Religious Dress at UK Workplaces Revisited – is the fuss justified?

Religious Dress UK Workplace“Bosses can ban burkas, scarves, crosses” shouts the front page of last Tuesday’s Metro, followed by a commentary far too short to explain that this is almost always untrue.

This is the resurrection of an old debate concerning the extent of your right to manifest your religion at work through how you dress. When last seen, the European Court of Justice had decided in a Eweida v. British Airways that it would be religious discrimination to ban an employee from wearing a visible crucifix at work unless there was a good reason for it, for example health and safety. The two cases which led to yesterday’s headline (one of which – spoiler alert – said that bosses couldn’t ban religious dress) were considering slightly separate points. Bougnaoui v. ADDH considered whether it would be discriminatory for the employer to react to a customer complaint by banning the wearing of a Muslim head scarf, while Achbita v. G4S asked whether it would still be discriminatory if the employer banned all outward signs of religious or political belief.

In Bougnaoui the ECJ was clear – if you use the potentially discriminatory views of your customers as a ground for imposing dress restrictions on your employees, that will be unlawful.  Ms Bougnaoui wore a headscarf at work but was asked to remove it after a customer complained.  That was just visiting the customer’s views on the employer’s staff and so was unlawful.

However, in Achbita the employer maintained a written, comprehensive and consistent ban on the wearing of all religious and political symbols, regardless of the faith or political affiliation in question.  It did this because it wished to present a picture of overt neutrality among its workforce.  This was in turn a result of the nature of its business, supplying security and reception staff to a variety of Government and private sector clients, some in highly confidential and security-critical environments.  It did not want those customers to have any reason, real or (particularly) perceived, to doubt the commitment, loyalty or intentions of the people G4S supplied to them.

The ECJ had to find that there was no direct discrimination on religious grounds since all religions and beliefs were treated exactly the same. Ms Achbita’s headscarf was no more or less welcome than would have been Ms Eweida’s little crucifix.  It then asked whether G4S’s stance could constitute unlawful indirect discrimination, i.e. whether it was the imposition of a provision, criteria or practice (the ban on religious indicators in what you wear at work) which prejudiced more people with a particular characteristic than not (religion), affected the individual employee (Achbita’s headscarf) and wasn’t justifiable.

The question here therefore revolved around whether G4S’s ban was justifiable, i.e. a proportionate means of achieving a legitimate aim. The objective of overt neutrality was accepted as a legitimate aim given the very particular circumstances of the services G4S provided and to whom.  This will obviously be very much the exception as corporate objectives go, hence the misleading nature of the Metro’s headline.  But even given the legitimacy of the objective, was a blanket ban on religious or political wear a proportionate means of achieving it?

Reluctantly the ECJ decided that it was, largely since there was no other means of achieving that objective. Nonetheless, to satisfy that test G4S had to show that the policy was enforced regardless of religion and no matter how mainstream (and so probably uncontroversial) the political belief.  That meant not just the items in the title but also what the employee manifested through badges worn and bags carried, etc.   It meant showing there was rigorous enforcement of the rule – obviously you could not claim it as necessary if breaches were ignored.  It meant also that G4S had to show that it had considered means by which the adverse impact of the rule had been minimised as far as practicable, for example by applying the rule only to those in sensitive public/client-facing roles and looking at the possibility of transferring affected staff out of those jobs where possible.

The ECJ’s decision has been greeted with predictable dismay by religious leaders. “It will lead to an increase in hate crime”, says one, and “shows that faith communities are no longer welcome”, says another, both equally without supporting evidence.  The issue here however is not supressing religious belief at all, but in allowing businesses where it really matters (a tiny minority only) to provide a service where its customers do not have grounds to push back against individuals on perceived political or religious grounds.  At one level, professional opportunity could thereby be said to be increased, not limited.

But I repeat – the businesses in which overt neutrality will be a legitimate aim will be very few in number indeed. These cases do not alter for a moment the basic rule that limiting religious manifestation in the workplace will be unlawful discrimination unless you have an exceptionally good reason to do so.  But then you are left with the headline: “Bosses Can’t Generally Ban Burkas”, etc. and that somehow lacks the same punch.

© Copyright 2017 Squire Patton Boggs (US) LLP

Washington Supreme Court Rejects Sovereign Immunity Defense in Quiet Title Action

sovereign immunityA decision by the Washington Supreme Court conflicts with decisions of other courts on the issue whether plaintiffs can avoid tribal sovereign immunity in suits involving real property by suing “in rem,” i.e., bringing a lawsuit focused on real property rather than its tribal owner. While the Washington decision relates to a lawsuit to quiet title, the Court’s rationale would also support a lawsuit by a state or county to foreclose on land owned by tribes for failure to pay property taxes.

