Pennsylvania has long been considered an "employment at will" state – meaning that employers and employees may terminate their employment relationship at any time with or without cause or prior notice. However, the number of exceptions to the "at will doctrine" seems to grow every year. The year 2010 was no exception. In Hamovitz v.
Termination
Employee Who is Repeatedly Found Sleeping on the Job Entitled to Unemployment Compensation
The Commonwealth Court of Pennsylvania recently concluded that an employee who was found sleeping on the job four (4) times was entitled to unemployment compensation benefits under the Pennsylvania Unemployment Compensation Law ("Law"). Phila. Parking Auth. v. Unemployment Comp. Bd. of Review, 1 A.3d 956 (Pa. Commw. Ct. 2010) (pdf). Under the…
Third Circuit Distinguishes “Sexual Stereotyping” from “Sexual Orientation” Discrimination
In Prowel v. Wise Business Forms, Inc., the Third Circuit reversed a district court’s granting of summary judgment in favor of an employer on a claim of gender stereotyping discrimination. The claim was brought by an admittedly homosexual employee who alleged he was subject to gender discrimination, retaliation and religious discrimination based on his…
Employment Law implications of Obesity and BMI after the ADA Amendments Act
The ADA Amendments Act re-wrote the definition of disability so that it will likely include obesity-related health conditions and perhaps obesity itself as a protected disability. Before the ADA Amendments, being overweight and even obese was not generally considered a "disability". For example in EEOC v. Watkins Motor Lines, Inc., a court determined that …
Arbitration of Discrimination Claims upheld by U.S. Supreme Court
The United States Supreme Court upheld a provision in a collective-bargaining agreement that clearly and unmistakably requires union members to arbitrate ADEA claims is enforceable as a matter of federal law. Accordingly, there is no legal basis for the Court to strike down an arbitration clause in a collective bargaining agreement, which was freely negotiated by…
Important IRS clarification of COBRA Subsidy Provisions
On March 31, 2009, the IRS issued a notice relating to premium assistance for COBRA continuation coverage under the American Recovery and Reinvestment Act of 2009 (ARRA). Notice 2009-27 contains many helpful clarifications on the following topics:
- INVOLUNTARY TERMINATION
- ASSISTANCE ELIGIBLE INDIVIDUAL
- CALCULATION OF PREMIUM REDUCTION
- COVERAGE ELIGIBLE FOR PREMIUM REDUCTION
- RECAPTURE OF PREMIUM ASSISTANCE
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Time to Re-evaluate Employment Practice Liability Insurance
Employment Practices Liability Insurance (EPLI) can provide valuable protection; particularly, given the predicted rise in employment related legal claims and enhanced government enforcement initiatives. Furthermore, EPLI remains a relative bargain in the continued “soft” insurance market and employers should consider adding or increasing insurance coverage to protect against employment claims. EPLI insurance is somewhat quirky…
New COBRA Model Notice for ARRA Compliance Published by DOL
The Department of Labor Published Model Cobra Notices implementing the provisions of the American Recovery and Reinvestment Act of 2009.
Individuals eligible for the special COBRA election period described above also must receive a notice informing them of this opportunity. This notice must be provided within 60 days following February 17, 2009. Plan administrators must provide…
Employment Discrimination Litigation will Increase in 2009 and Beyond
Business downsizing, a poor job market, and increased government enforcement will dramatically increase employment discrimination lawsuits for the foreseeable future. We got a glimpse of this trend with the Equal Employment Opportunity Commission (EEOC) release of 2009 charge statistics noting a record number of discrimination claims filed last year. The EEOC report shows that 95,000 charges were…
Employers limited in use of Genetic Information
The Genetic Information Nondiscrimination Act of 2008 (GINA) was enacted to curtail the use of genetic history in employment-related areas. GINA includes two titles. Title I, which amends portions of the Employee Retirement Income Security Act (ERISA), the Public Health Service Act, and the Internal Revenue Code, addresses the use of genetic information in health insurance.