Summer has finally arrived. While many of us will soon become consumed with pool parties, backyard barbeques, and well-deserved vacations, a new crop of summer interns is just beginning their first endeavor in the working world with the hope of making a lasting impression on prospective employers in their chosen fields.

However, it is becoming an increasingly risky proposition for employers to take on unpaid interns. In fact, in just the past few days, Warner Music Group, Atlantic Records, and media giant Condé Nast have all been sued by former interns who claim that they should have been compensated for their internships.
Continue Reading Unpaid Internships May Cost Your Business Dearly in the Long Run

In Pennsylvania, a non-compete agreement (NCA) must be supported by legal “consideration” in order to be enforceable. If a newly hired employee signs a NCA at the time of hire as a condition of employment, the new job is the consideration for the agreement not to compete in the future. On the other hand, once an employee is already employed, his employer cannot foist an NCA on him and expect it to be enforceable unless new consideration is given (e.g. a special bonus, job protection, promotion, severance benefits, etc.). These basic principles are well established under Pennsylvania law.

But what happens if an employer presents a NCA to a new hire after he accepts a written job offer but before he actually starts work?
Continue Reading You’ve Got the Job, Details Will Follow – Employment Offer Letters & Non-Compete Agreements

As we discussed with participants in our recent Labor and Employment Law Seminar, despite recent setbacks, the National Labor Relations Board continues to issue decisions that are concerning for employers. These decisions, which impact union and non-union employers alike, often take an expansive view of the protections afforded employees by the National Labor Relations Act. In a recent case involving a complaint filed by an (alleged) independent contractor working for a non-union employer, the Board found that the contractor’s electronic communications, directed at employees of a different employer, were protected by the Act because the communications constituted union organizing activity.

In New York Party Shuttle (pdf), the Board first considered whether the complaining party, a tour guide, was an employee or an independent contractor. The Tour Guide was regularly hired by Party Shuttle to provide guided tours of New York City. He also maintained his own tour company, and booked and provided tours through his own company. The Board held that Party Shuttle failed to establish that that the Tour Guide was an independent contractor. In making its decision, the Board applied a common law test that considers a multitude of factors and places the burden on the employer to establish independent contractor status. In this case, the Board found that Party Shuttle failed to establish that the tour guide as an independent contractor.

After determining that the Tour Guide was an employee, the Board turned to the next issue, the Tour Guide’s termination.Continue Reading NLRB Finds Discussions With Employees of Another Employer Can Constitute Protected Activity

McNees Wallace & Nurick LLC’s Alcoholic Beverage and Liquor License Practice Group recently published a Liquor Law Update, which can be accessed by clicking here.  The Update contains an article on employee tip pools that readers may find interesting. 

Whether you need to acquire a liquor license, sell a liquor license, keep a liquor license

The Department of Labor (DOL) routinely investigates and audits employers to ensure compliance with a variety of important labor and employment laws. Historically, wage and hour (overtime) compliance under the Fair Labor Standards Act has been the most common subject of the DOL’s enforcement efforts.

Fueled by additional resources, funding and staffing, the DOL is increasing its enforcement efforts both in terms of frequency and scope. This concerning trend means that employers can expect an increase in the number of investigations and that such investigations, once initiated, will cover a broader range of compliance issues and dig deeper into those issues under review. In this regard, our clients are reporting that, in addition to typical wage and hour issues, expanded DOL inquiries as a matter of course now include review of other laws, such as the Family and Medical Leave Act, and even the Patient Protection and Affordable Care Act. It is also common for DOL investigations to “spread,” resulting in the inquiry ultimately moving into areas other than the initial issue under review.
Continue Reading Investigations/Audits of Employers by DOL Increase and Expand in Scope

As you may have heard, the District of Columbia Circuit Court of Appeals recently sent shockwaves through the labor relations world by holding that President Obama’s "recess" appointments to the National Labor Relations Board were invalid. The court concluded that, as a result, the Board was acting without a quorum and did not have the

For Pennsylvania employers, 2012 was another eventful year in the world of wage and hour law. Even in the absence of new federal legislation, a number of noteworthy developments occurred at both the federal and state levels, confirming that wage and hour compliance remains a moving target for employers. This complimentary white paper summarizes ten of the more significant wage and hour developments in 2012 for Pennsylvania employers
Continue Reading Top Ten Wage & Hour Developments in 2012 for Pennsylvania Employers

Last year, we reported on the first National Labor Relations Board Administrative Law Judge decision examining an employee’s discharge for social media activity. Recently, the Board made Hispanics United its second decision examining an employee’s discharge for comments posted on Facebook. The Board held that the employer violated the National Labor Relations Act when it discharged five employees for criticizing another employee on Facebook. Although examining a new media, the Board stated that it was relying on established precedent to find that the activity in question was for “mutual aid or protection” within the meaning of Section 7 of the Act. Accordingly, the Board affirmed the ALJ’s decision ordering reinstatement of the discharged employees.
Continue Reading Board Affirms Decision Ordering Reinstatement of Employees Terminated for Facebook Comments

We have been getting a lot of questions from employers about how employees’ legal use of marijuana impacts an employer’s ability to enforce its drug testing policy. Colorado and Washington recently became the first states to approve the recreational use of marijuana, but numerous other states have legalized the use of marijuana for medical purposes for several years. Now employers are asking: what happens if an employee tests positive for marijuana under our workplace drug and alcohol policy, but says that he or she used marijuana legally either for medicinal purposes or while in a state that has legalized marijuana for all purposes?
Continue Reading Drug Testing Policies Up in Smoke?