The U.S. Court of Appeals for the Second Circuit (which oversees Connecticut, New York, and Vermont) recently issued a decision that could make it meaningfully easier for employers to defend workplace dress code and uniform policies against unfair labor practice challenges under the National Labor Relations Act (NLRA). The court rejected the National Labor Relations Board’s (NLRB or Board) current framework — established in its 2022 decision in Tesla, Inc. — for evaluating employer policies that restrict employees’ ability to display union insignia, buttons, or messaging at work, and remanded the case for the Board to apply a different standard.
Continue Reading Second Circuit Rejects NLRB’s Tesla Dress Code Test: What the Starbucks Reserve Roastery Ruling Means for Employer Uniform Policies Under the NLRAHow the State Department’s Immigrant Visa Appointment Pause Affects Employers and HR Teams
I recently authored an article for HR.com discussing the U.S. Department of State’s indefinite pause on immigrant visa appointments and what it means for employers and HR teams. The pause affects individuals pursuing U.S. permanent residence through consular processing abroad, while temporary nonimmigrant visas and adjustment of status applications handled by USCIS within the United States remain unaffected.
Continue Reading How the State Department’s Immigrant Visa Appointment Pause Affects Employers and HR TeamsFalse Claims Act Enforcement and Employment Practices: What Federal Contractors Need to Know
In my recent interview with Federal News Network, I discussed the Department of Justice’s increasing use of the False Claims Act (FCA) to pursue allegations related to employment practices at federal contractors and what recent enforcement activity means for organizations that receive federal contract and grant funding. We explored recent settlements involving major government contractors and the broader implications for compliance and risk management.
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Continue Reading False Claims Act Enforcement and Employment Practices: What Federal Contractors Need to KnowRegister Now: The Evolving Workplace: No Longer Business as Usual Webinar
Please join Bass, Berry & Sims labor and employment attorneys for an engaging and practical seminar discussing recent legal developments, workplace trends, and emerging technologies that are reshaping today’s workplace.
Continue Reading Register Now: The Evolving Workplace: No Longer Business as Usual WebinarStarbucks Settlement Adds to Growing Scrutiny of Corporate DEI Programs
On September 17, Florida Attorney General James Uthmeier announced that Starbucks agreed to pay $1 million and undertake several commitments to resolve a lawsuit alleging that Starbucks engaged in employment practices that violated the Florida Civil Rights Act through race- and sex-based goals, quotas, and preferences. The settlement comes amid increased federal enforcement involving similar practices, including recent FCA settlements involving federal contractors Accenture, Deloitte, and IBM.
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Continue Reading Starbucks Settlement Adds to Growing Scrutiny of Corporate DEI ProgramsDOJ Continues DEI False Claims Act Enforcement with $25 Million Accenture Settlement
On September 14, the U.S. Department of Justice (DOJ) announced that Accenture Federal Services (AFS), Accenture plc, and Accenture LLP (collectively, Accenture or AFS) agreed to pay $25 million to resolve allegations that AFS violated the False Claims Act (FCA) by falsely certifying compliance with anti-discrimination requirements in its federal contracts while engaging in employment practices that allegedly discriminated based on race or sex. Of the $25 million settlement, approximately $11.6 million constitutes restitution, and Accenture denies that it engaged in the alleged conduct.
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Continue Reading DOJ Continues DEI False Claims Act Enforcement with $25 Million Accenture SettlementTobacco Surcharge Claims Up in Smoke? DOL, HHS, and Treasury Issue FAQ 74: Addressing Questions Raised by Tobacco Surcharge Lawsuits
On August 26, the U.S. Departments of Labor, Health and Human Services, and the Treasury (the Tri-Agencies) jointly issued FAQ Part 74, new guidance addressing HIPAA wellness program rules under the Affordable Care Act (ACA). The guidance responds directly to questions raised by the wave of class action lawsuits challenging tobacco surcharges that some employers impose through workplace wellness programs and clearly states that employers are not required to offer retroactive rewards or removal of penalties where participants complete a reasonable alternative standard in the middle of a plan year under a properly designed wellness program.
Continue Reading Tobacco Surcharge Claims Up in Smoke? DOL, HHS, and Treasury Issue FAQ 74: Addressing Questions Raised by Tobacco Surcharge Lawsuits
Deloitte DEI Settlement Highlights False Claims Act Risk at Both Federal and State Levels
The U.S. Department of Justice (DOJ) announced on August 25 that Deloitte has agreed to pay $21.5 million to resolve allegations that certain diversity, equity, and inclusion (DEI) practices discriminated against employees and applicants based on race or sex and caused the company to submit false claims for payment under federal contracts. The settlement is the latest enforcement action under DOJ’s Civil Rights Fraud Initiative and follows an April settlement in which IBM agreed to pay approximately $17 million to resolve similar allegations.
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Continue Reading Deloitte DEI Settlement Highlights False Claims Act Risk at Both Federal and State LevelsNLRB Gains 3-1 Republican Majority, Setting Stage for Major Policy Shifts
On August 7, James Macy, a Republican, was confirmed by the Senate to become the third Republican member of the National Labor Relations Board (NLRB or Board). David Prouty, a Democrat, was recently re-appointed by President Trump and was confirmed for another stint on the Board as well. Upon swearing in, Macy will bring the NLRB to four members (three Republicans, one Democrat), further cementing the Trump-backed Republican control.
Continue Reading NLRB Gains 3-1 Republican Majority, Setting Stage for Major Policy ShiftsFederal Appeals Court Strikes Down NLRB’s Successor Bar, Changing Labor Analysis for Business Acquisitions
The U.S. Court of Appeals for the D.C. Circuit has invalidated the National Labor Relations Board’s (NLRB or Board) “successor bar,” which required certain buyers of unionized businesses to recognize and bargain with the incumbent union for up to one year and prohibited the employer from unilaterally withdrawing recognition based on a claimed loss of majority support.
Continue Reading Federal Appeals Court Strikes Down NLRB’s Successor Bar, Changing Labor Analysis for Business Acquisitions