Employee Benefits & Executive Compensation

As previously reported, a federal judge recently judge struck down the Federal Trade Commission’s (FTC) proposed rule banning non-compete agreements and blocked its enforcement on a national basis. That ruling, which has been appealed to the Fifth Circuit, has not deterred the National Labor Relations Board (NLRB), which continues to
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On August 20, 2024, a federal judge struck down the Federal Trade Commission’s (FTC) proposed ban on non-compete agreements, blocking its enforcement on a national basis. As discussed in an earlier client alert, the FTC issued a Final Rule that, on its September 4, 2024 effective date, would have invalidated
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As we previously reported, the Federal Trade Commission (FTC) issued a Final Rule that, effective September 4, 2024, will invalidate nearly all existing non-compete agreements and would bar employers from entering into non-compete agreements with workers in the future. The FTC’s Rule has been subject to legal challenge but, to
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On June 28th, 2024, the United States Supreme Court overturned Chevron U.S.A. v. Natural Resources Defense Council, a foundational case in federal agency law. In the consolidated cases of Loper Bright Enters. V. Raimondo, No. 22-451, and Relentless, Inc. v. Department of Commerce, No. 22-1219 (June 28, 2024), the Supreme
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On May 28, 2024, Governor Lamont signed Public Act 24-8, which will significantly expand Connecticut’s paid sick leave law. The current law applies to employers with at least 50 employees (excluding manufacturers), and requires that they provide up to 40 hours of paid sick leave to employees who are considered
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As part of the CBIA’s HR Hotline series, Carmody Labor & Employment partners Vincent Farisello and Nick Zaino provide insights into how employers should deal with workplace discrimination complaints. HR Hotline Live: Prevent & Navigate Workplace Discrimination Complaints (youtube.com)

There have been major employment law developments over the last two weeks. First, on April 17, the U.S. Supreme Court unanimously ruled that an adverse employment action does not have to be “significant” to constitute discrimination under Title VII. Next, on April 23, the federal Department of Labor (DOL) published
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News and Commentary Impacting Data Privacy and Cybersecurity Programs A Bipartisan Federal Comprehensive Data Privacy Proposal New Additions to the State Consumer Privacy Patchwork Peanuts, Cracker Jacks, and Facial Authentication? Concluding Consideration “In Order to Form a More Perfect [Data Privacy] Union”? Hopes and fears for a federal comprehensive data
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The Connecticut Appellate Court recently issued an important decision for employers ruling that employers may lawfully terminate employees who are impaired at work from using medical marijuana. The decision also provides helpful guidance on what facts will provide reasonable suspicion before an employer can require an employee to submit to urinalysis
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Carmody Labor & Employment partners Vincent Farisello and Nick Zaino discuss FMLA requirements as part of the CBIA’s HR Hotline series. HR Hotline Live: Understanding FMLA Requirements (youtube.com)

The Second Circuit Court of Appeals recently decided an important case involving the ownership of social media accounts that employees use in connection with their employment. JLM Coutoure v. Gutman, (2024). In this case, the employee, Hayley Paige Gutman, signed an employment agreement with JLM to design a line of
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News and Commentary Impacting Data Privacy and Cybersecurity Programs New Jersey’s new consumer privacy law Data Privacy Day 2024 – ideas and resources Boardroom liability – failing to oversee privacy and data security risks New Jersey Data Privacy Act (NJDPA) Does your organization offer products or services to New Jersey consumers? On January 16,
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Connecticut employers should be aware of key new federal and state employment laws that will be effective in 2024, and some other significant developments that are likely to occur. We summarize these new laws and developments below.  Proposed Changes to Overtime RequirementsThe federal Department of Labor (DOL) has proposed increasing
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Labor & Employment partner, Sarah Healey, is quoted in Law360 regarding a judge’s ruling regarding an insurer’s decision to fire a worker with dementia. Click here to read more.

On November 1, 2023, the Internal Revenue Service (IRS) announced the new contribution and benefit limits to qualified retirement plans. The increased limits will allow employees to save more money for retirement. Starting in 2024, the following limits apply:   Employees can contribute up to $23,000 into their 401(k), 403(b) and
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Carmody Torrance Sandak & Hennessey LLP is pleased to announce that it has been named to the 2024 Edition of the U.S. News & World Report – Best Lawyers ® “Best Law Firms” list. In this edition, 18 of the firm’s practice areas are ranked in Tier 1, 8 practice
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https://www.cbia.com/news/hr-safety/eeoc-releases-strategic-enforcement-plan

The Equal Employment Opportunity Commission (EEOC) is a federal agency responsible for enforcing federal laws that make it illegal to discriminate, harass and retaliate against job applicants or employees based on a protected class, such as race, color, religion, sex (including pregnancy and related conditions, gender identity, and sexual orientation),
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Carmody’s Litigation practice was recognized for 19 of its lawyers for the 2024 edition of Benchmark Litigation: Douglas A. Balko Maureen Danehy-Cox Jason R. Gagnon David T. Grudberg Damian K. Gunningsmith David S. Hardy Sarah S. Healey John R. Horvack Jr. Gary S. Klein Marc J. Kurzman Fatima Lahnin Todd
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Carmody Labor & Employment partners Vincent Farisello and Nick Zaino discuss issues for employers relating to employee discipline and terminations as part of the CBIA’s HR Hotline series. HR Hotline Live: Employee Discipline & Terminations – YouTube

