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Lawyer to Lawyer Newsletter
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November 2016
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Dedicated to providing fellow lawyers, as well as accountants and other business advisers, with the latest news on the developing law of the workplace, written by nationally recognized lawyers who are committed to representing employers exclusively in matters of labor, employment, immigration and human resources law.
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From the Desk of James B. Sherman:
A federal judge in Sherman, Texas has issued a preliminary
injunction which operates nation-wide to bar the Department of Labor's minimum salary rule for certain white collar exemptions from going into effect. Employers have been
bracing for drastic changes to their pay practices and exempt/non-exempt job classifications due to a DOL regulation finalized
this summer and set to take effect December 1, 2016. This rule more than doubled the minimum salary required to claim certain exemptions from overtime pay. The court's decision to block the rule, issued on November 22nd, came not a moment too soon for thousands of employers facing tough decisions before the rule was to take effect next Thursday.
In a nutshell, the court found that by raising the minimum salary for exempt status to $47,476 was so drastic that it effectively made salary the primary criterion for exempt status, overshadowing the FLSA's intent that overtime exemptions be determined first and foremost by an employee's job duties.
Employers that rushed to give employees raises (in some cases, significant raises) or reclassify them to nonexempt status entitled to overtime pay, well in advance of the rule's effective date, may now be second-guessing their actions. Those employers that were preparing to either hike employees' pay to meet the new minimum salary for exempt status, or reclassify workers to non-exempt status and pay them overtime, no longer have to implement those plans next week as a result of this court decision. The court's injunction is only preliminary in nature and could eventually be lifted; however, given the incoming Trump administration's differences with the outgoing Obama administration, it is now just as likely that the DOL's regulations will never take effect. Still, employers should not assume that there will be no changes forthcoming. Already, legislation has been introduced in Congress that, while less drastic than the DOL's measure, would provide for increases in the minimum salary necessary to certain exemptions from overtime.
With an estimated 4-6 million workers to have been impacted as of December 1st by this now blocked DOL rule, no doubt a large number of employers will be especially thankful this holiday season!
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Wessels Sherman is Pleased to Announce that Allison Wells has Joined our Firm as an Associate Attorney in our Minneapolis, MN Office
Allison Wells comes to Wess
els
Sherman from a highly regarded Twin Cities immigration law firm
, where she focused her practice on representing employers in all aspects of employment-based immigration matters. Her extensive experience includes helping employers throughout much of the country with a broad spectrum of workplace immigration needs, including: EB-1 multinational managers, PERM Labor Certification/I-140, L-1A/B, H-1B, O-1, TN, B-1, H-2, family based petitions, waivers, naturalization, and U Visa. She also works with employers on I-9 and other compliance audits.
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A revised version of the Form I-9 has been approved and has been published by United States Citizenship and Immigration Services (USCIS). Employers can continue to use their current version of the Form I-9 (revision date: 03/08/2013 N) until January 21, 2017
. Beginning January 22, 2017
employers will be required to use the new I-9 Form.
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Wessels Sherman is beginning to process visa applications for the 2017 H-1B and H-2B visa seasons. While many employment-based visas are available year-round, the H-1B and H-2B visa allotments are regularly filled in the spring of each calendar year.
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Already, Penn State University has paid a heavy price (millions of dollars and lost football scholarships, not to mention damage to its reputation) for allegedly sweeping under the rug scandalous conduct of convicted sex offender and former assistant football coach, Jerry Sandusky. However, while Penn State's football team appears to have weathered the storm, the university's problems are far from over. This past month a jury awarded former assistant coach, Mike McQueary, $7.3 million for Penn State's mishandling of his report that he had witnessed Sandusky molesting a young boy in a locker room shower. The results of McQueary's lawsuit could get even worse for the school because his whistleblower retaliation claims will be decided by the judge, separate from and potentially additional to the already huge jury verdict. This case holds some poignant lessons for employers who may be faced with news of serious misconduct by any of their employees, whether it be sex harassment, unlawful discrimination, or criminal activity.
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Webinars Announced for Early January 2017
Emerging Issues in Employment-Based Immigration and National Origin in 2017
When: Thursday,
January 19, 2017
Covering:
New USCIS rules for immigrant and non-immigrant visas and work authorizations. Using the new I-9 forms. New EEOC guidance on National Origin (and Religious) Harassment and discrimination in the workplace.
Presenters: Attorneys James B. Sherman and Allison E. K. Wells
Cost: $75
Handling Non-Performing Employees
When: Thursday, February 2, 2017
Covering: How to effectively correct or discipline/discharge non-performing employees in the highly regulated context of the FMLA
, ADA
, WC
Presenter: Attorney James B. Sherman
Cost: $75
CLE and CPE credits will be applied for.
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SAVE THE DATE
Each year, Wessels Sherman hosts a full-day seminar where attorneys from our offices in Chicago, IL; Minneapolis, MN; Milwaukee, WI; and Davenport, IA, come together in one of our locations, to present on many of the most important workplace issues faced by employers around the country. In 2017, the location will be here, in Minneapolis. Mark your calendars now to attend this one-of-a-kind event to hear from our highly experienced attorneys - and guest speakers - from across the Midwest, on cutting edge HR, labor and employment topics
WHEN: Friday, April 28
th, 2017
WHERE: Radisson Blu, Mall of America
WHAT: Lots of valuable information presented in a fun/lively fashion!
WHY: Because it's valuable information, presented in a fun/lively fashion, at a very reasonable cost!
CLE and CPE credits will be applied for.
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About Us
We regularly work with other lawyers, accountants and business advisers as a trusted resource for their clients, whether as co-counsel, local counsel (from any of our 5 offices in MN, WI, IL or IA), or referrals in our concentrated area of practice. Your client relationships as a referring professional are highly respected. Our goal is to provide your clients with exceptional and cost conscious representation in our concentrated area of practice.
Sincerely,
James B. Sherman, Esq.
Wessels Sherman
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Contact James Sherman at:
(952) 746-1700
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