personal vehicle (whether owned or leased) or company-owned or provided. Written notice must be provided regardless.

Failure to comply with the law’s notice requirements can carry substantial penalties. An employer who knowingly makes use of a tracking device in a vehicle used by an employee without providing written notice to the employee shall be subject to a civil penalty up to $1,000.00 for the first violation, and then up to $2,500.00 for each subsequent violation. These fines can add up quickly, especially for service businesses with large vehicle fleets, among others. Additionally, it is possible that failure to comply with the law’s notice requirements may implicate employee privacy rights that could lead to further civil exposure.

Private employers within the State must ensure they have appropriate policies and procedures in place to comply with the new law’s requirements and insulate their businesses from potential liability for violations. While it does not specify what the required “written notice” must look like or how it must be conveyed to employees, at minimum employers should update their employee handbooks as well as provide a stand-alone, written notice to employees, with signed confirmation and acknowledgement of receipt. Additionally, rule and regulations regarding GPS tracking of employee vehicles may vary from state to state, so employers with a multi-state presence or service area need to be aware of the different laws that may apply to them depending on where their employees are working.

Employers who have not yet updated their forms and procedures should immediately contact counsel and take steps to ensure that they are in compliance. Similarly, it may be prudent for employers who drafted their own policies to have experienced employment counsel perform a policy or handbook review and provide advice and guidance regarding employer responsibilities and obligations, including but not limited to ensuring compliance with New Jersey’s new vehicle tracking device law.

COPYRIGHT © 2022, STARK & STARK
Article By Cory Rand with Stark & Stark.
For more articles about New Jersey Legislation, visit the NLR New Jersey law section.

Top Legal Industry News for Spring 2022: Law Firm Hiring, Industry Recognition, Women in Law

We’re back with another edition of our legal industry news roundup. Read more below for the latest updates in law firm hiring and expansion, legal industry awards, and recognition of leading women in the field today.

Law Firm Hiring and Expansion

Keller and Heckman added Counsel Daniel P. McGee to the firm’s Tobacco and E-Vapor practice. Mr. McGee’s experience includes counseling companies on a broad range of complex tobacco industry and U.S. Food and Drug Administration (FDA) regulatory matters and developing strategies to help companies bring new products to market.

“Daniel’s expertise and industry perspective will be invaluable to Keller and Heckman clients who are carefully navigating the challenges and pitfalls of a highly regulated and rapidly evolving legal landscape,” said Azim Chowdhury, a Partner in the firm’s Tobacco and E-Vapor and Food and Drug practices. “In addition to expanding our tobacco and e-vapor capabilities, we are especially looking forward to utilizing Daniel’s expertise in state law compliance, particularly for clients expanding into the hemp and CBD categories.”

Richard Mann, Chair of Keller and Heckman’s Management Committee, expressed excitement over Mr. McGee’s joining the firm, saying. “The addition of Daniel to our practice demonstrates Keller and Heckman’s commitment to helping our clients understand and comply with continuously evolving regulations in this growing field.”

Mr. McGee said he’s looking forward to collaborating with the Tobacco and E-Vapor team at Keller and Heckman.

“After spending the bulk of my legal career as in-house counsel to the tobacco industry, I made a strategic decision to focus on the industry as a whole and join a law firm that is a leader in tobacco regulatory compliance and public policy initiatives.”

Norris McLaughlin, P.A. welcomed Michael J. Willner as a Member in the firm’s New York office. Mr. Willner joined the firm’s Real Estate, Finance, and Land Use Practice Group.

Mr. Willner works with individuals and entities involved with managing real estate assets, as well as condominiums and co-ops. He specializes in condominium and cooperative law, commercial and residential real estate transactions and related litigation.

Holtzman Vogel Baran Torchinksy & Josefiak PLLC opened a new office in Phoenix, Arizona. The firm held its ribbon cutting ceremony on April 26 for the office at the Esplenade with the Arizona Chamber of Commerce.

The office is led by resident Partner Christine Fort and Dallin M. Holt, Of Counsel.

“After over 20 years representing high-profile clients in all aspects of political and regulatory law, we are grateful to now open our fourth office to help support our growing roster of clients in the West,” said Managing Partner Jill Holtzman Vogel, former Chief Counsel for the RNC and a sitting member of the Virginia General Assembly. “We could have chosen anywhere to expand our reach, but Arizona and the Phoenix metro area is dynamic and fast-growing – just like our team. This is absolutely the right place for Holtzman Vogel to put down roots, and we are thrilled to open the doors and get started.”

Goldberg Segalla added Ian G. Zolty to the firm’s Workers’ Compensation group in Princeton, N.J.

Mr. Zolty has experience counseling and defending employers, insurance carriers, and third-party administrators in workers’ compensation matters throughout New Jersey, including hospitals, insurance companies and school boards, among others.

Legal Industry Recognition

City & State New York named three shareholders at Greenberg Traurig, LLP to its 2022 Energy & Environment Power 100 listSteven C. RussoDoreen U. Saia, and Zackary D. Knaub. The recognition spotlights significant legal professionals in the New York area that are “reshaping the energy industry – and rescuing our environment.”

Mr. Russo is the co-chair of the firm’s Environmental Practice, focusing his practice on environmental law, the National Environmental Policy Act, the State Environmental Quality Review Act, and more. Ms. Saia is the chair of the Albany Office’s Energy & Natural Resources Practice, where she focuses her efforts on supporting national and international electricity corporations and aiding in related financial transactions. Mr. Knaub is a shareholder in both the Environmental and the Government Law & Policy groups, practicing specifically in energy and environmental legal and government affairs matters, including litigation, dispute resolution, government procurement, and regulatory matters.

Tammie Alexander, chair of the Business Department at Steptoe & Johnson PLLC, is a 2022 Bar Foundation Fellow, appointed by the West Virginia Bar Foundation Board of Directors.  Recognizing lawyers and judges in West Virginia with noteworthy dedication to the practice of law, the Bar Foundation has nominated only 450 out of 6,000 eligible individuals since 1999. Since the program’s inception, 22 Steptoe & Johnson attorneys have been selected as fellows.

Ms. Alexander, located in the firm’s Morgantown office, focuses her practice on an array of topics, including banking, real estate, commercial transactions, title insurance, and construction matters. She primarily assists with large scale projects that involve multiple property owners, governmental agencies, and financial investors.

The South Carolina School of Law provided the Platinum Compleat Lawyer Award, the school’s highest alumni honor, to Erna Womble, retired litigation partner at Womble Bond Dickinson (US) LLP. Established in 1992, the Compleat Lawyer Awards are meant to recognize alumni for notable professional, civil, and legal accomplishments. Recipients are members of the field who exemplify professional competence, ethics, and integrity.

Erna Womble, who graduated from the University of South Carolina School of Law in 1986, joined Womble Bond Dickinson in 1987. Today, she serves as the Co-President of Clearly Bespoke Strategies, Inc., a strategic advising company. Ms. Womble said of the award: “I am profoundly honored by the award from the law school which began my career as a lawyer-in-training. One of my excellent professors often admonished that when lawyers cease to learn, they cease to be good lawyers. More than three decades later, I’m still a lawyer-in-training. I am forever grateful to my beloved firm which afforded me the singular privilege of raising children whilst working with scions of industry and holders of the public trust in serving some of the firm’s best clients.”

