Westlaw Journal EMPLOYMENT Litigation News and Analysis • Legislation • Regulation • Expert Commentary VOLUME 31, ISSUE 3 / AUGUST 30, 2016 INDEPENDENT CONTRACTORS WHAT’S INSIDE AMERICANS WITH U.S. judge rejects Uber’s driver expenses settlement DISABILITIES ACT 9 Teacher can’t reconcile total (Reuters) – A U.S. judge Aug. 18 rejected an attempt by Uber Technologies Inc. to disability benefits with ADA claims, appeals court says settle a class-action lawsuit with drivers who claimed they were employees and Stallings v. Detroit Public entitled to expenses. Schools (6th Cir.) O’Connor et al. v. Uber Technologies Inc. et al., AGE DISCRIMINATION No. 13-cv-3826; Yucesoy et al. v. Uber Technologies 10 Pulitzer Prize-winning Inc. et al., No. 15-cv-262, 2016 WL 4398271 reporter accuses L.A. Times (N.D. Cal. Aug. 18, 2016). of age discrimination Gottlieb v. Los Angeles In a case that has been closely watched in Silicon Times Communications Valley, where many companies use on-demand (Cal. Super. Ct.) workers, U.S. District Judge Edward Chen in San GENDER DISCRIMINATION Francisco ruled the settlement was not fair or adequate for Uber drivers. 11 7th Circuit says Title VII does not apply to gay workers Some drivers had objected to terms of the Hively v. Ivy Tech Community settlement valued at up to $100 million, which REUTERS/Lucy Nicholson College (7th Cir.) The suit said Uber drivers should be deemed employees and reimbursed would have affected roughly 385,000 current and for expenses such as gasoline and vehicle maintenance. An Uber car in former drivers in California and Massachusetts. California is shown here. DISCRIMINATION 12 U.S. judge says funeral home Uber drivers contended in the lawsuit they The proposed settlement would have kept had religious right to fire should be deemed employees and reimbursed drivers classified as independent contractors. transgender worker for expenses such as gasoline and vehicle Several drivers who were part of the class filed EEOC v. R.G. & G.R. Harris maintenance. Those expenses are now borne by objections with the court, particularly because the Funeral Homes (E.D. Mich.) the drivers. CONTINUED ON PAGE 23 COMPUTER CRIME 13 Oregon high court sides with store clerk who used work computer to steal EXPERT ANALYSIS EXPERT ANALYSIS lottery tickets State v. Nascimento (Or.) The new overtime pay California Fair WAGE AND HOUR regulations: How should Employment & Housing 14 Judge denies class for Wells Fargo New York employers prepare? Council considers proposed employees in overtime suit rules to restrict employer Perez v. Wells Fargo & Co. Andrew W. Volin of Sherman & Howard (N.D. Cal.) reviews the Department of Labor’s use of criminal history recent overtime rule changes and NON-COMPETE AGREEMENTS Jennifer Mora of Littler Mendelson discusses best strategies for employers 15 Non-compete unrelated to discusses some recent proposals by the business needs unenforceable, to implement and adjust to them. California Fair Employment & Housing 4th Circuit holds RLM Communications v. Council that will affect how employers Tuschen (4th Cir.) use criminal background checks on SEE PAGE 3 prospective workers. SEE PAGE 6 41917843 TABLE OF CONTENTS Westlaw Journal Employment Published since May 1986 Independent Contractors: O’Connor v. Uber Technologies Director: Mary Ellen Fox U.S. judge rejects Uber’s driver expenses settlement (N.D. Cal.) .....................................................................1 Editors: Tricia Gorman [email protected] Expert Analysis: By Andrew W. Volin, Esq., Sherman & Howard The new overtime pay regulations: How should employers prepare? ............................................................. 3 Amy Grossberg, Esq. Managing Desk Editor: Expert Analysis: By Jennifer Mora, Esq., Littler Mendelson Robert W. McSherry California Fair Employment & Housing Council considers proposed rules to restrict employer use of criminal history .........................................................................................................................................6 Desk Editors: Jennifer McCreary, Katie Pasek, Americans with Disabilities Act: Stallings v. Detroit Public Schools Sydney Pendleton Teacher can’t reconcile total disability benefits with ADA claims, appeals court says (6th Cir.) ....................9 Graphic Designers: Nancy A. Dubin, Ramona Hunter Age Discrimination: Gottlieb v. Los Angeles Times Communications LLC Pulitzer Prize-winning reporter accuses L.A. Times of age discrimination (Cal. Super. Ct.) ........................ 10 Westlaw Journal Employment (ISSN 2155-594X) is published biweekly by Thomson Reuters. Gender Discrimination: Hively v. Ivy Tech Community College 7th Circuit says Title VII does not apply to gay workers (7th Cir.) .....................................................................11 Thomson Reuters 175 Strafford Avenue, Suite 140 Discrimination: EEOC v. R.G. & G.R. Harris Funeral Homes Wayne, PA 19087 U.S. judge says funeral home had religious right to fire transgender worker (E.D. Mich.) ............................12 877-595-0449 Fax: 800-220-1640 Computer Crime: State v. Nascimento www.westlaw.com Oregon high court sides with store clerk who used work computer to steal lottery tickets (Or.) ..................13 Customer service: 800-328-4880 For more information, or to subscribe, Wage and Hour: Perez v. Wells Fargo & Co. please call 800-328-9352 or visit Judge denies class for Wells Fargo New York employees in overtime suit (N.D. 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Labor & Employment Roundup Labor and employment roundup for Aug. 8 – Aug. 19 ....................................................................................19 Thomson Reuters is a commercial publisher Recently Filed Complaints from Westlaw Court Wire .................................................................................21 of content that is general and educational in nature, may not reflect all recent legal Labor and Public Employment News............................................................................................................22 developments and may not apply to the specific facts and circumstances of individual News in Brief ....................................................................................................................................................24 transactions and cases. Users should consult with qualified legal counsel before acting on any information published by Thomson Case and Document Index ..............................................................................................................................25 Reuters online or in print. Thomson Reuters, its affiliates and their editorial staff are not a law firm, do not represent or advise clients in any matter and are not bound by the profes- sional responsibilities and duties of a legal practitioner. 2 | WESTLAW JOURNAL n EMPLOYMENT © 2016 Thomson Reuters EXPERT ANALYSIS The new overtime pay regulations: How should employers prepare? By Andrew W. Volin, Esq. Sherman & Howard The U.S. Department of Labor recently Defense costs are significant as well. In doubled the minimum weekly salary addition, individual liability is possible for threshold under which salaried workers are violations. For all these reasons, FLSA cases eligible for overtime pay when they work are expensive to defend and resolve. more than 40 hours in a week. The regulatory The number of FLSA lawsuits has risen changes to the Fair Labor Standards Act, dramatically in recent years. The DOL’s new 29 U.S.C.A. § 201, will take effect Dec. 1, overtime rules may lead to a further increase so companies should start preparing now. in claims, in light of the increased visibility The current threshold is $455 per week, of the rules and discussion among the or about $24,000 per year. That threshold workforce about compensation. will rise to $913 per week, or about $47,500 annually. BACKGROUND ON THE FLSA Understanding these new rules in context The Fair Labor Standards Act is one of the requires an awareness of wage-and-hour oldest federal statutes impacting employees, litigation. and it covers almost all employers and There are dozens of exempt jobs, but the new regulations impact only what are known as The U.S. Department of Labor recently