On July 22, 2008, the California Court of Appeal issued a published decision in Brinker Restaurant Corporation v. Superior Court of San Diego County, holding that while California employers must make timely meal periods available to employees and may not impede, discourage or dissuade employees from taking meal periods, employers are not obligated to police their workforce to ensure that employees take meal periods.
Client Alert | July 25, 2008
In a widely reported decision, Quon v. Arch Wireless Operating and Co., the U.S. Ninth Circuit Court of Appeals recently addressed issues of importance to employers concerning privacy and electronic communications.
Client Alert | July 10, 2008
This spring, Washington, D.C. became the second municipality in the country to require employers to provide paid sick leave for employees.
Client Alert | June 30, 2008
Last week, the Department of Justice published proposed regulations that could significantly alter the obligations of movie theaters, retailers, and other places of "public accommodation" under the Americans with Disabilities Act ("ADA").
Client Alert | June 27, 2008
The "good faith" transition period for compliance with Section 409A of the Internal Revenue Code expires on December 31, 2008, and the final Section 409A regulations become fully effective on January 1, 2009.
Client Alert | June 26, 2008
Today, the Supreme Court issued two important opinions interpreting the Age Discrimination in Employment Act (“ADEA”). In Meacham v. Knolls Atomic Power Laboratory, aka KAPL, Inc., et al., the Supreme Court resolved an emerging split among the U.S.
Client Alert | June 19, 2008
BNA's Occupational Safety & Health Reporter featured Baruch Fellner for his accomplishments and expertise in the area of OSHA regulation and enforcement.
Client Alert | June 12, 2008
On June 9, 2008, the President amended Executive Order 12989 to require federal government contractors to "agree to use an electronic employment eligibility verification system designated by the Secretary of Homeland Security"--the "E-Verify" system.
Client Alert | June 11, 2008
Welcome to the second Quarterly Executive Summary of 2008, in which we highlight key developments in UK Employment and Labour Law over the first quarter of 2008. We would first of all like to take this opportunity to welcome a new attorney to Gibson Dunn's London Employment & Labour law department.
Client Alert | May 15, 2008
Partners Eugene Scalia and James Cox are authors of "Out with the Old: Two major age discrimination cases are set to be heard in the US Supreme Court" [PDF] which first appeared in Legal Week on April 17, 2008 in its US Focus feature.
Article | April 17, 2008
The Supreme Court's decision last week in LaRue v. DeWolff, Boberg & Associates, No. 06-856, slip op. (U.S. 2008), addressed the first of several issues that have divided the courts in ERISA "stock drop" cases, which concern losses to company 401(k) plans resulting from downturns in the company's stock.The defendant employer in the case, DeWolff, maintained a 401(k) plan in which plaintiff LaRue had been a participant.
Client Alert | February 25, 2008
In reliance on the IRS's view as expressed in private letter rulings in 1999 and 2006, many public companies have taken the position that amounts can qualify as “performance-based compensation” under section 162(m) of the Internal Revenue Code if the amounts are payable in connection with an executive’s termination of employment without “cause” or for “good reason” regardless of whether the performance goals have been satisfied. However, in a controversial private letter ruling issued in late January, the IRS reversed its longstanding position that such provisions are permissible in performance-based arrangements, thereby calling into question deductions that many companies have taken in prior years and the attendant financial reporting, as well as the deductibility of
Client Alert | February 22, 2008
Welcome to the latest Quarterly Executive Summary, in which we highlight key developments in UK Employment and Labour Law over the last quarter of 2007 and look forward to key developments in 2008. A headline summary of cases and developments is provided below.
Client Alert | January 31, 2008
On December 3 the Internal Revenue Service issued Notice 2007-100, which provides a limited voluntary correction program for certain operational violations of Section 409A of the Internal Revenue Code.
Client Alert | December 5, 2007
As another year comes to a close, employers must take a number of actions to (i) address Section 409A of the Internal Revenue Code for deferred compensation plans, (ii) comply with the Labor Department's "qualified default investment alternative" ("QDIA") fiduciary safe harbor for defined contribution retirement plans, and (iii) begin operating their qualified retirement plans in compliance with new rules that become effective on January 1, 2008.
Client Alert | December 4, 2007
On October 23, the Labor Department issued final regulations setting forth the standards applicable to qualified default investment alternatives ("QDIAs").
Client Alert | October 24, 2007
On October 22, the IRS issued Notice 2007-86, which extends to December 31, 2008 most of the transition relief under Section 409A of the Internal Revenue Code.
