Showing posts with label Contracts. Show all posts
Showing posts with label Contracts. Show all posts

Monday, November 19, 2012

Discovery in the US Involving French Companies

Judicial cross border litigation and/or international arbitration proceedings reveal two distinct systems: common law systems allow a comprehensive collection and disclosure of all existing documents leading to admissible evidence, while civil law systems—particularly in France — restrict disclosure of evidence to documents that are admissible at trial and produced by the parties themselves. Notably, limitations on United States (US) discovery rules are imposed through the French blocking statute, which intends to protect sovereignty of France as well as its economic and security interests.

A French in-house counsel may be required to advise a company — which may or may not be the subsidiary of a US company — which has been requested to communicate documents and information within the context of a US investigation in a civil or a commercial matter. The in-house counsel will need to clarify the possible choices and risks the company faces when dealing with discovery in France: (i) cooperate with US authorities and be subject to sanctions in France relating to the French blocking statute and/or the data privacy law, or (ii) invoke the French protecting tools to refuse compliance with the US authorities' request, leading to sanctions within the foreign proceedings.

Please see full alert here for more information.

Thursday, November 8, 2012

Healthcare Update, No. 4, November 2012: NLRB Continues To Set Sights On Healthcare Employers

The National Labor Relations Board (NLRB) has continued its aggressive attack on employers in the healthcare industry and nonunion employers generally. With a membership majority that is widely recognized as being pro-union, the NLRB has used a variety of mechanisms to make it easier for unions to challenge well-established employer practices and to organize employees in many industries, with particular emphasis on the rapidly growing healthcare industry. The following is a summary of some of the more significant actions taken by the NLRB in the past year.

Smaller Bargaining Units Recognized

In Specialty Healthcare, the NLRB significantly expanded the ability of a union to organize a smaller unit of employees. Although the NLRB has by regulation defined appropriate bargaining units in the acute-care hospital setting, it overruled a well-established practice of applying those categories to non-acute care facilities.

The decision signals that employers will not be able to challenge a smaller unit by claiming that the employees should be part of a broader unit, unless the employer can prove there is an "overwhelming community of interest" between the union's proposed unit and the excluded employees, to the point where the factors in the community of interest test must "overlap almost completely." This decision requires you carefully analyze the structure of your workforce to attempt to avoid the union's effort to organize only a small portion of your employees.

Social Media Policies Challenged

The NLRB General Counsel has issued three separate memorandums dealing with employer social media policies, the most recent one being issued in May, 2012. Using the general prohibition in Section 7 of the National Labor Relations Act (NLRA), the General Counsel will find unlawful a number of provisions commonly found in employer social media policies. For example, an employer policy prohibiting employees from having online discussions regarding confidential employee or company information would be considered impermissibly vague and overbroad. In addition, a policy that encourages employees to respect privacy and disclose personal information only to those authorized to receive it is also viewed as unlawfully broad.

Generally, to be permissible, a policy would need to expressly recognize that it does not in any way preclude employees from exercising their rights under Section 7 of the Act to discuss issues relating to their employment. On September 7, 2012, in Costco Wholesale Corp., the NLRB adopted the General Counsel's approach in finding that rules contained in a handbook for nonunion employees were unlawful where they included a general prohibition on statements that damage the company's (or any person's) reputation, or the sharing of sensitive information.

Because the NLRB has adopted much of the analysis contained in the General Counsel's memorandums, there is a clear indication that the NLRB will pursue unfair labor practices challenging social media policies. You need to determine whether their current policy might be considered unlawful.

Employment-At-Will Language Found Unlawful

Many employers utilize employee handbooks to effectively communicate with their employees, and virtually all of those handbooks include some type of disclaimer language advising employees of their at-will status. Most also state that changes to such status can only occur by a written statement signed by an appropriate company official.

But in two separate cases earlier this year, the NLRB pursued unfair labor practice charges against employers that utilized that type of at-will provision as being a violation of employees' right to organize under the NLRA. It would appear that the NLRB either wants such disclaimers to be removed from employee handbooks, or to have those statements modified by expressly recognizing the right of employees to join with others to work toward altering the terms or conditions of their employment, including joining a union.

Confidentiality Of Internal Investigations Limited

In Banner Health System, as reported in our September 2012 Labor Letter, the NLRB held that a rule prohibiting employees from discussing an internal investigation was unlawful. In that case, as is a common practice for many employers, while human resources was conducting an internal investigation, employees were asked to maintain the confidentiality of that investigation.

