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The Employer E-Letter: Labor and Employment Law News from the Duluth, Minnesota law firm of
Hanft Fride, A Professional Association
Editor, Richard R. Burns, rrb@hanftlaw.com or 218.529.2433.
Please feel free to forward this e-mail or share it with others. If there are other topics of interest to you or any other suggestions concerning this newsletter, please let us know.
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THIS MONTH'S TOPICS:
- SAVE THE DATE! ANNUAL EMPLOYMENT LAW SEMINAR
- SUPREME COURT EMPLOYMENT CASE
- CONTRACT CLAIM LOST BY NORTHERN MINNESOTA EMPLOYEE
- EXTENSION OF FAMILY LEAVE
- FMLA BENEFIT YEAR MUST BE CLEAR
- TIP OF THE MONTH
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SAVE THE DATE!
14th ANNUAL EMPLOYMENT AND LABOR LAW SEMINAR
WEDNESDAY, MARCH 19, 2008 * HOLIDAY INN DOWNTOWN, DULUTH
We are planning another interesting and informative day for seminar attendees in March. Contact Debi Persson, dap@hanftlaw.com or 218.722.4766 with questions.
Schedule and registration materials will be mailed in February.
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SUPREME COURT EMPLOYMENT CASE
In the first month of its term, the U.S. Supreme Court now has agreed to hear a case that should be of interest to all employers facing employment discrimination claims. There is currently a split in the Federal Circuit Courts as to whether or not statements by managers, other than those who allegedly discriminated against the suing employee, are admissible in evidence to show an employer bias. We will keep you informed.
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CONTRACT CLAIM LOST BY NORTHERN MINNESOTA EMPLOYEE
In Hanson v. United Rentals, Inc. , (D.C. Minn. 2007), the United Rentals employee failed to show that he had an employment contract when terminated after trying to negotiate an employment agreement, which he objected to primarily because of a non-compete provision. The company's handbook was very clear that no employment contract could be implied unless the agreement is a written contract signed by the chief executive. The Court had little problem in finding this provision to be enforceable and that the employee was at will. The employee's claim that he was entitled to damage as a result of the failure to be paid promptly or be provided the reasons for termination was allowed to go forward. Employers should be reminded that a discharged employee is entitled to wages or commissions actually earned and unpaid at the time of discharge within 24 hours of demand and, if not paid, may sue for liquidated damages of twice the amount owing. In addition, an employee who is involuntarily terminated can collect a civil penalty if not given the reason for termination upon written request upon 15 days.
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EXTENSION OF FAMILY LEAVE
UPS is often pointed to as an exemplary employer, however, in a recent Minnesota District Court case, it was technically found in violation of its obligations to its employees as far as health benefits are concerned. This case reaffirmed the idea that Family Medical Leave can extend over a 12-week period if the leave extends over two benefit years. Indeed, it resulted in 20 weeks of leave in the case at hand. Also at issue was the obligation of UPS to pay premiums into the Teamsters' Union Health & Welfare Plan, even though the employee was provided, under the terms of the plan and its contract with UPS, with benefits without regard to UPS's nonpayment of premiums. UPS was found not to have maintained the employee's coverage at the level nor under the conditions coverage would have been provided if he had not been on leave, so the Court awarded the employee the amount of lost benefits as well as liquid damages in a similar amount. Sletten v. UPS (DC Minn. 2007).
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FMLA BENEFIT YEAR MUST BE CLEAR
A recent Federal District Court case out of New York suggests that an employee will be entitled to use the benefit year that most favors the employee's position unless the employer has made the benefit year clear. Under the FMLA, the benefit year may be:
- one whole calendar year;
- a fixed 12-month leave year;
- a 12-month period rolled forward from the date an employee's first leave begins;
- a rolling 12-month period measured backwards from the date an employee uses any FMLA leave
Roberts v. Ground Handling (DC NY 2007). For administrative purposes, it would make the most sense to use a calendar year or a year that coincides with other benefit years. To generally be eligible for FMLA leave, a covered employee must have worked for at least 12 months (not necessarily, however, 12 continuous months), and worked at least 1250 hours during the benefit year preceding the FMLA leave.
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TIP OF THE MONTH: As part of your January resolutions, you may want to clean up your employment records. The general rule is that you should keep all records for three (3) years. There are, however, some important exceptions:
- Job applications for unsuccessful applications should be retained for one (1) year.
- I-9's should be kept for the longer of three (3) years after employment commences or one (1) year after termination.
- IRS records should be kept for four (4) years.
- Personnel records should be kept for four (4) years after termination of employment.
- All ERISA records should be kept for six (6) years.
- Employee service records and medical records (compensation claims included) should be kept permanently.
However, it never hurts to keep records longer if you have the space!
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Hanft Fride's business and trial lawyers are located at 1000 U.S. Bank Place, in Duluth Minnesota. Visit our website at www.hanftlaw.com. In addition to general information on the firm and our attorneys, you can find past issues of this newsletter. Keep checking back for new information, and let us know if there is anything you would like to see added to the site that would help you and your organization. Our employment lawyers include Richard Burns, Tom Torgerson, Rob Merritt and Gabe Johnson.
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The information provided in this E-letter is general in nature and should not be used as a substitute for professional services and advice. The communication and receipt of this information is not intended to create an attorney-client relationship. Readers should consult with their legal counsel before taking any action on matters covered in this E letter.
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To subscribe or unsubscribe to Employer E-Letter, e-mail your request to Richard R. Burns, rrb@hanftlaw.com or call 218.529.2433.
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Copyright 2008 by Hanft Fride, P.A. All rights reserved. Hanft Fride, A Professional Association, 1000 U.S. Bank Place, 130 W. Superior Street, Duluth, MN 55802. Phone 218.722.4766; fax 218.529.2401.
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