In a 9-0 decision issued yesterday, the U.S. Supreme Court held that time spent by non-exempt workers waiting to undergo and undergoing security screenings before leaving their workplace at the end of their work day was not compensable hours worked under the Fair Labor Standards Act.
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Halbig v. Burwell: A Death Blow for the Affordable Care Act?
Earlier today, a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit ruled in Halbig v. Burwell that the Affordable Care Act (ACA) authorizes the issuance of tax credits to assist individuals to purchase health coverage only on state-run exchanges. On the same day, a panel of the U.S. Court of Appeals for the Fourth Circuit reached the opposite conclusion in King v. Burwell, holding that ACA tax credits were also available to participants in federally-run exchanges.
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Fair Share Fees Unconstitutional in the Public Sector? Not So Fast
The United States Supreme Court has been issuing employment-law related decisions like a boss over the past week or so. Many observers thought that the Court’s decision in Harris v. Quinn (pdf), a case examining the constitutionality of union fair share fees, would result in more fireworks (sorry, a little 4th of July humor for…
U.S. Supreme Court Finds Sworn Testimony Outside Scope of Regular Job Duties Entitled to First Amendment Protection
The United States Supreme Court has issued a decision further clarifying protected speech under the First Amendment. In Lane v. Franks, et al., the Court analyzed whether a public employee, testifying under subpoena, was entitled to First Amendment protection when his testimony was outside of the scope of his job duties.
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U.S. Supreme Court Issues Long-Awaited Decision in NLRB v. Noel Canning; President Obama’s Recess Appointments to NLRB Deemed Unconstitutional
Earlier today, the United States Supreme Court unanimously found that President Obama acted unconstitutionally when he made several recess appointments to the National Labor Relations Board (“NLRB”) in 2012. The Court, in an Opinion authored by Justice Breyer, affirmed (albeit for differing reasons) the January 2013 judgment by the U.S. Court of Appeals for the District of Columbia Circuit.
Continue Reading U.S. Supreme Court Issues Long-Awaited Decision in NLRB v. Noel Canning; President Obama’s Recess Appointments to NLRB Deemed Unconstitutional
Supreme Court Clarifies that Severance Payments are Taxable
On Tuesday, the U.S. Supreme Court ruled unanimously (Justice Kagan recused herself) in United States v. Quality Stores, Inc., Case No. 12-1408 that severance payments made to employees who were involuntarily terminated are taxable wages under the Federal Insurance Contributions Act (FICA). The decision overturns a previous ruling from the Sixth Circuit Court of Appeals in favor of Quality Stores which was seeking a $1 million tax refund from the IRS based on its claim that severance payments were not covered by FICA.
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Supreme Court Rules That “Donning and Doffing” Protective Gear Subject to Collective Bargaining; Leaves Door Open for Future Claims
On Monday, January 27, 2014, the United States Supreme Court unanimously ruled that a group of unionized steel workers at U.S. Steel Corporation did not need to be compensated for the time they spent “donning and doffing” safety gear before and after work. Justice Antonin Scalia wrote for the majority in Sandifer v. United States Steel Corp., Case No. 12-417 (Jan. 27, 2014), a case he described as requiring the Court to determine the meaning of the phrase “changing clothes” under section 203(o) of the Fair Labor Standards Act (FLSA). Although section 203(o) applies only to employers with collective bargaining agreements, certain aspects of the decision could have broader implications in “hours worked” cases under the FLSA.
Continue Reading Supreme Court Rules That “Donning and Doffing” Protective Gear Subject to Collective Bargaining; Leaves Door Open for Future Claims
U.S. Supreme Court Upholds ERISA Plans’ Modified Statute of Limitations
The U.S. Supreme Court issued a rare unanimous decision earlier this week finding that employee benefit plans can set reasonable time limitations on when a plan participant may bring a lawsuit seeking plan benefits – even when the time limitation is shorter than what would otherwise be permitted under the Employee Retirement Income Security Act of 1974 (ERISA) and analogous state statutes.
In Heimeshoff v. Hartford Life & Accident Ins. Co., Case No. 12-729 (Dec. 16, 2013), Petitioner Julie Heimeshoff, a long-term Wal-Mart executive, began to suffer from a multitude of ailments caused by fibromyalgia. As a result, in August 2005, she filed a claim for disability benefits with the plan administrator for Wal-Mart’s disability plan – Hartford Life & Accident Insurance Co. On December 8, 2005, after considering the medical evidence offered by Ms. Heimeshoff, Hartford denied her claim for failure to provide sufficient proof of loss.
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Pennsylvania Employers Left Wondering How They Are Affected by the Supreme Court’s Decision on DOMA
Last week, the Supreme Court of the United States struck down as unconstitutional a key provision of the Defense of Marriage Act (DOMA) that defined “marriage” for purposes of over 1,100 federal laws as a legal union between a man and a woman. With the Court’s decision, same-sex couples that are legally married under state law are now entitled to the same treatment under federal law as opposite-sex married couples. Chief among the benefits now available to same-sex married couples are equal treatment under the country’s immigration and tax laws and equal rights to participate in its federal health and welfare programs. The Court’s decision striking down DOMA also will have a significant impact on the rights of same-sex married couples under various federal laws relating to employment.
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Supreme Court Issues Two Title VII Decisions Favorable for Employers
At our recent Labor and Employment Law Seminar, we highlighted a number of outstanding legal cases that have the potential to have a significant impact on employer liability. On Monday, the U.S. Supreme Court issued decisions in two closely watched Title VII employment discrimination/retaliation cases. In each case, the Court clarified previously unsettled legal questions in favor of employers.
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