In Lundgren v. Upper Skagit Tribe, 2017 WL 635649 (Wash. 2017), the Upper Skagit Tribe purchased certain fee simple land in 2014 adjoining land owned by the Lundgrens, who had owned the land since 1947. The Lundgrens had long treated a fence that had been on the property since at least 1947 as the boundary of their property. When the Tribe informed the Lundgrens that the fence actually encompassed land owned by the Tribe, the Lundgrens sued to quiet title, arguing they acquired title to the disputed property by adverse possession or by mutual recognition and acquiescence long before the Tribe bought the land. The Tribe moved to dismiss under CR 12(b)(1) for a lack of subject matter jurisdiction based on the Tribe’s sovereign immunity and the rule that requires joinder of a necessary and indispensable party, which the Lundgrens could not satisfy because of the Tribe’s immunity. The trial court denied the Tribe’s motion and the Washington Supreme Court affirmed, citing the U.S. Supreme Court’s 1992 decision in Yakima County upholding Washington’s right to impose a property tax on tribal land and principles of equity: “After the Lundgrens commenced the quiet title action, the Tribe claimed sovereign immunity and joinder under CR 19 to deny the Lundgrens a forum to acquire legal title to property they rightfully own. The Tribe has wielded sovereign immunity as a sword in disguise. While we do not minimize the importance of tribal sovereign immunity, allowing the Tribe to employ sovereign immunity in this way runs counter to the equitable purposes underlying compulsory joinder. … Finding otherwise, as correctly articulated by the trial court, is contrary to common sense, fairness, and due process for all involved.” (Internal quotations and citations omitted.

Whether in rem suits can be used to avoid sovereign immunity is an unresolved question. In County of Yakima v. Confederated Tribes and Band of Yakima Nation, 502 U.S. 251, 263 (1992), and Cass County v. Leech Lake Band of Chippewa Indians, 524 U.S. 103 (1998), the U.S. Supreme Court upheld the right of states to impose property taxes on land allotted under acts of Congress and later re-acquired by tribes in fee simple. In both cases, however, the court did not address whether tribal sovereign immunity might bar a state tax foreclosure action if the tribes refused to pay the taxes. In 2010, the court agreed to review a decision by the Second Circuit Court of Appeals in Oneida Nation v. Madison County, 605 F.3d 149 (2d. Cir. 2010), that the tribe’s sovereign immunity barred a tax foreclosure action by the county, but the court changed its mind, at the tribe’s request, after the tribe voluntarily waived “its sovereign immunity to enforcement of real property taxation through foreclosure by state, county and local governments within and throughout the United States.” In Cayuga Indian Nation of New York v. Seneca County, N.Y., 761 F.3d 218 (2d. Cir. 2014), however, the Second Circuit held that even though the county had the right to impose a property tax on the property owned by the tribe, it could not foreclose for non-payment because of the

Nation’s sovereign immunity. The court rejected the county’s argument that a foreclosure action was in rem (against the property) rather than against the Nation. These circumstances make the Washington decision a viable candidate for Supreme Court review in the event the Tribe should file a petition for review.

Copyright © 2017 Godfrey & Kahn S.C.

President Releases “Skinny Budget”; Senate Commerce Committee to Hold Hearing on FAA Reauthorization

skinny budget donald trumpOn March 16, the Administration released the President’s “Skinny Budget.” As is typical with a budget outline provided by a new President, the request is very high level and does not include nearly the detail of a full budget proposal. The Administration has said it will release its full Budget in May.

The Skinny Budget proposes increasing Defense spending by $54 billion, offset through steep cuts to many non-defense discretionary programs. Like most Presidential budgets, the Skinny Budget has been declared as “Dead on Arrival” in Congress. There is a lot of political support for many of the programs that would see reduced funding or be eliminated under the President’s proposed Skinny Budget, and we expect that the final appropriations for FY 2018 will look significantly different than the Skinny Budget.

In particular, the Skinny Budget proposes only funding existing full funding grant agreements through the Capital Investment Grant program (New Starts). However, there is significant Congressional support for this program and we do not think the final appropriations will reflect the Budget’s reduction.

The Director of the Office of Management and Budget (OMB), Mick Mulvaney, recently said that the funding for programs at DOT that is reduced in the Skinny Budget would be recaptured in the President’s larger infrastructure plan. Director Mulvaney said the Administration is moving funding out of existing, more inefficient programs, and directing that funding to more efficient infrastructure programs that will be included in the Administration’s infrastructure proposal. He also said that the reductions did not indicate a change in the President’s commitment to infrastructure investment.

Our analysis of the Department of Transportation budget is included here:

Funding

The President’s FY 2018 Budget requests a 13 percent decrease for the Department of Transportation (DOT), a $2.4 billion cut from $18.6 billion under the FY 2017 CR to $16.2 billion for FY 2018. The budget does not affect mandatory DOT funding, including programs funded through the Highway Trust Fund and the Airport Improvement Program, which comprise three-fourths of total federal transportation funding.

While the budget provides few specifics on DOT program funding levels, it does propose: (1) decreasing or eliminating funding for popular discretionary grant programs; (2) eliminating the Essential Air Service program; and (3) reforming the air traffic control (ATC) system.

Program Reductions

  • The budget proposes to only fund Capital Investment Grant Program (New Starts) projects with existing full funding grant agreements (FFGAs). The budget would not fund any new projects under the New Starts program going forward.

  • The budget proposes to end funding for long-distance Amtrak services, focusing resources on state-supported and Northeast Corridor train services.

Program Eliminations

  • Transportation Investment Generating Economic Recovery (TIGER) Grant Program

  • Essential Air Service (EAS) Program

Policy Highlights

The President’s budget proposes a multi-year effort to reform the ATC system, removing it from the Federal Aviation Administration and placing it under the control of an independent, non-governmental organization.

The budget also indicates that future investments in new transit projects should be funded by the localities that use and benefit from the projects, rather than the federal government.

The budget proposes eliminating the TIGER grant program and notes that the Nationally Significant Freight and Highway Projects grant program funds large freight projects with demonstrable national or regional benefits.

