Labor and Employment

In a nutshell

Labor and employment law governs the workplace and the relationships between employers and employees; managers and unions; and employers and the government. BigLaw firms tend to represent employers.

Employment work involves both litigation and counseling. The former tackles claims of discrimination, including age, disability, national origin, race, religion, whistle-blower/retaliation, sex and sexual harassment. Such claims are brought by individuals or administrative agencies like the US Equal Employment Opportunity Commission (EEOC). Other common disputes concern unpaid overtime ('wage and hour' claims) under the Fair Labor Standards Act (FLSA), and claims relating to the Family and Medical Leave Act (FMLA), both of which may be filed with the US Department of Labor (DOL).

Lawyers who offer employment counseling advise on compliance with various employment laws. This involves advising on clients’ wholesale employment policies and practices, as well as on 'difficult situations', be they sexual harassment complaints or reductions in force. They will often advise on the employment aspects of business transactions like M&A or restructurings. Attorneys will either provide both litigation and counseling advice, or specialize in one discipline.

BigLaw labor lawyers commonly advise management on union matters governed by the National Labor Relations Act (NLRA), which is administered by the National Labor Relations Board (NLRB). They have expertise in collective bargaining, union and strike avoidance, and strike breaking. They will also advise on Occupational Safety and Health Act (OSHA) matters, which the DOL (via the Occupational Safety and Health Administration) enforces. Labor attorneys may also engage in litigation of NLRA and OSHA disputes.

Employee Benefits, Executive Compensation & ERISA 

Many firms have a distinct practice focused on executive compensation, employee benefits and ERISA work. For the uninitiated, ERISA is the Employee Retirement Income Security Act of 1974 – the federal statutory framework that governs the administration of employee benefit plans and the rights of the beneficiaries. Kyoko Takahashi Lin, partner at Davis Polk, tells us: “The work we do is really about people: how do you motivate them? How do you get them to be incentivized and work hard and do the right thing and treat employees well? That is what we are trying to advise companies on.” There is much, much more to this specialization, however.

What lawyers do

Employment litigation

  • Receive notice of a charge or complaint filed with the EEOC or DOL, respectively.
  • Advise client on how to respond to the EEOC, DOL or other government investigations.
  • Negotiate with the agencies, work with them in investigations, and try to come to settlement in appropriate cases.
  • If a class action, oppose class certification.
  • If no settlement can be reached, begin discovery – paper and electronic. Settlement can occur at any stage of a case.
  • Provided the case is not settled, standard litigation will commence.

Employment counseling

  • Review and draft employment contracts and policy documents.
  • Advise client on the steps to take when problems arise.
  • Keep client abreast of new changes to laws and regulations, often by way of newsletters or seminars.
  • Advise on the employment implications of business transactions.
  • Focus on minimizing risk for the client, by instilling a proactive and preventive approach. 

Labor relations

  • Act as a liaison between management and unions.
  • Lead negotiations between the different sides.
  • Litigate cases before the NLRB and in federal courts.

 

 

