Client Alert

ALLOWING MANAGEMENT THE ABILITY TO MANAGE

 

 

Labor and Employment Law Newsletter for Employers  April 2015
Wessels Sherman Annual Power Seminar
-CHICAGO-
Friday, May 1, 2015
  
For all employers from near and far, join Wessels Sherman attorneys on May 1, 2015 in the heart of downtown Chicago!
 
Join Wessels Sherman attorneys and special guest speakers Peter S. Ohr (NLRB) & John C. Hendrickson (EEOC) for a fun-filled day packed with the hottest business topics in 2015. Learn how to weather any employment situation!

Our guest speakers will appear on a panel to provide much needed insight into the "actions and thinking" of two of the most aggressive federal government agencies in dealing with "employee issues." DO NOT MISS THE CHANCE to gather information/insight!

Cost: $200 - First person; $150 - Additional person (same company)   
 
Location: HOLIDAY INN | Chicago Mart Plaza | River North | Chicago, IL
   Early reservation rate: $159 (for registrations made by March 31, 2015)

CREDITS:  This program has been approved by the HR Certification Institute for 6.75 (General) credit towards PHR, SPHR, and GPHR. This course has been approved for 6.75 Illinois MCLE general credit hours, 6.0 hours federal CLE, 5.0 Iowa CLE credit hours and 7.0 Wisconsin CLE credit hours and 6.0 Minnesota CLE credit hours.  6.75 hours of CPE available.
 
James B. Sherman
Supreme Court takes Issue with EEOC Pregnancy Guidelines; Issues its own "Guidance" for Employers on Workplace Pregnancy Accommodations
By: James B. Sherman, Esq. and Phoebe A. Taurick, Esq.

The U.S. Supreme Court has issued its highly anticipated decision on pregnancy discrimination in the workplace.  The case, Y oung v. UPS , involved a worker's claim that her employer unlawfully refused to accommodate her pregnancy-related lifting restrictions while providing light-duty work to other employees who had similar restrictions, unrelated to pregnancy.  Young's claims were bolstered in part by the Equal Employment Opportunity Commission's (EEOC) controversial new guidelines on pregnancy.  Those guidelines, issued just last year while Young's appeal was still pending, stated among other things that employers must offer light-duty work normally reserved solely for employees on workers compensation, as an accommodation to pregnant workers.  By contrast UPS argued successfully in the court below, that employers have the right to create light-duty work for limited business purposes without having to offer it as an accommodation to pregnant workers.  The Supreme Court disagreed with both sides as well as with the EEOC. Instead, the Court adopted a middle-of-the-road approach that resulted in reinstating Young's claims but leaving it to the lower court to determine their merit.  In doing so the Court set new ground rules that balance the rights of pregnant employees with those of employers when it comes to mandating accommodations.
Nancy Joerg Headshot
Nancy E. Joerg

U.S. Supreme Court Approves DOL Interpretive Rules Finding that Mortgage Loan Officers are Entitled to Overtime

By: Nancy E. Joerg, Esq.

 

Banks and financial institutions are certainly not happy about it , but some mortgage loan officers are now legally entitled to overtime. The U.S. Supreme Court unanimously ruled on March 9, 2015  in Perez v. Mortgage Bankers Association, No. 13-1041, that the U.S. Department of Labor ("U.S. DOL") was within its rights when it chose to reclassify mortgage loan officers as non-exempt employees (who are therefore eligible for overtime).

 

The question of whether mortgage loan officers are properly classified as exempt or not exempt from the Fair Labor Standards Act (FLSA) overtime requirements dates back many years, and there has been a lot of confusion ever since. The Perez decision finally settles the controversial classification issue.  

PRIOR COURT RULING HELD THAT DOL WAS REQUIRED TO GO THROUGH FORMAL RULEMAKING PROCESS: The U.S. Supreme Court's decision reverses the 2013 ruling of the U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) which held that the U.S. DOL was required to go through a formal rulemaking process before changing its mind on the mortgage loan officer issue.
              Read more...    
ACA FAQ of the Month:
What is King v. Burwell about, and how will it affect my business?
Peter E. Hansen
By: Peter E. Hansen, Esq.