Women in the Legal Industry

The Los Angeles Business Journal announced their “Women of Influence: Attorneys,” list which included Stubbs, Alderton & Markiles’ Heather Antoine. The list highlighted lawyers working for large businesses in legal areas such as data protection and intellectual property law.

Heather Antoine focuses her law firm practice on corporate property and data protection as Chair of the firm’s Trademark & Brand Protection practice, and Co-Chair of the Privacy & Data Security practice group. Some of her credits include features in the Los Angeles Times and CNBC.

Robinson & Cole LLP voted partner Britt-Marie K. Cole-Johnson to join the firm’s Managing Committee, allowing her to participate in the firm’s policy and practice strategic development. This comes after a series of noteworthy recognitions in the legal field: Cole-Johnson was recently presented with the Distinguished Leader Award by the Connecticut Law Tribune’s Connecticut Legal Awards, and she was additionally selected as an honoree for The 100 Women of Color Gala & Awards.

“[Ms. Cole-Johnson] is well-known for her talents as a legal advisor but also for her deep commitment to community organizations. She joined the firm thirteen years ago after law school and has been a true and constant champion for equitable and inclusive business practices within the firm, with her clients, and within the community. I look forward to her bringing that leadership and perspective to our Managing Committee,” said Robinson & Cole colleague Rhonda J. Tobin.

The accolades followed a recent appointment by Connecticut Governor Ned Lamont for the Connecticut Paid Leave Authority board.

Romer Debbas, LLP formed an all-female, diverse Agency Lending & Affordable Housing Department, focusing on representation in the property market. Partner Carmen I. Pagan, and Associates Catherine M. Azevedo and Pamela U. Norbert lead the new team with years of legal knowledge in real estate financing, commercial property law and lending service providers.

The new department expanded the firm’s practice areas in bankruptcy, corporate and business law, immigration, litigation, taxation and trusts and estate law.

For more business of law legal news, click here to visit the National Law Review.

Copyright ©2022 National Law Forum, LLC

Your Employee As Your Arbitrator? Maybe!

The Hon’ble Supreme Court of India (“Court”) has, by its order dated August 24, 2009, in the matter of Indian Oil Corporation Ltd. & Ors. (“Appellants”) Vs. M/s. Raja Transport (P) Ltd. (“Respondent”)1, once again upheld that the Court must give full effect and meaning to the appointment procedure set by the parties in the arbitration agreement before appointing arbitrator of their choice.

BRIEF FACTS OF THE CASE:

The Appellant and Respondent entered into an agreement dated February 28, 2005 (“Agreement”), where under, the Respondent was appointed as the dealer of the Appellant for the retail sale of petroleum products. Clause 692 of the Agreement provided for settlement of disputes by arbitration where the Director, Marketing of the Appellant, or a person appointed by him, was to act as the sole arbitrator.

On August 06, 2005, the Appellant terminated the dealership. The Respondent filed suit in the Civil Court, Dehradun, seeking (1) a declaration that the order of termination of dealership was illegal and void and (2) for a permanent injunction restraining the Appellant from stopping the supply of petroleum products to the retail outlet of the Appellant. In this same suit, the Appellant filed an application under Section 8 of the Arbitration and Conciliation Act, 1996 (“the Act”), praying that the suit be rejected and the matter be referred to arbitration in terms of Section 69 of the Agreement. The Ld. Judge allowed the Appellant’s application and directed the parties to refer the matter to arbitration within two months and also directed the Appellant not to stop supplies to the Respondent for a period of two months.

Both parties challenged the said order before the District Court, Dehradun. The Respondent also filed an application under Section 9 of the Act seeking an interim injunction against the Appellant. Both appeals and the Section 9 application were disposed off by a common order dated January 20, 2006, whereby, both appeals were dismissed and the Section 9 application was allowed, retraining the Appellant from interrupting the supply of petroleum products to the Respondent for two months as well as directing the parties to refer the matter to arbitration as per the agreement, within the said period of two months.

While the appeals were pending, the Respondent issued letter dated January 04, 2006, through their counsel, wherein, the Respondent, referring to the Appellant’s insistence that only its Director, Marketing could be appointed as the Arbitrator, inter alia alleged that it (the Respondent) did not expect fair treatment or justice if the Director, Marketing or any other employee of the Appellant was appointed as the Arbitrator and called upon the Respondent to have a joint meeting so as to enable the parties to mutually agree on an independent arbitrator. This request was not accepted by the Appellant.

Thereafter, the Respondent filed an application before the Chief Justice of the Uttaranchal High Court under Section 11(6) of the Act for appointment of an independent arbitrator to decide the dispute. This application7 was allowed and a retired High Court Judge was appointed as the Sole Arbitrator to decide the dispute. The Ld. Chief Justice inter alia assigned the following two reasons to appoint a retired Judge as an Arbitrator instead of the persons as named in the arbitration agreement.

  1. The Director (Marketing) of the Appellant, being its employee, should be presumed not to act independently or impartially.
    1. The Respondent had taken steps in accordance with the agreed appointment procedure contained in the arbitration agreement and directions of the civil court by issuing notice dated January 04, 2006, calling upon the Appellant to appoint an arbitrator. After receipt of the said notice, the Appellant had to refer the matter to its Director, Marketing, which it did not do, nor did it take any steps for the appointment of an Arbitrator. The Appellant had, thus, failed to act as required under the agreed procedure.

    Aggrieved by the said order, the Appellant preferred an appeal before the Court.

    JUDGMENT:

    The facts and circumstances of this case raised three issues for the Court to consider:

    1. Whether the Ld. Chief Justice of the Uttaranchal High Court was justified in assuming that when an employee of one of the parties to the dispute is appointed as an arbitrator, he will not act independently or impartially.

    On this issue, the Court inter alia noted as under:

    • Arbitration is a binding and voluntary dispute resolution process by a private forum so chosen by the parties.
    • Where a party, with open eyes and full knowledge and comprehension of the said provision enters into a contract with a government/statutory corporation/public sector enterprise, where such arbitration agreements providing for settlement of disputes where the arbitrator will be one of its senior officers, were common, such party cannot subsequently turn around and contend otherwise unless performance of that part of the arbitration agreement is impossible, or is void being contrary to the provisions of the Act.
    • It was settled law that arbitration agreements in government contracts providing that an employee of the department (usually a high official unconnected with the work or the contract) will be the arbitrator are neither void, nor unenforceable.
    • Whilst the provisions relating to independence, impartiality and freedom from bias are implicit under the Arbitration Act, 1940, the same are made explicit in the Act.
    • This position may differ where the person named as the arbitrator is an employee of a company/body/individual other than the state and its instrumentalities e.g. a Director of a private company who is party to the arbitration agreement. In such cases, there may be a valid and reasonable apprehension of bias in view of his position and interest. In such cases, the court has the discretion not to appoint such a person.
    1. In what circumstances the Chief Justice or his designate can ignore the appointment procedure or the named arbitrator in the arbitration agreement to appoint an arbitrator of his choice.

    On this issue, the Court inter alia noted as under:

    • The court must first ensure that the terms of the agreement are adhered to or given effect to, as far as possible and those remedies, as provided for, are exhausted.
    • It is not mandatory to appoint the named arbitrator but at the same time, due regard has to be given to the qualifications required by the agreement and other considerations. Referring the disputes to the named arbitrator shall be the rule. Ignoring the named arbitrator and nominating an independent arbitrator shall be the exception to the rule, which is to be resorted to for valid reasons.

