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7 Severance Structuring Tips for Tax-Exempt Colleges and Universities

In-house counsel and human resources professionals at tax-exempt colleges and universities often face a variety of challenges when structuring, and determining obligations due under, severance arrangements. There are some key considerations to bear in mind, which are outlined in this article.

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Capital Perspective: An Analysis of Hot Topics in Benefits and Compensation

With the uncertainty of the general election just one year away—and change on the horizon—now is the time to take stock of the legal and regulatory environment to prepare your organization for the future.

On September 10 in Boston, the ERISA Industry Committee (ERIC), Fidelity and McDermott invite you to join your peers and colleagues for breakfast and an interactive discussion at 8 am EDT around hot topics in benefits and compensation. Areas of focus will include:

  • Congressional action on healthcare—from Rx costs to surprise billing
  • Direct contracting for health plans
  • Federal and state paid leave
  • Lasting impacts of tax reform
  • New leveraged ESPP funding alternative
  • Student loan repayment plans
  • The SECURE Act and what comes next

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3 Aspects of Executive Agreements that Need an Upgrade

Executives are no longer reluctant to lawyer up. News reports on executive/employer contretemps at Papa John’s, Barnes & Noble, Uber and other companies have drawn press attention in the past year; countless other executive/employer disputes have flown below radar.

Underlying these controversies is the executive’s employment agreement, typically the most high-stakes and closely negotiated employment agreements to which companies will contract. Yet, these agreements often contain less clarity and less certainty than either executives or their employers need. Indeed, there appear to be three areas where these contracts could and should be upgraded. Let’s look at each.

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Originally published by Law360, February 2019.




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Buyers’ Immunity Under Employment Law Is a Myth

There are three focal points in every successorship case: (1) notice to the purchaser; (2) continuity of the business; and (3) the ability of the seller to provide relief.

Reading the tripartite test for successor liability, it is enticing to conclude that a deal is safe. This is what the Greeks called hubris. Remember Oedipus, who also thought he could escape the prophecy of his fate? Even when it appears one of those factors ought to result in a buyer escaping successorship liability, any reading of those factors needs to be grounded in the case law because it sweeps more than a literal reading of those tripartite factors might suggest.

Even a quick look at the case law reveals the magnitude of the doctrine’s scope.

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Originally published by Law360, July 2019.




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Family Ties: Connecticut Passes Paid Family and Medical Leave

Connecticut enacted a paid family and medical leave law, which provides paid leave to eligible employees and expand allowable reasons for such leave. This Connecticut statute closely tracks Massachusetts’s parallel statute and appears to be among the most generous paid family leave laws in the country. All private sector employers (and their employees who work in Connecticut) are covered.

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The Art of Using Preemption to Defend Wage-and-Hour Cases

Preemption technically means situations where federal law displaces state law: a function of the supremacy clause of the US Constitution. Often, lawyers speak of preemption even where it is one federal law displacing another or one state law displacing another. When statutory laws abut or overlap like tectonic plates, which should apply?

As large-scale cases proliferate under federal and state wage-and-hour laws, there is more and more reason to study plate tectonics for potential defenses. Thinking about preemption requires looking beyond the intricacies of the case at hand to broader issues of public policy; applying preemption as a defense requires thinking about more than the statute alleged in the complaint.

Finding preemption, like throwing the Eephus pitch, is an arcane but game-winning skill. Learn how to find it in this article from Michael Giambona.

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Originally published by Law360, April 2019.




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Dallas Implements Paid Sick Leave Law: What You Need to Know

The City of Dallas recently passed an ordinance requiring employers to provide paid sick leave to workers. Starting August 1, 2019, employers with more than five employees who perform at least 80 hours of work in a year in Dallas should be prepared to comply with the new ordinance.

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UK Employment Rate and Compensation Increases Now in Effect

In case you have been distracted by other recent events in the UK, here is a reminder that the compensation limits on Employment Tribunal awards and certain other amounts payable under UK employment legislation increased as of the first week of April 2019.

This alert sets out the changes in full and highlights important consequences for employers.

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Emerging Trends Alert | Filling in the Gaps: Pay Equity

In a presentation at McDermott’s Employment and Employee Benefits Forum, our lawyers discuss the patchwork of state and local laws surrounding pay equity for similarly situated employees doing the same job. Particularly in California, new developments have emerged further clarifying pay equity laws. For best practices, they recommend:

  • Establishing compensation ranges across substantially similar jobs
  • Taking into account job-related factors when establishing and evaluating employee compensation
  • Conducting pay equity analysis under privilege
  • Performing a thoughtful time analysis and remedial action

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