The New “White Collar” Exemption Regulations
August 19, 2015 —
Craig Martin – Construction Contractor AdvisorThis summer the Department of Labor’s Wage and Hour Division issued proposed changes to the white-collar overtime regulations under the Fair Labor Standards Act (FLSA). The white collar exemptions include the executive, administrative, professional, outside sales and computer employee exemptions. The focus of the proposed regulations is to increase the salary level required to qualify for the exemption from $23,660 per year to $50,440 per year. The DOL predicts this will cause employers to change the exempt status of nearly 5 million workers who are currently exempt from overtime requirements to non-exempt status – requiring the payment of overtime.
Current Regulations
Under today’s regulations, the white collar exemption applies to employees who are paid at least $455 per week ($23,660 per year) and who customarily and regularly perform any one or more of the exempt duties or responsibilities of an executive, administrative or professional employee.
Proposed Changes
The most significant change is the sizeable increase in the minimum salary requirements for the exemptions. The proposed regulations more than double the current minimum salary of $455 per week to $921. This corresponds to the 40th percentile of weekly earnings projected for the first quarter of 2016, based on the Bureau of Labor Statistics. The DOL also proposes annual adjustments to the minimum salary requirements.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Toolbox Talk Series Recap – Arbitration Motion Practice
August 07, 2023 —
Michael Zehner - The Dispute ResolverIn the June 22, 2023 edition of the Toolbox Talk Series,
Adrian Bastianelli, Peckar & Abramson, P.C., and
Brian Cashmere, Williams Mullen, moderated by Jennifer Millender of the American Arbitration Association (“AAA”), discussed motion practice in arbitration. Specifically, they offered advice on how to choose the right issue for a motion, how to get approval for a motion, how to write the motion, and how to get the arbitrator to grant it. They also discussed the pros and cons of motion writing in arbitration settings.
1. How to choose the “right issue” for a motion in arbitration
The panel discussed what type of issues can, or should, be brought up in a motion in arbitration. Cashmere stated that a clear and concise issue is best for this type of review. For example, statute of limitations, notice, or contract interpretation issues may make great summary judgment or partial summary judgment motions. Essentially, an issue that the arbitrator may resolve via primarily a question of law is more likely to succeed. Bastianelli warned against submitting just any “available” motion, as the practice may turn the arbitrator against you. Both panelists mentioned the need to consider strategy before filing a motion—ask, “how will filing this motion help or hurt reachingArbi final resolution.” Cashmere noted that sometimes the threat of bringing the issue to a hearing can put pressure on the adverse party in a way that is favorable to your client’s goals; possibly even more so than actually submitting the issue.
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Michael Zehner, BBG Construction LawMr. Zehner may be contacted at
mzehner@bbglaw.com
Buy a House or Pay Off College? $1.2 Trillion Student Debt Heats Up in Capital
June 11, 2014 —
Janet Lorin – BloombergJennifer Day spends 12 percent of her monthly take-home pay on debt that funded a master’s degree in urban and regional planning, money she’d rather be saving toward a home.
“I spend $364 a month for student loans,” said Day, 33, who conducts market research for the hospitality industry at a consulting firm in New Orleans. “To me, that is a down payment or ultimately savings down the line.”
Under legislation sponsored by U.S. Senator Elizabeth Warren of Massachusetts, Day would save about $75 a month on her payments. The bill, which could come up for a vote on the Senate floor as soon as tomorrow, would let 25 million borrowers with federal and private loans refinance their balances at lower interest rates, according to Education Department estimates.
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Janet Lorin, BloombergMs. Lorin may be contacted at
jlorin@bloomberg.net
Recent Developments Involving Cedell v. Farmers Insurance Company of Washington
September 05, 2022 —
Donald Verfurth, Sally Kim, Stephanie Ries & Kyle Silk-Eglit - Gordon & Rees Insurance Coverage Law BlogEver since the Washington Supreme Court’s 2013 decision in Cedell v. Farmers Insurance Company of Washington, 176 Wn.2d 686, 295 P.3d 239 (2013), insurance coverage attorneys have been struggling to define the exact parameters of the Cedell ruling in order to safeguard the attorney-client privilege as to the communications between the insurer and its counsel. As a brief background, the Washington Supreme Court held in Cedell that there is a presumption of no attorney-client privilege in a lawsuit involving bad faith claims handling. However, an insurer can overcome the presumption of no attorney-client privilege by showing that its counsel provided legal advice regarding the insurer’s potential liability under the policy and law, and did not engage in any quasi-fiduciary activities, i.e. claims handling activities, such as investigating, evaluating, adjusting or processing the insured’s claim.