    Interestingly, the Court also proceeded to expound on the scope of Section 11 of the Act, which contains the scheme of appointment of arbitrators.

    1. Whether the Respondent had taken the necessary steps for the appointment of an arbitrator in terms of the agreement, and the Appellant had failed to act in terms of the agreed procedure, by not referring the dispute to its Director, Marketing for arbitration.

    On this issue, the Court inter alia noted as under:

    • In view of the order dated January 20, 2006, the Respondent ought to have referred the dispute to the Director (Marketing) of the Appellant within two months from January 2006. The Respondent had not done so and in light thereof, it was the Respondent that had failed to act in terms of the agreed procedure and not the Appellant.
    • As the Arbitrator was already identified, there was no need for the Respondent to ask the Appellant to act in accordance with the agreed procedure.

    The Court proceeded to hold that the Chief Justice had erred in having proceeded on the basis that the Respondent had performed its duty under the agreement and that there was justification for appointment of an independent arbitrator.

    The Court then proceeded to allow the appeal, set aside the impugned order and appointed the Director (Marketing) of the Appellant as the sole arbitrator to decide the disputes between the parties.

    ANALYSIS:

    By this decision, the Court has once again upheld that when a person enter into a contract with a government/statutory corporation/public sector enterprise having an arbitration agreement providing for settlement of disputes where the arbitrator will be one of its senior officers, such person cannot subsequently turn around and contend otherwise unless performance of that part of the arbitration agreement is impossible, or is void being contrary to the provisions of the Act. However, this position may differ where the person named as the arbitrator is an employee of a company/body/individual other than the state and its instrumentalities e.g. a Director of a private company who is party to the arbitration agreement.

    Referring to its decision taken earlier in the matter of Northern Railway Administration, Ministry of Railway, New Delhi Vs. Patel Engineering Company Ltd. (please refer to our earlier hotline dated August 26, 2008) Court reiterated that it is important to first ensure that the terms of the arbitration agreement are adhered to or given effect to, as far as possible and those remedies, as provided for, are exhausted, before they intervene in any manner.

    However, If circumstances exist, giving rise to justifiable doubts as to the independence and impartiality of the person nominated, or if other circumstances warrant appointment of an independent arbitrator by ignoring the procedure prescribed, the Chief Justice or his designate may, for reasons to be recorded ignore the designated arbitrator and appoint someone else.

    FOOTNOTES

    1 Civil Appeal No. 5760 of 2009 arising out of SLP (C) No. 26906 of 2008.

    2 “69. Any dispute or a difference of any nature whatsoever or regarding any right, liability, act, omission or account of any of the parties hereto arising out of or in relation to this Agreement shall be referred to the sole arbitration of the Director, Marketing of the Corporation or of some officer of the Corporation who may be nominated by the Director Marketing. The dealer will not be entitled to raise any objection to any such arbitrator on the ground that the arbitrator is an officer of the contract related or that in the course of his duties or differences. ………………..It shall also be a term of this contract that no other person other than the Director, Marketing or a person nominated by such Director, marketing of the Corporation as aforesaid shall act as arbitrator hereunder…………………….”

    Nishith Desai Associates 2022. All rights reserved.

Article By Sahil Kanuga and Vyapak Desai with Nishith Desai Associates.

For more articles on international law updates, visit the NLR Global section.

Illinois Department of Labor Publishes Guidance for Employers Seeking Equal Pay Registration Certificate

Effective March 24, 2022, the Illinois Equal Pay Act (IEPA) was amended to require private businesses with more than 100 employees in Illinois to obtain an Equal Pay Registration Certificate (EPRC) by March 23, 2024, and every two years thereafter.

To apply for the EPRC, businesses must submit the following to the Illinois Department of Labor (IDOL): (1) a filing fee; (2) an equal pay compliance statement; (3) a copy of the employer’s most recently filed EEO-1 report; and (4) a list of employees separated by gender and the race and ethnicity categories as reported in the employer’s most recently filed EEO-1 report, and the total wages paid to each employee during the past calendar year.

The IDOL recently updated its Frequently Asked Questions (FAQs) for the EPRC, addressing, among other things, the application and submission processes, fee requirements, recertification, publicly available data, and penalties for employer noncompliance.  Here are key takeaways:

  • All employees based in Illinois, including those working remotely, should be included in the total employee count for reporting purposes. An employer’s total employee count includes the total number of people employed who worked in or were based out of Illinois on December 31 of the 12-month calendar year immediately prior the year the employer is required to submit an EPRC application.
  • For reporting purposes, “wages” means any compensation paid to an employee by an employer pursuant to an employment contract or agreement between the two parties, including wages, salaries, earned commissions, earned bonuses, stocks and ownership shares. This does not include retirement health insurance benefits, or other fringe benefits.
  • If an employer’s submitted wage data in its EPRC application shows that the employer is paying unequal wages to male and female employees or to African-American and non-African American employees, the IDOL may initiate its own investigation pursuant to Sections 10(a) and 15(c) of the IEPA and Section 320.200 of the IEPA regulations.
  • Before any fines may be imposed for a violation of the IEPA, the IDOL will provide notice to an employer that violates the IEPA and inadvertently fails to file an initial EPRC application or recertification that they have 30 calendar days to submit the application or recertification. If the employer fails to do so, it shall be fined up to $10,000.
  • An employer that falsifies or misrepresents data on an EPRC application faces suspension or revocation of the EPRC and civil penalties up to $10,000.
  • Current employees subject to the IEPA may request anonymized data from the IDOL regarding their job classification or title and the pay for that classification.

Illinois employers should audit their pay practices to ensure that any differences in wages amongst employees of similar job classifications are justified by legitimate, non-discriminatory reasons.

© 2022 Proskauer Rose LLP.
For more articles covering labor law updates, visit the NLR Labor & Employment section.

Six Things to Know About New York’s New Employer Notification Requirements for Electronic Monitoring of Employees

Under an amendment to the New York Civil Rights Law that will take effect on May 7, 2022, private-sector employers that monitor their employees’ use of telephones, emails, and the internet must provide notice of such monitoring. The following provides highlights of the new law.

Question 1. Which employers and electronic monitoring activities are covered?

Answer 1. The law applies to any private individual or entity with a place of business in New York, and it broadly covers “telephone conversations or transmissions, electronic mail or transmissions, or internet access or usage by an employee by any electronic device or system, including but not limited to the use of a computer, telephone, wire, radio, or electromagnetic, photoelectronic or photo-optical systems [that] may be subject to monitoring.”

Q2. Are any electronic monitoring activities exempted from coverage?

A2. The law does not cover processes “designed to manage the type or volume of incoming or outgoing electronic mail or telephone, voice mail or internet usage,” and it also does not apply to processes “that are not targeted to monitor or intercept the electronic mail or telephone voice mail or internet usage of a particular individual.” The law also exempts processes that are “performed solely for the purpose of computer system maintenance and/or protection.”

Q3. What are some of the law’s compliance obligations?

A3. Private-sector employers that “monitor[] or otherwise intercept[] [employee] telephone conversations or transmissions, electronic mail or transmissions, or internet access or usage” must post a notice of electronic monitoring in a “conspicuous place which is readily available for viewing” by affected employees. Employers also must furnish new employees with written notice when they are hired. The law requires that newly hired employees acknowledge receipt of the notice, “either in writing or electronically.”

Q4. What information must be included in the notices?

