Draft Form I-765V, EAD Application for Abused Nonimmigrant Spouse: Comments Open

nonimmigrant spouseOn May 27, USCIS posted for comment on the Federal Register draft versions of Form I-765V, Application for Employment Authorization for Abused Nonimmigrant Spouse and its instructions. Under section 106 of the Immigration and Nationality Act, abused spouses of certain nonimmigrants are eligible for employment authorization: i.e., the spouses of foreign nationals in the following nonimmigrant categories:

  • A-1, A-2, and A-3 (foreign government diplomats and officials and their immediate family members, attendants, servants, and personal employees);

  • E-3 (Australian specialty occupation workers);

  • G-1, G-2, G-3, G-4, and G-5 (employees of foreign governments and international organizations and their immediate family members, attendants, servants, and personal employees);

  • and H-1B, H-1B1, H-2A, H-2B, H-3, and H-4 (specialty occupation workers, Free Trade Agreement professionals from Chile and Singapore, temporary agricultural and non-agricultural workers, trainees and special education exchange visitors, and immediate family members of specialty occupation workers).

Earlier this year, March 8, 2016, USCIS released a Policy Memorandum regarding the eligibility of such applicants. Pursuant to the memo, along with the Form I-765V EAD application, credible evidence should be presented to prove various eligibility factors, including that the applicant resides in the United States, that the applicant is or was (under specific circumstances) married to the qualifying principal nonimmigrant spouse, that the applicant was last admitted to the United States in nonimmigrant status, and that the applicant or the applicant’s child was abused or subject to extreme cruelty by the principal nonimmigrant spouse. If approved, the EAD should be granted for two years. Supporting documentation should include copies of the marriage certificate, evidence of the abuse, and I-94 records and biographical identification documents of both the applicant and the principal spouse.

The draft EAD application Form for abused nonimmigrant spouses is six pages, while the regular Form I-765 used by applicants eligible for employment authorization under other bases is only one page. Form I-765V requests information not only on the applicant’s immigration status, but also on biographical physical features including ethnicity, race, height, weight, and eye and hair color. Form I-765V also allows for information to be completed regarding a safe mailing address and an interpreter. Further, the draft Form requests an Applicant’s Certification regarding the authenticity of documents and release of information. USCIS estimates that completing the application Form and preparing the documentation will take three hours per response.

USCIS encourages comments on the draft Form I-765V. Specifically, USCIS seeks feedback regarding whether the proposed collection of information on the form is necessary, the burden on the applicants to compete the form, the accuracy of USCIS’ estimate of the burden of the proposed collection of information, and the clarity, quality, and utility of the information to be collected. Comments will be accepted for 60 days, until July 26, 2016. All comments should reference OMB Control number 1615-NEW and Docket ID USCIS-2016-0004. Comments can be made online, by email, or by mail.

Article By Lauren A. Tetenbaum of Greenberg Traurig, LLP

©2016 Greenberg Traurig, LLP. All rights reserved.

Why Law Schools Must Change to Produce More Hirable Attorneys

effective networking, law students

Recently, I had the great pleasure of speaking at a Chicago Bar Association event for young attorneys on the topic of networking. After about 20 minutes I observed how ravenously everyone was taking notes and the deep level of attentiveness that I was receiving from the participants. While this is not unique to me as a speaker in the legal space, there was something different in the eyes of audience. Fear.

Once the program concluded, I stuck around to chat with the attendees to better understand their mindset.  A few of the comments were, “I have no idea how to network and am just trying to put myself out there.” And, “They never taught me any of this in law school.”  One first-year lawyer even remembered an adjunct professor saying, “If you’re not networking, you’re not working.” The same lawyer then thanked me for my presentation where I explained and demonstrated different ways to actually do it.

Over the past 10 years I have spoken at a number of young attorney events, but the fear and confusion on this day was palpable. For over 200 years, law schools have focused on teaching the law in order to produce scholarly advocates to protect the rights of his or her clients.  There was never a need to teach networking or how to run a solo practice because lawyers were employed at firms where the sole focus was gaining experience as a lawyer. There was also an abundance of opportunities to get a job.

In economics, we all learned about supply and demand. In the case of the legal space today, the supply of lawyers is overtaking the demand. Especially in the case of the new grads and younger lawyers.  With the legal landscape changing, it would only make sense that the law schools must change as well.  One attorney I interviewed was even involved in a 2014 ISBA report that demonstrated with clarity that law schools just aren’t preparing their students for the challenging legal marketplace that currently exists.