Realities of the job

  • Only a small percentage of cases filed in the courts are putative class actions. Most are wage and hour or discrimination cases.
  • Cases are heard in state and federal courts, as well as before administrative and regulatory boards.
  • Many labor and employment laws will sound familiar: Americans with Disabilities Act, Civil Rights Act of 1964, Equal Pay Act, Age Discrimination in Employment Act and National Labor Relations Act.
  • Most charges are found to have 'no reasonable cause' and many others will be settled before litigation.
  • The EEOC and NLRB are separate administrative agencies and are not part of the DOL. The best labor lawyers will have good people skills, because they will be interacting with both management and unions. The most successful ones will be able to convince both management and unions that they have common goals.
  • According to Thomas Linthorst, a partner in Morgan Lewis & Bockius' labor & employment practice: “Those that really can get close to their clients, understand what the client needs, and can think creatively about meeting the client's needs will find that to be a successful approach.”
  • When the economy is down, clients are concerned about surviving, which often involves downsizing. Advising on reductions in force is never pleasant.
  • Alison Marshall of Jones Day says: "I do think that we move more quickly in comparison to some of the big commercial litigation cases. Also, our cases are not always as big, so associates often get more responsibility. That is a plus, but juniors need to be prepared to take on that responsibility."
  • Sometimes the intensity of the workload is high, especially when lawyers are gearing up for a big trial. Being responsive is critical.
  • Often lawyers will be dealing with a non-lawyer – a HR professional for example – so they need to be able to translate complex legal principles into clear concepts for them. It’s critical to be able to write well, with a view toward addressing practical problems, and not overwhelming the client. This is also true when it comes to explaining elements of a case or situation to the judiciary.
  • Bettina Plevan, partner at Proskauer Rose, says: "Sometimes clients have pressing emergencies, and you have to be responsive immediately."
  • Joseph Costello, partner at Morgan Lewis, warns: “This is an area of law that requires flexibility and adaptability. Every day there’s a new challenge, and the issues are not always predictable: an employee may have a disability that needs to be accommodated; there might be a union-organizing drive; or maybe an employee has complained about a posting on a social media website, which another employee has published. Any of these situations could trigger a call to us."
  • Stephen Poor, chairman of Seyfarth Shaw informs us that in this field, “there is still that focus on the real world, which can be messier and stickier than the relatively sterile laboratory of the justice system. In other words, success in this field requires a practical bent and a propensity to solve problems rather than win arguments.”

 

Current issues

  • A very significant development is the death of Justice Scalia in February 2016. He was part of a Supreme Court majority that issued a number of significant decisions in labor and employment, “including in the areas of class actions, arbitration agreements, and on the merits of wage and hour issues,” Thomas Linthorst informed us. “I'm looking with great interest at who his replacement will be for their impact on those areas.”
  • “Whistle-blowing is an area that is clearly on the rise, by virtue of additional legislation under Dodd-Frank, and some high-profile announcements from the SEC,” Linthorst reported. Recently, the SEC announced that a $30 million bounty was given to someone who provided original information to them, which led to a successful enforcement action.
  • The extent of the protection afforded by the Sarbanes-Oxley (SOX) whistle-blower anti-retaliation provision was expanded by a 2014 decision of the Supreme Court. The Annual Report on the Dodd-Frank Whistleblower Program, released by Office of the Whistleblower (OWB), reports an increase of 8% of tips from whistle-blowers in 2015 compared to 2014.
  • An increase in SOX retaliation claims has resulted from “a series of decisions by the Department of Labor extending SOX protections for conduct not previously considered protected,” according to Linthorst. In February 2016, the Whistleblower Augmented Reward and Nonretaliation Act of 2016 (or WARN Act) was introduced, and aims to strengthen the protections and incentives available to financial crimes whistle-blowers.
  • One area that has also been very active is the SEC's stance on policies and agreements that it contends may chill reporting to regulators, such as overbroad confidentiality agreements and non-disparagement provisions. “The SEC has brought several enforcement actions against companies where it claimed the policies or agreements were overbroad,” Linthorst informed us. “This means companies are generally reviewing their policies and agreements to make sure they don't preclude or chill employees from reporting potential violations of law to regulators."
  • Another “hot area” is that of wage and hour claims. According to Linthorst: “There has been lots of class and collective action litigation as everyone seems to be suing for overtime.” Some of the claims are being brought by those covered by the 'white-collar exemptions' to the overtime requirements, while others have been brought by employees claiming that they have not been properly compensated for 'off-the-clock' work. “One of the reasons for this spike,” explains Linthorst, “is that under the federal overtime law, the Fair Labor Standards Act, a claim can be filed on behalf of all those who are 'similarly situated’ to the plaintiff and, upon a determination by the court that the case is appropriate for notice, notice can be sent to all others ‘similarly situated’. When that happens, there can suddenly be hundreds of claims.”
  • More generally, Linthorst pointed to “the rise of labor and employment laws, regulations and ordinances at the state and local level.” He continued that “a lot of state and local governments are passing laws; some of them are around wage theft, some relating to paid sick leave, and some are just new posting requirements for existing laws, but it creates a real challenge for those employers that operate nationally.”