Articles by Our Attorneys

March 2021 has brought several notable employment law updates.  Once again, COVID-19 dominates the headlines.  Here are a few of the most important developments:

1. President Biden signs American Rescue Plan Act of 2021 expanding FFCRA tax credit.  In addition to various stimulus provisions, the new Act extends the available tax credit under the Families First Coronavirus Response Act (FFCRA) for employers that voluntarily provide paid COVID-19 leave until September 30, 2021, extending the previous deadline of March 31, 2021.  The credit covers 100% of qualifying wages for FFCRA leave, and the qualifying reasons for taking leave are expanded.  Notably, the qualifying reasons now include leave taken to receive a COVID-19 vaccination or to recover from an injury, disability, illness or condition related to receiving a vaccine.  The maximum tax credit is increased to $200 per day per employee or $12,000 per employee in aggregate.  Left out the Act were a previously proposed extension of the mandatory paid FFCRA leave, which expired at the end of 2020, and an increase in the minimum wage to $15.00 per hour.  
2. Walmart employees pursuing class action for unpaid COVID screening time.  Workers filed a $5 million proposed class action in Arizona federal court alleging that Walmart required them to arrive at their shifts 10 to 15 minutes early to undergo COVID-19 screenings but failed to fully compensate them for their time.  Some workers allegedly were required to stand in line and wait to be screened and when they did not pass the screening, they were sent home with no pay at all.  Walmart denied the allegations.  Employers should keep in mind that, where screenings are done on the company’s premises and for the benefit of the company, the employees are likely considered “on the clock” and must be compensated for their time.
3. Amazon settles Whistleblower lawsuit over alleged COVID-19 safety protocol violations.  The settlement comes after a former New Jersey employee claimed he was fired in retaliation for reporting that a shift manager refused to keep at least a 6-foot distance from other workers.  The lawsuit was filed under New Jersey’s Conscientious Employee Protection Act, and also alleged that the manager had been reported several times by several employees but that HR ignored or refused to pass the complaints on to management.  It bears noting that, while the lawsuit was filed under state law, federal OSHA law also has anti-retaliation provisions.  Therefore, employers nationwide can look to this case as a lesson about the consequences of failing to properly address worker complaints during the pandemic. 

Jeff Burke is an attorney at MacElree Harvey, Ltd., working in the firm’s Employment and Litigation practice groups. Jeff counsels businesses and individuals on employment practices and policies, employee hiring and separation issues, non-competition and other restrictive covenants, wage and hour disputes, and other employment-related matters. Jeff also represents businesses and individuals in employment litigation such as employment contract disputes, workforce classification audits, and discrimination claims based upon age, sex, race, religion, disability, sexual harassment, and hostile work environment.

A client recently asked me about using a new scanner on its employees that reportedly can detect the presence of the coronavirus.  If this device works, it certainly could be a major asset to businesses trying to resume normal operations.  However, the question remains, when (and how) could a business use a “coronavirus scanner” for employees?  For that matter, what about testing employees with other instant-tests that may become available to the public?

To begin with, using a coronavirus scanner or other instant tests should be permissible by law under the same logic as employee temperature scans, which the EEOC has already approved (the Americans with Disabilities Act (ADA) prohibits medical examinations unless they are job-related and consistent with business necessity.)  Nevertheless, there are a few things to consider before a business starts screening employees:

1. To perform screenings, the business should avoid having employees line up together where they can see each other.  Rather, it would be better to have the screens done one at a time in a private room or tent outside the facility.  Naturally, it would be best to do the screening before the employees enter the facility, and if not, then the employees could be required to report directly to the screening area without going into any other areas of the premises.
2. For the employee performing the screening, the business ideally would require that he/she use personal protective equipment (at least hand sanitizer, mask and gloves).  The screener might begin by screening themselves to make sure they are not exposing others to coronavirus during the process.
3. For record keeping, ideally the business would have a system 1) to confirm that every employee on site in a given day was screened, and 2) a way to document positive tests, while 3) avoiding creating an abundance of unnecessary confidential medical records for every screen the business performs.