Fortunately, I did uncover that there are some adjunct professors and internal programs that mention and discuss networking with their students, but it’s just not enough. Networking is a learned skill that involves planning and processes to gain traction and ensure positive results. These skills can be used for the job search, deciding to go solo or to be used as an ongoing activity to grow a book of business once you’ve gained enough experience.  Even the simple skill of asking questions and listening to someone’s answers will be critical to a lawyer’s ongoing success and sustainability.

If a law school was to engage its students in a course on effective networking, here are three core elements that I believe should be included:

  • Element #1: Learn how to write a plan.  All law school students need to learn how to develop a written plan for finding a job or going out on their own.  They say, “Failing to plan is a plan to fail.” It is imperative that students learn how to develop and write a plan to better prepare for any eventuality. If the job market were tight, it would be helpful to have developed inside connections to find a good firm or company to work for. If there were struggles to find the right job, then developing a plan to partner with other solo’s to develop some business would be valuable. Whatever the situation, ones ability to develop a plan will be the break-through moment for someone wanting a career in the legal space.
  • Element #2: You’re young, learn how to use social media. In the age of anytime information and promotion, anyone can use social media to improve their ability to find a job or increase exposure in the marketplace. LinkedIn for example allows its users to connect on the site and find inside connections that normally would be hidden. For example, if we were friends and connected on LinkedIn, you could search through my connections to see the wide variety of general counsels and hiring lawyers that I know. Asking me for an inside channel into these contacts is infinitely more effective than sending out cold resumes to job postings or firms you are interested in.
  • Element #3: Learn the basics or you will destroy your free time. As someone who has killed hundreds of hours by networking inefficiently, I can attest to the importance of structure and processes to follow when networking. These methodologies can be found through books, firm mentors or teachers like myself. For many attorneys in school this would be important because it’s not about whom you know anymore but rather how you leverage the relationships with whom you know. Failure to properly give and receive value in a structured way within your network can lead to countless unproductive hours at events and coffee meetings.  While it’s true that relationships take time, how much time and with whom you invest is in question.

Whether you are currently enrolled in law school, a recent grad or someone who is billing 2000 hours a year for someone else’s clients at your firm, learning to plan and execute on your networking has never been more important. I know that the law schools today are aware of the need for networking classes, but they just haven’t fully committed to the idea. My hope is that with further awareness and forward-thinking deans, graduates will be better equipped to acquire the jobs they are looking for.

Article By Steve Fretzin of Sales Results, Inc.
Copyright @ 2016 Sales Results, Inc.

Army Corps Proposes Renewal of Nationwide Permits for Work in Waters of the United States

On May 23, 2016, the U.S. Army Corps of Engineers (“Corps”) released a pre-publication version of its “Proposal to Reissue and Modify Nationwide Permits” (the “Proposal”).  The Proposal presents a draft version of the Corps’ latest renewal of its program for “Nationwide Permits” (NWPs) that authorize general categories of construction in waters of the U.S.  This begins the process for renewing and revising the 2012 NWPs that are set to expire on March 18, 2017.

The Corps has proposed changes to several existing NWPs, as well as the issuance of two new NWPs and modification to some of the General Condition and Definitions.  The Corps’ proposed modifications to existing NWPs, which are tabulated in the Corps’ summary table for the Proposal, aim largely to clarify the terms of the NWPs rather than change their substantive authorization.  More significant, however, are the comments the Corps has solicited, which address critical issues such as the relationship between the NWP program and the definition of the phrase “waters of the United States” (“WOTUS”) (which defines the scope of the Corps’ jurisdiction); potential changes in acreage limits for certain NWPs; potential changes in the Corps’ use of waivers; and potential changes in the pre-construction notifications (“PCN”) process.

Once the Proposal is published in the Federal Register, the Corps will provide a 60-day comment period.  Parties interested in the NWP renewal process should begin preparing to submit comments now.  Permittees with coverage under an existing NWP may wish to consider seeking to “grandfather” their rights by entering into a contract by March 18, 2017 to perform the work authorized by the NWPs, and/or by commencing construction by that date, and must complete construction by March 18, 2018.

Background

Section 404(e) of the Clean Water Act (“CWA”) authorizes the Secretary of the Army to “issue general permits on a State, regional, or nationwide basis for any category of activities involving discharges of dredged or fill material.”  33 U.S.C. §1344(e)(1).  Activities that qualify for a general permit must be similar in nature, cause only minimal adverse environmental effects when performed separately, and have only minimal cumulative environmental effects. 33 C.F.R. § 325.5(c).

