USA, Mayer Brown LLP updates

Employment & Benefits

Contributed by Mayer Brown LLP
Court rules employers can require employees to execute arbitration agreements with class or collective action waivers
  • USA
  • 17 October 2018

A unanimous panel of the Sixth Circuit recently held that the Fair Labour Standards Act does not prohibit employers from requiring employees to execute arbitration agreements with class or collective action waivers. The decision joins those from other federal courts of appeal in holding that claims under the Fair Labour Standards Act are subject to agreements to arbitrate on an individual basis.

Ninth Circuit rules on wage and hour class action claims
  • USA
  • 10 October 2018

The Ninth Circuit recently held that a settlement of class claims in an opt-out class action asserting only state law wage and hour claims also released the plaintiff's Fair Labour Standards Act claims arising from the same allegations on which her state claims had been predicated. The decision reinforces the importance of carefully crafting release language in all settlements, including class action settlements, and provides guidance on what language to include in such releases to preclude future claims.

New NLRB guidance memorandum on workplace policies and handbooks
  • USA
  • 15 August 2018

The National Labour Relations Board (NLRB) recently issued a new guidance memorandum clarifying the standard that it will apply when interpreting employer workplace policies and handbooks following its recent decision in The Boeing Co. The guidance memorandum clarifies that post-Boeing, many employment policies and procedures that may have been deemed unlawful under the previous NLRB General Counsel memoranda will now be upheld.

New York appellate court sides with Postmates in couriers' misclassification action
  • USA
  • 08 August 2018

A New York intermediate appellate court has handed Postmates a victory in the ongoing battle over employment status in the gig economy. Although this decision is not binding on courts outside of New York's Third Department, it provides useful information to gig economy companies on how to structure their operations in jurisdictions where classification status is largely determined by the employer's level of control.

California Supreme Court affirms employers' insurance coverage for negligent employment practices
  • USA
  • 01 August 2018

Previously, there was some uncertainty among California state and federal courts about whether coverage for accidents under general liability insurance policies extended to claims for negligent employment practices. However, a recent California Supreme Court case makes clear that such claims are covered and expresses a strong policy preference in favour of that coverage.


Contributed by Mayer Brown LLP
HIPAA authorisation for research: HHS issues interim guidance on authorisation sufficiency
  • USA
  • 03 July 2018

The US Department of Health and Human Services (HHS) was to issue guidance by December 2017 clarifying when an individual's authorisation for a Health Insurance Portability and Accountability Act-covered entity to use or disclose their protected health information contains a sufficient description of the purpose for its use or disclosure. Having missed this deadline and presumably feeling pressure to issue some direction, HHS issued interim guidance in early June 2018.

Bipartisan Senate proposal seeks partial reversal of FHFA captive insurance exclusion
  • USA
  • 13 March 2018

Certain captive insurers that lost or will lose membership in the US Federal Home Loan Bank (FHLB) system as a result of a 2016 rulemaking by the Federal Housing Finance Agency may get a reprieve under the Housing Opportunity Mortgage Expansion Act. A similar bill was also introduced in the House of Representatives. Significantly, the proposals provide only for the restoration of FHLB membership for captive insurers, not for new membership for those captive insurers that previously had no membership.

NAIC adopts Insurance Data Security Model Law
  • USA
  • 19 December 2017

The National Association of Insurance Commissioners recently adopted the Insurance Data Security Model Law. The model law builds on existing data privacy and consumer breach notification obligations by requiring insurance licensees to comply with detailed requirements regarding maintaining an information security programme and responding to and giving notification of cybersecurity events.

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