April 25, 2017

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Employment Law This Week- April 17. 2017: NYC Salary History Legislation, EEOC Subpoena Ruling, Fiduciary Rule Delay, Broad Whistleblower Protections [VIDEO]

We invite you to view Employment Law This Week - a weekly rundown of the latest news in the field. We look at the latest trends, important court decisions, and new developments that could impact your work.

This week’s stories include ...

(1) NYC Prohibits Salary History Inquiries

Our top story this week: New York City prohibits inquiries into the salary history of job applicants. The City Council has passed legislation that bars public and private employers in New York City from asking about, or seeking to confirm, information regarding any job applicant’s current or prior wages, benefits, and other compensation. New York City now joins Philadelphia and Massachusetts in prohibiting inquiries into salary history. Susan Gross Sholinsky, from Epstein Becker Green, goes into further detail.

(2) Supreme Court Rules on EEOC Subpoenas

Circuit courts should only review the scope of Equal Employment Opportunity Commission (EEOC) subpoenas for abuse of discretion by the trial court. That’s according to the Supreme Court of the United States, adopting a standard deferential to district courts on EEOC subpoenas. In the case in question, an Arizona district court granted an employer’s motion to quash the portion of an EEOC subpoena that it contended sought information that was irrelevant. The EEOC appealed to the U.S. Court of Appeals for the Ninth Circuit, which reviewed the matter de novo and held that the full subpoena should be enforced. The Supreme Court reversed, sending the case back to the Ninth Circuit, where it will apply the newly clarified standard of review.

(3) Department of Labor Delays Fiduciary Rule

The U.S. Department of Labor (DOL) has issued a final rule delaying the applicability date of the “Fiduciary Rule” by 60 days. The Fiduciary Rule, which applies to persons that provide fiduciary investment advice, including advisers and financial institutions, has now been put on hold until June 9, 2017. Other requirements of the Fiduciary Rule, such as specific disclosures, are not scheduled to become applicable until January 1, 2018. During this time, the DOL plans to continue its review of the Fiduciary Rule as directed by President Trump.

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(4) Court Confirms Broad Reach of Whistleblower Protections

A district court in Florida has confirmed the broad reach of Sarbanes-Oxley (SOX) whistleblower protections. An employee for a management company raised concerns about potentially inadequate information security and problems with financial reporting. The employee was terminated and subsequently brought a retaliation claim against her employer. In a motion to dismiss, the company argued that the employee's concerns fell outside the protection of SOX, but the court found the disclosures about the company’s perceived weak internal controls were, in fact, protected under the law.

(5) Tip of the Week

Andrew Smith, Head of Employment Law for Standard Chartered Bank, shares some advice on avoiding pitfalls in the recruitment process.

©2017 Epstein Becker & Green, P.C. All rights reserved.

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About this Author

George Carroll Whipple III, Epstein Becker Green, Workforce Management Lawyer, Hiring Matters Attorney
Member

GEORGE CARROLL WHIPPLE, III, is a Member of the Firm in the Employment, Labor, and Workforce Management practice, in the New York office of Epstein Becker Green. He hosts the firm's innovative weekly video program, Employment Law This Week.

Mr. Whipple:

  • Counsels employers on workplace issues, including hiring and promotion, firing and discipline, wage and hour, and the implementation of employment policies, to ensure compliance with federal and state laws

  • ...
212-351-3773
Susan Gross Sholinsky, Labor Employment Attorney, Epstein Becker Green Law Firm
Member of the Firm

SUSAN GROSS SHOLINSKY is a Member of the Firm in the Labor and Employment practice, in the New York office of Epstein Becker Green. She counsels clients on a variety of matters, in a practical and straightforward manner, with an eye toward reducing the possibility of employment-related claims. In 2013, Ms. Sholinsky was named to theNew York Metro Rising Stars list in the area of Employment & Labor.

212-351-4789