Such requests are commonly aimed at protecting the integrity of the investigation. However, the Board found that the confidentially request violated Section 7 rights to protect discussions between employees concerning terms and conditions of their employment, as well as communications for other mutual aid and protection.

Union Insignia In Patient-Care Areas Protected

In St. John's Health Center, the Board found that a healthcare employer may have a presumptive right to ban union insignia in patient-care areas. But if the ban is selective, and other insignia permitted, then union insignia must also be allowed. In that case, because the hospital allowed employees to wear a ribbon that read "Saint John's mission is safe patient care," it could not prohibit a union ribbon.

Arbitration Clauses Prohibiting Class Claims Jeopardized

Many employers require employees to sign arbitration agreements, that include a waiver of the right to bring class or collective actions against the employer. Such provisions have been approved by the U.S. Supreme Court. However, in D.R. Horton, Inc., the NLRB held that it is unlawful for an employer to require employees to sign such a waiver because it violates their Section 7 rights.

Elections Expedited And Notices Required 

Last year, the NLRB attempted to create a rule that would require more expedited union elections, which would minimize the employer's ability to communicate with employees regarding the negative effects of union representation. The Board also issued a rule that would require all employers, including nonunion employers, to post a notice advising employees of their rights under the NLRA. Both of those proposed rules are currently tied up in court challenges, but the Board is expected to continue to pursue those efforts.

As the foregoing demonstrates, the Board continues to use a very broad interpretation of the NLRA to make it easier for unions to organize employees, particularly in the healthcare setting. Proactive measures need to be considered to address this continuing attack.

For more information contact the author at JKurek@laborlawyers.com or (440)838-8800.

Source: JDsupra

Wednesday, October 31, 2012

Separation Agreements – How to Make Them Work

Employers often utilize separation agreements for departing employees. In the most common situations, employees who are separating receive certain benefits in return for their agreement to release the employer and related parties from all claims relating to their employment. While there are numerous ways to approach such agreements, there are certain issues employers are well advised to consider regardless of the particular circumstances:

Compensation

The agreement should clearly spell out exactly the amount and nature of all compensation the departing employee will receive in return for his/her agreement not to file claims. All wages and benefits to be provided should be specified. All such compensation should be in addition to what the employee is entitled to per employer policy and practice, and the agreement should state that as well. The tax treatment of all compensation provided should be spelled out, as appropriate, as should the timing and method of payment.

Details Relating to Separation

An employer may choose to indicate in an agreement the reasons for the individual’s departure, such as termination, layoff, resignation, and so forth, depending on individual circumstances. It may be beneficial in many circumstances to simply indicate that the individual has separated, or will separate, from employment. The individual’s last date of employment should be included as well.

Release and Waiver of Claims

It is very important that the agreement describe which claims are being released, as well as which entities and/or individuals are being released from such claims. There are various legal requirements for an effective release and waiver of claims, which often can vary by state, so it is very important that employers consult with counsel to ensure releases and waivers will be enforceable. Additionally, to the extent that pending claims of the employee are being dismissed or withdrawn as part of the agreement, that should be specifically described as well.

Confidentiality

If the employer expects the terms of the agreement to be kept confidential, it needs to set forth that obligation explicitly. Details about exactly what is to be kept confidential, as well as any exceptions allowed (such as communications to spouse, financial advisors, and so forth) should also be expressed clearly.

Nondisparagement

Employers may want to include language detailing what employees can and cannot say about their employment and the circumstances of their departure. There can be limitations on what is allowable in this regard, and this is another area that should be discussed with counsel as needed.

Post-Employment Cooperation

The employer may want the ability to assign certain tasks or obtain certain assistance from employees after their employment ends. If so, the terms of such post-employment cooperation should be carefully detailed in the agreement.

References

If the employer is providing the employee with a reference of some sort, that information should be provided. Alternatively, the parties may choose to agree upon what the employer will say if contacted by potential employers of the individual, as well as to whom such employers will be referred.

Dispute Resolution

Separation agreements can lead to subsequent disputes over the terms of the agreement. For example, the parties may argue over alleged breaches of confidentiality or nondisparagement obligations. Parties to separation agreements often agree to have such disputes heard by an arbitrator. Other agreements may provide for such disputes to be heard in a particular court. Regardless of what ultimately is agreed upon, the agreement should be clear on when and how disputes are resolved. Additionally, if the parties agree upon specific remedies to be imposed in the case of particular violations of the agreement, those remedies should be detailed as well. In order to be certain that desired remedies are in fact enforceable, employers should consult with counsel on this topic.