Senate Commerce Committee to Hold Hearing on FAA Reauthorization

On Thursday, March 23, the Senate Commerce, Science, and Transportation Subcommittee on Aviation Operations, Safety, and Security has scheduled a hearing titled “FAA Reauthorization: Perspectives on Improving Airport Infrastructure and Aviation Manufacturing.” The witnesses will be: Ms. Rhonda Hamm-Niebruegge, Executive Director, St. Louis Lambert International Airport; Mr. Bob Montgomery, Vice President, Airport Affairs, Southwest Airlines; Ms. Peggy Gilligan, Associate Administrator for Aviation Safety, Federal Aviation Administration; Dr. Gerald Dillingham, Director of Civil Aviation Issues, Government Accountability Office; and Mr. Greg Fedele, President, Sabreliner Aviation.

This Week’s Hearings:

  • On Tuesday, March 21, the House Energy and Commerce Subcommittee on Communications and Technology has scheduled a hearing titled “Broadband: Deploying America’s 21st Century Infrastructure.” The witnesses will be announced.

  • On Tuesday, March 21, the House Transportation and Infrastructure Subcommittee on Railroads, Pipelines, and Hazardous Materials has scheduled a roundtable titled “Emerging Railroad Technologies.” The participants will be:

    • Seth Bodnar, Chief Digital Officer, GE Transportation;

    • John Risch, National Legislative Director, Transportation Division, Sheet Metal, Air, Rail, and Transportation Union (SMART);

    • Lisa Stabler, President, Transportation Technology Center, Inc. (TTCI); and

    • Lynden Tennison, Senior Vice President and Chief Information Officer, Union Pacific Railroad Company (UPRR).

  • On Tuesday, March 21, the Senate Energy and Natural Resources Committee has scheduled a hearing to receive testimony on opportunities to improve and expand infrastructure important to federal lands, recreation, water, and resources.

    • Marcia Argust, Director, Restore Americas Parks Campaign, The Pew Charitable Trusts;

    • Bob Bonar, President, Snowbird Ski & Summer Resort, Chairman, National Ski Areas Association Public Lands Committee;

    • Jill Simmons, Executive Director, Washington Trails Association;

    • David B. Spears, State Geologist, Division of Geology and Mineral Resources, Virginia Department of Mines, Minerals and Energy;

    • Chris Treese, External Affairs Manager, Colorado River District; and

    • Brad Worsley, President, Novo Power, LLC.

  • On Wednesday, March 22, the Senate Commerce, Science, and Transportation Subcommittee on Oceans, Atmosphere, Fisheries, and Coast Guard has scheduled a hearing titled “State of the Coast Guard: Ensuring Military, National Security, and Enforcement Capability and Readiness.” The witness will be:

    • Admiral Paul F. Zukunft, Commandant, U.S. Coast Guard

  • On Thursday, March 23, the Senate Commerce, Science, and Transportation Subcommittee on Aviation Operations, Safety, and Security has scheduled a hearing titled “FAA Reauthorization: Perspectives on Improving Airport Infrastructure and Aviation Manufacturing.” The witnesses will be:

    • Rhonda Hamm-Niebruegge, Executive Director, St. Louis Lambert International Airport;

    • Bob Montgomery, Vice President, Airport Affairs, Southwest Airlines;

    • Peggy Gilligan, Associate Administrator for Aviation Safety, Federal Aviation Administration;

    • Gerald Dillingham, Director of Civil Aviation Issues, Government Accountability Office; and

    • Greg Fedele, President, Sabreliner Aviation.

© Copyright 2017 Squire Patton Boggs (US) LLP

Does Same Sex Harassment Support Gender Discrimination Claims? Texas Supreme Court to Decide

Same Sex harassmentThe Texas Supreme Court agreed to determine whether a school teacher’s allegations of a hostile work environment by her same-sex superiors can support a claim of gender discrimination in violation of the Texas Commission on Human Rights Act (TCHRA). The court will also decide whether the circumstantial evidence presented to prove the teacher’s retaliation claim is sufficient to support a violation of the TCHRA.

The teacher alleged that a fellow coach began to sexually harass by allegedly making comments about the teacher’s body and physical appearance. When the teacher reported the harassment to her direct supervisor, the supervisor did nothing to put a stop to it and, shockingly, joined in the harassment. The teacher subsequently reported the harassment to the school principal and submitted a written complaint. The principal failed to file a formal complaint and, rather, conducted her own investigation. The principal’s underwhelming reaction pushed the school teacher to file charges of discrimination and harassment with the EEOC, at which point the principal informed her that there would be “consequences” for her complaints.

The teacher quickly found that there would, in fact, be consequences to her complaints. Within a few days of learning of the EEOC charges, the principal placed the teacher on a remedial plan and claimed it was necessary to assist in the teacher’s ineffective communication with co-workers and failure to report the alleged harassment within 10 days of its occurrence. The principal placed the teacher on administrative leave soon thereafter and eventually terminated her employment.

The school’s petition to the Texas Supreme Court asked it to determine whether the teacher’s allegations of same-sex hostile work environment—woman to woman harassment, in this case—can constitute gender-based discrimination under the TCHRA. The school argued in its petition that the appeals court failed to consider a U.S. Supreme Court standard that requires harassment to be “discriminatory at its core” in order to be actionable. The school also asked the court to determine whether the teacher’s circumstantial evidence used to support her retaliation claim was sufficient to support a TCHRA violation, giving special consideration to the teacher’s failure to submit any evidence regarding the but-for causation analysis required in such cases. The case will likely be placed on the court’s calendar in late 2017. Click here to view full briefing on the issue.

