Category: Uncategorized

DACA: Updates and Options for Dreamers

This November, the United States Supreme Court is set to hear oral arguments on the case that will decide the fate of the Deferred Action for Childhood Arrivals (DACA) program.[1] This program, established through executive action, has offered a temporary reprieve from removal (deportation) to nearly 800,000 students and young professionals raised in the United States.[2] While the program protects a generation categorically denied opportunity to gain legal status,[3] it is very limited in scope. Remarkably, DACA does not confer any immigration status itself nor offer a separate pathway to any other status including permanent residency.[4]

The idea that someone can be present in the United States without legal status while not unlawfully present is confusing – not only to the general public, but apparently to the Supreme Court. In oral argument for U.S. v. Texas, Chief Justice John Roberts wondered, “I’m sorry, that just so I get that right… Lawfully present does not mean that you’re legally present.”[5] Justice Samuel Alito also asked, “[H]ow can it be lawful to work here but not lawful to be here?”[6] If members of this nation’s highest court struggle with this concept, it is no wonder there is confusion surrounding DACA.

DACA: Benefits and Limitations

The DACA recipients, or “Dreamers,”[*] are in legal limbo: allowed to work in the United States, but with no legal status. DACA recipients are permitted to continue their education, and receive a social security number.[7] In some states, recipients can also apply for a driver’s license.[8] DACA also offers a reprieve from accruing “unlawful presence,” a legal term for time spent in the United States without status as an adult, which can lead to future bars to reentry to the US.[9] However, the deferred action program does not, on its own basis, allow its recipients to apply for a separate status.[10] DACA protections expire every two years, and require subsequent renewal applications.[11]

It is no wonder that Dreamers have been called “the best and brightest young people.”[12] The DACA protections only extend to a group of educated youth that have never been convicted of most categories of crimes.[13] To qualify, an applicant must have arrived to the country under the age of sixteen, attend school or have completed their education, and be under the age of thirty, among other requirements.[14] By the nature of the program, recipients arrived as children and therefore may not have a connection to their country of birth. As a result, many Dreamers are attending universities, building careers, and living their lives in the United States without a guarantee that they can obtain legal status to stay permanently.

DACA is Unique Only in its Limited Scope

Deferred action is a commonly used exercise of prosecutorial discretion.[15] As with many other government actions, officials set enforcement priorities to manage limited resources. In addition, the Department of Homeland Security can grant deferred action on an individual basis at any time.[16] The Dreamers’ immigration standing is also not unique, because, as Chief Justice Roberts and Justice Alito learned, many foreign nationals in the US can work legally but do not have legal status. This includes applicants for adjustment of status to permanent residence, and foreign nationals of countries granted Temporary Protected Status (TPS).[17] Applicants for political asylum are also permitted to work legally in the US after a certain time period while awaiting a final decision on their applications.[18]

The DACA program is part of a long history of executive actions related to immigration. In 1961, the Kennedy Administration established a program to give immigrant visas to Cuban refugees, as well as provide financial help, medical care, and other resettlement services.[19] The program benefitted around one million Cuban Americans.[20] Subsequently, when an influx of both Cubans and Haitians arrived on Florida shores in 1980, most were discretionarily admitted to the country.[21] Several years later, President Reagan announced that immigration standards for 200,000 undocumented Nicaraguans would be eased, and directed the immigration service to “encourage and expedite” their work authorizations.[22] After the 1986 immigration reform bill offered a pathway to residence to many undocumented families, around 100,000 children of those families were shielded from deportation by executive action.[23] In 1990, former President Bush expanded the program by creating an application process for undocumented individuals to stay in the United States and receive work permits.[24] Two consecutive administrations also expanded the TPS status of thousands of Salvadorans and Nicaraguans until they were offered a pathway to permanent residency by law.[25] Within this context, DACA is much less beneficial to eligible foreign nationals than other major executive actions on immigration, because it provides no pathway to any other immigration status and certainly not permanent residence.

The DACA program was designed as a solution to a problem created by more recent changes to immigration law, which were promoted by many of the same immigration restrictionists that now oppose DACA. For most of American history, migrants from Mexico and other countries travelled back and forth across the border for work in the United States, but maintained a primary residence in their home countries.[26] Migration consisted of seasonal flows from Mexico corresponding to the need for agricultural and railroad workers.[27] There was often no need to stay permanently, so workers returned home in the winter.[28] As a result, families often stayed in Central America instead of relocating to the U.S.[29]

During the second half of the 20th century, U.S. law made it difficult to legally migrate from Central America.[30] As a result, it became risky to travel across the border and entire families settled undocumented.[31] While DACA did not fix this legal status discrepancy, it allowed the children of these families to stay and continue their education and careers.

Recent Changes to the DACA Program

In 2017, the Trump Administration attempted to end the DACA program.[32] After several lawsuits were filed to challenge the termination of DACA, injunctions were issued to order the Department of Homeland Security to continue to process DACA renewals and employment authorizations, but the government could refuse new applications.[33] The pending litigation challenges whether the Trump administration acted with proper authority in attempting to end the program, and whether the Court has the authority to review the administration’s decision.[34]

Even if the Supreme Court upholds the Trump Administration’s decision to end the DACA program, there remains a chance that Congress will act to protect Dreamers. An amendment to immigration law would render the pending case moot and take precedence over any Department of Homeland Security administrative decision. Although at least ten iterations of the bill have been introduced, none have passed.[35] This year, the House passed the American Dream and Promise Act which would grant DACA recipients permanent, statutory protections.[36] However, the bill still has to pass the hurdle of a favorable Senate vote.[37]

The situation of Dreamers is that of legal purgatory – with the door shut to legal status and very few options to leave the United States and return with a visa. Legislative action has been stalled for decades and now a conservative Court is poised to hear the case in the coming weeks. Dreamers and activists alike hope the Court will see DACA as a rational response to protect 800,000 young people from the legal conundrum created by U.S. immigration law.

Options for the Future

With the future of the DACA program uncertain, many Dreamers and employers are assessing their options. The following section is an overview of considerations for DACA recipients, who are in a unique and challenging legal position. With each type of visa, there are exceptions and complicating factors, such as criminal convictions, that may affect eligibility. Although immigration law permits waivers of certain conditions, waivers are granted only in narrow circumstances. As a result, each individual should discuss their unique situation with an experienced immigration attorney.

Immigrant Visa Petitions.

There are several types of immigrant visas available for individuals wishing to become permanent residents, including primarily (1) immediate relative petitions, (2) family-based petitions, and (3) employment-based petitions.[38] The first category can be filed by a U.S. citizen spouse, parent, or an adult child (over the age of twenty-one).[39] The second two types of immigrant visas, based on family and employment, each have different subcategories and are subject to numerical annual limits.[40]

Even if a DACA recipient can qualify for an immigrant visa, there are unique issues that may prevent many from receiving the green card. There are two avenues to receive permanent residency: consular processing at a U.S. Consular Post abroad; and adjustment of status while present in the United States.

Adjustment of Status. Whether a DACA recipient can adjust their immigration status to permanent resident depends on the time spent in the United States without legal status, the manner of U.S. entry, and the type of immigration sponsor. As a general rule, Dreamers cannot adjust status with a family-based petition because it requires continuous lawful status.[41] Employment-based petitions are only available if the individual has less than 180 days of unlawful presence.[42] Thankfully, the immediate relative petition allows adjustment to those who have been undocumented for many years.[43] However, like all petitions, the immediate relative petition requires lawful entry to the United States with either a visa or a travel authorization document.[44] Dreamers who marry a U.S. citizen may have other options even without lawful entry, but will want to seek the advice of an immigration attorney.