The most common general permits are NWPs, which provide streamlined review and authorization for categories of activities that the Corps has determined have minimal impacts on the aquatic environment.  NWPs automatically expire unless renewed every five years.  33 U.S.C. §1344(e)(2).  The 2012 NWPs became effective on March 19, 2012 and authorized 50 different categories of activities.  The EPA maintains a web page that provides a chronology of NWPs issued to date and related materials.

NWP Renewals and Revisions

The Corps’ Proposal states that, unless a particular NWP is specifically discussed in the Proposal’s preamble, the Corps is proposing to reissue the NWP without changing any of its terms.

The Corps’ summary table describes the proposed changes to individual NWPs.  A few of the key changes include:

  • NWP 12 (Utility Line Activities):

    • Authorize the use of temporary mats. Add note referencing definition of “single and complete linear project” and 33 C.F.R. §330.6(d).  Add note with reference to Corps regulations for required minimum clearances of overhead electric power transmission lines over navigable waters.

    • Clarify that NWP 12 only authorizes crossings of waters of the United States associated with the construction, maintenance, and repair of utility lines. In cases where Department of the Army authorization is required, NWP authorizes inadvertent returns of drilling muds through sub-soil fractures (frac-outs that might occur during directional drilling operations to install utility lines). Add note stating that NWP authorizes utility line maintenance and repair activities that do not qualify for the CWA §404(f) exemption for maintenance.

  • NWP 14 (Transportation Projects)

    • Add note referencing definition of “single and complete linear project” and 33 C.F.R. §330.6(d).

    • Does not authorize storage buildings, parking lots, train stations, aircraft hangars, or other non-linear transportation features.

  •  NWP 29 (Residential Developments)

    • Clarify that any losses of stream bed are applied to the 1/2-acre limit.

  • NWP 33 (Temporary Construction, Access, and Dewatering)

    • Require PCNs only for activities in section 10 waters.

  • NWP 39 (Commercial and Institutional Developments)

    • Clarify that any losses of stream bed are applied to the 1/2-acre limit. Add wastewater treatment facilities to the list of examples of attendant features.

  • NWP 43 (Stormwater Management Facilities)

    • Stormwater or wastewater management facilities that meet the criteria at 33 C.F.R. §328.3(b)(6) are not waters of the United States, and maintenance does not require a section 404 permit. Clarify that any losses of stream bed are applied to the 1/2-acre limit.

  • NWP 44 (Mining Activities)

    • For mining activities in non-tidal open waters, the 1/2-acre limit applies to the mining area. The loss of non-tidal wetlands plus the mining area in non-tidal open waters cannot exceed 1/2-acre. Clarify that any losses of stream bed are applied to the 1/2-acre limit. Final reclamation plan required for PCN, if reclamation is required.

  • NWP 51 (Land-Based Renewable Energy Generation Facilities)

    • Clarify that any losses of stream bed are applied to the 1/2-acre limit. Revise Note 2 to include NWP 14 activities.

  • NWP 52 (Water-Based Renewable Energy Generation Pilot Projects)

    • Add floating solar panels in section 10 waters to the list of activities authorized by this NWP, with 1/2-acre limit. Clarify that any losses of stream bed are applied to the 1/2-acre limit. Add note stating that hydrokinetic renewable energy generation projects authorized by the Federal Energy Regulatory Commission under the Federal Power Act of 1920 do not require separate authorization under Section 10 of the Rivers and Harbors Act of 1899.

Two New Proposed NWPs

In addition to these proposed modifications to existing NWPs, the Corps has proposed to add two new NWP categories:

  • NWP A (Removal of Low-Head Dams) would authorize removal of low-head dams, which is defined as a dam built to pass upstream flows over the entire width of the dam crest on an uncontrolled basis) for river restoration and public safety.

  • NWP B (Living Shorelines) would authorize construction and maintenance of living shorelines (natural and man-made materials to establish and maintain marsh fringes or other living elements to reduce erosion while retaining or enhancing ecological processes) for shore erosion control.

“Single and Complete Project”

The Corps is proposing to add a note regarding the term “single and complete project” to NWP 12 (Utility Line Activities).  The Corps applies the term “single and complete project” when determining the scope of NWP 12’s coverage for linear projects such as utility lines and transportation projects.  NWP 12 is routinely used to help expedite the permitting of energy development projects.

The following definition of “single and complete project” was added during the 2012 NWP process:

that portion of the total linear project proposed or accomplished by one owner/developer or partnership or other association of owners/developers that includes all crossings of a single water of the United States (i.e., a single waterbody) at a specific location. For linear projects crossing a single or multiple waterbodies several times at separate and distant locations, each crossing is considered a single and complete project for purposes of NWP authorization.