Client Alert | October 23, 2007
On October 18, the IRS released the inflation-adjusted limitations applicable to tax-qualified retirement plans for 2008. The increases are pursuant to inflation adjustment factors included in the applicable sections of the Internal Revenue Code. The limits are adjusted only in specified increments and, as a result, some of the key limits are unchanged from 2007.The key 2008 limits are as follows: Limitation 2008 Limit 2007 Limit 402(g) Limit on Employee Elective Deferrals (Note: This is relevant for "401(k)," "403(b)" and "457" plans.)$15,500 (unchanged)$15,500414(v) Limit on "Catch-Up Contributions" for Employees Age 50 and Older (Note: This is relevant for "401(k)," "403(b)" and "457" pl
Client Alert | October 19, 2007
Welcome to the third Quarterly Executive Summary of 2007, in which we highlight key developments in UK Employment and Labour Law over the past three months. A headline summary of cases and developments is provided below.
Client Alert | October 17, 2007
On September 10, the IRS issued Notice 2007-78, which provides limited relief from the December 31, 2007 deadline to amend arrangements subject to Section 409A of the Internal Revenue Code.
Client Alert | September 11, 2007
On July 20, the Delaware Chancery Court issued an important decision awarding damages to holders of "out-of-the-money" stock options that were cancelled in connection with a corporate merger.
Client Alert | August 15, 2007
Welcome to the second Quarterly Executive Summary of 2007, in which we highlight key developments in UK Employment and Labour Law over the past three months. A headline summary of cases and developments is provided below.
Client Alert | July 18, 2007
The Work and Families Act (WFA), which received Royal Assent in the UK on 21 June, 2006, has been the subject of considerable speculation and debate since the Department of Trade and Industry (DTI) outlined a range of proposals promoting family-friendly policies and practices at work in its February 2005 consultation paper.
Client Alert | June 27, 2007
Washington, D.C. Partner Baruch Fellner and Associate Michael Billok are the authors of "Scrutinizing Workplace Fatalities" [PDF] published in the National Law Journal on May 21, 2007. The article analyzes how companies familiar with OSHA procedures can assist in an investigation and reduce liability risk. Reprinted with permission, The National Law Journal, © 2007 ALM Properties, Inc
Client Alert | May 21, 2007
On April 10, the IRS issued final regulations interpreting the rules and standards under Section 409A of the Internal Revenue Code ("Section 409A"). Our client memorandum of April 11 summarizes key provisions of the regulations. Section 409A provides various rules that "deferred compensation" must satisfy in order to avoid unfavorable tax treatment of employees, directors and other service providers, including immediate income tax, a 20% penalty tax, and an interest charge. In addition, some states (including California) have implemented similar rules, and deferred compensation payments that do not comply with Section 409A can be taxed at marginal rates exceeding 75%.The sweep of Section 409A is extremely broad, and reaches far beyond traditional nonqu
Client Alert | April 26, 2007
On April 5, the IRS issued final regulations under Section 415 of the Internal Revenue Code (“Code”). Section 415(c) of the Code generally limits the amount of annual contributions to a tax-qualified defined contribution plan on behalf of a participant to the lesser of 100% of compensation or $40,000 (adjusted for inflation; currently $45,000).
Client Alert | April 16, 2007
On April 10, the IRS issued long-awaited and often-delayed final regulations ("Regulations") interpreting the deferred compensation rules under Section 409A of the Internal Revenue Code ("Section 409A").
Client Alert | April 11, 2007
Welcome to the first Quarterly Executive Summary of 2007, in which we highlight key developments in UK Labour and Employment Law over the past three months.A headline summary of cases and developments is provided below.
Client Alert | April 4, 2007
On March 1, 2007 by a vote of 241 - 185, the House passed the proposed "Employee Free Choice Act" (H.R. 800). H.R. 800 has been put forward by the unions who express frustration with strong management campaigns against unionization and lengthy delays in obtaining first union contracts after union recognition.
Client Alert | March 14, 2007
On February 8, the IRS Released Announcement 2007-18. Pursuant to the Announcement, employers may take advantage of a special settlement program (the "Program") to address the payment of additional taxes arising under Section 409A of the Internal Revenue Code as a result of an employee's exercise of a "discount" stock option or stock appreciation right in 2006.
Client Alert | February 9, 2007
A recent decision of the U.S. Court of Appeals for the Fifth Circuit has addressed one of the most important issues in the recent wave of ERISA fiduciary breach “stock drop” litigation.
Client Alert | February 5, 2007
The U.S. Court of Appeals for the Fourth Circuit this week struck down Maryland's controversial "Fair Share Health Care Fund Act," popularly known as the "anti-Wal-Mart law." Affirming a ruling by the federal district court in Maryland, the Fourth Circuit ruled that health-benefits mandates like the Maryland Act are preempted by the federal Employee Retirement Income Security Act (ERISA).Gibson Dunn represented the plaintiff trade group, the Retail Industry Leaders Association (RILA), in both the district court and the court of appeals.
Client Alert | January 19, 2007
On January 17, the Senate Finance Committee unanimously approved the Small Business and Work Opportunity Act of 2007 (the "Act"). The Act includes a number of tax breaks for small businesses in connection with the proposed increase in the minimum wage.