One approach could be to have the screener keep a list of the employees working on a given day and then simply place a check next to their names when the employees are screened without indicating anything about a positive or negative result.  This record could be used to make sure employees are being screened, would not contain any substantive medical information, and therefore would not require any special confidential treatment for record keeping.  

The business could then also have a separate form (or simply create a memo) documenting an employee testing positive for coronavirus in the screening.  This record would be placed in the employee’s separate, confidential medical file (under the ADA, employee medical information is required to be kept separate from the employee’s standard personnel file.) 

To the extent the screening device/test keeps track of who is screened and other data, the business could record the screening device/test data that accompanies a positive test in the employee confidential record/memo.  This practice should alleviate concerns the business may have about deleting/destroying the screening device/test data, since the screening device/test data would be duplicative.  Indeed, the best practice arguably would be to keep the information in the screening device/test only long enough to create the records described above, and then to immediately delete/destroy the data.  Under this approach, the screening device/test itself would no longer contain any confidential information requiring protection.  

Jeff Burke is an attorney at MacElree Harvey, Ltd., working in the firm’s Employment and Litigation practice groups. Jeff counsels businesses and individuals on employment practices and policies, employee hiring and separation issues, non-competition and other restrictive covenants, wage and hour disputes, and other employment-related matters. Jeff also represents businesses and individuals in employment litigation such as employment contract disputes, workforce classification audits, and discrimination claims based upon age, sex, race, religion, disability, sexual harassment, and hostile work environment.

February may be the shortest month, but that does not mean that there are no important developments in the world of employment law.  Here are some of the notable headlines:

1. After a 6-month lag, employment suits are on the rebound.

Statistics show that new employment suits in federal court started declining in May, 2020.  However, a rise in pandemic-related cases caused a surge in the final months of 2020, with November, 2020, having the highest number of filings in the past 3 years.  Analysts are attributing the rise to the government providing more guidance regarding COVID employee protections.

2. A Pennsylvania federal judge in the Eastern District of Pennsylvania sent back to state court a lawsuit accusing a meat processing company of causing an employee’s COVID-19 death based upon violation of Occupational Safety and Health Administration (“OSHA”) recommendations. 

The court reasoned, “[a]lthough we recognize the unprecedented difficulties the pandemic has caused, we see no reason to diverge from analogous, well-reasoned holdings in our district, particularly where, as here, the complaint is rooted in tort law and refers only to OSHA and CDC guidance”.  While this ruling could have major implications for keeping COVID-19-related litigation out of federal courts, it does not foreclose the possibility of negligence or other tort-based claims being brought against employers in state court.  The case is Ferdinand Benjamin v. JBS SA et al., case number 2:20-cv-02594, in the U.S. District Court for the Eastern District of Pennsylvania.

3. A Massachusetts federal district court rejected claims from Whole Foods employees who filed discrimination claims against the grocery chain and its parent, Amazon.com, for disciplining employees who wore Black Lives Matter face masks to work.

Notably, the disciplined employees consisted of both African-American and other ethnicities.  The court opined that the federal Civil Rights Act doesn’t protect a person’s right to associate with a social cause, and that the claims failed because the plaintiffs had not alleged that the defendants would have treated any individual differently if that plaintiff were of a different race.  The case is Frith et al. v. Whole Foods Market Inc. et al., case number 1:20-cv-11358, in the U.S. District Court for the District of Massachusetts.

Jeff Burke is an attorney at MacElree Harvey, Ltd., working in the firm’s Employment and Litigation practice groups. Jeff counsels businesses and individuals on employment practices and policies, employee hiring and separation issues, non-competition and other restrictive covenants, wage and hour disputes, and other employment-related matters. Jeff also represents businesses and individuals in employment litigation such as employment contract disputes, workforce classification audits, and discrimination claims based upon age, sex, race, religion, disability, sexual harassment, and hostile work environment.

Almost a year into this pandemic we can confidently say that things have certainly changed in the world of business litigation.  The changes impact jury trials, depositions, and the entire manner in which commercial disputes are litigated.

