Introduction On June 5, 2025, the U.S. Supreme Court issued a unanimous decision in Ames v. Ohio Department of Youth Service that fundamentally altered how reverse discrimination claims are assessed under Title VII of the Civil Rights Act of 1964 (“Title VII”). The Court ruled that employees from majority groups, (e.g., white, heterosexual, male) are …
AI on Trial: Implications of the Workday Lawsuit for Automated Hiring
Artificial intelligence continues revolutionizing HR and talent acquisition, promising efficiency and scalability in hiring processes. However, as a recent lawsuit against Workday shows, automation does not absolve employers or their vendors of compliance with anti-discrimination laws. In Mobley v. Workday, Inc., Case No. 23-CV-770, a California federal judge allowed a collective action age discrimination lawsuit …
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Start the Clock—The Case for Including Contractual Limitations Periods in Employment Agreements.
Contractual limitations periods provide parties on both sides of an agreement certainty regarding the filing of a potential action. But many employers do not know that they may include such contractual limitations periods in their employment applications and agreements. Those contractual limitations periods can be effective in limiting exposure for potential claims. In, King v. …
ACA Reporting Update: Some Relief and Process Streamlining for Employers
Applicable large employers (“ALEs”) are subject to reporting requirements under the Affordable Care Act (the “ACA”). To comply with the reporting requirements, an ALE must file a Form 1095-C with the IRS reporting certain information about the ALE’s offer of coverage to each full-time employee, identifying the employee, spouse, and dependents who are covered under …
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Should You Use a Performance Improvement Plan?
A Performance Improvement Plan (“PIP”) is a long-standing HR tool for managing underperforming employees. Employers often use a PIP to document deficiencies and outline specific goals the underperforming employee must reach within a specific timeframe. While PIPs sound good in theory, they have recently come under criticism from employees, HR professionals, and even employment lawyers. …
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If the Deadline for Self-Correcting Retirement Plan Errors Is Indefinite, Why Do I Have to Hurry?
Section 305 of SECURE 2.0 added rules for self-correcting a new category of retirement plan errors under the Employee Plans Compliance Resolution System (“ECPRS”). Specifically, Section 305 allows an “eligible inadvertent failure” to be self-corrected at any time, even if the error is considered a “significant” operational error under EPCRS. Section 305 provides that the …
Both Employers and Participants Benefit from New IRS Guidance on Correcting Inadvertent Benefit Overpayments
Retirement plan administration mistakes require difficult conversations with participants, especially when the mistake involves an overpayment. Changes in the law, specifically, SECURE 2.0 and IRS Notice 2024-77, give plan fiduciaries additional flexibility when addressing overpayments. Overpayment of Matching Contributions Consider the case of a 401(k) plan with an employer matching contribution on the first 6% …
Employer-Provided Gifts: Taxable or Not?
As we approach the holiday season, many employers consider giving employees a gift as a token of appreciation. What employers may not consider is whether those gifts create taxable income to employees. Although gifts are generally not taxable to the recipient, this general rule does not apply to gifts given by an employer to an …
Hold Up, Wait a Minute: Judge Blocks Salary Threshold Increase and Rolls It Back to Pre-July 2024
On Friday, November 15, 2024, a federal judge blocked the U.S. Department of Labor’s Final Rule (29 CFR Part 541), which would have increased the salary threshold for the Fair Labor Standard Act’s (“FLSA”) “white-collar” overtime exemption, which was set to go into effect January 1, 2025. What Is the White-Collar Overtime Exemption? The FLSA generally …
Can an Expert Define and Determine What Constitutes Discrimination?
In employment discrimination cases, the parties often retain experts to opine about various aspects of the case. An expert may provide, for example, insight as to job performance issues or, in many instances, determine the nature and scope of an employee’s alleged damages. But can an expert determine if the employer’s conduct constituted “discrimination”? The …
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