Client Alert | January 18, 2007
2006 has seen significant developments in UK labour and employment law with more to come in 2007. In this Briefing we will look back over some of the highlights of 2006.
Client Alert | January 5, 2007
2006 saw significant developments in UK labour and employment law with more expected to come in 2007. Copies of our Client Briefing concerning UK Labour and Employment Law Highlights of 2006 are available upon request.
Client Alert | January 5, 2007
On September 12, 2006, the Governor of California signed legislation raising the minimum wage for workers in all industries from the current rate of $6.75 per hour to $7.50 per hour effective January 1, 2007, and $8.00 per hour effective January 1, 2008.
Client Alert | December 14, 2006
As another year comes to a close, employers must take a number of actions to (i) address Section 409A of the Internal Revenue Code, (ii) amend their tax-qualified retirement plans to reflect certain rules that became effective in 2006, and (iii) begin operating their plans in compliance with new rules that become effective on January 1, 2007.
Client Alert | December 7, 2006
With its recent decision in Alex Sheshunoff Management Services, L.P. v. Johnson, the Texas Supreme Court has modified the standard for enforceability of covenants not to compete in the context of at-will employment arrangements.
Client Alert | October 30, 2006
In an appeal handled by Gibson, Dunn & Crutcher LLP, the Ninth Circuit yesterday reversed a $52.5 million judgment awarded to Farmers Insurance Exchange claims adjusters who alleged that they had been misclassified as exempt and denied overtime.
Client Alert | October 27, 2006
In one of the most important Sarbanes-Oxley " "whistleblower" decisions to date, the Department of Labor's Administrative Review Board ("ARB," or "Board") has reversed the decision of an Administrative Law Judge and ruled that FLYi, Inc.
Client Alert | October 5, 2006
On October 1st, 2006 the Employment Equality (Age) Regulations 2006 (the "Age Regulations") came into force.
Client Alert | October 5, 2006
On October 4, the IRS issued long-expected guidance extending the transition relief under Section 409A of the Internal Revenue Code (the "Code"). As described below, subject to an exception for certain "in the money" stock options granted to Section 16 officers and directors of publicly-traded companies, Notice 2006-79 generally extends the key transition rules through December 31, 2007.Effective Date/Good Faith Reliance.
Client Alert | October 5, 2006
A wave of putative class action lawsuits were filed last week against sponsors of 401(k) plans and other defined contribution retirement plans. The lawsuits were filed in federal courts throughout the country against some of the largest and best known companies in the U.S.
Client Alert | September 28, 2006
The Congress has passed major pension legislation, the "Pension Protection Act of 2006" (the "Act"), which President Bush has promised to sign into law. We describe below some of the most important changes the Act makes and attach a detailed chart [PDF] summarizing many of the key benefits provisions of the Act. In addition, a Gibson Dunn update is available on certain changes affecting investment funds.Funding of Defined Benefit Plans. The Act significantly changes the defined benefit plan funding rules, generally effective for plan years beginning in 2008. Plan sponsors may want to discuss these changes with their actuaries and consider whether additional contributions should be made before 2008. In particular, plans that are “at risk�
Client Alert | August 8, 2006
On July 7, 2006 the German General Equal Treatment Act (Allgemeines Gleichbehandlungsgesetz) (hereinafter the "Act"), which mainly relates to discrimination in the context of professional life, was adopted by the German parliament.
Client Alert | July 20, 2006
Two recent court decisions make important contributions to the developing caselaw on the obligation that ERISA fiduciaries may have to remove company stock from employee benefits plans when the stock is declining in value. In Summers v. State Street Bank & Trust Co., Nos.
Client Alert | July 7, 2006
On June 22, 2006 the Supreme Court resolved a significant rift among lower courts and established broad protection for employees claiming retaliation based on complaints of workplace discrimination.
Client Alert | June 23, 2006
The Supreme Court’s decision yesterday regarding the First Amendment rights of government employee “whistleblowers” may also have important implications for whistleblower litigation involving private employers, including litigation under the whistleblower protection provision of the Sarbanes-Oxley Act. In Garcetti v. Ceballos, the Supreme Court ruled 5-4 that statements made by public employees in the course of performing their official job duties are not protected by the First Amendment and may be the basis for discipline by the employer.
Client Alert | May 31, 2006
Federal regulations mandate that covered federal contractors and subcontractors collect information about the gender, race and ethnicity of "applicants" for employment.
Client Alert | December 12, 2005
December 2005Denver partner Jessica Brown is the author of "Employee Blogging: What Employers Don't Know Could Hurt Them," [PDF] published in the December 2005 issue of Law Journal Newsletters - Law Firm Partnership & Benefits Report.Reprinted with permission, December 2005 edition of Law Journal Newsletters - Law Firm Partnership & Benefits Report, © 2005 ALM Properties, Inc.
Client Alert | December 7, 2005