Legal Radar

Lyft Makes Agreement with NY Regulators in New Deal

Lyft Inc., a ride-sharing application, made an agreement to only utilize NY-based commercial drivers while complying with local and state law as it gears up for its operations in New York this Friday.

Based on the agreement filed in the NY Supreme Court on Friday, the San Francisco-based firm will also be suspending operations in Rochester and Buffalo by next month. At the same time, the company is asked to halt selling of insurance to NY drivers, unless the mentioned coverage is in compliance with the state law.

Attorneys Benjamin Lawsky, an insurance regulator, and Eric Schneiderman, an attorney general, filed a suit early this month which accused Lyft Inc. for illegal operations by using commercial drivers without insurance and license from the NY City’s taxi commission.

Lyft Inc., which began its Rochester and Buffalo operations on April and with plans on branching out to Queens and Brooklyn, said it’s never about being a “for-hire” car servicing firm. Instead, the firm simply aids car owners to offer rides to others in exchange for donation.

Resolution Given Go Head for Boehner Suit against Obama

The House Rules Committee recently approved a resolution which authorizes John Boehner, a House Speaker, to file a suit on behalf of the House against the President Barack Obama, regarding his recent executive actions.

A panel vote of 7-4 along party lines to further the resolution, which needs to be brought back to the Rules Committee later to see how it’ll be viewed on the floor. The House will be voting on the measure in the following week.

GOP leaders indicated the suit will concentrate on the Obama Administration’s decision to renounce the Affordable Act’s employer mandate without permission from Congress.

Pete Session, a Rules Committee Chairman, who brought the resolution, indicated this week that the President and other parties aren’t allowed to evade Congress and ignore the Constitution. Furthermore, he said that the House of Representatives are taking a critical step to defend the Constitution.

Even though courts say that Congress isn’t allowed to file a suit against the White House, if the Chamber of Congress authorizes a suit, they have a chance.

 

Employees at Macy's Win NLRB Ruling

The National Labor Relations Board ruled today that a group of Macy's employees numbering about forty could form an organized "micro union" without having to obtain the consent of their remaining colleagues. Retailers were unhappy with the decision made by the NLRB stating that  unions will be able to pick and choose which employees are most likely to organize. David French of the National Retail Federation stated that the move was "nonsensical and impractical." Due to the NLRB ruling, the Macy's employees who work in cosmetics and fragrances can vote on whether or not they want to form their own union. The United Food and Commercial Workers union petitioned the NLRB to be able to represent the group of workers, however the workers can still choose if they want any representation at all. It is likely that this final vote will occur at some point in the next few weeks. If the Macy's workers do form an organized union, but the store will not recognize it as such, it could go all the way to the federal appeals court.

State Accusing Special Effects Firm for Mishandling Economic Grants

The state of Florida recently filed a suit against ex-executives of Digital Domain Media Group Inc., indicating the special-effects firm was a Ponzi scheme that swindled the state over $80 million in economic grants.

From a complaint filed early this week, the state claimed that Digital Domain, which filed for bankruptcy several years after its operation expansion in Florida, improperly represented the business it brought to the state and later misusing the funds it was given for creating high earning jobs.

Once Digital Domain gained state grants, the new business quickly had an interest in funneling the funds to a business with a poor financial structure, and defaulted its debt just as the state funded the firm’s grant request.

Florida gave Digital Domain $20 million as well as $62 million in addition grants from two of the state’s municipalities.

William Scherer of Conrad Scherer, the attorney overseeing the suit, says his motivation is to collect the money granted to Digital Domain.

Class Action Status Granted to Apple's Ex-employees

A group of former employees of Apple claim that the company did not provide them with timely breaks including breaks for meals as required by law. Some workers allege that they were denied scheduled breaks altogether. The California state courts have granted class action status to the group of ex-employees. Judge Ronald S. Prager of the Superior Court of California for the County of San Diego granted the large group comprised of retail employees and some workers from the company's corporate headquarters class certification. According to the plaintiff's lawyer, Apple's policies did not provide for the meal breaks or rest periods. Judge Prager did make note that the company had adopted new formal policies in mid-2012 in an attempt to comply with labor laws. However, the policy changes were implemented nine months after the suit had been filed. The case involves violations that allegedly occurred starting in December 2007 and continuing through August 2012.

