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The Paley Rothman Blog

Paley Rothman shares this library of resources with clients and friends of the firm to help them stay ahead of legal and business developments and trends. Here, you will find helpful tips and tools written by our attorneys. The information in the blogs and articles is not a substitute for legal advice and should not be relied on as such. Should you have any questions or want legal advice, please contact the attorney who wrote the blog or article.

Employment Law

Court Finds Restrictive Arbitration Clause Unenforceable

For the many companies that utilize arbitration clauses in their independent contractor agreements or employment agreements, a recent decision from the U.S. District Court for the Eastern District of Virginia serves as an important reminder of the care that must be taken in crafting these provisions. Otherwise, what was meant to provide a cost-savings mechanism for dispute resolution may end up actually increasing litigation expenses significantly. As this case demonstrates, the litigants spent substantial time (and no doubt expense) litigating the enforceability of the arbitration provision even before getting to the merits of the case.

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Employment Law

New Rules Extend FMLA Protections

On Feb. 5, 2013, marking the 20th anniversary of the signing of the Family and Medical Leave Act (FMLA), the Department of Labor issued a long awaited final rule (available here) expanding FMLA protections for military members and their families and airline personnel. The new rule implements the expansion of the FMLA approved by Congress in the National Defense Authorization Act of 2010 and Airline Flight Crew Technical Corrections Act of 2009 (AFCTCA).

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Employment Law

VA Senate Approves Employee Misclassification Force

In January, the Senate of Virginia passed a bill to establish an Employee Misclassification Task Force (see SB879 available here). The task force will be comprised of members of various government agencies and will be responsible for, among other things, developing and recommending a clear definition of “employee,” educating workers and employers about misclassification and how to report misclassification, and considering enforcement mechanisms.

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Employment Law

Court Decision Highlights Value of At-Will Provisions

A recent decision by the Fourth Circuit Court of Appeals overturning a $555,000 jury verdict has reemphasized the importance and effectiveness of including “at-will” language in employee handbooks and other employment documents. The decision in Scott v. Merck & Company, Inc. (found here), may help to reassure wary employers that an at-will provision is still one of their most valuable tools.

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Employment Law

D.C. Rejects Prohibiting Discrimination Based on Arrest

In a move supported by many local business leaders, the District of Columbia City Council on December 4, 2012, rejected a bill to amend the D.C. Human Rights Act to prohibit discrimination in employment, housing and education based on arrest and conviction records. Among other things, the bill (available here), would have prohibited employers from considering an applicant or employee’s arrest or conviction record unless it was directly relevant to the job sought. In rejecting this bill, the council approved a more moderate measure that will encourage employers to hire individuals with criminal records and provide certain ex-offenders with certificates of good standing (available here).

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