In order to qualify for coverage under NWP 12, each single and complete project cannot result in the loss of more than 1/2–acre of jurisdictional waters. Thus, for very large linear projects (including utility, cable, telephone, etc. lines as well as pipelines used to move oil, gas, slurry, etc.), there may be hundreds of separate NWP 12 verifications issued by the Corps, one for each crossing.

Importantly, the Proposal does not propose to modify the definitions of single and complete linear or non-linear projects.  The Proposal does, however, include a “clarification” of how single and complete projects are to be construed to address situations where both NWPs and Individual Permits are used for one project.  For example, while an overall project may qualify for the use of NWPs, one or two of the project’s components (crossings) may still require an Individual Permit (e.g., where greater than 1/2-acre of wetlands will be lost). Note 2 reminds applicants of the Corps’ regulations at 33 C.F.R. §330.6(d), which can require an Individual Permit for all crossings if one triggers an Individual Permit and the others do not have “independent utility.”  While the proposed Note 2 is consistent with the definition of single and complete project and the Corps’ historic treatment of these types of projects, it is unclear why Corps has chosen to emphasize this issue, which may be worthy of public comment.

Grandfathering Jurisdictional Determinations

According to the Proposal, activities that were authorized by the 2012 NWPs that have commenced or are under contract to commence by March 18, 2017, will have one year (i.e., until March 18, 2018) to complete those activities under the terms and conditions of the 2012 NWPs.  However, activities that were previously authorized by the 2012 NWPs that have not commenced or are not under contract to commence by March 18, 2017, will require reauthorization under the 2017 NWPs, provided those activities qualify for authorization under the 2017 NWPs.

Additionally, those projects with approvals under the 2012 NWPs should look for specific language in their verification letters, which, according to 33 C.F.R. §330.6(a)(ii), should include a statement that the verification will remain valid if  the NWP authorization is reissued without modification or the activity complies with any subsequent modification of the NWP authorization.  In such cases, a permittee under an existing NWP might not need to seek reauthorization under the 2017 NWPs.

Request for Comments on Other Important Issues

The Corps has solicited comments on a number of potentially-significant changes and other issues, including the following:

  • “WOTUS” issue

    • The Corps is seeking the views of NWP users on how the 2015 revisions to the definition of “waters of the United States” might affect the applicability and efficiency of the proposed NWPs.

  • Acreage and Linear Foot Limitations

    • The Corps is seeking comment on whether to retain the 1/2-acre limit that has been imposed on certain NWPs (i.e., NWPs 12, 14, 21, 29, 39, 42, 43, 44, 50, 51, and 52), or to impose different acreage limits on these NWPs.

  • Pre-construction notification (“PCN”)

    • The Corps is soliciting comments on changing the PCN thresholds for those NWPs that require pre-construction notification.

    • The Corps is also proposing to develop a standard form PCN that will be released in a separate notice and comment rulemaking.

  • Waivers

    • The Corps is soliciting comment on five aspects of waivers: (1) making changes to the numeric limits that can be waived; (2) whether to retain the authority of district engineers to issue activity-specific waivers of certain NWP limits; (3) whether to impose a linear foot cap on certain waivers; (4) whether to impose a linear foot cap on losses of intermittent and ephemeral stream bed potentially eligible for certain waivers; and (5) whether to require compensatory mitigation.

Pre-Construction Notifications

Many NWPs require the submittal of PCNs to the District Engineer before the prospective permittee may act pursuant to the permit.  Notification is required under General Condition 18(c), for example, if any species listed under the Endangered Species Act or designated critical habitat may be affected by or is in the vicinity of the project.

The procedures for PCN are set forth in General Condition 31.  In general, the Corps must be notified that a project proposed for authorization under a NWP requiring PCN is being undertaken.  The District Engineer must determine if PCN is complete within forty-five (45) calendar days of the receipt.  If the application is not complete, PCN review does not commence until all of the requested information has been received.  The prospective permittee may proceed if he/she is notified in writing that the activity may proceed under the NWP or if forty-five days have passed from the District Engineer’s receipt of the complete PCN and the permittee has not received written notification from the District or Division Engineer.  However, if the prospective permittee was required to notify the Corps pursuant to General Condition 18 (Endangered Species) or General Condition 20 (Historic Properties), he/she cannot begin the activity until receiving written notification. The Corps always retains the right to modify or revoke authorization under a NWP by following procedures specified at 33 C.F.R. §325.7.   Where PCN is not required, obtaining written verification from the Corps that a project meets all the applicable criteria and conditions for authorization under a NWP may be helpful to avoid a Corps’ investigation of potential violations.