Consular Processing. The alternative to adjustment of status is applying for an immigrant visa and interviewing at a U.S. embassy. Most DACA recipients will face challenges in this method, as well. Beginning at age eighteen, any person who has spent over 180 days without legal status faces a three year bar to reentry to the United States.[45] This bar increases to ten years after one year of unlawful presence.[46] Therefore, leaving the country for an interview at a U.S. embassy is a practical impossibility for many recipients who have accrued unlawful presence before approval under DACA.

Non-Immigrant Visa Petitions.

There are numerous types of temporary visas. The F-1 student visa, the O-1 extraordinary ability visa, H-1B work visa, and the B visas for tourism and business are all examples.[47] Most DACA recipients face one fundamental challenge to receiving any of these visas: a grant of a temporary status while living in the U.S. requires an existing, valid underlying status. DACA does not confer any non-immigrant status for this purpose.

Thus, Dreamers seeking a temporary visa are in a similar position as those hoping to receive a green card through consular processing. The process requires leaving the United States and reentering with a visa, a path complicated by three-year and ten-year statutory bars. If available, Dreamers may want to pursue a position abroad with their company. In addition, individuals who are eligible may want to consider whether they qualify for Temporary Protected Status (TPS), which would confer the ability to apply for other temporary statuses.

Humanitarian Petitions.

It is worth noting that there are a few pathways in immigration law for humanitarian-based relief, including the special immigrant juvenile visa, asylum, and visas available for survivors of crimes and domestic abuse.[48] These options may present a pathway to permanent residency for DACA recipients, but only for those that qualify and receive a favorable exercise of discretion.

In summary, individuals temporarily protected under DACA should consider alternatives in the coming months before the Supreme Court’s decision. Though the pathway to permanent residency is narrow, there may be a few options available to stay continuously or to work abroad and return after a few years. The most important step is to continue to renew DACA in the meantime. Finally, it is important to consult with an experienced immigration attorney to help navigate the available options.

[*] The name “Dreamers” originated from the name of the legislative act, the Development, Relief, and Education for Alien Minors (DREAM) Act, originally introduced in 2001.

[1] See DHS v. Regents of the Univ. of Calif., 139 S.Ct. 2779 (2019). The case was consolidated with two other lawsuits, Batalla Vidal v. Nielsen and NAACP v. Trump, with oral arguments set for November 12, 2019 and decision expected around June 2020. DACA Litigation Timeline, Nat’l Immigration Law Center, https://www.nilc.org/issues/daca/daca-litigation-timeline/ (Last updated Sep. 28, 2019).

[2] Gustavo Lopez & Jens Manuel Krogstad, Key Facts about Unauthorized Immigrants Enrolled in DACA, Pew Research Cent. (Sep. 25, 2017), https://www.pewresearch.org/fact-tank/2017/09/25/key-facts-about-unauthorized-immigrants-enrolled-in-daca/.

[3] See Dara Lind, Why Ending DACA is so Unprecedented, Vox (Sep. 5, 2017), https://www.vox.com/policy-and-politics/2017/9/5/16236116/daca-history (noting DACA protects individuals largely without legal pathways to permanent residency).

[4] See U.S. Department of Homeland Security, Exercising Prosecutorial Discretion with Respect to Individuals Who Came to the United States as Children 3 (2012), https://www.dhs.gov/xlibrary/assets/s1-exercising-prosecutorial-discretion-individuals-who-came-to-us-as-children.pdf; See also Frequently Asked Questions, Nat’l Immigration Law Center https://www.nilc.org/issues/daca/faqdeferredactionyouth/ (Last updated Dec. 16, 2016).

[5] Transcript of Oral Argument at 28, United States v. Texas, 136 S.Ct. 2271 (2016) (No. 15-674).

[6] Transcript of Oral Argument at 28, United States v. Texas, 136 S.Ct. 2271 (2016) (No. 15-674).

[7] DACA, Immigration Legal Resource Center, https://www.ilrc.org/daca, (Last visited Oct. 18, 2019).

[8] Immigration Legal Resource Center, Preparing for the Future 15 (2019), https://www.ilrc.org/preparing-future-understanding-rights-and-options-daca-recipients.

[9] Unlawful Presence and Bars to Admissibility, USCIS, https://www.uscis.gov/legal-resources/unlawful-presence-and-bars-admissi… (Last visited Oct. 18, 2019); Understanding Unlawful Presence Under INA § 212(a)(9)(B) and Waivers of Unlawful Presence, Immigrant Legal resource Center 3 (2019), https://www.ilrc.org/sites/default/files/resources/understanding_unlawful_presence_march_2019.pdf.

[10] See U.S. Department of Homeland Security, Exercising Prosecutorial Discretion with Respect to Individuals Who Came to the United States as Children 1 (2012), https://www.dhs.gov/xlibrary/assets/s1-exercising-prosecutorial-discretion-individuals-who-came-to-us-as-children.pdf (“This memorandum confers no substantive right, immigration status or pathway to citizenship.”).

[11] See Id.; The Dream Act, DACA, and Other Policies Designed to Protect Dreamers, American Immigration Council 3 (2019), https://www.americanimmigrationcouncil.org/sites/default/files/research/the_dream_act_daca_and_other_policies_designed_to_protect_dreamers.pdf.

[12] Get the Facts on the DREAM Act, The White House President Barack Obama (Dec. 1, 2010), https://obamawhitehouse.archives.gov/blog/2010/12/01/get-facts-dream-act; See also The Dreamers Are a Good Part of America’s Future, The Wall Street Journal (July 25, 2017), https://www.wsj.com/articles/the-dreamers-are-a-good-part-of-americas-future-1501002274; Power to the Doers and Dreamers, Unleashing the Best and Brightest, Int’l Business Times (Aug. 16, 2010), https://www.ibtimes.com/power-doers-dreamers-unleashing-best-brightest-193274; Gabrielle Levy, Obama: Trump’s DACA Decision ‘Cast a Shadow’ of Deportation Over ‘Best and Brightest’ U.S. News (Sep. 5, 2017), https://www.usnews.com/news/politics/articles/2017-09-05/obama-trumps-daca-decision-cast-a-shadow-of-deportation-over-best-and-brightest.

[13] U.S. Department of Homeland Security, Exercising Prosecutorial Discretion with Respect to Individuals Who Came to the United States as Children 1 (2012), https://www.dhs.gov/xlibrary/assets/s1-exercising-prosecutorial-discretion-individuals-who-came-to-us-as-children.pdf.

[14] Id.

[15] See Shoba S. Wadhia, The Role of Prosecutorial Discretion in Immigration Law, 9 Conn. Pub. L. J. 243, 246 (2010)

[16] Id.

[17]Employment Authorization Document, U.S. Citizenship and Immigration Services, https://www.uscis.gov/greencard/employment-authorization-document (Last updated Apr. 5, 2018).

[18] Id.

[19] See Larry Nackerud et al., The End of the Cuban Contradiction in U.S. Refugee Policy, 33 Int’l Migration Rev. 176, 177 (1999); See also Drew Desilver, Executive Actions on Immigration Have a Long History, Pew Research Center (Nov. 4, 2014), https://www.pewresearch.org/fact-tank/2014/11/21/executive-actions-on-immigration-have-long-history/.

[20] See Larry Nackerud et al., The End of the Cuban Contradiction in U.S. Refugee Policy, 33 Int’l Migration Rev. 176, 177 (1999)

[21] See Drew Desilver, Executive Actions on Immigration Have a Long History, Pew Research Center (Nov. 4, 2014), https://www.pewresearch.org/fact-tank/2014/11/21/executive-actions-on-immigration-have-long-history/; See also Julio Capo, The White House Used This Moment as Proof the U.S. Should Cut Immigration, It’s Real History is More Complicated, Time (Aug. 4, 2017), https://time.com/4888381/immigration-act-mariel-boatlift-history/.

[22] Immigration Rules Are Eased for Nicaraguan Exiles in the U.S., New York Times (July 9, 1987), https://www.nytimes.com/1987/07/09/world/immigration-rules-are-eased-for-nicaraguan-exiles-in-us.html.