A4. Under the law, employers are required to notify employees that “any and all telephone conversations or transmissions, electronic mail or transmissions, or internet access or usage by an employee by any electronic device or system” may be subject to monitoring “at any and all times and by any lawful means.” The law requires that the written notice advise employees that the electronic devices or systems that may be subject to monitoring include, but are not limited to, “computer, telephone, wire, radio or electromagnetic, photoelectronic or photo-optical systems.”

Q5. What are the penalties for violations of the law?

A5. The law provides for the imposition of civil penalties for violations of its requirements. Employers found to be in violation of the law are subject to civil penalties of $500 for a first offense, $1,000 for a second offense, and $3,000 for a third offense and for each subsequent offense. The Office of the New York State Attorney General will enforce the law.

Q6. Are there similar requirements in other jurisdictions?

A6. Connecticut and Delaware also require employers to provide notification of electronic monitoring. As the requirements of these laws vary slightly from New York’s law, employers doing business in either or both of these states and in New York may wish to consider whether to adopt a single approach, or adopt approaches tailored to each jurisdiction’s requirements.

Key Takeaways

New York employers that have not already taken action to comply with this new law may wish to consider whether to post physical notices in the workplace or utilize electronic postings that are visible upon logging in to the employer’s computer, or both.

Employers may also wish to determine how to incorporate the required notice to new employees in their new-hire and onboarding systems. Employers that address electronic monitoring in existing policies may also wish to review the existing policies to ensure that the information in those policies is consistent with the nature of the notification required by the new law, and update existing policies if warranted.

Employers may also wish to consider whether to obtain written or electronic acknowledgments of electronic monitoring from current employees. In addition, employers may wish to evaluate the potential for challenges to the use of information obtained through electronic monitoring absent compliance with the notice requirements.

© 2022, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved.
For more articles about labor laws, visit the NLR Labor & Employment section.

Return to Work Considerations – COVID and the ADA

Employers are contending with difficult challenges unlike any time in modern history. Even though many employees, especially in the manufacturing industry, returned to work after working from home during the COVID pandemic, the effects of the increased flexibility seen during the COVID era linger. Many employees enjoyed the benefits of working from home during the last two years, even if only part-time, and do not want to give up the benefit. By contrast, and especially as COVID restrictions ease, employers often desire their workforce return to work in a more consistent and routine capacity. These tensions are further complicated by an extremely competitive labor market. Recruiting and retaining employees is a challenge in the current environment. Against this backdrop, prudent employers will keep in mind employment law considerations when developing return-to-work and work-from-home policies.

Where should an employer look to determine what accommodations it should make for an employee who wishes to work from home, either due to a COVID diagnosis and/or a condition that places the employee at a heightened risk for severe COVID? Early in the pandemic, local or state health orders answered such questions regarding COVID-related leave. As the pandemic continued, many of those local health orders were rescinded or expired. As a result, employers are left without clear local guidance. When local requirements are of no assistance, employers should look to CDC guidance for quarantining and isolating guidelines.

In addition, employers should keep in mind that COVID may qualify as a “disability” depending on the symptoms and their severity. If an employee tests positive for COVID and is experiencing symptoms that require an absence from work that is longer than the CDC recommended quarantine period, employers should involve legal counsel to analyze whether the employee’s COVID diagnosis constitutes a disability under the ADA. If it does constitute a disability, the employer is then required to engage in the interactive process under the ADA with the employee to determine whether a reasonable accommodation for the disability can be made. Leave can be an accommodation under the ADA, as can working from home, in certain circumstance and for certain roles.

Likewise, some disabilities may heighten the risk of severe COVID symptoms. In the event that such a disabled employee requests an accommodation related to this heightened risk of COVID, the employer should treat the request as it would any request for accommodation under the ADA. As always, employers should seek legal counsel and check local requirements regarding COVID leave when considering accommodations for employees in these circumstances.

Employers have many competing and challenging considerations when determining a company’s return-to-work policy. While the labor shortage, industry, and specific role considerations certainly play a part in those decisions, employers should not lose sight of the ADA’s additional requirements. The ADA may play a role on an individual level and affect whether an employee may seek leave, work from home, or is entitled to other accommodations related to a COVID diagnosis or high-risk factors.

© 2022 Foley & Lardner LLP

Legal News Reach – Season 2, Episode 1: Immigration & Its Impacts on the U.S. Labor Market with Raymond Lahoud [PODCAST]

Welcome to our first episode of Season 2! Rachel and Jessica speak with Raymond Lahoud, a Member of Norris McLaughlin, P.A., focusing on immigration law. Immigration issues are complicated enough, but how does that factor into boosting the U.S. economy?  Listen to our last episode to find out more.

Be sure to also check out the latest episode of Mr. Lahoud’s podcast, “Immigration Matters.”

We’ve included a transcript of our conversation below, transcribed by artificial intelligence. The transcript has been lightly edited for style, clarity, and readability.

Full Transcript

INTRO  00:02

Hello and welcome to Legal News Reach, the official podcast for The National Law Review. Stay tuned for our discussion on the latest trends, legal marketing, SEO, law firm best practices, and more.

Rachel  00:15

Today’s episode is the first of the second season, where we’re broadening our focus to trending topics in the legal industry. Today we’re speaking with Ray Lahoud, Member of North McLaughlin about the impact of COVID-19 on immigration and labor shortages. Ray, would you like to tell our listeners a little bit about yourself?

Raymond Lahoud  00:30

Well, thanks for having me, Rachel. It’s really awesome to be here on this podcast and to talk about such an interesting area of law right now, in the world, particularly immigration law. I’m a partner at Norris McLaughlin, where I serve as the Chair of the Immigration Law Group here. I handle employment-based immigration matters, removal defense, employment, verification, I noncompliance all types of immigration matters, a broad spectrum with my great team of attorneys, paralegals, and assistants here at North McLaughlin. So thank you again for having me. It’s great to be here.

Rachel  01:05

One of the first topics we wanted to focus on here is immigration’s impact on labor shortages. You’ve written a lot about the impacts on the U.S. economy due to labor shortages. Can you explain how immigration can help remedy the situation?

Raymond Lahoud 01:18

I think we can all agree that without labor without employees, without people to go and work in whatever company, whatever organization, whatever place that exists out there that that needs to provide services or goods to the American public needs, needs employees. Without labor, there’s no economy, immigration right now is really a huge part of the employment demand, or the employment shortage share. There’s a lot of Americans who are able to legally work who just don’t want to work or have you know, taken different decisions or different approaches on life or what they want to do with their life. But we still need people to perform some of these essential functions from farming, to nursing care to handling, you know, mushroom picking to manufacturing, immigration is the way that has long proven to be a way to solve that through temporary visa programs through you know, green card programs that existed out there. And under the Trump administration. And when COVID hit, things really got hit pretty hard and really slowed down the ability for people to bring in international employees to the United States that fill that gap.

Rachel  02:29

This has been an ongoing issue. So are there any policy changes on your radar that will help solve this issue, either through immigration or otherwise?