As noted above, the Corps is proposing to eliminate the PCN requirement for certain NWPs; is proposing to develop a standard form PCN that will be released in a separate notice and comment rulemaking; and is soliciting comments on changing the PCN “thresholds” for those NWPs that require pre-construction notification.  All of these PCN-related topics are worthy of public comment, especially for frequent users of particular NWPs.

Other Conditions on the Use of NWPs

In addition to proposing changes to certain NWPs, the Corps also is proposing to modify a number of General Conditions (“GCs”).  GCs apply to all NWPs and currently there are 32 of them.  The Corps proposes to modify GCs 12 (Soil Erosion and Sediment Controls), 16 (Wild and Scenic Rivers), 18 (Endangered Species), 19 (Migratory Birds and Bald and Golden Eagles), 20 (Historic Properties), 23 (Mitigation), 30 (Compliance Certification), 31 (Activities Affecting Structures or Works Built by the United States), 32 (Pre-Construction Notification).

There are also regional and state conditions that may apply to project proponents seeking to utilize the NWP process.  Each Corps District can adopt regional conditions specific to NWPs implemented within their Districts.  Similarly, each state is required to issue water quality certifications under section 401 of the CWA and a consistency determination under the Coastal Zone Management Act for all permits under section 401 of the CWA, including NWPs.  Thus, states also have the authority to deny, preapprove, or establish conditions for the use of the NWPs.

Next Steps

The changes included in the Proposal appear relatively minor, especially compared to the breadth and depth of issues for which the Corps is seeking comment.  It would not be surprising, especially considering the drastic changes the Corps and the Environmental Protection Agency made between the proposed and final WOTUS rule, to see the Corps implement some of the “Important Issues” flagged above.  It will be very important for interested parties to carefully review and draft comments on the specific issues for which the Corps is seeking comments that are most likely to impact business and project development plans.

Finally, project proponents who have received coverage under one of the 2012 NWPs and have concerns about potential changes in the 2017 NWPs may wish to consider entering into contracts to complete all authorized work before the 2012 NWPs expire on March 18, 2017, arranging to have all of the work completed by March 18, 2018, or obtaining Corps verification of continued coverage under the 2017 NWPs.

Supreme Court Cert: Laches (in Patent Cases) and Copyrightable Subject Matter to Be Reviewed

U_S_-Supreme-Court1Laches

The Supreme Court of the United States granted certiorari to review a patent case on the law of laches. SCA Hygiene Products v. First Quality Baby Products, Case No. 15-927 (Supr. Ct., May 2, 2016).

In its cert petition, SCA argued that the en banc decision of the US Court of Appeals for the Federal Circuit conflicts with the Supreme Court’s decision in Petrella v. Metro-Goldwyn-Mayer (IP Update, Vol. 17, No. 5) that, under the Copyright Act, laches cannot bar damages claims brought within a statutory limitations period, even though the initial violation may have occurred years earlier. SCA also argued that the Federal Circuit observes a presumption in favor of laches that is inconsistent with Supreme Court precedent.

The question presented is: Can the defense of laches bar a claim for patent infringement brought within the Patent Act’s six-year statutory limitations period (35 USC § 286), and if so, to what extent?

In SCA, the Federal Circuit granted en banc review to determine if the Supreme Court’s Petrella decision required a change to the law of laches in patent cases (IP Update, Vol. 18, No. 10). In a 6–5 decision, the Federal Circuit held that in terms of patent infringement actions, Petrella did not require a change in the laches rule set out by the court in 1992 in A.C. Aukerman v. R.L. Chaides Constr. Rather, the en banc Court explained that notwithstanding the provisions of § 286, Congress codified the laches defense in § 282 when it included an unenforceability defense in that statute. Thus, the Court found that laches could bar a damages claim even for acts occurring within the six-year period of § 286.

The Federal Circuit also held, however, that Petrella requires a change in the Aukerman rule that only pre-suit damages may be barred by laches. The Court explained that the availability of injunctive relief or ongoing royalties now depends on an analysis of the circumstances of the delay under the Supreme Court’s 2006 decision in eBay, Inc. v. MercExchange (IP Update, Vol. 9, No. 5).

Copyrightable Subject Matter                

The Supreme Court also granted certiorari in a copyright case arising from the US Court of Appeals for the Sixth Circuit and presenting the issue of copyrightability of cheerleader uniforms. Star Athletica, L.L.C. v. Varsity Brands, Inc., Case No. 15-866 (Supr. Ct., May 2, 2016).

The question presented is: What is the appropriate test to determine when a feature of a useful article is protectable under § 101 of the Copyright Act?