[23] Am. Immigration Council, Reagan-Bush Family Fairness (Dec. 2014), https://www.americanimmigrationcouncil.org/sites/default/files/research/reagan_bush_family_fairness_final_0.pdf.

[24] Id.

[25] See Drew Desilver, Executive Actions on Immigration Have a Long History, Pew Research Center (Nov. 4, 2014), https://www.pewresearch.org/fact-tank/2014/11/21/executive-actions-on-immigration-have-long-history/; See also Nicaraguan Adjustment and Central American Relief Act, 8 C.F.R. § 240.60 (2014).

[26] See Dara Lind, Why Ending DACA is so Unprecedented, Vox (Sep. 5, 2017), https://www.vox.com/policy-and-politics/2017/9/5/16236116/daca-history (noting DACA protects individuals largely without legal pathways to permanent residency); See also Douglas Massey & Karen Pren, Unintended Consequences of US Immigration Policy 38 Population and Dev. Review 1-3 (2012), https://onlinelibrary.wiley.com/doi/pdf/10.1111/j.1728-4457.2012.00470.x.; Marc Rosenblum & Kate Brick, US Migration and Policy and Mexican/Central American Migration Flows 1-3 (2011)

[27] Marc Rosenblum & Kate Brick, US Migration and Policy and Mexican/Central American Migration Flows 3 (2011).

[28] Id.

[29] See Dara Lind, Why Ending DACA is so Unprecedented, Vox (Sep. 5, 2017), https://www.vox.com/policy-and-politics/2017/9/5/16236116/daca-history

[30] See Douglas Massey & Karen Pren, Unintended Consequences of US Immigration Policy 38 Population & Dev. Rev. 1-3 (2012), https://onlinelibrary.wiley.com/doi/pdf/10.1111/j.1728-4457.2012.00470.x; Marc Rosenblum & Kate Brick, US Migration and Policy and Mexican/Central American Migration Flows 1-3 (2011).

[31] See Dara Lind, Why Ending DACA is so Unprecedented, Vox (Sep. 5, 2017), https://www.vox.com/policy-and-politics/2017/9/5/16236116/daca-history.

[32] Michael Shear & Julie Davis, Trump Moves to End DACA and Calls on Congress to Act, New York Times (Sep. 5, 2017), https://www.nytimes.com/2017/09/05/us/politics/trump-daca-dreamers-immigration.html.

[33] See DACA Litigation Timeline, Nat’l Immigrant Justice Cent., https://www.nilc.org/issues/daca/daca-litigation-timeline/ (Last Updated Sep. 28, 2019); See also Regents of the Univ. of Cal. v. DHS, 908 F.3d 476 (9th Cir. 2018).

[34] Regents of the Univ. of Cal. v. DHS, 908 F.3d 476 (9th Cir. 2018).

[35] Id.

[36] American Dream and Promise Act of 2019, 116th Congress, H.R.6 https://www.congress.gov/bill/116th-congress/house-bill/6.

[37] See Alan Gomez and Ledyard King, House Passes Bill to Protect ‘Dreamers’, but Faces Long Odds in Republican-led Senate, U.S.A. Today (Jun. 4, 2019), https://www.usatoday.com/story/news/politics/2019/06/04/house-passes-bill-dreamers-tps-but-senate-unlikely/1337753001/; Natalie Andrews & Andrew Duehren, House Passes Bill Aimed at Protecting Immigrants Brought Illegally to the U.S. as Children, Wall Street Journal (Jun. 4, 2019), https://www.wsj.com/articles/house-passes-bill-aimed-at-protecting-immigrants-brought-illegally-to-u-s-as-children-11559689659.

[38] See 8. U.S.C. § 1151 (2018).

[39] See 8. U.S.C. § 1151(b)(2)(A)(i) (2018).

[40] See 8. U.S.C. § 1151 (2018).

[41] See 8 C.F.R. §245.1(b)(6) (2018).

[42] Applicability of Section 245(k) to Certain Employment-Based Adjustment of Status Applications, U.S. Citizenship and Immigration Services (July 14, 2008), https://www.uscis.gov/sites/default/files/USCIS/Laws/Memoranda/Static_Files_Memoranda/Archives%201998-2008/2008/245%28k%29_14jul08.pdf.

[43] See 8 C.F.R. §245.1(b)(6) (2018).

[44] See 8 C.F.R. §245.1(b)(3) (2018).

[45] See 8 U.S.C. § 1182(a)(9)(b) (2018).

[46] See 8 U.S.C. § 1182(a)(9)(b) (2018).

[47] See 8 U.S.C. § 1101(a)(15) (2018).

[48] See Humanitarian, U.S. Citizenship and Immigration Services https://www.uscis.gov/humanitarian (Last visited Nov. 1, 2019). For additional resources, see Humanitarian Protection, Am. Immigration Council https://www.americanimmigrationcouncil.org/topics/humanitarian-protection (Last visited Nov. 1, 2019).

©1994-2019 Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. All Rights Reserved.

ARTICLE BY Lauren Watford & the Immigration Practice at Mintz Levin.
For more on DACA/Dreamers, see the National Law Review Immigration law page.

How Attorneys Can Overcome the Fear of Cross-Selling

Being able to help your client with multiple legal issues can be a boon for your firm. After all, it generally takes much longer to develop new relationships than to maintain existing ones. The opportunity to cross-sell to clients by keeping them “in-house” after resolution of a matter, is one that shouldn’t be passed up. Extending this relationship should always be the goal because it’s frankly cheaper, not to mention more effective and efficient to nurture an existing relationship than to cultivate one from scratch.

Overcoming Attorney Fears About Cross-Selling

The above shouldn’t imply that there aren’t valid concerns about cross-selling, both within your firm or through collaboration with attorneys outside of your firm. Some of the common fears or objections to cross-selling to a client you’ve built a relationship with include:

  • Fear of losing the client to another attorney or firm.
  • Fear that you’ll refer a client and the other attorney will not be successful.
  • Fear of sharing compensation.

The fear of losing a client to another attorney or firm is legitimate. However, if the client came to you for a “one-off” legal matter, it is entirely possible that with or without your referral to a trusted colleague, they will pursue a bid from another firm or attorney anyway. So, you really have nothing to lose in this regard.

As for the fear that you’ll refer them to an attorney within or outside of your firm and that attorney won’t do a good job, thereby making you look bad—the best way to overcome this is by sending your client to someone who has a vested interest in ensuring that you continue to send referrals to them.

Finally, in regard to fear of sharing compensation, simply agree ahead of time to a compensation split with the attorney with whom you plan to collaborate.”.

While it is true that there is some risk that all three of these fears could potentially materialize, when compared to the potential benefits to be reaped by collaborating with other firms or other attorneys, the potential pros overwhelmingly outnumber the cons.

Client Benefits of Collaborating with Other Attorneys

You’ll notice that from here on out, we will replace the term “cross-selling” with “collaboration” because the last thing your clients need—who are coming to you for help during a possibly negative or complex time in their life—is to be upsold anything. Your role as counsel is to be a trusted advisor and confidant not a salesperson working on commission.

As a trusted advisor, with your client’s best interest in mind, your role as counsel is absolutely to point them in a direction or guide them to a colleague either within your firm (this is ideal as you can begin to build teams), or at another firm who can help when a legal matter arises that is outside of your wheelhouse. This is particularly true today as specialization in a niche practice is prevalent. In sum, your clients deserve access to the best experts available.

Collaboration also reduces the number of vendors that your client has to work with. Whether you team up with a colleague in your firm or partner with an attorney at another firm your client will see you as a team. They won’t feel as if they are adding yet another advisor and ensuing legal fees.

