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Compensation & Benefits

Fired after bankruptcy, Mervyn’s workers file WARN suit

01/15/2009

Three former Mervyn’s employees recently filed a lawsuit against the bankrupt department store company for violating the federal WARN Act when it suddenly fired hundreds of workers last year.

Remember to recalculate overtime after bonus

01/15/2009

If, like many employers, you rely on a bonus plan to help retain valued employees and motivate them to work hard, don’t get caught in this common trap: Employees who worked overtime during the bonus-earning period will be entitled to additional overtime pay after they get their bonuses.

Don’t assume privacy clause guarantees privacy

01/15/2009

Some employers include a privacy clause in their applications and handbooks that tells employees they can opt out of having their names and addresses released to third parties. However, if a worker who is suing for wage-and-hour violations wants to get his hands on employee names and contact information for the purpose of building a class-action case, those privacy clauses can’t stop it.

Maritime arbitration agreements enforceable, trump California law

01/15/2009

The 9th Circuit Court of Appeals had ruled that cruise lines and the unions who negotiate labor contracts on behalf of the “seamen” who work on cruise ships can agree that all disputes go to arbitration, and that employment contracts that include arbitration clauses are enforceable.

Insurance claims adjusters may be exempt under California law

01/15/2009

Claims adjusters may be exempt from overtime under the California Industrial Welfare Commission Wage Order No. 4. Reason: They’re administrative employees.

San Francisco officers propose age discrimination class action

01/15/2009

A group of police officers recently filed suit against the city and county of San Francisco, claiming the police department has repeatedly promoted and given raises to younger employees instead of to more experienced, older officers.

Pharmacist says $2.9 billion will cure CVS wage violations

01/15/2009

A pharmacist formerly employed by Longs Drug Stores recently filed a class-action lawsuit demanding $2.9 billion from CVS Caremark Corp., which purchased Longs in October. According to Charles Jones, who worked as a pharmacy manager and pharmacist at a San Diego Longs, the store violated wage-reporting laws for its nonexempt employees.

UnitedHealth settles stock scheme lawsuit for $895 million

01/13/2009

Minnetonka-based UnitedHealth Group has agreed to pay $895 million to settle a lawsuit alleging the health insurance company gave executives backdated stocks, a compensation scheme that lined the execs’ pockets but caused losses for investors.

Can we forbid employees from sharing how much of a bonus they received?

01/13/2009

Q. My company asks employees who receive raises or discretionary bonuses not to discuss them with other employees. An employee recently took issue with this request and told me the company’s practice is illegal. Is that true?

Must we reinstate health insurance that lapsed while employee was on FMLA leave?

01/13/2009

Q. Our company allowed an employee’s health insurance to lapse because he failed to pay his share of the premium while on FMLA leave. The employee is scheduled to return to work in two weeks. What is the company required to do about the employee’s health insurance coverage when he returns?