Return of Property

If the employee has any property owned by the employer that the employer wants returned, that issue should be dealt with in the agreement. Employers may seek to have payment of some or all compensation provided for in the agreement contingent on the return of such property.
 
Post-Employment Competition

Employers may have legitimate concerns about former employees engaging in competition or soliciting employees or customers of the employer. This is yet another area where legal requirements must be considered, and employers should consult with counsel about what may and may not be included in such provisions.
Employers should take great care in crafting separation agreements. If done properly, they can provide employers with the security and protection that they are paying for via the compensation being provided.

Source: http://www.jdsupra.com/legalnews/separation-agreements-how-to-make-them-10681/

Court Reinforces Validity of Class Action Waivers and Arbitration Agreements

The California Court of Appeals’ October 16, 2012 decision in Sherf v. Rusnak/Westlake, et al. invalidates a California law prohibiting class action waivers in consumer contracts. Under this ruling, marketers, including online marketers, may use arbitration waivers to compel arbitration and avoid class actions. However, such waivers cannot be hidden within the contract or contain provisions that are overly harsh, one-sided, or oppressive. Therefore, marketers should continue to include fair, clear and conspicuous class action waivers. 

AT&T Mobility LLC v. Concepcion -

In Concepcion, the cellular telephone contract between the parties provided for arbitration of all disputes, but prohibited classwide arbitration. When the cell phone purchasers brought a putative class action alleging false advertising and fraud, the carrier moved to compel arbitration pursuant to the contract. The federal district court and the Court of Appeals for the Ninth Circuit each held that the arbitration provision in the parties’ agreement was unconscionable under California law because it disallowed classwide proceedings.

Please see full article here for more information.


Tuesday, October 30, 2012

Arbitration at the Supreme Court (2011 to 2012 Term)

Originally published in the New York Dispute Resolution Lawyer Newsletter, Fall 2012, Vol. 5, No. 2, on October 29th, 2012.

The U.S. Supreme Court took time out from its momentous work deciding the fate of the health care law and Arizona’s immigration enforcement statute to issue one regular opinion and two per curiam opinions on arbitration during its 2011 term (commencing in October 2011 and extending until June 2012). All three of these opinions are discussed below.

A. Compucredit Corp. v. Greenwood - 

The Supreme Court’s sole regular opinion on arbitration this year was rendered in Compucredit v. Greenwood, 132 S. Ct. 665 (2012). In Compucredit, the Supreme Court reversed a Ninth Circuit decision finding that statutory claims brought under the Credit Repair Organizations Act (“CROA”), 15 U.S.C. § 1679, et seq were non-arbitrable, finding that a no-waiver clause in CROA was not sufficiently specific to demonstrate an intent by Congress to make an exception to the Federal Arbitration Act (“FAA”) presumption in favor of honoring arbitration agreements.

Please see full article here for more information.

Monday, October 29, 2012

Browsewrap Arbitration? Enforcing Arbitration Provisions in Online Terms of Service

Originally published in the New York Dispute Resolution Lawyer Newsletter, Fall 2012, Vol. 5, No. 2 on October 29, 2012

Companies that provide services to consumers have often sought to reduce the risk of class action lawsuits by requiring that their customers agree to arbitrate any disputes. Such arbitration agreements may require customers to arbitrate on an individual basis only, with customers being obligated to waive any rights they might otherwise have to pursue claims through class actions. In recent years, many such arbitration provisions, particularly those that included class action waivers, had been held unenforceable under state law contract doctrine. In April 2011, however, the U.S. Supreme Court held in AT&T Mobility v. Concepcion that the Federal Arbitration Act preempts most state law challenges to class action waivers, including challenges on grounds of unconscionability. How broadly lower courts will interpret the Concepcion decision remains to be seen. For example, on February 1, 2012, the Second Circuit held in In re American Express Merchants’ Litigation that the AT&T decision did not preclude invalidation of an arbitration waiver where the practical effect of enforcement would impede a plaintiff’s ability to vindicate his or her federal statutory rights.

Nonetheless, in the wake of Concepcion, many companies that provide online products or services to consumers are exploring whether to include an arbitration clause and class action waiver in their online Terms of Service. Moreover, it is increasingly common for business-to-business agreements to be documented based on agreements contained in online Terms of Service. Enforceability of online arbitration agreements is thus likely to be an increasingly important issue both in the commercial and consumer contexts.

Please see full article here for more information.