NLRB Rules that College Football Players Can Unionize

nlrbUnder the Obama administration, the National Labor Relations Board (NLRB) has taken some radical positions, but its newest decision makes clear that all bets are off in the second term.  The Regional Director of the NLRB office in Chicago ruled this week that college football players at Northwestern University are actually “employees” under federal law, and therefore are entitled to form a union and bargain for employment terms (i.e. compensation.).   An article from ESPN on the news story can be found here.  First, it is important to not over-react to this decision.  It will be appealed, and will likely be reversed once the case makes its way out of the NLRB and into the courts.  In the meantime, it is reasonable to expect that other university athletes will file similar election petitions and seek to join the effort.  There are a lot of college athletes and to unionize the entirety of college athletics would mean big money for organized labor.  Simply, there is a financial incentive for organized labor bankrolling this fight all the way to the Supreme Court, if necessary. 

For now, we can only wonder about what the world would look like if the Obama NLRB got its way.   Can you imagine a player’s strike in the middle of the Final Four?   If athletes are employees, does that mean they can be fired?  If a coach yells at an athlete or sits them out of a game, can the athlete file a grievance?  These questions sound far-fetched, but won’t be so silly if athletes really are employees protected under federal law.

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Cozen O’Connor Presents Wage and Hour Seminar

With all of the recent news surrounding the President’s efforts to overhaul the nation’s overtime laws, it is more important than ever to ensure that your business is complying with all state and federal wage and hour laws.  I will be speaking at a seminar in Houston entitled “Defending Against Wage and Hour Claims: Legal Strategies and Practical Compliance” on Friday, March 28, 2014.   The full text of the invite and the seminar description can be found here.  For visitors to the blog, please note that if you register one attendee from your organization, you can bring as many other attendees as you like.  Just email me, including the other names of the attendees so we can add them to the registration list.

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Cozen Issues Alert on Effort to Update Overtime Rules

Cozen O’Connor has issued an alert regarding the recently announced plan to overhaul the overtime rules, including the salary exemption threshold.    This is an important development that will affect all employers, and the full text can be found here

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Obama Administration to Rewrite Overtime Rules

200px-US-DeptOfLabor-Seal_svgThis week, the Obama administration announced that it will revise the regulations governing the white collar overtime exemptions.  The Department of Labor has not announced all of the changes it is looking to make, but one area up for review is going to be the minimum salary threshold for exempt status.  Currently, that amount is $455 per week, which amounts to $23,660 annually.  The last time the threshold was raised was in 2004 during the Bush administration, and the President has signaled that this amount is likely to be increased substantially under the new regulatory effort.  A news article regarding the proposed changes can be found here

Realistically, it will take months if not years for the Department of Labor to craft regulations and complete the required notice and comment periods before such sweeping changes could take place.   That said, there is no meaningful legal argument that the administration does not have the authority to make this change as similar increases have been made through regulation in the past.  The takeaway from this announcement is that change is coming to industries where entry level manager salaries are close to the exemption threshold (like restaurants, retail, and hospitality).  This will mean higher costs for these industries as many of these management positions become converted to overtime eligible positions to avoid the sharp salary increases which will be required to maintain the exemption.

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Daughter’s Facebook Post Voids Settlement of Dad’s Discrimination Lawsuit

facebook logoVirtually every settlement agreement in an employment case includes a strict confidentiality clause warning the plaintiff of the requirement to keep the settlement amount secret.    In a recent case which made national news, a daughter cost her father an $80,000 settlement by posting “mama and Papa Snay won the case against Gulliver …  Gulliver is now officially paying for my vacation to Europe this summer.  SUCK IT!”  An article with more details on the story can be found here

This case is a good reminder of the importance of drafting airtight confidentiality clauses  in the era of social media and instant publication to the world.   It is also important to note that the employer lost the first round of litigation on whether the daughter’s conduct violated the father’s settlement agreement, and this recent story relates to the appellate court’s decision to overturn the lower decision and void the settlement.  Obviously, the employer spent a lot of money in legal fees to prove a point.   

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Supreme Court to Hear Case Involving Payment for Waiting in Security Lines

US Supreme CourtOne of the hot issues under the Fair Labor Standards Act (FLSA) is whether employers should be required to pay employees for time spent waiting in security lines to access their job site. Employees argue that such time is required as part of their jobs, and thus should be paid. Employers argue that such time is not “work” and is not compensable. A case involving contract employees at one of Amazon.com’s warehouses in Nevada was accepted by the Supreme Court this week, setting up a significant decision which could impact wage and hour practices around the country.

In the Amazon case, workers alleged they had to spend nearly 30 unpaid minutes each day waiting in line to clear security checks before and after their shifts. The Ninth Circuit Court of Appeals ruled that the case could move forward, which set up a conflict with other court decisions. An article about the case can be found here. This case will have a significant impact on Texas, where many contractors at plants and refineries have faced similar lawsuits. A decision from the Supreme Court should be expected in the summer of this year.

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Avoiding Lawsuits From Interns

internsI recently gave an interview to Intuit Quickbase (another blog on Human Resources issues) on the subject of avoiding wage and hour lawsuits from interns.  The interview can be found here, and provides some practical tips on this increasingly problematic area of the law.

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More Delays for Obamacare

obamacareToday, the IRS issued final regulations concerning the employer mandate portion of Obamacare.   The imposition of the employer mandate had previously been postponed from 2014 to 2015, and now has been pushed back one more year for employers with less than 100 employees.   For large employers, the penalties have also been eased with a transition period where employers will be able to avoid penalties as long as most full-time workers are covered (70 percent in 2015 and 95 percent in 2016). 

The regulations can be found here, and a news report summarizing the announcement is linked here.

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David Barron and Nelsy Gomez To Speak at Southwest Meat Association

southwestmeat-blueOn February 19th, the Southwest Meat Association will be presenting its annual Mid-Year Conference.  An agenda for the conference can be found here.  

Our firm will be providing two presentations related to employment law.  I will be presenting on the Affordable Care Act and Nelsy Gomez will provide an update on recent developments in immigration and employment.  If you are in the meatpacking or food processing industries, we hope to see you there.

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Target Joins Long List of Companies Slashing Health Benefits Because of Obamacare

This week, Target announced that it will no longer offer health insurance to part time workers.  Target joins a long list of companies who have made the same decision, including Trader Joe’s and Home Depot.  Details about the announcement can be found here

There is a clear trend developing and the days of part-time employees being eligible for company-sponsored health insurance look to be numbered.  Many companies already have low participation rates from part-time workers, and the economics of the new exchanges, and the subsidies available for low income workers, have even further eroded the need for such plans.  Of course, the big question is whether this step is just the first in a long term trend towards moving employees from full-time to part-time positions to avoid paying for the cost of healthcare.

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Posted in Healthcare Reform, Labor & Employment, Wage and Hour
About HR Headaches
HR Headaches is a blog for Human Resources professionals, business owners, and in-house counsel to get the latest news, analysis and tips in the area of labor and employment law. Every day there are new court decisions, agency interpretations, and regulations which affect the workplace, making it difficult, if not impossible, for many employers to keep current. HR Headaches is dedicated to providing information in a practical, no-nonsense manner to help employers avoid legal disputes and keep policies up to date.
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