Raymond Lahoud 02:38

The only way to solve this issue is through comprehensive immigration reform. For over a decade now, we’ve been using the number of 11 million people that are in the country without documentation, I think we can all agree that that number is significantly higher, probably 20, or 30 million people, step one is going to be trying to figure out how we handle those 20 to 30 million people or even Federalists 11 million people that 11 to 20 million people that we have the United States without documentation. And that means that some people are going to have to be deported, who you know, may have certain crimes may have certain issues in terms of their background, but a significant number of these individuals have been in the country for a long time, working without authorization, pleading taxes. So there has to be a process of legalization for those individuals, which is the big issue. We don’t what is legalization for them. And then there also has to be a secure border where people can’t just cross the border without any documentation. I mean, every country has borders, borders are important. We can all see how important borders are right now with what’s happening in Ukraine. You know, comprehensive immigration reform includes having an ability for individuals to come into the United States to work to claim asylum if they have to, to help our employers here in the United States who need employees because people are just not taking part or not applying to Americans are just not applying to take on these jobs. The great resignation has, for some reason taken over the United States and it continues. So what do we need? We need comprehensive immigration reform? How do we get there? It’s getting members of Congress to agree daily, I’m talking to clients who will arrive in Pennsylvania and they’ll say how do I start working here I just crossed the border assuming that because they heard on Facebook before they came up here are on TikTok are though like that it would be very easy for them to claim asylum. So I’m dealing with a lot of clients and potentials and individuals who have just recently crossed the border now feel that they’re stuck in the United States because they can’t leave because they have to go through proceedings and they can’t work. I mean, there’s also in this representation, let’s say that we keep hearing the numbers, millions are coming to the United States. There are millions of encounters. So you may have one person try to come to the United States four or five times and each one is considered an encounter. And this is a problem that we see from President to President, by the way, and this is why I say we need comprehensive immigration reform. Because let’s go back to 1986. Ronald Reagan was going to deal with the immigration problem we had, you know, millions of people here in the United States back then. And he did put three amnesty 1213 14 million people were granted permanent resident status, they say that cost the turn of California to a blue state once they became citizens top political. In the end, they’re like going back to that every President has made immigration, much tougher, actually very tough. Actually, it was the administration that puts some of the toughest policies when it comes to what’s called the public charge rule. The way our system is written right now is that the executive branch just has so much ability and authority discretionary ability and authority over what to do or what not to do, what they can do what they can’t do in terms of immigration. And then every time a new president comes in, something changes drastically. So you had Obama come in, then he puts in place DACA, you know, gives eight 900,000 people, you know, a temporary quote-unquote, status, and you have President Trump come in, and he takes it away. And then you have President Biden come in. Again, it goes back to comprehensive immigration reform. It’s all just been patchwork since after ’86. Now we have 11, 12, 13, 14, 20 million people here. So it’s-I think the distaste is, is that we’re going to grant people status, and it’s just going to happen, again, has to be a two-fold fix as to be true, comprehensive immigration reform where we’re not, you know, 10 years down the road, we don’t have another 15 million people that don’t have documentation here.

Rachel  06:34

What can companies do to help deal with this shortage of immigrant labor or just labor in general?

Raymond Lahoud 06:39

Every day, I probably field 20 to 30 calls from employers who cannot find employees. It’s the biggest problem. I think that’s facing our country right now. And I’m not sure where it comes from, I really don’t understand what this great resignation is, I don’t know how people can live. Right now, there are several legal immigration processes that are available. One is the H Tubi. system, which is a great way of bringing in seasonal employees for farms for landscaping, contractors, painters, manufacturing work, which we bring workers over here year after year. The H1-B lottery is another visa process. So there’s visa processes that are out there, it’s good to avail as an employer to not be afraid of these processes to you know, when you’re recruiting globally recruit, and when you find a candidate, seek out an immigration attorney and say, Hey, is there a way that I can bring this person over legally sponsor them? Is there a pathway and there are. You have companies like the bigger tech companies that are getting all the big H1-B visas, you have the bigger farming companies that are getting all the H2-B visas, because the smaller ones are not really availing themselves, the legalized programs that exist there, we have a lot of people who are coming into the country across the border, these individuals, they’re turning themselves into the Customs and Border Protection. So there’s an expectation at some time that, you know, some of them have fears of returning, I mean, that they’re going to start going through processes. These are individuals that will likely have employment authorization documents, within a year or so don’t forget about the American worker offer good wages, offer good benefits offer time off the world’s change right now in terms of how things work. So if there’s, you know, remote operations that you can offer, do that offer child care services, if you could, but you have to be creative.

Jessica  08:25

So I would love to get your perspective since you’ve been involved in immigration law for so long, and you definitely have a great grasp on the history of a lot of immigration policy changes. I know with COVID, you know, the legal industry got backed up in general; just court cases being rescheduled, I would really like to know what the last two years for immigration law has looked for you how has it changed because of the pandemic updates on border restrictions? I’d love to get your take on that.

Raymond Lahoud 08:52

When the pandemic hit immigration really became incredibly, incredibly busy from the travel restrictions to a title 42 at the border expulsions to people that were detained in immigration custody that were getting COVID It was a disaster for a long time for a lot of people. A lot of people out there who are stuck in other countries, you know, travel bans were coming up and moving and changing by the minute. And companies. You know, the companies that we represent, the employers that we represent that keep operating there were essential. They were central companies and they were healthcare companies. They were companies that do industrial manufacturing or handle electricity and the like, so they needed their employees here. So during COVID, we spent a lot of time trying to figure out the ways to bring a lot of these employees into the United States through the waivers that existed. They’re reaching out to the State Department to seek special exemptions. And then at the same time, you know, the immigration to the deportation defense part of it really came to a halt. court hearings were halted for all like non detained cases, which took an already incredibly backlogged immigration court system and took it about I have four more years behind now. So you’re probably looking at a good 10 years before an immigration judge for a trial. And after continuances and the, like 10 cases COVID really spread pretty heavily, we have to file lots of petitions and requests to try to get clients that were detained by immigration out of custody within the United States. So a lot happened during COVID. And when it came to immigration, in those days, there were nights where I was awake at, you know, two, three in the morning, making sure a client was able to get back in.

Jessica  10:34

We’re in such an interesting environment at this point, especially more recently with the Ukraine crisis, but we also had a changing of the hands in the White House, all the different elections. So there’s been a lot of transition period. And you know, we touched on it a little bit already. But the changes moving forward, I mean, now that the pandemic is having some type of release, besides needing that comprehensive immigration law changes, do you see any other changes now that we’re getting out of the pandemic, whether that’s Ukraine specifically, or just in general? What do you think is gonna happen here?

Raymond Lahoud 11:07

I think that we’ve, we’ve moved on to our next disaster with our next emergency, we’ll say, which is Ukraine right now. This is all that we hear about on the news, there aren’t COVID numbers at, you know, at the bottom, how do people are dying, how many people died and the like, I just feel that, you know, Ukraine has as taken over COVID. Now COVID brought on a time of remote hearings, which are still continuing now. The immigration courts, making fun of them with, you know, video, WebEx hearings in Zoom hearings, are able to move them quicker through the system and the like, and I have some serious issues. When it comes to remote hearings. You know, there’s huge due process concerns and having my client be able to testify in person where the judge can see his or her face. You know, there’s some very serious concerns in that. So they’re changes that, you know, came about from COVID, in terms of remote operations and the like, but I don’t know if they’re necessary to our benefit, even for, you know, immigrants work were coming in. And also, you would think that we really learned how to process things a lot faster. You know, what, we’re kind of hit with the crisis, and we just aren’t, you know, our embassies are still in a huge backlog when it comes to processing visas and, you know, fiance petitions and merit-based petitions and the like, but we are seeing movement here stateside within that, honestly, in terms of change. I mean, you just, it’s all patchwork.