© 2017 BARNES & THORNBURG LLP

Bipartisan Bill Introduced To Reform Renewable Fuel Standard Program

biofuel, ethanolOn March 2, 2017, Congressman Bob Goodlatte (R-VA) reintroduced the Renewable Fuel Standard (RFS) Reform Act, which aims to guide the debate and reform of the ethanol mandate.  According to Goodlatte, the RFS program failed to lower prices at the pump and resulted in unintended and profound effects on consumers, energy producers, livestock producers, retailers, and the environment.  The RFS Reform Act, which had 42 bipartisan cosponsors, would eliminate corn-based ethanol requirements, place a ten percent cap on the amount of ethanol that can be blended into conventional gasoline, require EPA to set cellulosic biofuels targets at levels produced by the industry, and decrease the total volume of renewable fuel content in gasoline sold or introduced into commerce from 2017 through 2022.

©2017 Bergeson & Campbell, P.C.

Technology as Opportunity for Law Firms

Business Technology Law FirmsTechnology is both a threat and an opportunity for law firms. On one end, technology has opened the door for market disruptors like LegalZoom and Rocketlawyer who provide some legal services faster and cheaper than law firms.  Some of the low-hanging fruit that law firms and attorneys used to be able to count on is disappearing–or long gone.  In a recent research study by Altman Weil, 21% of law firms surveyed said technology was a threat right now, and 53% of firms described technology as a future threat.  But in many ways, technology is an opportunity for law firms.  The proper technology can help law firms be better and faster, and it can provide law firms with the ability to provide clients with helpful information and analysis much faster than ever before. In our final installment of Re-Envisioning the Law Firm: How to Lead Change and Thrive in the Future, the survey from MPF Insight, the National Law Review will offer an overview of the recommendations surrounding technology in law firms offered in the survey.

Robert A. Young[1] Former Chair, ABA Law Practice Division:

Technology has been increasingly important for today’s law firm with many experts predicting that it will soon surpass rent as your firm’s #2 expense after salaries.  The time has come for managing partners to take a stronger and more proactive role in learning more about this vitally important area.

Having a plan for how technology fits in with your firm’s practice is a crucial part of any leadership strategy.  Additionally, having an effective and robust cybersecurity policy in place is essential in today’s data-driven world.

Law Firms are investing more in technology.  In 2016, firms surveyed increased law firms increased investment in the following areas by the following percentages:

  • Cybersecurity, 23% of respondents increased investment
  • Website, Internet & Digital marketing, 20% of respondents increased investment
  • Case Management Software, 12% of respondents increased investment
  • CRM & Database, 10% of respondents increased investment
  • Competitive Intelligence, 5% of respondents increased investment
  • Legal Research, 2% of respondents increased investment

Circle Graph Law Firm Technology SpendingFor obvious reasons, Cybersecurity is the top area for new investment with law firms. In fact, a Chase Cost Management survey report released in 2015 showed that AMLaw 200 firms spend an average of $8,000 per full-time equivalent on information security.  As a major concern for law firms and their clients it is imperative that firms have all employees trained and all client data safely secured.  Having cybersecurity as a living breathing part of your technology plan can help you reap the benefits of technology safely, and your firm and your clients will benefit.  However, good cybersecurity isn’t simply changing your password every six weeks; it is a vital skill set that must be understood from the top down.

Sharon Nelson[2],  president of a digital forensics, information technology and information security firm says:

If your management mindset isn’t there, you are stuck in technological obsolescence.  Good cybersecurity is good risk management, and better yet, a marketing tool to use with clients.  Don’t just delegate this, that does not work.  Learn it yourself, as much as you can-and lead by being knowledgeable–that’s how you ensure the future of your firm.

Website, Internet and Digital marketing is another area of growth in terms of law firm investment.  Digital marketing tools can help a firm better target their marketing activities.  Re-envisioning says, “The reach is as big or as small as you want it to be and the subject matter can be much more focused, speaking directly to industries and communities through email and social media channels.”  By using the technology and data-gathering tools available, law firms can maximize their digital footprint and reach many more potential clients.

A final recommendation from the survey, “Don’t be held hostage by your technology vendors.”  By embracing open-sourced Customer Management services and web development platforms, your firm can create a product that works seamlessly into your processes.  The time and effort put in up front will pay off with the flexibility available in the end.

Technology is not going away, and the negative elements of technology are already happening.   In order to enjoy the benefits technology has to offer, Law firm leadership needs to find the ways that technology can benefit their firms, their attorneys, and their clients.

ARTICLE BY Eilene Spear
Copyright ©2017 National Law Forum, LLC

This is the sixth article in this series.  Please find the earlier articles below:

Time for a Change in Law Firm Leadership: A Preview of Re-Envisioning the Law Firm

Innovation, Change and Accountability: A Way Forward for Law Firm Leadership

Strategic Planning in Law Firms: Essential Steps for Success

Marketing Legal Services: It’s Everybody’s Job

Recruitment, Retention and Problematic Partners in Law Firms


[1] Former Chair, ABA Law Practice Division and Former Managing Partner of English, Lucas Priest & Owsley

[2] President, State Bar of Virginia and Sensei Enterprises

Developers Submit Unsolicited Requests for Wind Leases Offshore Massachusetts and New York

wind leases, windmills, Massachusetts, New YorkOn March 10, 2017, the U.S. Department of Interior’s Bureau of Ocean Energy Management (BOEM) posted four unsolicited applications for wind project leases on the Outer Continental Shelf.  PNE Wind U.S.A., Inc. has filed three lease applications, two for offshore Massachusetts and one for offshore New York. Separately, Statoil Wind US LLC filed a lease application for offshore Massachusetts.