In Star, a split panel of the Sixth Circuit held that the arrangement of colors, stripes, chevrons, zigzags and other designs on a cheerleading uniform are copyrightable, separate from utilitarian aspects of the uniform itself (IP Update, Vol. 18, No. 9). The Court rejected the argument that the pictorial, graphic or sculptural features are simply performing a decorative function (which is itself a “utilitarian aspect of an article”) and are therefore not separable from the utilitarian aspects of the cheerleading uniform. The dissent argued that the case turned on how “function” is defined (i.e., in terms of the decorations in issue), which would determine whether the designs were copyrightable.

Article By Paul Devinsky of McDermott Will & Emery

© 2016 McDermott Will & Emery

USCIS Proposes Immigration Increase . . . in Immigration Fees that is

On May 4, 2016, U.S. Citizenship and Immigration Services published a notice of proposed rulemaking regarding changes to the USCIS filing fee schedule. USCIS is proposing to raise immigration benefit application filing fees by an average of over 20%. USCIS is primarily funded by immigration benefit request fees charged to the applicants, and these filing fees comprise 94% of USCIS’s annual budget of $3 billion. USCIS last raised immigration filing fees in 2010, and the agency has justified the increase as necessary to fully recover the costs of services, to maintain an adequate service level, and to allow for processing and technological improvements.

Over the last six years, USCIS has seen a significant increase in the number of benefits applications filed. While applications filed by employers have remained steady, applications filed by individuals for naturalization have increased 25%, applications for permanent residence by 15%, and applications to replace expiring permanent resident cards by almost 50%.

USCIS’s proposal would raise the base filing fees on employers sponsoring work visas between 20-40%. Foreign nationals filing for permanent residence will see the application fee rise to $1,140 from its current $985, a 16% increase. Those seeking US citizenship will pay an additional 8%, from $595 to $640. At the other end of the spectrum, high net worth investors seeking permanent residence through the EB-5 visa program will see the filing fee increase from $1,500 to $3,675, while the fee for entities seeking designation as EB-5 Regional Centers will skyrocket from $6,230 to $17,795, a raise of 186%!

The rule increasing the fees is expected to become final later this summer. In this case, time really is money, and we strongly suggest employers and foreign nationals file their benefits applications quickly to avoid the coming price hikes.

North Carolina Retailers Navigate Conflicting Laws Regarding Transgender Protections

On March 23, 2016, the North Carolina Legislature passed House Bill 2, the “Public Facilities Privacy and Security Act” (“HB2”), that overturned a Charlotte ordinance extending anti-discrimination protections to lesbian, gay, bisexual, and transgender (“LGBT”) individuals and allowing transgender persons to use the bathroom of their choice. Instead, HB2 requires individuals to use public bathrooms that match the gender listed on their birth certificates. A swift public outcry followed, with many celebrities denouncing the law and canceling appearances in North Carolina, companies threatening to boycott, and the American Civil Liberties Union filing a lawsuit challenging HB2 as unconstitutional and for violating federal law.

North Carolina TransgenderNorth Carolina officials have refused to disavow HB2 and, on May 9, filed a lawsuit against the federal government seeking a ruling that HB2 is not discriminatory. The Justice Department has countersued, alleging that HB2 violates Title VII of the Civil Rights Act of 1964 (“Title VII). Regardless of the ultimate outcome of these lawsuits, it is clear that discriminating against LGBT individuals has real consequences, from both a business and legal perspective. What should retailers know and, more importantly, do to survive in this current environment?

At a minimum, retailers should familiarize themselves with their state’s employment nondiscrimination laws (if any) that apply to private employers. Twenty states (including California, Illinois, New Jersey, and New York) and the District of Columbia have passed employment non-discrimination laws that prohibit discrimination by private employers based on both sexual orientation and gender identity. Two states (New Hampshire and Wisconsin) have such laws covering sexual orientation only. These laws protect LGBT persons from discrimination in hiring and in the workplace.

Retailers also are encouraged to review their municipality’s nondiscrimination laws and regulations, if any. For example, New York City law prohibits gender identity discrimination, and the New York City Commission on Human Rights recently announced guidance (“NYC Guidance”) that makes clear what constitutes gender identity and gender expression discrimination under the NYC Human Rights Law. The NYC Guidance warns employers and business owners that they may violate New York City law if they intentionally fail to use a transgender employee’s preferred name, pronoun, or title, or refuse to allow a transgender employee to use single-sex facilities, such as bathrooms or locker rooms, and participate in single-sex programs consistent with their gender identity.