Since Cedell, various trial courts have held that the following activities by an insurer’s counsel constitute quasi-fiduciary conduct that do not overcome the presumption of no attorney-client privilege, resulting in an order to produce documents and/or to permit the deposition of the insurer’s counsel:
- Insurer’s attorney being the primary or sole point of contact with the insured for the insurer;
- Insurer’s attorney requesting documents from the insured that are relevant to the investigation of the claim;
- Insurer’s attorney communicating directly with the insured or the insured’s counsel regarding claims handling issues or payments;
- Insurer’s attorney interviewing witnesses for purposes of the investigation of the claim;
- Insurer’s attorney conducting an examination under oath of the insured;
- Insurer’s attorney drafting proposed or final reservation of rights letter or denial letter to the insured; and
- Insurer’s attorney conducting settlement negotiations in an underlying litigation.
Reprinted courtesy of
Donald Verfurth, Gordon Rees Scully Mansukhani,
Sally Kim, Gordon Rees Scully Mansukhani,
Stephanie Ries, Gordon Rees Scully Mansukhani and
Kyle Silk-Eglit, Gordon Rees Scully Mansukhani
Mr. Verfurth may be contacted at dverfurth@grsm.com
Ms. Kim may be contacted at sallykim@grsm.com
Ms. Ries may be contacted at sries@grsm.com
Mr. Silk-Eglit may be contacted at ksilkeglit@grsm.com
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2021 California Construction Law Update
December 29, 2020 —
Garret Murai - California Construction Law BlogThis Christmas looks to be a Blue Christmas as the nation grapples with rising infection, hospitalization and death rates due to COVID. But there’s always 2021 to look forward to, which, of course, also means new laws impacting the construction industry.
Due to COVID there were two unscheduled breaks during the second half of the 2019-2020 legislative session as legislators sheltered-in-place. As a result, there were fewer bills introduced and enacted than in previous legislative session. A total of 2,223 bills were introduced in 2020 compared to 2,625 bills in 2019, of which 428 bills made it to the Governor’s desk, and 372 were signed into law.
Among the bills signed into law were bills, unsurprisingly, related to COVID. In addition, the 2020 legislative session saw the passage of legislation creating a new licensing classification for residential renovation contractors, new laws expanding and clarifying when prevailing wages are required to be paid, and legislation extending the period during which seniors can cancel certain contracts.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Crane Dangles and So Do Insurance Questions
November 07, 2012 —
CDJ STAFFHurricane Sandy sent a construction crane dangling from the top of One57, a condo construction project in New York City. In response to the risk, the nearby Parker Meridian and other nearby buildings were evacuated until the crane could be stabilized. Businessweek reports that One57 involves “a tangle of companies,” including the developer, Extell Development and the contractor, Lend Lease Construction. Pinnacle Industries was responsible for providing and operating the crane.
The insurance claims are yet to be made, but they will likely include the costs of evacuating nearby buildings and to cover any damage to the building itself. David DeLaRue, a vice president in construction practice at Willis Group Holdings said there would be two questions: “Did our insured do anything to cause that loss? Does this policy cover it?”
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Insurer Waives Objection to Appraiser's Partiality by Waiting Until Appraisal Issued
October 21, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Eleventh Circuit affirmed the district court's denial of the insurer's objections on partiality grounds to the insured's appraiser. Biscayne Beach Club Condominium Association, Inc. v. Westchester Surpus Lines Ins. Co., 2024 U.S. App. LEXIS 19663 (11th Cir. Aug. 6. 2024).
Storms damaged buildings at Biscayne Beach Club Condominium. Biscayne Beach filed claims with its insurer, Westchester. Unsatisfied with Westchester's payments, Biscayne Beach sued. Westchester then invoked the appraisal provision in the policy. The district court abated the action so the parties could pursue appraisal.
Biscayne Beach appointed Lester Martin, its public adjuster, as its appraiser on a 10 percent contingency fee. Westchester objected because Martinez's retainer created a conflict of interest that would hinder his impartiality. Biscayne Beach then retained Blake Pyka as its appraiser. Westchester appointed its appraiser and and umpire was selected by the parties' two appraisers.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
For Breach of Contract Claim, There Needs to be a Breach of a Contractual Duty
November 15, 2022 —
David Adelstein - Florida Construction Legal UpdatesRemember this law (and I mean: remember this law!):
“An essential element of a claim for breach of contract is the existence of a material breach of a contractual duty.” JD Development I, LLC v. ICS Contractors, LLC, 2022 WL 4587083, *3 (Fla. 2d DCA 2022) (citation and quotation omitted).
This law is important because how can another party breach of a contract if there is no contractual duty you claim they breached? This question, and, of course, the answer, should not be overlooked from a strategic standpoint because it may dictate what claims you assert, how you assert those claims, and how you present your case from a theme and evidentiary standpoint.
JD Development provides an example of why this law is important and how this can play out.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com