The developers’ lease requests, particularly the overlapping requests for offshore Massachusetts, indicate continued interest and growing competition in the U.S. offshore wind sector.  The quickening pace of activity in the U.S. offshore wind market, including completion of Deepwater Wind’s Block Island offshore wind farm and today’s auction process for offshore North Carolina, suggests that offshore wind projects may become a more important part of the U.S. power generation portfolio in the coming years.  In addition, the unsolicited application for offshore New York and the federal government’s response may provide an early indication as to the Trump Administration’s position on offshore wind development going forward.  Increased activity and a new administration in the White House present opportunities to engage on this issue and shape the policies that will govern the federal offshore leasing program for the next four or eight years, or beyond.

Background

BOEM is charged with managing energy development on the U.S. Outer Continental Shelf (OCS), for both traditional energy resources and renewable energy projects alike.  The agency discharges this responsibility for renewable energy projects via its leasing process outlined in the Code of Federal Relations at 30 C.F.R. Part 585.  BOEM’s rules set out a comprehensive site evaluation, lease auction, project management, and decommissioning program for renewable energy projects on the OCS.

To date, BOEM has completed twelve offshore wind commercial leases and one research lease.[1]  BOEM has issued commercial leases to four lessees for offshore Massachusetts: Cape Wind, Bay State Wind, Offshore MW, and Deepwater Wind New England (joint lease offshore Massachusetts and Rhode Island).  Separately, BOEM has concluded a provisional lease with Statoil Wind for a site offshore New York.[2]  The Massachusetts auction in January 2015, lasted two rounds and the New York auction in December 2016, lasted 33 rounds, suggesting growing interest and competition for lease blocks on the eastern seaboard.

Unsolicited Lease Applications

Following these competitive lease auctions, both Statoil Wind and PNE Wind submitted unsolicited applications to lease OCS lands offshore Massachusetts for wind power projects.  In addition, PNE Wind also filed an application for a potential lease area offshore New York.

For the offshore Massachusetts lease proposals, BOEM has stated that it will proceed with the competitive leasing process outlined in the agency’s regulations.  BOEM notes that because both Statoil Wind and PNE Wind are qualified to hold an OCS lease and both companies nominated the same area for lease, BOEM has determined that there is competitive interest for this OCS land.  BOEM’s next steps will be to publish its leasing process in the Federal Register, including identifying the lease areas for environmental analysis, issuing a Proposed Sale Notice with a 60-day public comment period, and a Final Sale Notice at least 30 days before the lease sale.

In contrast, BOEM states that it will consider whether to move forward with PNE Wind’s application for offshore New York.  If the agency determines that it will move forward with PNE Wind’s application, BOEM will issue a public notice to determine whether there is competitive interest in the proposed lease area.  BOEM’s regulations allow the agency discretion to review unsolicited lease applications on a case-by-case basis.  The rules do not require that the agency formally evaluate the application.  BOEM may exercise its discretion to grant an unsolicited application following issuance of a Determination of No Competitive Interest and additional inter-agency coordination.

Implications

The key takeaway from these filings is that, as a new presidential administration assumes control over the Interior Department and BOEM, interest in U.S. OCS leasing for wind energy projects remains strong despite relatively low fuel prices for hydrocarbon-based power generation.  These lease applications suggest that the suite of subsidies and other incentives supporting offshore wind development at federal and state levels, including in Massachusetts and New York, continue to encourage developers to think creatively as to how they can access this growing market.

In addition, PNE Wind’s unsolicited application for offshore New York offers an early opportunity to gauge the Trump Administration’s support for offshore wind projects.  Given U.S. President Donald Trump’s past skepticism regarding offshore wind, industry players are unsure of the Trump Administration’s support for offshore wind development, notwithstanding Secretary of the Interior Ryan Zinke’s endorsement of an “all of the above” energy strategy during his confirmation hearing.  BOEM’s response to the unsolicited lease application may illustrate the Trump Administration’s level of support for offshore wind.

The next indicator for the strength of the U.S. offshore wind market will come from today’s OCS auction for offshore North Carolina.  Following a lease auction in New York that attracted a winning bid of more than $42 million, industry watchers will closely monitor the outcome of the North Carolina auction to determine whether the sector will maintain its rapid growth.  Recognizing that the specific characteristics for the North Carolina proposed lease and auction will differ from those in the New York auction, the strong showing of interest in the North Carolina auction, as demonstrated by the nine companies qualified to participate in the auction, may keep momentum building for the offshore wind sector in the United States.


[1] BOEM Lease Areas Shapefile, https://www.boem.gov/BOEM-Lease-Areas-Metadata/ (last visited Mar. 15, 2017).

[2] In denying a preliminary injunction, the U.S. District Court for the District of Columbia recently held that BOEM complied with the National Environmental Policy Act when it relied on an environmental assessment and finding of no significant impact (“EA/FONSI”) to issue Statoil Wind’s provisional lease for offshore New York.  Fisheries Survival Fund, et al. v. Jewell, et al., Case No. 16-cv-2409 (D.D.C. Feb. 17, 2017).  This decision clears one potential obstacle for Statoil and helps reduce the risk of similar challenges to BOEM’s determinations to approve leases that allow project evaluation and design to move forward.  Responses on the merits to the challengers’ claims are due by May 8, 2017.