Collaboration also helps you better understand the business of your client. By working outside of your primary or preferred practice area with another lawyer, you’ll gain a deeper understanding of your clients’ overall needs, business, etc. Knowing as much as you can about them will make you a better and stronger advocate.

Clients aren’t the only party to benefit when you decide to collaborate with a colleague—attorneys benefit by maintaining the existing relationship, learning to work as a team in an area of law that isn’t a primary focus and by earning income from an existing client.

Tips for Successful Collaboration with Other Attorneys

Here are a few strategic “dos” that should help you successfully collaborate with other attorneys:

  • Determine compensation share from the beginning.
  • Take time to get to know the other attorney outside of the scope of the case.
  • Create a communication plan, including method and frequency.
  • Clarify roles from the outset of the collaboration.
  • Develop a reporting/information sharing protocol.

And one major “don’t”: Turn a client over to another attorney and then disappear.

When done correctly, collaboration leaves every practice better off. It’s not just “more money for more products.” It is far more cost-effective and efficient to maintain and grow an existing relationship than to develop new business, and it’s often in your client’s best interest. It’s also an avenue for team building and an opportunity for reciprocal referrals, which can only help your law firm.

© 2019 Berbay Marketing & Public Relations

For more on attorney marketing, see the National Law Review Law Office Management page.

Clinton’s Impeachment Compared to the Trump Proceedings: Conversation with Sol Wisenberg, former Deputy Independent Counsel during the Starr Investigation

With the Trump impeachment proceedings getting ready to start this week in the House of Representatives, we thought it would be interesting to take a look back at the Clinton Impeachment.  The catalyst for President Clinton’s impeachment was the Starr Report.  Independent Counsel Ken Starr presented to the House of Representatives a case for impeaching President Bill Clinton on 11 grounds, including perjury, obstruction of justice, witness-tampering and abuse of power.  The sexual relationship between the president and former White House intern Monica Lewinsky formed the basis of the lying under oath and obstruction of justice charges.  The lying under oath charge stemmed from the Clinton v. Jones civil lawsuit, which included President Clinton’s inaccurate grand jury testimony about a sexual relationship with Monica Lewinsky.

Solomon L. Wisenberg played a pivotal role in the Clinton Impeachment as a Deputy Independent Counsel during the Starr investigation. Mr. Wisenberg’s grand jury questioning of President Bill Clinton was submitted by independent counsel Kenneth Starr with his report to the House of Representatives as part of the Clinton impeachment proceedings.

Mr. Wisenberg has more than two decades of experience with complex federal white-collar crime investigations and jury trials and is currently the co-chair of Nelson Mullins White Collar Defense and Government Investigations practice.  He is a sought after analyst and routinely appears in a variety of media providing commentary and answering questions on federal white-collar investigations, impeachment, public corruption under the Hobbs Act, bribery and fraud, Foreign Corrupt Practice Act violations and other intricate legal issues.

Mr. Wisenberg was kind enough to take time out of his schedule to talk with the National Law Review on the upcoming Trump impeachment proceedings and how they are similar and different from the Clinton impeachment.

The Starr Report played a central role in the Clinton impeachment proceedings; producing the perjury and obstruction of justice charges stemming from the Clinton v. Jones civil action.

In the Clinton v. Jones sexual harassment lawsuit, Ms. Jones’ attorneys included questions about Monica Lewinsky and President Clinton’s behavior with other women to show a pattern of improper behavior with women by Clinton to bolster Ms. Jones’ sexual harassment claims.

Additionally, Ms. Jones’ attorneys sought to show a pattern concerning President Clinton’s actions in covering up various inappropriate interactions with women.

Do you think the impeachment prosecutors for President Trump will introduce elements from the Mueller report to show a pattern of behavior to bolster any criminal acts and any obstruction of justice case related to the withholding of aid to Ukraine?

Mr. Wisenberg: I think there’s no doubt that they will. I’ve heard some Democratic Congressmen talking about it and it’s very clear that they feel the obstruction portion of the Mueller report has not been given sufficient attention. So I’d be shocked if it does not constitute one of the articles of impeachment.

The Supreme Court in Clinton v. Jones held that a sitting president is subject to civil suits in federal court, this lead to President Clinton being deposed and perjuring himself and being impeached by the House of Representatives, on grounds of perjury to a grand jury and for obstruction of justice.

xxxx

If President Clinton was able to be deposed while in office, why are President Trump and other members of his administration, such as Mick Mulvaney, claiming immunity?

Mr. Wisenberg: Trump didn’t ever formally claim immunity, because Mueller never pressed the point. Keep in mind, Clinton vs Jones just said the president is not immune from suits while he is in office. Even President Clinton didn’t take the position that he could never be sued. President Clinton’s position was just that he didn’t have to answer lawsuits brought while he was the president, and the Supreme Court ended up saying yes you do, you don’t have that absolute immunity. But the Court also said that there needs to be respect and accommodations for the responsibilities of the office, for the president’s schedule, time, privacy, all of that kind of stuff.

However, in the Lewinsky criminal investigation where we sent President Clinton a grand jury subpoena after he ignored six of our requests to appear, we ended up withdrawing the subpoena. We did this because President Clinton’s attorney said if you withdraw the subpoena, he’ll sit for grand jury testimony. Clinton’s inquiry involved grand jury testimony, not just a deposition.  So the constitutional issue involving the President’s right to defy a grand jury subpoena for testimony alone was never tested there. I think it would’ve been an interesting issue, because Clinton did not want to be in a position where the president is being subpoenaed or responding to a subpoena, and he certainly didn’t want to be in a position of going to federal court to block the Lewinsky Grand Jury’s subpoena.

So that’s how it was worked out, and we don’t know what would have happened if he would have challenged our subpoena in court. There’s actually a case that came out in 1997. It’s the controlling law in the DC Circuit.  The Office of Independent Counsel that was investigating Agriculture Secretary Mike Espy wasn’t asking for testimony in that case. In the In Re Sealed Case, 121 F 3d 729 (1997). the issue was asking for documents and it’s actually a fairly high standard to be able to force the president to respond to a grand jury subpoena. I believe it’s quite possible that Mueller didn’t press the point because he might not have won under the test laid out for Mike Espy, even if he was just seeking testimony. Every case is dependent upon the particular facts.  And because Mueller already had been given a tremendous amount of relevant information, he may have not wanted to push it, as it’s not at all certain that he would’ve won. So not only would it have been a lengthy process that would have delayed the Mueller investigation, but Mueller may not have won on the issue. It’s not that President Trump was behaving inconsistently with the ruling in Clinton vs Jones. It’s that Mueller never forced Trump to make a choice.

Special Counsel Mueller declined to subpoena President Trump, as Mueller told the House Intelligence Committee that it looked highly unlikely that they would obtain an in-person interview with Trump and because of the perceived need to wrap up the investigation into Russian interference in the 2016 United States elections.

xxxx

Do you think Mr. Mueller’s strategy of not forcing President Trump to either testify, fight the subpoena in the courts or defy the subpoena will weaken the prosecutor’s ability to use the Mueller report in the impeachment process?

Mr. Wisenberg: Oh God, no. I mean, not at all. The report is what it is. The obstruction portion of the report (I should say alleged obstruction, because even Mueller doesn’t say that Trump criminally obstructed justice) is what it is. The obstruction portion of the Mueller report is based on witness testimony.  I don’t think there’s going to be much dispute about what happened. And apparently now the House of Representatives has the grand jury backup for the Mueller report’s witness testimony. President Trump has questioned some of Don McGahn’s factual statements, but McGahn was hardly alone in detailing the President’s efforts to stymie Mueller.