Retailers also should know that the EEOC has aggressively pursued transgender discrimination claims on theories of sex stereotyping and gender nonconformity under Title VII, which bars employers from discriminating against employees on the basis of their sex. In cases involving government employees, the EEOC has held that: (i) an employer’s restriction on a transgender woman’s use of a common female restroom facility constituted illegal sex discrimination under Title VII,(ii) an employer’s intentional references to a transgender female as “he” may constitute sex-based discrimination and/or harassment, and (iii) a transgender employee stated a valid Title VII sex discrimination claim based on his allegation that his employer took over a year to correct his name in the company’s computer system.

The EEOC has taken further action against private companies. For example, it recently entered into a consent decree with a Minnesota financial services company for allegedly refusing to let a transgender employee use the women’s restroom and subjecting her to a hostile work environment. In another action, a Florida eye clinic paid $150,000 to settle an EEOC lawsuit that sought relief for an employee who was allegedly discriminated against when transitioning from male to female.

In light of this climate, retailers are encouraged to accommodate the needs of transgender workers proactively rather than reactively responding to potential claims of discrimination. Retailers, particularly those operating in states with anti-discrimination laws that cover sexual orientation and/or gender identity, should implement a policy designed to foster workplace inclusion. Retailers can avoid significant business and legal risk if they follow these two directives:

  • Call transgender employees by their preferred names, pronouns, and titles, and promptly update internal databases (pay accounts, training records, benefits documents, etc.) with this information upon an employee’s request. The NYC Guidance, for example, advises employers to use the employee’s preferred name regardless of whether the employee has legally changed his or her name “except in very limited circumstances where certain federal, state, or local laws require otherwise (e.g., for purposes of employment eligibility verification with the federal government).” This is a sound policy that retailers beyond New York City should consider following. In addition, employers may choose to offer new business cards and email aliases for their employees.

  • Provide transgender employees access to bathrooms that correspond to their gender identity. On May 3, the EEOC issued a “Fact Sheet” stating that the denial of equal access to a bathroom corresponding to an employee’s gender identity qualifies as sex discrimination prohibited under Title VII and that contrary state law is no defense. The Fact Sheet encourages employers to refer to the more comprehensive “Guide to Restroom Access for Transgender Workers,” which was issued by the Occupational Safety and Health Administration (“OSHA”) and offers model practices for restroom access for transgender employees. Like the EEOC, OSHA advises that “all employees should be permitted to use the facilities that correspond with their gender identity.” Where possible, employers should provide employees with additional options, including single-occupancy gender-neutral (unisex) facilities and use of multiple-occupant, gender-neutral restroom facilities with lockable single occupant stalls.

While the North Carolina Legislature has rolled back protections for the LGBT community, the media attention surrounding HB2 has been largely negative and has affected the businesses of companies operating in the state. Given the number of other states that have enacted laws expressly prohibiting sexual orientation and/or gender identity discrimination, the federal government’s enforcement position, and changing public opinion on the issue, retailers are on notice that such discrimination may have negative business or legal ramifications.

Article By Nathaniel M. Glasser & Jonathan L. Shapiro of Epstein Becker & Green, P.C.
©2016 Epstein Becker & Green, P.C. All rights reserved.

Swiss Researchers Develop Model to Assess How Nanoparticles “Flow Through the Environment”

Swiss NanoparticlesThe Swiss National Science Foundation issued a May 12, 2016, press release announcing that researchers from the National Research Program “Opportunities and Risks of Nanomaterials” have developed a new model to track the flow of the “most important nanomaterials in the environment.”  To assess how man-made nanoparticles make their way into the air, earth, or water, researchers developed a computer model to determine the environmental accumulation of nanosilver, nanozinc, nano-titanium dioxide, and carbon nanotubes.  The press release notes that knowing the degree of accumulation in the environment is only the first step in the risk assessment of nanomaterials.  This data must be compared with ecotoxicological test results and the statutory thresholds.  According to the press release, in the case of nanozinc, “its concentration in the environment is approaching the critical level.”  The press release states that it “has to be given priority in future ecotoxicological studies — even though nanozinc is produced in smaller quantities than nano-titanium dioxide.”  Furthermore, according to the press release, ecotoxicological tests have until now been carried out primarily with freshwater organisms.  The researchers conclude that complementary investigations using soil-dwelling organisms are a priority.

Article By Lynn L. Bergeson & Carla N. Hutton of Bergeson & Campbell, P.C

©2016 Bergeson & Campbell, P.C.