Yes, Your March Madness Office Bracket is Technically Illegal

march madness office bracket
marc

March Madness has arrived!  The 2017 NCAA Basketball Tournaments tip-off tonight (March 15) and continue through the Women’s and Men’s National Championship Games on April 2 and 3 respectively.  With this, comes the American tradition of companies and their employees betting on tournament outcomes through office bracket pools.

As lawyers, we have to point out that your company’s March Madness pool is very likely illegal under at least three federal gambling laws (the Professional and Amateur Sports Protection Act, the Interstate Wire Act of 1961, and the Uniform Internet Gambling Enforcement Act) and many state laws.  And we would be remiss to not mention that there is a parade of horribles that could happen from permitting such workplace wagering.

With that said, the more practical reality is that office pools have become a widely-practiced and culturally accepted form of gambling, law enforcement authorities seem to have little interest in enforcing laws that technically prohibit them, and many employers view these office pools as a workplace morale booster.

For those employers – seemingly, most all of them – who will not shut down this popular practice, here are some best practices to help mitigate legal issues when sponsoring or allowing office pools:

  • Make sure that all entry fees are distributed solely to the winner or winners of the pool.  An employer, or employees organizing a pool, should never take a “cut” of entry fees.  Under various anti-gambling laws, profiting from the pool in this way raises a host of issues.

  • Limit pools to offices within a particular state.  Doing so may prevent the pool from violating federal laws, as they generally require the transmission of money or communications across state lines to be applicable.

  • Make participation completely voluntary and limit entry fees to nominal amounts.  Expensive or compelled buy-ins may encourage the predilections of employees who are problem gamblers, and expensive buy-ins may tempt those employees responsible for collecting and distributing entry fees to surreptitiously take a “cut.”  Compelled buy-ins could implicate wage and hour and religious anti-discrimination laws.  Following these guidelines helps ensure that an office pool is low-stakes and simply intended to promote friendly rivalry.

  • Do not retaliate against or single-out employees who may complain to the pools.  There are plaintiff’s lawyers out there who will try to tether an internal complaint of unlawful activity to later adverse action against the complainer.

  • Prohibit employees from gambling in other pools on company time or through company equipment.  Apart from a workplace pool, employees may choose to participate in other pools with non-employees, and there are many options to do so online (including through company-issued or owned computers).  These other pools can raise additional concerns about potential violations of the law, to the extent they involve large wagers, are structured to profit the organizer, or involve interstate communications.  Consequently, for reasons of both legality and ensuring employee productivity, employers are best served by a policy that prohibits employee gambling in other pools on company time or company equipment.

  • Consider sponsoring a free pool that provides a non-monetary award.  Although employees may not find it as interesting, an employer concerned about the legality of its office pool may consider sponsoring a pool that is free to enter, with a non-monetary award (a gift card or some other prize) for the winners.  The lack of an exchange of money in such a pool may avoid the reach of potentially applicable anti-gambling laws.

Putting legality aside, it is well-established that employee productivity takes a hit during March Madness, particularly since it is now possible to watch games online through work computers or personal mobile devices, and permitting an office pool could encourage distraction.

To accommodate employee interest in the tournaments while reducing productivity loss employers should consider airing the games in a breakroom or lunchroom. At the same time, add sports broadcasts and websites to blocked sites on company systems that monitor and limit Internet use on company-owned computers, systems and devices (certainly, gambling and unlawful activity websites should be blocked year-round).  And if productivity becomes a problem, communicate policies addressing these concerns to employees, including policies restricting viewing to non-break times or reminding employees (including those tempted to duck out early to catch a game) of applicable attendance and punctuality policies.

As March Madness begins, we wish you the home court advantage.

©2017 Drinker Biddle & Reath LLP. All Rights Reserved

Tips for Surviving in a Time of Immigration Uncertainty

immigration travel banWe planned to write a blog about the revised travel ban Executive Order as soon as it came out. That the revised order was delayed for several weeks until March 6 highlights the uncertainty we face in 2017.[1] Below we try to answer various questions we regularly receive about immigration issues.

  1. Is domestic airplane travel OK? This may sound like a simple question, but recent events suggest more caution may be wise. For example, Immigration and Customs Enforcement (ICE) agents recently met a plane landing at JFK Airport in New York City, and asked everyone about their immigration status.[2] The agents were looking for someone who had an old deportation order, but it is possible that anyone without evidence of status could have faced delays. This is a good time to remind ourselves that the law requires anyone who is not a U.S. citizen to carry evidence of status at all times (green card, Employment Authorization Document (EAD), Form I-94 or electronic I-94 printout, valid, unexpired nonimmigrant DHS admission or parole stamp in a foreign passport, etc.).[3] Try to make it easy for a government officer.

  2. Isn’t that overreacting based on one incident? Maybe, but the bigger picture is that immigration enforcement agents have more discretion and wider operating room than before.[4] Two memos issued by the Department of Homeland Security (DHS) on February 20 allow for “expedited removal,” which is a fast track process that skips a hearing with an immigration judge.[5] Expedited removal now can apply to anyone who entered the country within the past 2 years (used to be 2 weeks), and anywhere in the United States (used to be within 100 miles of the border).[6] Expedited removal happens quickly, sometimes within a matter of days. Having a copy of a document showing status and that you have been in the United States more than two years could help avoid questioning and expedited removal.