Jessica  12:27

If memory serves me correctly, I know the Biden administration has put more emphasis on visas for STEM. I think people coming either for schooling or for employment, if I’m remembering correctly, do you think that’s a step in the right direction, I know it’s another “patch,” but…

Raymond Lahoud 12:43

 The United States has a huge number of international students in the United States, even locally here in what’s called the Lehigh Valley, Pennsylvania, Lehigh, Lafayette, Cedar Crest Moravian, their F huge international student populations and international student populations are critical to cultural diversity to you know, just to the growth of the school and it’s bringing the world together. So as part of it, so students will come here from abroad, Saudi Arabia, countries, China, Japan, Australia, they’ll come to the F1 visa complete their courses here to get a bachelor’s degree. And if they typically, if you come in under the f1 visa, regardless of your degree, you’ll get 12 months of what’s called occupational practical training. And that’s because you 12 months of just training in your, your area of of studies, when you were in school, if you earned a STEM degree science, tech, engineering or math degree, you can get an additional 24 months of occupational practical training. To me, that’s great to me for bringing people here, and we’re educating them, we should keep them here and you know, give them jobs here. I mean, we there’s no reason that you know, we should be training talent and, you know, bringing in talent from across the world, and then just sending them, you know, back to, you know, their home country, particularly if they’re willing to stay and work here and become members of society in good standing that contribute pay taxes. Why not? Even if you were you came in, you knew you were coming in across the border, see, you’re still a kid, and then you turn over all of your information to the government when you’re 17 or 18 years old. And then, you know, four, eight years later, the Trump ministration says that they are going to get rid of it and it goes through courts who put it back in and take it out and put it back in and then there’s an injunction lifted, and these are hundreds of thousands of lives in people’s hands. People really have to recognize that there are faces to these individuals that have deferred action that have temporary protected status that there are faces to them. And it’s more than just politics. But could you imagine if you were in that position with deferred action, not knowing should I finish going to college should I spend the money should I take a job, what do I do next?

Jessica  15:01

COVID already caused a very large limbo feeling if you’re coming from another country, or you’ve been here, and then you might be told, “oh, you gotta go back to where you came from.” And I can’t imagine being young when you come here and then going back to a country you don’t even really know.

Rachel  15:17

So we wanted to get your viewpoints on Ukrainian refugees and immigration, how does this compare to other refugee crises that we’ve had in the past

Raymond Lahoud 15:27

Ukraine refugee crisis has brought the US government to its peak when it comes to refugees, and the like, they’ve acted very quickly, to bring in them what’s called Temporary Protected Status. You compare it to you know, what happened in Afghanistan and the lake, there are a lot of differences, I would say just that how quickly they are granted temporary protected status. You know, if you’re from Ukraine, there’s countries that are setting up policies like Canada to try to bring in people from Ukrainian. And I hope that these policies that these countries are putting together to help refugees in times of crisis will stay for other countries to beyond Ukraine’s. Hopefully this won’t be the last time that you’ll see other countries open their doors to help people. My mom and dad are both born in Lebanon and immigrated here during the civil war in the late 70s. And it was devastating. And the US opened its doors to the Christians from the north, they came in and became an integral part of the society life here in Pennsylvania, it’s good to see that in Ukraine, but we’re going to have other countries that are going to have similar issues. And who knows where, you know, President Putin may stop, we just really have to think long term about it. Because we also have to be realistic. And we can only handle so many people in our country. I hate to say that.

Rachel  16:49

How does that factor into maybe some of the more, like, long-term policy changes that the country could implement? Is there a need to sort of rethink how we bring in refugees, and how many people we can take and how that process really goes?

Raymond Lahoud 17:02

There is, there is, but how do you rethink that? You know, how do you it’s even just saying, you know, how many people can we take in I know you just feel I feel internally bad because you don’t want to turn anybody away, that’s really hurting, you know, and but we have to, thankfully, I’m not in Congress to make up those decisions. But I think there has to be, you know, some sense of reason, and balance. And I’m not really sure what that is.

Rachel  17:29

Like the US has to work together with other countries to make sure that we help them out of people that need to be helped. I don’t think it’s realistic for one country to sort of shoulder most of the burden.

Raymond Lahoud 17:38

It’s very hard to get refugee status. I mean, you don’t just kind of come into the United States and walk-in and may take years to go through I mean, if you’re going to the Iraqi refugee have to go in through the United Nations refugee program, there’s a huge process you have to go through, it’s not easy. The things that happened in Afghanistan kind of made known the issues with our you know, the refugee program and the lake. But it’s not, it’s not an easy process to go through. You can’t just walk into an embassy, US Embassy and say, Hey, I’m I’m afraid of where I’m living, I want to go to United States,

Rachel  18:09

Right, yeah. And I imagine on top of even having to be in a situation where you have to flee your home.

Raymond Lahoud 18:15

Anybody that goes through pain, like a harm or fear, you know, I mean, whether it’s domestic violence, and those are the worst of cases where I have clients who are coming in suffered extreme domestic violence, like at the hands of their spouses and the like, and, and with those, you know, you know, what you do, you can send them back, you know, when that when the spouse is going to kill them on, you know, they’re dead on arrival. And so those are cases that we’re dealing with inside the United States right now. It’s like we have refugees coming in. But we also have asylees, here in the United States that were people who are in here applying affirmatively for asylum, we have a lot of people in the United States that are here on like a protective status we do. We do so much. And other countries are recognizing that if you take a look at Australia, so people are coming into the to Australia, they don’t go into the country, they sit off-island for a long period of time for they claim asylum or anything like that. The other countries that are out there, I think that they all have some pretty unique set of circumstances that are there, and in ours has a lot of issues that we have to really work through.

Rachel  19:16

So you’ve written about policy changes in Pennsylvania aimed at helping undocumented immigrants, you know, entrepreneurs, people who are getting driver’s licenses, things like that. I was curious to get your insight on how you see these changes impacting both immigrants in the state as a whole, like what sort of have been the changes there?

Raymond Lahoud 19:33

Driver’s licenses in Pennsylvania, we’re seeing a movement. New Jersey, just fair aware, they pass legislation in the implement to the driver’s licenses, people who may not have a social security number or the like, right now in Pennsylvania. I believe it’s in the House Committee. It’s being discussed. I don’t see it moving out of there given the current makeup of the legislature. I don’t foresee it happening in Pennsylvania anytime soon. It does keep coming up a lot by members of the State House, I think it’s a good idea because people are driving. Let’s get real. There are people without papers in the United States. I mean, if we don’t realize that, I think that we’re just fooling ourselves. So, you know, it’s if it’s a way for them, they’re voluntarily providing their information, you know, why not register it, they can get their insurance. It’s not a federal issue. It’s a state issue as the as right to get driver’s licenses, it’s state-by-state. Pennsylvania considers that they look at it, they bring it up, but it always fills in committee doesn’t go anywhere. Pennsylvania, has the political planet as a swing state, as we all know, and immigration is a hot topic issue here.

Rachel  20:37

I’m glad to hear that at least it’s even if it’s not, you know, moving forward, I think it being on people’s minds is a good thing. So in terms of changes like that, and maybe large scale changes, like we spoken about how we just need really large scale immigration reform, I was wondering, we could talk about the changes that you think need be made to both attract and retain immigrants in the United States, I think there’s a lot of talk about specifically, after the Trump administration, a lot of international students to stop coming here, you know, the United States is losing talent to countries like Canada and other places like that. So I was curious to get your thoughts on that.