LGBT Federal Employees Protected by Obama's Executive Order

An executive order signed by President Obama will bar companies that work for the federal government from discriminating against employees based on thier gender identity or sexual orientation. Although several religious groups such as Catholic hospitals requested that Obama exclude institutions which are faith-based, but Obama would not agree to an exemption. Obama also amended the already existing executive orders which protected LGBT employees from being discriminated against. In essence, Obama's executive order makes LGBT and gender identity a protected class which protects the groups from discriminatory practices in the workplace. The president opted for an executive order since the Congress failed to pass the Employment Non-Discrimination Act (ENDA) which would ban discrimination against employees who are gay. The Democrat controlled Senate passed the Act, but the republican House did not. LGBT groups were pleased with the order and advocacy groups stated that the president's actions are "historic executive actions to advance LGBT equality."

Texas Guar Lawsuits Enters Litigation

A civil suit between Guar farmers and the company that purchases and markets their organic product, West Texas Guar, will enter the next step.

A new investor who was going to provide funding for the agreement didn’t get to invest on the July 15^th deadline, pushing the case to a litigation.

Scopia Windmill, LP is not only filing a suit against West Texas but also for guar farmers who provided the corporation with crops. Scopia Windmill alleges its lien against West Texas Guar gives higher right to collections over growers who haven’t been paid for their previous crops.

An attorney representing the farmers, Fernando Bustos, indicates it’ll be a very long process and could take several years until a settlement is made. He went on to say that motions and hearing will begin soon which will include suits against Scopia in the following week.

At the time when the purchase was made by Scopia Windmill 2011, West Texas Guar was the only plant manufacturing guar within the country.

 

Health Plans Need to Reveal Contraceptive Coverage Changes

The Obama administration recently said that employers that stopped covering contraceptives in employee health plans must inform the change to beneficiaries in the wake of an SC ruling.

The notice, which appeared online, follows the SC’s Hobby Lobby decision, which lets some firms to opt out of the contraceptive coverage requirements on religious reasons. It surfaced on the Department of Labor’s site regarding the Affordable Care Act, which looked into the contraception issue.

The answer indicate that proposals skipping contraceptives are still subjected to laws needing disclosure. Plan descriptions should be clear where preventive services as well as contraception, are included. If a subset or all of contraceptive services can’t be included under group health plans, beneficiaries should be informed of the exclusions.

Health plans that minimize or eradicate coverage should also offer a notification --- no later than 60 days after the change is made. The requirement is applicable for all group health plans as well as those that pay workers health claims or those not relying on an insurer for it.

New York Sick-Leave Law Now in Effect

Promotion has begun on a new law signed into effect by Mayor Bill de Blasio earlier this year. The law actually took effect back in April but employees have not been able to take sick days. That is all set to change by the end of this month. Starting July 30, employees in New York City will be able to use any sick leave that they have accrued.  Government officials and volunteers began passing out fliers in the city this week to inform employees about the new law. The law applies to employers who have at least five employees who work at least 80 hours in a year. Employees are allowed one day of sick leave for each 30 hours they work, up to a maximum of five days of paid sick leave. They may use one of their paid sick days for when they are ill, or if a family member is ill. Many have expressed concern that instituting a mandated sick leave such as this is going to have a negative effect on the job economy in the region.

EEOC Stiffens Protection for Pregnant Workers

The Equal Employment Opportunity Commission is the agency responsible for enforcing guidelines that are in place to protect workers in the workplace. The EEOC recently made some updates to the guidelines which deal with discriminatory behaviors or harassment against women workers who are pregnant. The new guidelines help to explain that any type of harassment or discrimination in the workplace against pregnant women is in face sexual discrimination and also illegal. The guidelines make it clear that employers cannot force pregnant workers to take leave and that they must provide light duty for pregnant employees. The new guidelines also make it clear that lactation is a pregnancy-related medical condition. The EEOC also stipulated that men and women must be allowed equal parental leave.  The issue is gaining importance since pregnancy related complaints filed with the EEOC have increased by nearly 50% over the last 15 years. The new guidelines explain how the ADA applies to pregnant workers and emphasize that discrimination agasint female workers who are pregnant is an  illegal activity.