The dispute would be on the suggestion that the President criminally obstructed justice. I don’t think he did on the known facts, and the only episode that is even a close call on this was when President Trump allegedly asked Don McGahn to sign a document for the White House’s records denying he’d been told to fire Mueller. I think from the Democrats’ perspective they were waiting and waiting and waiting for the Mueller report and it was a dud. The Democrats blamed Bill Barr, I think, unfairly. The Democrats tried to hold testimony on the Mueller report and, it didn’t get anywhere, again, because of all of the claims of executive privilege and related doctrines. Now that they’ve got impeachment authority in Congress the Democrats are in a much stronger position.  They can say now, any area of inquiry is allowed under our Constitutional power to conduct an impeachment inquiry.

xxxx

Based on President Clinton’s conflicting testimony, Mr. Starr presented a case that President Clinton had committed perjury. Do you think President Trump’s frequent public statements, though not under oath about the Russian interference in the 2016 election and the alleged quid pro quo in the withholding of aid to Ukraine will be used in the impeachment proceedings?

Mr. Wisenberg:  The Democrats can use anything they want if they think it is valuable to them. The Democrats might say President Trump’s frequent commentaries can be construed as non-hearsay party admissions under the Federal Rules of Evidence in any proceeding brought against President Trump. Also, where somebody is accused of criminal wrongdoing and says something about the specific accusation that turns out to be false, this can be used against him as a false exculpatory statement.   So, I see no reason why they can’t consider anything they want to consider.

To answer your specific questions about President Clinton, President Clinton lied under oath in the Paula Jones civil rights lawsuit deposition thereby obstructing justice.  The federal district judge presiding held President Clinton in contempt of court. President Clinton is the only U.S president ever held in contempt by a federal judge. Additionally, President Clinton had his secretary retrieve and remove gifts Monika Lewinsky had in her possession, when the gifts were subpoenaed in the Jones civil suit. President Clinton used a White House employee, his secretary Betty Currie to obstruct justice in a civil rights lawsuit.

There are some people who say private conduct,  even if it’s criminal, should never be impeachable and that we should not be concerned with private conduct. And there is some historical support for this position in writings by the framers and stuff like that. But President Clinton did more than that. He used a White House employee in order to hide items under subpoena. That’s textbook obstruction.

xxxx

If President Trump’s impeachment prosecutors are able to demonstrate that alleged withholding of aid to Ukraine is a criminal act, do you think it will be easier to prove intent in an obstruction of justice case?

Mr. Wisenberg:  No, I don’t think so. I don’t think that helps them on obstruction of justice unless something new related to the Ukraine business comes out, but all he did was to say it’s a perfect call. Right? I think that if you were to somehow prove that this was a campaign finance violation or, or some kind of a crime, it might be a little bit easier to get a few more votes, but I don’t see anything yet that gets them the votes they need to convict President Trump in the Senate.  I understand some people believe that putting the phone call transcript on a separate server was obstruction, but that sounds weak to me.

GOP Senators will point out that President Trump was elected, and we’re a representative democracy. We’re going to hold an election in one year. They will say it’s not right to remove him because of Ukraine. Even if they think, as Senators, that it was a mistake.

I think it is going to take something really dramatic for there to be a shift. Either a dramatic shift in public opinion based on the live testimony or just something new coming out, some new scandal to move the needle on that.

To answer your question, if somebody were to somehow to prove without question that President Trump knew he was violating the law when he made the call, that may be meaningful. And that revelation again moves the needle maybe, but you can’t ignore the politics.

Take a look at the situation with President Clinton. There was no real question in anybody’s mind that he perjured himself and that he obstructed justice, but that didn’t all of a sudden make the Democrats in the Senate vote for removal. I don’t think any of them did. The Democrats during the Clinton impeachment and removal proceedings acted very similarly to how the Republicans are acting now.  You can’t ignore the politics.

Many thanks to Mr. Wisenberg for his time and answers to our questions.

Copyright ©2019 National Law Forum, LLC

Virtual Marking: Guidance on Doing It Right

Despite the fact that virtual patent marking was introduced nearly a decade ago, jurisprudence addressing virtual marking issues has been quite limited. Recent guidance from U.S. district courts, however, paints a clearer picture of the patent marking statute’s requirements to (a) associate the patented article with the number of the patent; (b) place either “patent” or “pat.” together with a website address on the product; and (c) ensure the marking is “substantially consistent and continuous.”

Since 1952, the patent marking statute (“Marking Statute”) has encouraged patentees to give public notice of a patented article through physical application of the patent number to the article, which assists the public and helps mitigate innocent infringement. 35 U.S.C. § 287; Nike, Inc. v. Wal-Mart Stores, Inc., 138 F.3d 1437, 1443 (Fed. Cir. 1998). Giving effect to this goal, the marking statute provides a financial disincentive for patent owners who do not mark their products (i.e., a patentee is precluded from recovering damages for infringement of unmarked articles prior to notice of infringement). Once marked, a patent owner’s marking must be “substantially consistent and continuous.” Id. at 1446.

Since the AIA’s passage in 2011, however, patentees have been able to inform the public that an article is patented through “virtual marking” (i.e., use of the word “patent” or the abbreviation “pat.” together with the URL of a website address where the actual patent number may be found). 35 U.S.C. § 287. As opposed to physically marking a patent number on a product, virtual marking allows a patent owner to quickly update its patent data website page without the costs of modifying product tooling or packaging (e.g., for newly issued, expired, or invalidated patents). In relevant part, the Marking Statute provides:

“Patentees . . . may give notice to the public that the same is patented . . . by fixing thereon the word ‘patent’ or the abbreviation ‘pat’ together with an address of a posting on the Internet, . . . that associates the patented article with the number of the patent.” 35 U.S.C. § 287(a) (emphasis added).

The Delaware District Court recently clarified what does, and does not, constitute adequate association, concluding that a “website itself must do more than simply list the patentee’s patents.” Mfg. Res. Int’l v. Civiq Smartscapes, LLC, Case No. 17-269, 2019 U.S. Dist. LEXIS 146060, at *3 (D. Del. Aug. 28, 2019)(emphasis added). Citing the statute’s “plain language,” the court reasoned that “[s]imply listing all patents that could possibly apply to a product or all patents owned by the patentee” “merely creates a research project for the public,” as opposed to giving public notice. Id. at *30-31. The court described why this would be the case by pointing to two examples lacking the association necessary “as a matter of law to meet the requirements of virtual marking”:


View larger image

Id.

The Court concluded that Plaintiff’s examples did “nothing to ‘associate’ any specific product it has marked with the patents which cover it.” Id. at 31. The Court was not persuaded by Plaintiff’s arguments that proper association was met in view of (1) Plaintiff’s statement that “[o]ne or more of the above listed MRI patents may be used by LG-MRI products under license from MRI, Inc.”, and (2) Plaintiff’s clarification of “the patent category (LCD Display Patents)”. Id. Accordingly, Plaintiff’s website failed to “provide ‘a ready means of discerning the status of the intellectual property embodied in an article of manufacture or design,” and no damages were awarded for infringement that occurred prior to the notice that was provided by the filing of the suit. Id., citing Bonito Boats, Inc. v. Thunder Craft Boats, Inc., 489 U.S. 141, 162 (1989).

Beyond the association requirement, courts also have found that a website address lacking the words “patent” or “pat.” does not provide constructive notice, A to Z Machining Serv., LLC v. Nat’l Storm Shelter, LLC, 2011 U.S. Dist. LEXIS 149387 (W.D. Okla. 2011), and that evidence supporting consistent marking of substantially all products may include (a) documentary evidence concerning the timeframe in which the website has operated; (b) engineering and assembly drawings or the actual product depicting virtual mark placement; and (c) testamentary evidence concerning the frequency of the virtual mark’s use on products. See Asia Vital Components Co. v. Asetek Danmark A/S, 377 F. Supp. 3d 990, 1024-25 (N.D. Cal. 2019), citing SEB S.A. v. Montgomery Ward & Co., 594 F.3d 1360, 1378 (Fed. Cir. 2010).