  3. How about electronic devices? Can those be searched at the airport or border? The simple answer is “yes,” and this is happening more often.[7] We recommend that private information, such as a doctor with patient information, should be encrypted. According to the Customs and Border Protection (CBP) website,[8] CBP officers may search laptops, cell phones, or other electronic devices. CBP may not select someone for a personal search or secondary inspection based on religion, race, national origin, gender, ethnicity, or political beliefs. U.S. citizens may also be questioned and have their devices seized for refusal to provide passwords or unlock devices, but cannot be prevented from entering the United States. Noncitizens may, however, be denied entry. Adding to the uncertainty about how this will play out is a section in one of the January Executive Orders that directs federal government agencies to make sure they “exclude persons who are not United States citizens or lawful permanent residents” from Privacy Act protections concerning personal information.

  4. What does this mean for people from the six countries covered by the new travel ban? Will the court battle still continue? The new order clarifies that green card holders and Iraqis are NOT affected by the visa ban, and that people who had visas revoked or cancelled by the first order may be able to get a travel letter to return. The new order takes effect March 16, 2017, and lasts for 90 days. People with valid visas stamps in their passports can still use them, but new visa stamps will not be issued with very limited discretionary exceptions. The Visa Interview Waiver program is suspended for all countries, and the order states that DHS may add countries to the list after further review. People who are citizens of the six countries can still face additional questioning when they enter the United States as part of a general pattern of enhanced vetting. Travel for citizens of the six countries remains a calculated risk.

We expect that court challenges will continue. The ban still focuses on six predominently Muslim countries, which some see as a religious-based action.[9] There are still arguments about the negative effects on U.S. business and academic programs.

  1. What does this all mean for DACA recipients? The January Executive Orders state that the deferred action for childhood arrivals (DACA) program remains in effect, but that DACA “will be addressed in future guidance.” This is good news for the 750,000 plus people who have DACA. However, continuation of the program is not guaranteed. And the January Executive Orders call for greater enforcement against anyone with any kind of criminal issue or with a previous deportation order. Some DACA recipients have minor criminal issues – will they be able to renew? Some recipients have previous deportation orders – how will they be treated? DACA recipients should carry their DACA approval and work card with them, should keep investigating ways to get back into status, and talk to an attorney or legal service agency if they have ANY criminal issue, no matter how minor.

  2. What does this mean for undocumented parents of students who want to fly within the United States for their child’s graduation? Some of them have traveled before with no problems. President Obama’s “Priorities Memo” used the idea of prosecutorial discretion to give some level of comfort to those at the bottom of the priority list for enforcement. The new orders make clear that there is a top of the list, but no bottom. The law is the law, and anyone undocumented who is caught could be removed. Anyone who is undocumented who is considering traveling should talk to an attorney or legal service agency to evaluate their own particular situation. For example, immigrationlawhelp.org has a list of accredited agencies. Also, this is not a completely new situation. Every year we see family members abroad who do not receive tourist visas to come to the United States. For those situations, some schools have set up a Skype feed of the ceremony through someone’s cell phone, or sent the family a photo of the student graduating, or other clever ways of trying to include the family in the event.

  3. Speaking of DACA, can many of them really move beyond DACA now? It is certainly worth asking. Many filed for DACA on their own, and have never had a legal consultation despite the fact that their immigration histories can be incredibly complicated. Most interestingly, a growing number of DACA recipients got DACA under age 18½ and now have degrees. Those people MAY (emphasize “may”) not have what is called “unlawful presence,” and MAY be able to consular process an employment based visa or green card.

  4. Going beyond travel, are there any other ways campuses can prepare for new immigration enforcement priorities, short of declaring a “sanctuary campus”? Yes, there are some basic steps that campuses can take. One set of model guidelines focuses on interaction with government officials.[10] Campus response has varied but generally been strong in favor of international education and diversity. A Washington Post article found that the vast majority of schools have made some kind of statement.[11] Some schools have been concerned about the political effects of opposing the travel bans. They worry that if they declare themselves immigration sanctuaries they may put a target on their backs. While some schools may be less vocal in their responses, most are supporting students and scholars who are concerned, and connecting students with extra services including counseling and legal services.

  5. If I feel my school is not doing enough, what can I do? In immigration, stories matter. For example, an Iranian graduate student may be thinking of leaving the United States to do a post doc in another country, or cannot travel to present work at a conference abroad, or is simply not sleeping or eating well out of concern, or have a spouse is not still able to enter the United States. These stories help show the real impact of the travel ban. And facts matters – there are some good articles and websites that provide data on the basis of the travel ban and the effects, and also on the positive impact of immigrants on our economy.[12]

  6. I heard the Executive Orders canceled all of President Obama’s orders except for DACA. Does that include the “sensitive locations” memo that said enforcement should not take place at sensitive locations such as campuses, churches, and hospitals? It appears that the ban on enforcement at sensitive locations survives. This policy is still on the ICE website, and in a DHS Q&A.[13] We hope this will continue.

  7. Is it true that the Administration and Congress plan to cut back F-1 STEM OPT and the H-1B program, and raise the minimum salaries for H-1B workers? A lot of ideas and draft memos are floating around Washington how to “fix” immigration, including the H-1B system. Bills pending in Congress would amend the H-1B process. The White House may ask DHS to conduct a study of the visa process to determine which visa regulations may or may not be in the national interest, and to make recommendations on how to improve visa systems, including the H-1B system. Are we sure that nothing like this will happen quickly, surprising us the way the travel ban did? Not sure, but passing legislation in Congress and amending federal regulations are normally long-term projects. Remember, the Obama administration was successfully sued for trying to make big changes without formal procedures.