 

The United States Supreme Court recently heard oral argument in  King v. Burwell, the latest case to attack the ACA. In brief summary,  King addresses whether individuals who purchased coverage through the federally-run health exchanges may continue to receive premium assistance subsidies, given that the ACA explicitly limits premium assistance to those who purchase coverage "through an Exchange  established by the State." 26 USC ? 36B(b)(2)(A). If not, then the federal exchanges - which currently operate in 34 states - can no longer award premium tax credits, and therefore become functionally useless.
There are essentially two possible outcomes here:  (1) the Supreme Court finds in favor of the Government, and the ACA continues in full force; or (2) the Supreme Court finds in favor of the challengers, healthcare.gov eventually stops functioning in 34 states, and the ACA becomes dysfunctional. For whatever it's worth, various news outlets reported that the so-called "liberal" and "conservative" Justices stayed true to form, suggesting that the case will come down to the votes of two Justices - Kennedy and Roberts. Kennedy is typically considered to be the "swing" vote, but it was Roberts who cast the deciding vote to uphold the ACA's individual mandate in  National Federation of Independent Business v. Sebelius.
So where does that leave you and your company?  King may be the most serious challenge that the ACA has faced to this point, and the decision will impact millions of people ... but we do not yet know how. It goes without saying, then, that employers should not ignore the ACA under the assumption that the Supreme Court will strike it down. After all, many people (myself included) believed that the Supreme Court would find the individual mandate unconstitutional in  Sebelius, and we all know how that turned out. We will likely receive a decision in June or July of this year, so stay tuned.

Questions? Suggestion for a future ACA FAQ of the Month? Please contact WS Attorney Peter E. Hansen at (262) 560-9696, or email  [email protected].
In This Issue
FREE ACA WORKSHOP!
Co-sponsored by Wessels Sherman and Clear Insight with speakers attorney Peter Hansen and Jim Lorenz

Friday April 17th, 2015
8 am to 1:30 pm

Dunham Woods Riding Club Wayne, Illinois  

*Breakfast and Lunch Included

 

Click here to register or for more information

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Upcoming Events
For more information or to register for any of the following Wessels Sherman events, please click on the provided hyperlinks below or contact any of our offices.

New Game Changing White Collar Exemption Regulations Proposed by the DOL!
Postponed due to delay of DOL Regulations - still accepting registrations! Check website for updates - Webinar

May 1, 2015 - Seminar | Chicago, IL

Do Your On-line Job Applications, Background Check Policies and Procedures Make You a Target for Class Action Litigation or Government Agency Scrutiny?
May 20, 2015 - Webinar

Probably the most common question that clients ask is: "how can I fire a high-risk employee and not bring a catastrophe down on our company?!" This teleseminar will answer that question. 
June 18, 2015 - Teleseminar

Eye on Labor Report
Get your weekly union updates!
  
Wessels Sherman has always been a leader in providing interested clients with current information on the labor scene in the Upper Midwest and on a national level.
  
In keeping with our firm's committment to these goals and providing our clients with useful information on what unions are doing and what is happening at the National Labor Relations Board (NLRB), we have developed an amazing source of the most current information available - our "Eye On Labor."

View a sample Eye on Labor report.  This report is available to interested clients in a convenient emailed format, each week, for free. Reply to Lisa Narug to start receiving these weekly reports right away... again, absolutely for free.

Reply to: Lisa Narug at [email protected]

About the Client Alert
The attorneys of Wessels Sherman have the superior experience, knowledge and leadership to aggressively represent your business nationwide, including St. Charles, Chicago and Cook County, Illinois; Oconomowoc, Wisconsin; Minneapolis, Minnesota; Davenport, Iowa and the entire Quad Cities area.
  
Editors:
CLIENT ALERT Editor-in-Chief...........Walter J. Liszka
Minnesota..........................................James B. Sherman
Wisconsin..........................................Alan E. Seneczko
Iowa..................................................Joseph H. Laverty
Illinois................................................Nancy E. Joerg
  
WS Client Alert is a complimentary newsletter published periodically for clients and friends of Wessels Sherman. We reserve the right to limit distribution of our materials to representatives of management. The materials in this newsletter have been abridged from a variety of sources and are not necessarily applicable to a particular situation. The contents of this mailing should not be construed as legal advice. State laws vary. Readers should consult with legal counsel before taking any action on matters covered by this mailing.