CLIENT ALERT: Labor & Employment Law - Where Do We Stand? U.S. Department of Labor's Revised Overtime Rules Under the Fair Labor Standards Act
A. Overview of Fair Labor Standards Act
The Fair Labor Standards Act of 1938 (FLSA) is a federal law that regulates minimum wage and overtime compensation. Specifically, the FLSA provides a $7.25 per hour minimum wage for all covered employees, and mandates that they be paid time-and-a-half for work in excess of 40 hours per week. More »
The risk of a cyber-attack is ubiquitous, and a cyber-event can result in legal and financial liabilities that can cripple an affected organization. Recognizing the ever growing threat of cyber-crime, the New York State Department of Financial Services (DFS) recently unveiled the Proposed Cybersecurity Requirements for Financial Services Companies, a proposed set of cybersecurity regulations for banks, insurers and financial institutions aimed to protect both institutions and individuals from cybersecurity events. Compliance with the regulations is mandatory. The regulations, which take effect January 1, 2017, seek to protect customer information as well as institutions’ information technology systems by requiring covered entities to assess their cyber risk, to implement programs and policies to address that risk, and to continually monitor these systems. This alert will cover the ins and outs of the new regulations including what you can do today. More »
Illinois Supreme Court Applies Discovery Rule Extending Statute of Limitations Period in Wrongful Death and Survival Actions
On September 22, 2016, the Illinois Supreme Court issued its opinion in Randall W. Moon v. Clarissa F. Rhode et al. (2016 IL 119572), holding that the discovery rule found in section 13-212(a) of the Code of Civil Procedure (735 ILCS 5/13-212(a)) was applicable to Wrongful Death and Survival act claims alleging medical malpractice. Generally, statutes of limitation set deadlines for which plaintiffs must bring claims, however, in certain situations the deadline may be extended by what is referred to as the “discovery rule.” Although the Court’s opinion was in the context of a medical malpractice case, the discovery rule that the Court held to apply in section 13-212(a) of the Code for medical malpractice claims also appears in section 13-213(d) of the Code for product liability claims. This decision may provide support for plaintiffs and courts in Illinois to extend the application of the discovery rule to Wrongful Death and Survival act claims in product liability matters. More »
On Tuesday, August 16, 2016, a federal appeals court in California barred the Justice Department from prosecuting medical marijuana cases where no state laws were violated. Specifically, in the matter styled United States v. McIntosh, a three judge panel of the 9th U.S. Circuit Court of Appeals sitting in San Francisco ordered the Justice Department (“DOJ”) to show that individuals under indictment for violating the Controlled Substances Act violated medical marijuana laws of their respective states before continuing with prosecutions. The opinion addressed ten consolidated matters arising from three district courts in California and Washington State. More »
Personal Injury Protection (PIP) benefits cases are on the rise in Michigan. However, with the 2014 Michigan Court of Appeals decision in Bahri v. IDS Property Cas. Ins. Co., 308 Mich. App 402; 864 NW2d 609 (2014), defendants are finding these cases defensible. 
The effect of the Court’s ruling in Bahri and defense reliance on general fraud exclusions found in insurance policies continue to reveal themselves. Most recently, in Thomas v. Frankenmuth Mutual Insurance Co., COA No. 326744 (Unpublished July 12, 2016), the Court of Appeals upheld Wayne County Circuit Court Judge Sheila Ann Gibson’s dismissal of a matter on the basis of fraud.
In Thomas, the plaintiff received treatment following a July 6, 2013, motor vehicle accident. During his medical treatment, he was instructed not to drive from the date of the accident through January 21, 2014. During plaintiff’s deposition, he denied driving an automobile at any time during that period. However, surveillance revealed plaintiff driving a vehicle on two occasions, despite claiming a need for medical transportation on those dates as well.
The Court of Appeals, relying on and quoting the Bahri decision, noted that the plaintiff had the ability to explain why he was driving during his deposition. Instead, plaintiff continued to represent that he had not driven at all during the relevant time period. Plaintiff’s counsel attempted to sway the court by arguing that his client’s representations were simple mistakes. However, the court noted, “If they were not knowing misrepresentations, then they were certainly reckless ones, in the face of the proof that he drove his car at least twice on the same day he availed himself of transportation services.” Id at 3.
The Court’s recent decision in Thomas strengthens the argument that the Bahri ruling was deliberate and intentional and that its effects will continue to garner attention in the trial and appellate courts. Michigan courts continue to be increasingly weary of fraudulent representations and are willing to dismiss entire PIP claims as a result. Since incidents of fraud have been on the rise over the past several years, defense counsel finding themselves in similar actions should be willing and able to offer this defense at trial.