Notably, the burden remains on the patentee to demonstrate that its patent marking practices are effective and appropriate. In view of recent court guidance, consider the following points for creating an effective virtual marking strategy:

  • Include either “pat.” or “patent” together with the website address where the actual patent number may be found.
  • Place the patent owner’s website address on all patented products and clearly correlate each product that is covered by at least one claim of a specific patent on that website address for a patented product.
  • Periodically review the patent website page to ensure that it is current, accurate, and complete (e.g. reflecting new products; updating issued, expired, or invalidated patents).
  • Create and preserve records that demonstrate that the virtual marking was consistent and continuous. This may entail keeping a written log of updates to the patent website address, and preserving evidence that it was continually maintained

© 2019 Brinks Gilson Lione. All Rights Reserved.

5 Beliefs About Law Firm PR That Need to Be Retired

One of the best parts of my job as a strategic advisor to law firm leaders is celebrating with them when our work to promote their attorneys and practice groups pays off in the form of a splashy feature article in the business press or an award for one of their up-and-coming lawyers. Not only is it wonderful to deliver great news to our clients, but often it is not until these moments that managing partners and CMOs truly understand what is possible for their firms and how we can help them achieve it.

But some firms never get to experience these victories because unfortunate beliefs about public relations limit their engagement with the professionals who could make a real difference in business development and recruiting. It’s time to “retire” these five outdated notions about law firm PR:

“Our managing partner speaks for the firm, so we don’t need outside support.”

Firms with a prestigious history are proud of the reputation they have built over the decades, and rightly so. But the marketing methods of the past do not offer a sure path to nurturing and protecting that reputation into the future. Your firm likely plays in multiple markets, whether regionally, nationally or globally, which means you are not the same firm in Chicago that you are in Toronto. The specifics of each market require a tailored message. Though every firm is aiming for a unified narrative, a firm’s reputation is actually a collection of the different stories it tells to these different audiences. Relying on a managing partner to represent all the facets of a firm’s identity almost guarantees the firm will miss opportunities to connect with prospects whose needs fall outside the parameters of this one-size-fits-all message. Sophisticated PR support can help firms navigate the tension between staying true to their brand and selling the services of their attorneys in customized ways.

“Our reputation speaks for itself.”

In addition to relying on a single leader to speak for them, firms with esteemed reputations also tend to overestimate the value of their name in today’s market, in terms of both business development and recruiting. Younger generations of lawyers and clients are much less likely to be persuaded to buy on name alone, and in some cases they are more skeptical of the top firms because of their elite status. Recent stories of law students refusing to interview with prominent firms that continue to use binding arbitration agreements serve as excellent examples here: name alone was not enough to overcome what these students perceive to be an unfair practice. Firms, no matter where they fall in the rankings, simply cannot rely on a belief that they are entitled to “first dibs” on the clients and recruits they covet.

PR professionals can make the case that a prestigious reputation is well deserved and built on a solid foundation that will withstand the scrutiny of millennials. Pros take nothing for granted, pursuing media opportunities in high-profile outlets as well as the workhorse legal journals that serve a niche but powerful audience: the buyers of legal services. A trove of credible research shows that these key players value and make decisions more often based on what they learn from the niche outlets that some large firms dismiss as small potatoes. Good PR helps you cover all the bases.

“The marketing department handles PR.”

Because marketing and public relations teams collaborate on many projects, and because digital media has so radically changed the landscape of all kinds of communications over the last decade, law leaders don’t always have a clear understanding of the differences between these disciplines. Marketing professionals directly promote and sell your firm’s services — through activities like writing the RFPs, creating digital and print promotional materials and planning important firm events. With the ongoing responsibility to provide support across practice groups, in-house marketers often do not have the bandwidth to take on more strategic promotional tasks.

That’s where outside public relations support comes in. PR professionals are trained to think like journalists (and of course many of them are former journalists) and to help your firm tell its story and maintain its reputation in the market. By building relationships with key members of the media that outlast a single opportunity, PR support can keep the lines of communication open between your firm and your target market. This takes the form of pitching story ideas to reporters, positioning your attorneys as thought leaders and expert sources, helping them place authored content and nominating them for respected awards. Creating these opportunities for attorneys can be game-changing when it comes to business development and recruiting, but the work requires an investment of time and resources that the in-house marketing department often does not have to give.

“All media is created equal.”

Firms with overextended marketing departments and little PR support sometimes rely too heavily on their own communications channels — company website and blog, social media channels — to push out their message. After all, the firm retains total control of the content and the timing, so doesn’t that make their own channels superior to others? The truth is that the media world has become far more complex in the past two decades and now includes four types of media: paid (sponsored content), earned (traditional media coverage), shared (social media) and owned (blogs, firm-produced videos, etc.). In order to maximize their position, firms need to understand the difference between, say, content best suited for their blog and content that could benefit from the credibility of traditional media outlets. Relationships with key reporters and outlets are an incredibly important piece of building a firm’s brand. They are also time-consuming and tricky to cultivate, and often can be slow to pay off. But when they do, they are worth a hundred sponsored content placements and blog posts.

“We should wait until we get the verdict to enlist PR support.”

Even when law firm leaders do understand the specific skills PR professionals bring to the table, they often wait too long to call them. Strategic-level PR is most effective — and efficient — when the consultants are involved from the beginning and can help your firm create a smart, integrated plan that supports its overall goals. Most firms don’t need a full-time PR strategist on their staff, but they should have access to one who understands their business and clients, strengths and vulnerabilities, and how to save the firm from itself in a crisis. Getting out of reaction mode allows firms to take control of the story they want to tell about themselves, now and in the future as they continue to grow and evolve to serve their clients.

© 2019 Page2 Communications. All rights reserved.

For more Law Firm PR advice, see the National Law Review Law Firm Management page.

U.S. Women’s National Soccer Team Wins Class Certification in Equal Pay Fight

A federal court has ruled that the U.S. Women’s National Soccer Team’s (USWNT) equal pay claims under Title VII of the 1964 Civil Rights Act can move forward as a class action, as opposed to myriad individual cases.

As part of its decision, the court also allowed the USWNT’s Equal Pay Act (EPA) case to proceed as a collective action.

Factual background

Earlier this year, the USWNT players filed a complaint in federal court against their employer, the USSF. The lawsuit alleges that USSF violated the EPA and Title VII by, among other things, paying the women’s team less than the men’s team for doing equal work.

Equal Pay Act and Title VII Legal Frameworks To Prove Wage Discrimination

To win their EPA case, the USWNT must first prove a prima facie case under the EPA. The team can do so by showing:

  • the employer pays different wages to employees of the opposite sex;
  • the employees perform equal work on jobs requiring equal skill, effort, and responsibility; and
  • the jobs are performed under similar working conditions

If the USWNT establishes a prima facie case, the burden shifts to the USSF to establish one of four affirmative defenses: (1) that the pay difference is due to a seniority system, (2) a merit system, (3) a system that measures quantity or quality of production, or (4) “any factor other than sex.”

If the USSF makes this showing, the USWNT can still win if it shows that the USSF’s justification for the pay disparity was a pretext.

Title VII also makes it illegal to discriminate based on sex in pay and benefits, which is why the USWNT is also suing USSF under this law. Title VII prohibits discrimination in compensation and other terms and conditions of employment, so it has a broader reach than the EPA (and also outlaws, among other things, discrimination based on race, religion, and other protected characteristics).

The USWNT Argues That, Despite Their Better Results, They Are Paid Less For Equal Work

The USWNT’s complaint contains evidence and statistics supporting their argument that the USSF has unlawfully paid them less than the men’s soccer team. For example, the complaint alleges:

The USWNT is the preeminent women’s soccer team in the world and has contributed to the finances and reputation of the USSF at least as much as the USMNT. The complaint lists three World Cup titles (which is now four titles), four Olympic gold medals, and asserts that the USSF revised its projected earnings for 2016 from a net loss of $429,929, to a net gain of $17.7 million, because of the successes of the USWNT, particularly at the 2015 World Cup.