“I want my jury trial”!

Well, you’re going to have to wait.  With most commercial disputes, the parties (if they want) are entitled to a trial by jury.  In the business litigation arena, this has very much changed.  Most courts now have a temporary hold on jury trials.  The main problem isn’t necessarily the trial itself.  The problem is jury selection.  

During jury selection, there can be up to 100 jurors in a room sitting closely together waiting to be selected.  These jurors are interviewed by the Judge and/or the attorneys for the parties to determine what the jury panel will look like.  This can take several hours and, as indicated above, this requires all the prospective jurors to sit “patiently” in close proximity to one another waiting to be interviewed for potential jury selection.  This is not happening right now, for obvious reasons.

It will be some time before commercial lawsuits are resolved on a regular basis by juries.  Criminal trials (where the criminal defendant is absolutely entitled to a trial by jury) are the ones that will take place first.  The courts will need to work through the backlog of criminal jury trials before even thinking about having jurors sit through civil trials.  

The impact of this, obviously, is delays in the resolution of cases.  The backlog is now growing for civil cases (such as business disputes) to be resolved.  To combat this, Judges are strongly encouraging litigants to permit the cases to be resolved with the Judge sitting as the trier of fact (in place of the jury).  Judges are also asking parties to consider Alternate Dispute Resolution programs (“ADR”).  ADR can include binding arbitration or non-binding mediation.  This occurs where the parties pay for a third party (often a retired Judge) to help assist in the resolution of the matter.  We have certainly seen an increase in the use of ADR to resolve business disputes.  

How Business Cases Are Litigated Now.

In a word, technology.  Fortunately, most courts in this geographic area have fairly sophisticated electronic filing systems in place.  If they didn’t before the pandemic hit, they certainly do now.  This enables the parties to file papers electronically (without the need to go to the courthouse and file the papers in person).  This process is easier, more stream-lined and, in many cases, less expensive for the attorneys and the litigants.  This also enables adversaries to receive immediate notice of filings that are made in a commercial dispute.  This is certainly a more efficient way to handle cases.   

What Does a Deposition Look Like Now?

Before the pandemic, depositions typically took place in person.  This meant that all the parties, litigants and attorneys, were present in the same room for the deposition to take place.  This enabled the attorneys to get a clearer view as to the witnesses’ credibility and the ability to withstand questioning.  This is an extremely important element of trial preparation.  This is the biggest change that we have seen post-pandemic because now most depositions take place remotely.  

Attorneys, witnesses, and court reporters are now separated.  The witness appears on a computer screen for questioning.  This makes it more difficult for attorneys to weight the credibility of the witness.  This is a significant change for all parties in a business dispute.

The benefit of remote depositions is that the depositions are now more efficient and cost-effective.  Depositions can happen faster and cheaper.  This is good for all litigants and, especially, for the clients who are paying the bills.  It will be interesting to see whether remote depositions continue post-pandemic.  

Robert Burke is a business litigator and trial attorney with MacElree Harvey, Ltd. in West Chester, Pennsylvania.  Mr. Burke focuses his practice on complex commercial litigation and estate and trust litigation.  This includes trial and appellate work in federal, state and international courts.  He regularly presents matters before alternative dispute resolution panels and frequently lectures on trial tactics, practice, and procedure.  He has argued before the Pennsylvania Supreme Court and the United States Court of Appeals in both the Third and Sixth Circuits.  

Contact Robert at rburke@macelree.com or by calling 610-840-0211.

Over the length of a marriage, couples accumulate both assets and liabilities. From positive earnings and purchases like investments and consumer goods, to debts like car loans and mortgages, you and your partner build both a personal and financial life together. In the event of a divorce, both assets and liabilities must be divided. This process is known as equitable distribution. In many cases, spouses, with the help of their attorneys, negotiate the division of these assets and liabilities, or the marital estate, which typically includes cash accounts, investment and retirement accounts, the value of real property, vehicles, and other personal items.