  8. That’s 11 questions – anything else I should know? We all need to remember the energy it takes to operate in uncertainty. In a recent presentation at a university, the director of the counseling center explained that uncertainty can be more tiring and emotionally challenging than bad news. At least with bad news, we can focus attention on how to address it. So hang in there!

ARTICLE BY  Steve Yale-Loehr of Miller Mayer LLP & Dan Berger of Curran & Berger, LLP
© Copyright 2013 – 2017 Miller Mayer LLP. All Rights Reserved.

[1] The new executive order is at https://www.whitehouse.gov/the-press-office/2017/03/06/executive-order-protecting-nation-foreign-terrorist-entry-united-states (Mar. 6, 2017).

[2] https://www.theatlantic.com/politics/archive/2017/02/papers-please/517887/?utm_source=fbb.

[3] INA § 264(e) provides: “Every alien, eighteen years of age and over, shall at all times carry with him and have in his personal possession any certificate of alien registration or alien registration receipt card issued to him pursuant to subsection (d). Any alien who fails to comply with the provisions of this subsection shall be guilty of a misdemeanor and shall upon conviction for each offense be fined not to exceed $100 or be imprisoned not more than thirty days, or both.” 8 C.F.R. § 264.1(b) lists the acceptable types of “registration” document that must be carried.

[4] https://www.nytimes.com/2017/02/25/us/ice-immigrant-deportations-trump.html.

[5] The DHS memos and accompanying fact sheets and Q&As are at https://www.dhs.gov/executive-orders-protecting-homeland.

[6] For an article discussing whether expedited removal is constitutional, see David Savage, Trump’s fast-track deportations face legal hurdle: Do unauthorized immigrants have a right to a hearing before a judge?, Mar. 3, 2017, http://www.latimes.com/politics/la-na-pol-deport-legal-20170302-story.html.

[7] For general information on the rights of travelers regarding social media accounts and electronic devices, see https://www.aclu.org/know-your-rights/what-do-when-encountering-law-enforcement-airports-and-other-ports-entry-us. For an interesting NPR piece on this issue, see http://www.wbur.org/hereandnow/2017/02/16/border-agent-unlock-phone.

[8] https://www.cbp.gov/border-security/protecting-nation-foreign-terrorist-entry-united-states.

[9] https://www.washingtonpost.com/opinions/the-evidence-for-trumps-travel-ban-simply-isnt-there/2017/02/27/90e228ac-fd36-11e6-8f41-ea6ed597e4ca_story.htmlhttp://wapo.st/2mZbkx8.

[10] https://www.nilc.org/issues/immigration-enforcement/campus-safe-zones-language-college/.

[11] https://www.washingtonpost.com/news/monkey-cage/wp/2017/02/20/universities-overwhelmingly-objected-to-the-trump-travel-ban-here-are-the-values-they-emphasized/

[12] https://www.washingtonpost.com/graphics/national/visas-impact/; https://www.bloomberg.com/news/articles/2017-01-31/trump-s-immigration-ban-could-cost-u-s-colleges-700-million; immigrationimpact.org.

[13] https://www.ice.gov/ero/enforcement/sensitive-loc; https://www.dhs.gov/news/2017/02/21/qa-dhs-implementation-executive-order-border-security-and-immigration-enforcement (Question 28).

How Does Supreme Court’s Remand of Transgender Discrimination Case Impact Wage-and-Hour Class Actions?

supreme court transgender discriminationOn March 6, 2017, the Supreme Court, in a one-sentence summary disposition, remanded the case of Gloucester County Sch. Bd. v. G.G. to the U.S. Court of Appeals for the Fourth Circuit “for further consideration in light of the guidance document issued by the Department of Education and Department of Justice on February 22, 2017.”  For those unfamiliar with Gloucester County, the case involves a public school’s obligations to a transgender student under Title IX and, in particular, whether Title IX’s prohibition against sex discrimination requires a school to treat transgender students consistent with their gender identity when providing sex-separated facilities, such as toilets, locker rooms, and showers.

So what does this have to do with wage-and-hour class actions?  As it turns out, in Gloucester County, the Supreme Court was poised to consider the scope, and perhaps the continuing viability, of the Auer doctrine, which frequently comes into play in wage-and-hour litigation.  Under the Auer doctrine, courts generally will enforce an agency’s interpretation of its own regulations unless that interpretation is “plainly erroneous or inconsistent with the regulation.”  In wage-and-hour class actions, this often results in cases being decided based on guidance issued by the Department of Labor through opinion letters, its Field Operations Handbook, and other sources.

This deference to the Department of Labor can be frustrating for employers and attorneys practicing wage-and-hour law because the guidance issued by the Department of Labor often changes with each new Presidential administration.  For example, an entire industry can decide to classify a group of employees as exempt from the FLSA’s overtime requirements based on an opinion letter from the Department of Labor only to learn years later that the Department has withdrawn the opinion letter after the start of a new administration.  If courts are obligated under Auer to defer to these shifting interpretations issued by the Department of Labor, it can create a great deal of uncertainty for employers seeking to comply with the FLSA and for parties litigating wage-and-hour class actions.

In the long term, eliminating or narrowing the Auer doctrine could provide more consistency for employers and litigants.  With the remand of Gloucester County, that is unlikely to happen in the near future.  In the short term, however, the continuing viability of the Auer doctrine may benefit employers who are hopeful that the Department of Labor, under the Trump administration, will take a more employer-friendly view of certain regulations.  For now, the Department of Labor remains free to shape FLSA through opinion letters and other guidance documents and without having to resort to the time-consuming process of issuing revised regulations.

Jackson Lewis P.C. © 2017