The USSF pays the women’s team less than the men’s team, despite requiring players on both teams to perform the same job duties that require equal skill, effort and responsibilities performed under similar working conditions. The complaint states that the women’s team players spend more time practicing, playing, and promoting the USSF than the men’s team does; indeed, from 2015 to 2018, the USWNT played in nineteen more games than the USMNT.

In addition, the complaint asserts that from 2013 to 2016, the USSF paid USWNT players $15,000 for trying out and making the World Cup team. Yet the USSF paid USMNT players $55,000 for making the team.

Similarly, in 2014, the USSF paid the USMNT more than $5.3 million in bonuses after their World Cup loss in the Round of 16. While in 2015, the USSF paid the USWNT only $1,725,000 in bonuses after they won the World Cup.

Finally, the USWNT received less favorable training and travel conditions, as well as reduced marketing for their games. For example, in 2017, USSF chartered private planes for USMNT travel at least seventeen times, but zero times for the USWNT.

USSF’s Potential Defenses

To rebut these claims, the USSF might argue that its legitimate, non-discriminatory reason for paying USWNT players less than USMNT players is that the men’s team generates more revenue for USSF than the women’s team, which accounts for the difference in pay.  The USSF denies the allegations in the USWNT’s complaint.

According to a report, however, this may not be accurate. That is, between 2016 and 2018, USWNT games generated about $50.8 million, compared with $49.9 million for USMNT games.

Currently, player compensation is not directly linked to money generated by the team in ticket sales, brand deals, and other promotional activity. The USWNT’s complaint refers to 2016 negotiations with the USSF in which the USWNT’s union offered to enter a revenue-sharing model. Under this model, player compensation would increase in years in which the USSF derived more revenue from USWNT activities and decrease in years when it earned less from USWNT’s activities. USSF rejected the offer, according to the complaint.

© 2019 Zuckerman Law

ARTICLE BY Eric Bachman of Zuckerman Law.
For more employment and other litigation outcomes, see the National Law Review Litigation & Trial Practice law page.

Ohio District Court Delivers Win For Pizza Drivers

Following the guidance set forth in the U.S. Department of Labor (DOL)’s Field Operations Handbook, the U.S. District Court for the Southern District of Ohio recently ruled in favor of pizza delivery drivers and in the process confirmed the standard for reimbursement of vehicle expenses under the FLSA.

In Hatmaker, et al., v. PJ Ohio, LLC, et al., the court granted summary judgment in favor of pizza delivery drivers who incurred costs to “purchase, maintain and operate” their vehicles, and alleged that because they were not paid “their actual expenses or the IRS standard business mileage rate,” they were effectively paid less than minimum wage. According to the decision, the defendant employer operated 73 Papa John’s locations, and paid the plaintiff delivery drivers at or near the minimum wage. The parties filed cross-motions for summary judgment, and the court ruled in favor of the delivery driver employees.

The DOL’s anti-kickback regulation prohibits arrangements that “shift part of the Employer’s business expense to the employees . . . to the extent that it reduce[s] an employee’s wage below the statutory minimum.” For example, as the DOL has explained, if the employer requires that an employee provide his or her own equipment or tools, the FLSA is violated “in any workweek when the cost of such tools purchased by the employee cuts into the minimum or overtime wages required to be paid.” As the court explained, “[i]n the pizza delivery context, the cost associated with delivering food for an employer is a ‘kickback’ to the employer that must be fully reimbursed, lest a minimum wage violation be triggered.”

The DOL recognizes that tracking delivery employee expenses is a potentially cumbersome task. Enter the Field Operations Handbook (FOH), which affords employers the option of either tracking and reimbursing delivery drivers for their actual delivery expenses (such as “gasoline, oil and other fluids, vehicle parts, auto repair and maintenance, registration costs, licensing and taxes”) or simply reimbursing delivery drivers at the IRS standard business mileage rate.

The defendant employer in this case neither tracked and reimbursed drivers’ actual expenses nor reimbursed drivers at the IRS standard rate. Thus, the plaintiff delivery drivers argued that they received less than the FLSA minimum wage. The employer argued that the FOH is not entitled to any deference and that it is based on outdated IRS publications. Moreover, the employer asserted that the IRS daily rate does not pertain to reimbursements under the FLSA.

The court found that while the FOH was not entitled to Chevron deference, Skidmore deference was appropriate, as the FOH is “one of the ‘interpretations, opinions and explanatory Guidelines’ of the Department of Labor, to which a court ‘may properly resort for guidance’…”

Based on the DOL’s guidance, the court explained that employers may not “guess” or “approximate” employee expenses, because some employees would inevitably receive less than the minimum wage. Echoing the FOH, the court held that the “the proper measure of minimum wage compliance for pizza delivery drivers is to either (1) track and pay delivery drivers’ actual expenses or (2) pay the mileage reimbursement rate set by the Internal Revenue Service.”

So, the court concluded, employers may defeat summary judgment by showing “that they tracked and paid actual expenses and paid an amount equal to the minimum hourly wage rate plus actual expenses.”

The decision in Hatmaker provides a roadmap for employers of delivery drivers engaged in similar wage and hour litigation, which have become prevalent across the country. Employers of food delivery drivers or other employees who are required to provide their own tools or equipment may wish to review their practices and policies to ensure compliance with the FLSA.

© 2019 BARNES & THORNBURG LLP

More on employee rights under FLSA, see the National Law Review Employment & Labor law page.

OFCCP Issues Supplemental CSAL – Were You Selected For A New VEVRAA Focused Review?

On November 8, 2019, OFCCP released its Corporate Scheduling Announcement List (“CSAL”) Supplement.  The list identifies 500 establishments selected for the new VEVRAA focused review compliance evaluation.  In 2018, OFCCP announced that it would be conducting focused reviews during which it would target its analysis on contractors’ compliance with  Executive Order 11246 (the “EO”) (equal employment opportunity regardless of race, color, religion, sex, sexual orientation, gender identity, or national origin); Section 503 of the Rehabilitation Act (“Section 503”) (equal employment for individuals with disabilities), or the Vietnam Era Veterans’ Readjustment Assistance Act (“VEVRAA”) (equal employment for protected veterans).

OFCCP has already commenced Section 503 focused reviews, but this is the first time the agency has scheduled VEVRAA focused reviews.  In its November 8, 2019 announcement, OFCCP also shared that it has created a VEVRAA focused review webpage “[t]o help contractors prepare for the upcoming reviews.”  The agency touts the resource as providing “best practices, protected veteran resources, answers to frequently asked questions, and other compliance assistance resources.”

Contractors are advised to review the Supplemental CSAL (available online) to see if they have been selected for a VEVRAA Focused Review and, if so, review the current and proposed VEVRAA Focused Review scheduling letters to prepare for their upcoming compliance evaluation, and consult with counsel as necessary.

© 2019 Proskauer Rose LLP.

ARTICLE BY Guy Brenner of Proskauer Rose LLP.
For more OFCCP actions, see the National Law Review Government Contracts page.

China’s TikTok Facing Privacy & Security Scrutiny from U.S. Regulators, Lawmakers

Perhaps it is a welcome reprieve for Facebook, Google and YouTube. A competing video-sharing social media company based in China has drawn the attention of U.S. privacy officials and lawmakers, with a confidential investigation under way and public hearings taking place on Capitol Hill.

Reuters broke the story that the Treasury Department’s Committee on Foreign Investment in the United States (CFIUS) is conducting a national security review of the owners of TikTok, a social media video-sharing platform that claims a young but formidable U.S. audience of 26.5 million users. CFIUS is engaged in the context of TikTok owner ByteDance Technology Co.’s $1 billion acquisition of U.S. social media app Musical.ly two years ago, a deal ByteDance did not present to the agency for review.

