Sign Up
Stay current with GH&R Newsletters. Click here to sign up.
HR Matters
HR Matters - Volume XII, Issue 135
July 24, 2008
Labor & Employment NewsNLRB Upholds Email Non-Solicitation Policy. The National Labor Relations Board ("NLRB") recently reviewed whether an employer could restrict union-related email communications on the employer's email system. Historically, the NLRB has allowed face-to-face and literature-based solicitations on non-working time and in non-working areas, but permitted employers to limit communications that used employer property such as telephones and bulletin boards. The NLRB decided that company email should be treated like other employer-owned communication equipment - i.e., the employer may limit the union's utilization. However, the NLRB also held that the policy must not be discriminatory. Thus, for example, an employer may not permit anti-union solicitations but prohibit pro-union solicitation. Please contact us if you'd like to discuss your company's email policies. Guard Publishing.
Kentucky Supreme Court Reiterates Ban on Punitive Damages, Yet Employer Still Must Pay Compensatory Damages. Controlling Kentucky precedent does not permit punitive damages for actions under the Kentucky Civil Rights Act ("the Act"), but does permit recovery for compensatory damages resulting from emotional distress and humiliation. In a recent age discrimination case under the Act, the state trial jury received incorrect instruction as to punitive damages. Noting that the appellate court's decision (which upheld the verdict) clearly missed precedent, the Kentucky Supreme Court reversed the appellate court. Nonetheless, the Court still allowed the Plaintiff to collect the $50,000 awarded by the trial court for compensatory damages resulting from emotional distress, plus an additional $11,922 for wages lost. Childers Oil Co. v. Adkins, Ky.
Workplace Health & Safety News
BWC Adopts Plan to Address Painful Premiums. The Ohio Bureau of Workers' Compensation (BWC) has adopted the first phase of a long-term plan addressing accuracy and equity in calculating workers' compensation premiums for all Ohio employers. The plan, projected to reduce base rates by as much as 25%, proposes a three year transition to a new rating method and includes reduction in the maximum discount, caps on premium increases for employers affected by discount reduction, caps on increases due to claim history and performance based options for employers, such as deductibles. For information on how this new plan might affect your business, contact us.
Immigration News
I-9 Form Changes, Stays the Same. The U.S. Citizenship and Immigration Services has issued another update of Form I-9, effective June 16, 2008. This update comes just a year after the previous version was revised and put into effect last December. At that time, five documents previously accepted for establishing identity and employment eligibility were eliminated. Because there were no substantial changes to the form or differences in the instructions between the 2007 version and the current drafting, both will be accepted through June 20, 2009. However, previous revisions should not be used. The latest version of the form is available at http://www.uscis.gov/i-9.
Employee Benefits & Executive Compensation News
Claims procedures have been a hot topic in the benefits world this past month. Now would be a good time to review your benefit plan's claims procedures in light of the following two decisions:
Conflict of Interest. In MetLife v. Glenn , the U.S. Supreme Court held that there was an inherent conflict of interest for Metlife, the insurer of an employer's long-term disability plan, to evaluate claims decisions in light of its financial incentive to deny the claims. It further held that this conflict of interest should be taken into account when determining whether the claims fiduciary has abused its discretion. The Court also mentions in this decision that this same conflict would exist when an employer both funds a plan and evaluates the claim. Plan sponsors should review their claims procedures to determine if any potential conflicts of interest are present and take steps to minimize these conflicts.
Denial Letters. In Solien v. Raytheon LTD Plan, the trial court refused to enforce a disability plan's one-year time limit for filing benefit lawsuits because the participant did not receive notice of the time limit in her benefit denial notice. Even though the SPD stated the time limit, the court held that the SPD was not sufficient notice to the participant of the time limit. While this is only one trial court's opinion, you should keep this case in mind when you are preparing any denial letters for your benefit plans.
This Newsletter is a periodic publication of Graydon Head & Ritchey LLP and should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general information purposes only, and you are urged to consult your own advisor concerning your situation and any specific legal question you may have.