Arizona Employers, Remain Vigilant! State Legislature Approves New Service Methods for Writs of Garnishments

The Arizona legislature recently passed a bill that would amend Arizona Revised Statutes Section 12-1574 to change how writs of garnishments can be issued and served on garnishees, including employers. House Bill (HB) 2230 went to Governor Doug Ducey for signature on March 19, 2019, and he is expected to sign it soon.

Key Takeaways From an ERISA Fiduciary Breach Ruling on Behavioral Standards of Care After a 10-Day Trial

Behavioral health claims administrators and plan sponsors alike may be looking more closely at their care guidelines—and how they are applied—after a federal court ruled in a California class action that a claims administrator had breached its fiduciary duty under the Employee Retirement Income Security Act of 1974 (ERISA) by applying standards of care that were more restrictive than generally accepted standards and by improperly prioritizing cost savings.

Texas Committee Advances Bill to Prevent Municipalities From Enacting Employment Leave Ordinances

In 2018, the city councils in both Austin and San Antonio passed ordinances to require employers to provide paid sick leave to employees. The ordinances have faced legal challenges, including a ruling in November 2018 that the Austin law is unconstitutional due to preemption by the Texas Minimum Wage Act. Neither ordinance has taken effect to date. Now the state senate has taken up the matter.

Minnesota Legislative Update: Bills to Watch

The Minnesota Legislature is in session through May 20, 2019. This session promises to be very active with numerous bills affecting employers and the workplace. Major bills include paid leaves of absence (including family and sick leave), restrictions on an employer’s ability to access social media accounts, right-to-work legislation, vaccination exemptions, wage theft, and the legal standard for sexual harassment, and making available to a complaining party more information regarding the employer’s investigation and corrective action.

Eighth Circuit Casts Doubt on Cross-Plan Offsetting for ERISA Health Plans

Employers may soon find themselves reviewing and revising health plan master documents and summary plan descriptions (SPDs) and administrative service agreements with respect to an obscure claims administration practice known as “cross-plan offsetting”—following a recent federal appeals court ruling.

Gender Expression Non-Discrimination Act (GENDA) Takes Effect in New York

On February 24, 2019, the Gender Expression Non-Discrimination Act (GENDA) became effective in the state of New York. GENDA bars discrimination, harassment, and retaliation on the basis of “gender identity or expression,” which is defined as “a person’s actual or perceived gender-related identity, appearance, behavior, expression, or other gender-related characteristic regardless of the sex assigned to that person at birth, including, but not limited to, the status of being transgender.”

Salary History Is Not Quite History in the Ninth Circuit, According to Supreme Court

On February 25, 2019, in a much awaited decision, the Supreme Court of the United States issued a per curiam ruling in Yovino v. Rizo, No. 18-272, 586 U.S. ___ (2019). Rather than address the substantive issue of whether an employer may rely on salary history to establish starting pay under the federal Equal Pay Act (EPA), the Court vacated and remanded the matter on a procedural—yet still important—issue.

Louisiana Court Finds Nonsolicitation/Noncompetition Agreement Is Enforceable

When Jay Baker, the vice president of Causin, L.L.C., quit to create a competing business, Causin sued to enforce Baker’s nonsolicitation/noncompetition agreement. Baker defended the claim in part by arguing the agreement’s use of a flexible addendum to list numerous parishes/counties did not satisfy the requirements of Louisiana’s noncompetition statute (La. R.S. 23:921), the inclusion of Causin’s “subsidiaries” and “affiliates” rendered the agreement overbroad, and the severability clause was ineffective.

California Court of Appeal Identifies Triggers for Reporting Time Pay Obligation

In a ruling that will have a significant impact on the retail and restaurant industries, among others in California, the California Court of Appeal ruled that a retail employer’s call-in scheduling policy—in which employees were required to call the employer in advance of a shift to find out if they needed to show up for

South Carolina Court of Appeals Weighs in on South Carolina’s Political Opinions Statute, Approves Discharge of Employee for Excessive Personal Use of Company Phone and Laptop

In Owens v. Crabtree, Opinion No. 5616 (January 16, 2019), the South Carolina Court of Appeals held that a company’s termination of an employee for using company devices, on company time, to oppose a local building project that the company had a financial stake in was valid and did not violate public policy.

Texas Workforce Commission Issues Proposed Rules Excluding Certain Gig Workers From the Definition of “Employment” Under Texas Unemployment Laws

The issue of whether workers who utilize online digital platforms to obtain business and deliver services to third parties are employees or independent contractors has already been subject to much debate and litigation. In the growing gig economy, questions surrounding these issues can create uncertainty for both businesses and gig workers.