In equitable distribution, it is common for one spouse to pay the other spouse some amount of money to offset the parties’ shared investment in a piece of marital property. For example, one spouse may keep the couple’s house, but will pay the other spouse in cash or investments to account for the other spouse’s ownership stake in the house.  The plan for how the parties will divide the marital property is written into a Property Settlement Agreement (“PSA”). A PSA is an enforceable contract that specifies each spouse’s obligations in the divorce.

Equitable distribution is complex enough on its own. But what happens when this process is complicated further by a spouse filing for bankruptcy? In November 2020, the Pennsylvania Superior Court reviewed the question of what happens when a spouse files for bankruptcy before paying a debt a spouse agreed to pay in a PSA? Through this case, the Superior Court significantly simplified the rule regarding marital debt and bankruptcy filings.

In the past, when one spouse filed for bankruptcy, the debt owed to the other spouse under the terms of a PSA may have been discharged under certain circumstances. In Hanrahan v. Ketch[1], a divorcing husband and wife signed a PSA providing for the division of their marital estate. Importantly, the PSA stated that, to account for husband’s interest in wife’s retirement plan, equity in the marital home, and other personal property, wife agreed to pay husband approximately $41,000 in installments.  However, after making only about $15,000 in payments to husband, wife filed for bankruptcy and tried to discharge the remaining approximately $26,000 owed to her ex-husband.

Husband asked the court to enforce the PSA and reinstate ex-wife’s payments as they originally agreed.  After considering various related legal issues and certain sections of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, the court ultimately held that wife could not renege on the terms of the PSA and still owed her ex-husband $26,000 under the PSA.  The court’s decision in Hanrahan, in conjunction with the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, significantly expanded protections for non-debtor spouses from the threat that marital debts owed to them will be discharged if their ex-spouses file for bankruptcy.

Unraveling complicated, intertwined marital estates in a divorce can be confusing and frustrating. With precedent like Hanrahan, divorcing couples can rest a bit more assured that an ex-spouse filing for bankruptcy will not completely negate all the progress made during the equitable distribution process.

Brian is an attorney in MacElree Harvey’s Family Law Group and Banking and Finance Litigation Group.  If you have further questions or want to schedule a consult with Brian, you can contact him directly at 610-840-0221 or bforgue@macelree.com.

The journey from the often difficult decision to end a marriage to having your divorce decree in hard can be lengthy, taxing, and time consuming. After lengthy stretches of tough negotiations, depositions and hearings, receiving your decree can feel like a relief and an opportunity for some much needed rest. While it can be challenging to immediately consider what comes next, the world spins on, and there are some critical steps you should take as soon as your decree is finalized to fully settle your affairs. Together in this series of articles, we’ll walk through how you can ensure you and your family are properly prepared for life after divorce.

Your first priority following the receipt of your decree should be to change the beneficiary designations for any of your relevant accounts. Some changes may seem like common sense, like updating a life insurance policy, but you may not think of other items right away.  Some accounts you should think about updating if not changing can include:

• Life insurance policies, including group life insurance policies through your employer
• Retirement accounts, which can include IRAs, 401(k)s and pension plans
• Bank accounts
• Investment accounts
• Disability insurance benefits, which can have death benefits attached in some cases

Unfortunately, the most important moments for which your account information should be updated tend to come as surprises. Just as you would open a life insurance policy for preemptive security for your heirs, you should plan ahead in confirming your heirs are appropriately designated on the account. Taking five minutes to address this information now could save your loved ones a lot of confusion and contention later on.

No part of getting a divorce is easy. By taking measured and intentional actions once you receive your divorce decree, though, you can be proactive in making life simpler down the road. In my next article, we’ll discuss why updating your estate planning documents should be your next priority in post-divorce planning. Life after divorce will surely present triumphs and challenges just as any chapter of your life already has. This series will hopefully help you limit some difficulties for you and your family as you take them on together.

Lance is the Chair of the Family Law Group, Co-Chair of the Litigation Department, and serves on the Firm’s Executive Committee.  He has been counseling individuals and business owners on a variety of litigation areas for over twenty-five years.