Raymond Lahoud 21:14

COVID-19 opened up a different way of kind of operating, we had spoken earlier, where, you know, these companies are now recognizing that they could get that global talent opened up a facility in India or, you know, have somebody remote in from Canada, or actually just physically move their locations to Canada, or their offices or their manufacturing sites to another country, because it’s easier to bring labor in. I think that other countries are starting to embrace certain kinds of immigration, like I know that Canada is, you know, they’ve implemented that another investment-based immigration system, they’ve made it easier for Indian workers a certain kind of ticket during COVID in the light. So there are countries that are taking no more proactive approach to bringing in people but during the Trump administration, people from abroad really felt they weren’t welcomed in the United States. And I saw that a lot with students, and there was a significant number. It’s coming back, and I’m seeing the numbers come back, and just from the schools locally, that that we’re working with. So in terms of the International Student Program, you know, I do feel that it’s picking back up after COVID. And after the Trump administration, I just think we have to kind of keep going with it to make sure that, you know, we know that the people that we’re inviting into our country, we know that we have to welcome them here and treat them kindly, and work with them. Because we’re just we are one world one people. I’m really just, I think it’s a realist here, and that, you know, you have immigration lawyers who, you know, will just, you know, push things to like an end and say, No, open borders, and you have no people on another end that would say, you know, close everything to anybody. And but I think we have to have recent ability. I mean, you just can’t close the United States to everything. I mean, you can’t close the United States to the globe’s cultures, we just have to find a middle ground. And I hope that, you know, I was able to kind of present some of that reason that no middle ground, that’s there being immigration where it’s hard to take, you know, some things that Trump did weren’t necessarily I’m going to do but if somebody heard me say that, and I will now, you know, they would be shocked at it. But I think that’s what the issue is, is that there’s no meeting of minds. People just become enemies, because somebody has a different political opinion. You know, I think there really has to come a realization that we just can’t shut the borders down completely. And you can’t open the borders up completely. There just has to be a middle ground that we all have to reach in. Our members of Congress really have to grow up and hopefully, they will. And hopefully, they’ll work with the Biden ministration. We’ll get somewhere.

Jessica  23:52

I actually have an interesting question. Since you’re located in Pennsylvania; Lancaster’s, a certified welcoming status for refugees. Do you think that’s helpful in situations like Ukraine? And like if more cities did that, do you see that as a positive direction?

Raymond Lahoud 24:06

I do, I do. I mean, like…Philadelphia has, like a welcome center for Lancaster was one of the counties like that. It’s really what they do with it is, yeah, it certainly hops. The more the better. Governor Wolf has actually taken very proactive actions towards the Ukrainian community here, even locally. But again, there’s more than just the Ukrainian community that are suffering from prosecution. So hopefully, it’ll open our minds to how we deal with other areas and in the future when this happens and how other countries can work together with it. But yeah, it does. It does help because it shows that we care you know, things like that only they can start shows that we care. You know, even if you know, New Jersey, they couldn’t give them give people a real ID driver’s license, but they gave them a license to drive and pencil and they can leave the state drive and add to it, it’s still a driver’s license so they can give What they want to know as much as they can give them and if that’s what Lancaster was able to give them, that’s what it was. They can’t give driver’s licenses but um, you know, that opens up a door for immigrants and to have stuff like that it’s good for them to have programs like that is good.

Rachel  25:14

Well, excellent. Thanks again, Ray for joining us today. We had a great conversation.

Raymond Lahoud 25:20

 It’s really been good being here talking about immigration. It’s an interesting topic. And hopefully, we’ll see things changing in the years to come and I’m here to talk to you whenever. Yeah, thank you for having me.

OUTRO  25:40

Thank you for listening to The National Law Review’s Legal News Reach podcast. Be sure to follow us on Apple Podcasts, Spotify, or wherever you get your podcasts for more episodes for the latest legal news. Interested in publishing and advertising with us? Visit www.natlawreview.com. We’ll be back soon with our next episode.

Copyright ©2022 National Law Forum, LLC

Leave as a Reasonable Accommodation Continues to Vex Employers

An employee needs time off from work because of a medical issue. The employee is not eligible for leave under the Family and Medical Leave Act (FMLA), so the employer cannot call it FMLA leave.

Since the FMLA does not apply, does the employer have to give the employee leave under the Americans with Disabilities Act (ADA) as a reasonable accommodation? If so, for how long?

The issue of leaves of absence as a reasonable accommodation under the ADA continues to trouble employers. In comparison to the FMLA, which provides fairly bright lines regarding when leave is required and how much leave is permitted, the ADA’s lines are blurry when it comes to leave as a reasonable accommodation.

Medical Leave Can Be a Reasonable Accommodation Under the ADA – Even When In-Person Attendance Is Essential

A very recent decision (April 2022) from the Sixth Circuit Court of Appeals further illustrates this point. In the case of King v. Steward Trumbell Memorial Hospital, Jeanne King worked as an RN for Steward Trumbell Memorial Hospital. King had asthma, and when her asthma flared up badly enough, she needed to miss work. In April 2017, King had an asthma attack that left her unable to breathe, and she continued to suffer from severe asthma-related symptoms for five weeks, which caused her an emergency room stay in the hospital where she worked. During this period of time, she missed her next 14 shifts.

Four days after being released from the ER, King requested FMLA, but King was not an eligible employee under the FMLA as she had not worked 1,250 hours within the prior 12-month period. It took a few weeks for King to find out she was not FMLA eligible, however, and during that period of time, the hospital terminated her for failure to timely apply for a leave of absence. King filed a lawsuit claiming, among other allegations, violations of the ADA for failure to provide medical leave as a reasonable accommodation.

In her lawsuit, King claimed that if she had been given medical leave as a reasonable accommodation, she could have returned to work and satisfactorily performed her job. On the other hand, the hospital argued that regular, in-person attendance as an RN was an essential function of King’s position, and that the hospital was not required to eliminate that essential function as a reasonable accommodation under the ADA.

The trial court ruled that the hospital was right – regular, in-person attendance was an essential function of the RN position – and therefore King’s request for an exception from that requirement was per se unreasonable. The Sixth Circuit disagreed, however, and held that leave can be a reasonable accommodation even when in-person attendance is required to perform the job’s essential functions because the leave “enables the employee to return to work following the period of leave requested as an accommodation – i.e., it enables the employee to perform the essential function of attendance.”

So, What Makes a Leave of Absence Request Reasonable?

Given that a medical leave of absence can be a reasonable accommodation, the question then becomes what makes an accommodation request reasonable? In other words, how much leave is reasonable?

As the Sixth Circuit stated in King, there are few bright-line rules regarding how much leave an employer may have to give as a reasonable accommodation. One general rule that applies in most cases is that an employee’s request for indefinite leave is not a reasonable accommodation. So, if an employee is truly requesting an indefinite leave of absence, then an employer could likely deny that request for accommodation because it is unreasonable.

In contrast to indefinite leave, a request for a defined period of leave can be a request for a reasonable accommodation. For instance, in the King case, King requested five weeks of medical leave, which the Sixth Circuit found to be reasonable. While the reasonableness of a leave of absence oftentimes depends on the circumstances, generally speaking a leave request of 30 days or less is likely to be reasonable. It would likely take an employer about that long to fill the position anyway – so up to 30 days may be OK.