 In Bahri, Plaintiff was found to have fraudulently pursued PIP and Uninsured Motorist benefits in connection with a vehicle accident. The Court granted Defendant’s Motion for Summary Disposition which sought dismissal pursuant to the general fraud exclusion in the insurance policy. The Court stated, “[r]easonable minds could not differ in light of this clear evidence that plaintiff made fraudulent representations for purposes of recovering PIP benefits.”
Illinois Appellate Court Throws Out Jury Verdict Finding Plaintiff with Asymptomatic Asbestosis Did Not Prove Any Physical Harm
On June 20, 2016, the Fourth District of the Illinois Appellate Court held in Sondag v. Pneumo Abex Corp. (No. 4-14-0918) (4th Dist. Ill. App. Ct.) (June 20, 2016) that a plaintiff who was diagnosed with asbestosis but with a lack of any clinical symptoms suffered no physical harm and thus could not maintain a product liability claim against a defendant whose product had exposed him to asbestos. More »
The New York Court of Appeals held today that “the manufacturer of a product has a duty to warn of the danger arising from the known and reasonably foreseeable use of its products in combination with a third-party product which, as a matter of design, mechanics, or economic necessity, is necessity to enable the manufacturer’s product to function as intended.” More »
CLIENT ALERT: New York Court of Appeals Applies "All Sums" Allocation and Vertical Exhaustion Where Non-Cumulation Provisions Exist in Asbestos-Related Excess Coverage Dispute
Courts throughout the United States are frequently challenged with the question of how defense and indemnity payments are to be allocated in third-party liability coverage disputes arising out of long-tail bodily injury claims. Further complicating the issue is the typical situation where courts are confronted with the need to analyze multiple layers of disparate insurance coverage spanning several policy periods.
There are two allocation methods courts typically apply: (i) pro rata allocation, in which costs are spread among the triggered insurers, and to the insured for uninsured periods, in a time-on-the-risk manner; and (ii) all sums allocation, in which a triggered insurer is liable for all costs associated with a claim, subject to a right of contribution among any other triggered insurers. More »
On December 18, 2015, President Obama signed into law an omnibus spending package for 2016 that included the Cybersecurity Act of 2015 (known in former versions as the Cybersecurity Information Sharing Act). After years of trying to pass similar measures, the Cybersecurity Act of 2015 creates a framework designed to facilitate and encourage confidential sharing of information concerning cyber-threats between the federal government and the private sector.
Although it is effective immediately, the attorney general and the Department of Homeland Security (DHS) secretary must release written guidelines within 90 days. Below is brief summary of important aspects of the statute. More »
It is no secret that the number of federal and state wage lawsuits filed against employers is on the rise. In 2015, 8,781 federal wage lawsuits were filed against employers. Plaintiffs’ firms have realized the large potential for damages and fees in these cases and are aggressively capitalizing by consistently filing suits. What is surprising is the increase in filings specifically against landscaping companies. For example, since January 1, 2016, a new lawsuit has been filed here in the local Illinois federal court each week against a different landscaping company. In fact, there are Plaintiffs’ law firms in Illinois focused solely on filing employment lawsuits on behalf of landscaping employees. More »
- CLIENT ALERT: Labor & Employment Law - Where Do We Stand? U.S. Department of Labor's Revised Overtime Rules Under the Fair Labor Standards Act
- CLIENT ALERT: New York’s New Cybersecurity Regulations - Nuts & Bolts
- Illinois Supreme Court Applies Discovery Rule Extending Statute of Limitations Period in Wrongful Death and Survival Actions
- Federal Court Bars DOJ from Prosecuting Participants in State Medical Marijuana Programs
- GENERAL FRAUD EXCLUSIONS: AN IMPOSING DEFENSE IN MICHIGAN PIP ACTIONS
- Illinois Appellate Court Throws Out Jury Verdict Finding Plaintiff with Asymptomatic Asbestosis Did Not Prove Any Physical Harm
- CLIENT ALERT: Dummitt/Suttner v. Crane Co. Decision May Expand Liability for Asbestos Defendants
- CLIENT ALERT: New York Court of Appeals Applies "All Sums" Allocation and Vertical Exhaustion Where Non-Cumulation Provisions Exist in Asbestos-Related Excess Coverage Dispute
- The Cybersecurity Act of 2015: A Brief Overview and What’s Next
- EMPLOYER ALERT: Landscaping Employers Are Targets of Employee Wage Litigation
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