Meanwhile, U.S. legislators are concerned about censorship of political content, such as coverage of protests in Hong Kong, and the location and security of personal data the company stores on U.S. citizens.

Sen. Josh Hawley (R-Mo.), Chairman of the Judiciary Committee’s Subcommittee on Crime and Terrorism, invited TikTok and others to testify in Washington this week for hearings titled “How Corporations and Big Tech Leave Our Data Exposed to Criminals, China, and Other Bad Actors.”

While TikTok did not send anyone to testify, the company’s recently appointed General Manager for North America and Australia Vanessa Pappas, formerly with YouTube, sent a letter indicating that it did not store data on U.S. citizens in China. She explained in an open letter on the TikTok website, which reads similarly to that reportedly sent to the subcommittee, that the company is very much aware of its privacy obligations and U.S. regulations and is taking a number of measures to address its obligations.

For nearly eight years Pappas served as Global Head of Creative Insights and before that Audience Development for YouTube. In late 2018 she was strategic advisor to ByteDance, and in January 2019 became TikTok’s U.S. General Manager. In July her territory expanded to North America and Australia. Selecting someone who played such a leadership position for YouTube, widely used and familiar to Americans, to lead U.S. operations may serve calm the nerves of U.S. regulators. But given U.S. tensions with China over trade, security and intellectual property, TikTok and Pappas have a way to go.

Some commentators think Facebook must enjoy watching TikTok getting its turn in the spotlight, especially since TikTok is a growing competitor to Facebook in the younger market. If just briefly, it may divert attention away from the attention being paid globally to the social media giant’s privacy and data collection practices, and the many fines.

It’s clear that TikTok has Facebook’s attention. TikTok, which allows users to create and share short videos with special effects, did a great deal of advertising on Facebook. The ads were clearly targeting the teen demographic and were apparently successful. CEO Mark Zuckerberg recently said in a speech that mentions of the Hong Kong protests were censored in TikTok feeds in China and to the United States, something TikTok denied. In a case of unfortunate timing, Zuckerberg this week posted that 100 or so software developers may have improperly accessed Facebook user data.

Since TikTok is largely a short-video sharing application, it competes at some level with YouTube in the youth market. In the third quarter of 2019, 81 percent of U.S. internet users aged 15 to 25 accessed YouTube, according to figures collected by Statista. YouTube boasts more than 126 million monthly active users in the U.S., 100 million more than TikTok.

Potential counterintelligence ‘we cannot ignore’

Last month, U.S. Senate Minority Leader Chuck Schumer (D-NY) and Senator Tom Cotton (R-AR) asked Acting Director of National Intelligence to conduct a national security probe of TikTok and other Chinese companies. Expressing concern about the collection of user data, whether the Chinese government censors content feeds to the U.S., as Zuckerberg suggested, and whether foreign influencers were using TikTok to advance their objectives.

“With over 110 million downloads in the U.S. alone,” the Schumer and Cotton letter read, “TikTok is a potential counterintelligence threat we cannot ignore. Given these concerns, we ask that the Intelligence Community conduct an assessment of the national security risks posed by TikTok and other China-based content platforms operating in the U.S. and brief Congress on these findings.” They must be happy with Sen. Hawley’s hearings.

In her statement, TikTok GM Pappas offered the following assurances:

  • U.S. user data is stored in the United States with backup in Singapore — not China.
  • TikTok’s U.S. team does what’s best for the U.S. market, with “the independence to do so.”
  • The company is committed to operating with greater transparency.
  • California-based employees lead TikTok’s moderation efforts for the U.S.
  • TikTok uses machine learning tools and human content reviews.
  • Moderators review content for adherence to U.S. laws.
  • TikTok has a dedicated team focused on cybersecurity and privacy policies.
  • The company conducts internal and external reviews of its security practices.
  • TikTok is forming a committee of users to serve them responsibly.
  • The company has banned political advertising.

Both TikToc and YouTube have been stung by failing to follow the rules when it comes to the youth and children’s market. In February, TikTok agreed to pay $5.7 million to settle the FTC’s case which allege that, through the Musical.ly app, TikTok company illegally collected personal information from children. At the time it was the largest civil penalty ever obtained by the FTC in a case brought under the Children’s Online Privacy Protection Act (COPPA). The law requires websites and online services directed at children obtain parental consent before collecting personal information from kids under 13. That record was smashed in September, though, when Google and its YouTube subsidiary agreed to pay $170 million to settle allegations brought by the FTC and the New York Attorney General that YouTube was also collecting personal information from children without parental consent. The settlement required Google and YouTube to pay $136 million to the FTC and $34 million to New York.

Quality degrades when near-monopolies exist

What I am watching for here is whether (and how) TikTok and other social media platforms respond to these scandals by competing on privacy.

For example, in its early years Facebook lured users with the promise of privacy. It was eventually successful in defeating competitors that offered little in the way of privacy, such as MySpace, which fell from a high of 75.9 million users to 8 million today. But as Facebook developed a dominant position in social media through acquisition of competitors like Instagram or by amassing data, the quality of its privacy protections degraded. This is to be expected where near-monopolies exist and anticompetitive mergers are allowed to close.

Now perhaps the pendulum is swinging back. As privacy regulation and publicity around privacy transgressions increase, competitive forces may come back into play, forcing social media platforms to compete on the quality of their consumer privacy protections once again. That would be a great development for consumers.

 

© MoginRubin LLP

ARTICLE BY Jennifer M. Oliver of MoginRubin.
Edited by Tom Hagy for MoginRubin LLP.
For more on social media app privacy concerns, see the National Law Review Communications, Media & Internet law page.

Gaming Industry Associations Agree on Universal Esports Principles

Earlier this month, a set of gaming industry representatives agreed upon and released a set of unifying esports principles. These representatives include the Entertainment Software Association (ESA), as well as associations from Canada, Australia and New Zealand, the UK, and Europe. These “Principles of Esports Engagement” were developed in a collaborative effort and form a set of values applicable in all aspects of the global esports environment.

The principles include the following:

  • Safety and Well-Being
    • All esports community members deserve to participate in and enjoy esports in safe spaces and to be free from threats and acts of violence and from language or behavior that makes people feel threatened or harassed.
  • Integrity and Fair Play
    • Cheating, hacking, or otherwise engaging in disreputable, deceitful, or dishonest behavior detracts from the experience of others, unfairly advantages teams and players, and tarnishes the legitimacy of esports.
  • Respect and Diversity
    • Esports promotes a spirit of healthy competition. Whether in person or online, all members of the esports community should demonstrate respect and courtesy to others, including teammates, opponents, game officials, organizers, and spectators. 
    • Esports is truly global and brings together players from different backgrounds, cultures, and perspectives. We believe the broad and diverse player base of esports contributes to its success. We support an open, inclusive, and welcoming environment for all, no matter one’s gender identity, age, ability, race, ethnicity, religion, or sexual orientation.
  • Positive and Enriching Game Play
    • Esports can help build self-confidence and sportsmanship and boost interpersonal communication and teamwork skills. Esports brings players and fans together to problem solve through strategic play, collaboration, and critical thinking. Participation in esports can also lead to the development of new and lasting friendships among teammates, competitors, and members of the broader esports community.

The goal of these organizations in releasing this set of principles is to foster an esports community that is responsible, welcoming, engaging, and of course, fun. Notably, in ESA’s press release announcing these principles, the association highlighted the growth of esports, citing research that estimates that, in 2019, global esports viewership will hit nearly 500 million and revenues will exceed $1 billion USD. With this level of growth, the esports community has a vested interest in supporting the best conditions for play and ensuring esports remains an exciting and inclusive activity and industry at all levels.

Copyright © 2019, Sheppard Mullin Richter & Hampton LLP.

For more video gaming issues, see the National Law Review Entertainment, Art & Sports law page.