When determining whether the length of a leave request is reasonable, courts can refer to the amount of leave that the employer grants under its medical leave policy. For instance, in the King case, the hospital had a policy allowing for up to one year of non-FMLA leave. In comparison to seeking a year of non-FMLA leave, King was seeking five weeks. Since the hospital allowed up to one year of non-FMLA leave, and King was requesting five weeks, that helped make King’s request reasonable in the Sixth Circuit’s eyes.

Another factor to consider when deciding whether to grant leave as a reasonable accommodation is whether the leave could be effective in allowing the employee to return back to work. If the employee’s prognosis indicates a likelihood of recovery, then that weighs in favor of granting a leave of absence as a reasonable accommodation. On the other hand, a leave of absence for a situation in which the employee likely can never return to work is probably not a reasonable accommodation.

Tips and Takeaways

As the King case illustrates, leaves of absence as a reasonable accommodation continues to trouble employers and causes mistakes that can lead to costly litigation. There are some tips and takeaways that can help tame the leave-as-a-reasonable-accommodation beast:

  • If an employee requests leave as an accommodation (and is not FMLA eligible), then the employer should request medical information from the employee’s physician (through the employee because of privacy concerns) that supports the need for leave and specifies an expected return-to-work date.
  • If the information from the employee’s physician states that the employee’s leave should be indefinite, then indefinite leave is likely not a request for a reasonable accommodation and the employer could deny the request (with appropriate documentation).
  • If the employee’s physician does state an expected return-to-work date, then the employer should determine whether the amount of leave requested is reasonable. In doing so, the employer should consider its own policies concerning how much leave it grants for non-FMLA situations.
  • Also, the employer should consider how much time it would take to replace the employee if he or she was terminated. If it would take a comparable amount of time to replace the employee as it would to allow the employee to take leave, then the employer should likely just grant the leave.
  • The employer should also consider whether a leave of absence would be an effective accommodation. If an employee shows little to no ability to ever return to work because of ta medical condition, then granting leave for leave’s sake is likely not a reasonable accommodation under the ADA.
  • If the employee’s physician requests a reasonable amount of leave for the employee, and the employer decides to grant the accommodation, the employer should send a letter or email to the employee acknowledging the granting of the leave of absence, specifying how long the leave of absence has been granted for, and discussing return-to-work issues. In that letter, the employer should allow for the employee to request an extension of the leave of absence if medical conditions warrant. If the employee returns to work at the conclusion of that leave of absence, the employer may want to consider getting a letter from the employee’s physician releasing him or her to return to work and stating what, if any, restrictions the employee has. If the employee cannot return to work at the conclusion of the leave and does not request an extension, then the employer would likely be on solid footing to terminate the employee at that point in time.
  • An employer should treat each reasonable accommodation request as unique, not pre-judge it, and decide whether under the circumstances a reasonable accommodation should be granted.

Although dealing with leave-of-absence issues under the ADA will continue to cause employers issues because of the lack of bright lines, an employer who follows the steps outlined above may help tame the leave-as-a-reasonable-accommodation beast.

© 2022 Bradley Arant Boult Cummings LLP

Article By John P. Rodgers of Bradley Arant Boult Cummings LLP

For more articles on labor law, visit the NLR Labor & Employment section.

Cryptocurrency As Compensation: Beware Of The Risks

A small but growing number of employees are asking for cryptocurrency as a form of compensation.  Whether a substitute for wages or as part of an incentive package, offering cryptocurrency as compensation has become a way for some companies to differentiate themselves from others.  In a competitive labor market, this desire to provide innovative forms of compensation is understandable.  But any company thinking about cryptocurrency needs to be aware of the risks involved, including regulatory uncertainties and market volatility.

Form of Payment – Cash or Negotiable Instrument

The federal Fair Labor Standards Act requires employers to pay minimum and overtime wages in “cash or negotiable instrument payable at par.”  This has long been interpreted to include only fiat currencies—monies backed by a governmental authority.  As non-fiat currencies, cryptocurrencies therefore fall outside the FLSA’s definition of “cash or negotiable instrument.”  As a result, an employer who chooses to pay minimum and/or overtime wages in cryptocurrency may violate the FLSA by failing to pay workers with an accepted form of compensation.

In addition, various state laws make the form of wage payment question even more difficult.  For example, Maryland requires payment in United States currency or by check that “on demand is convertible at face value into United States currency.”  Pennsylvania requires that wages shall be made in “lawful money of the United States or check.”  And California prohibits compensation that is made through “coupon, cards or other thing[s] redeemable…otherwise than in money.”  It is largely unclear whether payment in cryptocurrency runs afoul of these state requirements.

Of note, the U.S. Department of Labor (“DOL”) allows employers to satisfy FLSA minimum wage and overtime regulations with foreign currencies as long as the conversion to U.S. dollars meets the required wage thresholds.  But neither the DOL nor courts have weighed in on whether certain cryptocurrencies (e.g., Bitcoin) are the equivalent, for FLSA purposes, of a foreign currency.

Volatility Concerns

When compared to the rather stable value of the U.S. dollar, the value of cryptocurrencies is subject to large fluctuations.  Bitcoin, for example, lost nearly 83% of its value in May 2013, approximately 50% of its value in March 2020, and recently lost and then gained 16% of its value in the span of approximately 15 minutes one day in February 2021.

Such volatility can give payroll vendors a nightmare and can, in some instances, lead to the under-payment of wages or violation of minimum wage or overtime requirements under the FLSA.

Tax and Benefits Considerations

Aside from wage and hour issues, the payment of cryptocurrency implicates a host of tax and benefits-related issues.  The IRS considers virtual currencies to be “property,” subject to capital gains tax rates.  It has also confirmed in guidance materials that any payment to employees in a virtual currency must be reported on a W-2 based upon the value of the currency in U.S. dollars at the time it was delivered to the employee.  This means that cryptocurrency wage payments are subject to Federal income tax withholding, Federal Insurance Contributions Act (FICA) tax, and Federal Unemployment Tax Act (FUTA) tax.

For 401k plan fiduciaries, the Department of Labor recently issued guidance that should serve as a stern warning to any fiduciary looking to invest 401k funds into cryptocurrencies.  Specifically, the DOL wrote: “[a]t this early stage in the history of cryptocurrencies, the Department has serious concerns about the prudence of a fiduciary’s decision to expose a 401(k) plan’s participants to direct investments in cryptocurrencies, or other products whose value is tied to cryptocurrencies.”  Given the risks inherent in cryptocurrency speculation, the DOL stated that any fiduciary allowing such investment options “should expect to be questioned [by the DOL] about how they can square their actions with their duties of prudence and loyalty in light of the risks.”

Considerations for Employers

Given the combination of uncertain and untested legal risks, employers should consider limiting cryptocurrency compensation models to payments that do not implicate the FLSA or applicable state wage and hour laws.  For example, an employer might provide an exempt employee’s base salary in U.S. dollars and any annual discretionary bonus in cryptocurrency.

Whether investing in cryptocurrencies themselves to pay employees or utilizing a third-party to convert US dollars into cryptocurrency, employers should also stay abreast of the evolving tax and benefits guidance in this area.

Ultimately, the only thing that is clear about cryptocurrency compensation is that any decision to provide such compensation to employees should be made with a careful eye towards the unique wage, tax, and benefits-related issues implicated by these transactions.

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