Insight into Future of Financial Technology Companies – Swimming with “Fintechs”

Fintech financial technologyImagine applying for a mortgage or commercial loan on Amazon or shopping for a checking account via an App on your Iphone. As many in the financial services industry may already know, there are a new brand of startups known as “Fintech” companies who are rapidly becoming viable alternatives to traditional wealth management. “Fintech,” which is abbreviated from financial technology, are various startup companies who are utilizing technology to make traditional financial services more efficient – for example, mobile payments, money transfers, loans, fundraising and asset management. Fintech companies can provide users with a variety of financial services that were once exclusively within the purview of a traditional bank (from facilitating investments, financial planning to underwriting). Fintech startups are geared towards giving the consumer a more personalized and efficient product than currently exists. If the trends continue, Fintech companies will cause the technological areas of consumer banking to undergo significant changes.

Fintech companies are capitalizing on digital technology to transform the way consumers access financial services and information.

As many Lenders know, consumers are increasingly demanding customer centric solutions that give instantaneous, tailored responses based on that individual consumer’s needs. A Fintech company can use technology to create a personalized solution for the demanding consumer.

Fortunately for the industry, the emergence of Fintech companies may not be all bad. Lenders who play their cards right may even be able to use a Fintech startup to their advantage. Cooperation between a lender and one or more of these startups could lead to symbiotic relationships. For example, some Fintech companies eliminate the need for financial advisors by providing apps that enable users to keep track of their spending and stay on budget. A Lender with foresight could partner with a Fintech company and offer this service on its own banking platform.

There are three things to look forward to with regards to how Fintech companies will revolutionize the financial services industry:

  • Fintech companies will cut costs and improve the quality of certain financial services as they are unburdened by regulators (so far…).

  • Fintech companies will create new ways of assessing risk. By utilizing machine learning and logistics, Fintech startups will change the landscape of risk assessment.

  • Fintech companies will lead to a more diverse credit landscape. Most Fintech firms are internet based, meaning they are less geographically concentrated than traditional lenders.

Cooperation and partnership will be crucial to a lender/ Fintech relationship. Clearly, Fintech startups will benefit from the reputation, stability, experience and client base of a traditional lender. However, the lenders must be acutely aware of possible legal repercussions of a Fintech partnership. It will be incumbent upon lender to assess the legal risks and regulatory challenges of partnering with these startups.

If in the end a lender can successfully navigate the risks, the upside will likely be worth it. After all, if history has taught us anything, it is that technology should be embraced rather than repudiated.

Article By Alena C. Gfeller & Donald Griffith II of Murtha Cullina

© Copyright 2016 Murtha Cullina

SCOTUS Rejects a Rule Neither Employers nor Employees Wanted: Green v. Brennan Decision

Supreme Court Green v. BrennanIn Monday’s Green v. Brennan ruling, the U.S. Supreme Court decided that the limitations period for constructive discharge runs from the date the employee gives notice of the intent to resign. The 7-1 outcome was not a surprise following the questioning by the justices during oral arguments. The justices held that the filing period begins when an employee resigns as a result of discriminatory behavior, not when an employer creates an environment so adversarial that an employee feels forced to resign, previously ruled in 2014 by the Tenth Circuit.

The case stems from an original complaint in 2008 by Green, a postmaster in Colorado. Green, who was passed over for a promotion, claimed someone less qualified received the position which caused him to file a discrimination complaint with the equal employment opportunity commission (EEOC).

The court was confronted with three alternative dates by which the limitations period that the EEOC must be contacted would begin to run:

  1. The date Green signed a settlement agreement giving him the option to retire or take a position 300 miles away with a significant pay cut, Dec. 16, 2009, and also the date alleged to be the last act of discriminatory conduct compelling petitioner Green to resign

  2. The date on which Green notified the respondent Postal Service of his intention to resign, Feb. 9, 2010, or,

  3. The date Green’s resignation actually became effective, March 31, 2010.

The choice was determinative because the controlling statute of limitations required Green to contact an EEOC counselor within 45 days of the “matter alleged to be discriminatory,” a notably ambiguous requirement. Green contacted an EEOC counselor on March 22, 2010, 96 days after signing a settlement agreement and 41 days after submitting his notice of resignation. The circuits were split on whether the limitations period ran from the “last discriminatory act” or the date the employee resigns.

The rule represents both interpretive and practical considerations that should be viewed favorable to employers, including:

  • It places constructive discharge claims on equal footing with ordinary wrongful discharge claims that require both discrimination and notification of being fired

  • Nothing in the limitations regulation provided an “exception” to the ordinary rule

  • Practical consideration supported the rule applied because it made little sense to start the clock ticking before a plaintiff could actually file suit

Employers should welcome this outcome and breathe a sigh of relief because of the definitiveness and certainty it brings to both the accrual and repose of limitation periods applying to federal employment discrimination claims.

Article By Douglas D. Haloftis of Barnes & Thornburg LLP

© 2016 BARNES & THORNBURG LLP