The United States Department of Labor (US DOL) announced yesterday, August 30, 2023, that it will be issuing a proposed rule that would increase the salary level required for employees to be exempt from overtime pay under the federal Fair Labor Standards Act (FLSA). According to the US DOL, the
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This 2023 legislative session was quieter than in past years with many high-profile bills failing to pass. Still, employers should be aware of several significant bills that did pass and some that did not pass but are likely to be resurrected. Significant Employment-Related Bills That Were Passed: Expansion of Paid
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Giovanna Weller is named by Business Today as one of the Top 10 Most Influential Labor & Employment Lawyers in Connecticut for 2023. Giovanna is Co-leader of Carmody’s Litigation practice, Co-chair of the Labor & Employment group and leads the firm’s Employment Litigation practice. Giovanna is a trial lawyer with
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Authors: Sarah Healey and Lisette Donewald* Can an employer discipline an employee who shouts obscenities at a manager? The answer may not be so simple.  On May 1, 2023, the National Labor Relations Board (NLRB) issued its ruling in Lion Elastomers LLC II, overruling its 2020 decision General Motors LLC and
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East Penn Manufacturing is one of the largest battery manufacturers in the world. On May 9, 2023, a federal jury in Pennsylvania awarded $22 million in back wages to over 7,500 employees. According to the United States Department of Labor (US DOL), the award is the largest recorded jury verdict
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Seemingly overnight, Artificial Intelligence (“AI”) has gone from the pages of science fiction to the world of science fact, permeating nearly every aspect of our lives from healthcare to online shopping. Its most recent and pervasive form is ChatGPT, a Generative AI program created by Open AI and launched in
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The National Labor Relations Board (NLRB) recently issued a ruling in McLaren Macomb (2023) finding that broad confidentiality and non-disparagement clauses in severance agreements violate the National Labor Relations Act (NLRA). In McLaren, a hospital furloughed 11 employees and offered them each a severance agreement and general release that contained
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U.S. Citizenship and Immigration Services (USCIS) recently issued policy guidance to clarify the validity period of employment authorization for F-1 nonimmigrant students experiencing severe economic hardship due to emergent circumstances. USCIS clarified that it can grant off-campus SSR employment authorization for the entire duration of the Federal Register notice validity
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On February 22, 2023, the United States Supreme Court ruled in Helix Energy Solutions Group, Inc. v. Hewitt, that a highly compensated employee paid exclusively on a daily rate basis (as opposed to a weekly basis) did not satisfy the “salary basis” test and was therefore not exempt from the
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The Connecticut legislative session convened on January 4, 2023. We have summarized below various bills that are currently pending before the Labor and Public Employees Committee.  While some of these bills have a much better chance of passing than others, it is important to keep a pulse on proposals that
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Carmody’s Corporate team lead by Tom Candrick and Kevin Palumberi advised GEM Manufacturing on its sale to Core Industrial Partners, with support from Adam Brocklehurst, Johanna Bachmair, Deborah Brancato and Mark Williams. Click here to read: Private equity firm acquires Waterbury business | Hartford Business Journal

Feb 9, 2023 at 12:00 pm to 1:00 pm Carmody Labor & Employment partners Stephanie Cummings and Vincent Farisello will present for the ManufactureCT 2023 Labor Law Update. Learn the newest legal requirements for managing your business and being up-to-date on the law.  Click here for more information

A practical compliance workshop for employers and HR professionals in Connecticut Please join us for this highly interactive half-day workshop where we will “roll up our sleeves” and discuss numerous real-world scenarios in depth. Our goal is to not only provide attendees with an understanding of their basic obligations, but
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Carmody Labor & Employment partner, Vincent Farisello, quoted in article regarding CT’s new Clean Slate law could boost workforce, but employers must take note | Hartford Business Journal

January 19, 2023 SECURE 2.0 Act of 2022, was part of the Consolidated Appropriations Act, 2023, signed by President Biden on December 29, 2022. This Act makes numerous important changes to various retirement plan rules, affecting 401(k) and 403(b) plans, and enhances some changes made in the 2019 SECURE Act.
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January 19, 2023 On January 5, 2023, the Federal Trade Commission (FTC) proposed a new rule that, if implemented, would prohibit employers from entering into non-compete agreements with their workers (with limited exceptions). The proposed rule would also require employers to rescind existing non-compete restrictions with current and former workers.  
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https://www.law360.com/pulse/articles/1563389/carmody-torrance-promotes-3-to-partner Carmody law firm elevates three to partner | New Haven BIZ

Carmody has elected three of its lawyers to the partnership effective January 1, 2023. Commenting on the promotion of the new partners, Managing Partner Rick Street said: “Stephanie, Janie and Tamara are all dedicated, smart lawyers who have made significant contributions to the firm and the communities where they live
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The IRS, in Notice 2022-55 has announced increased 401(k) plan limits for 2023.  The increases are larger than usual due to inflation.  Here is what you need to know: The 401(k) deferral limit is increased to $22,500 from $20,500. Note this increase applies to 403(b) plans as well. The total contribution limit
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In recent days, pictures of documents labeled “top-secret” and “classified” strewn about the carpet of Mar-a-Lago have dominated the news headlines. These pictures have been shocking but likely don’t seem applicable to the general public given that the vast majority of people will never possess such sensitive state secrets. However,
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Timothy Klimpl provides insight on how Connecticut employers can handle the increase of health insurance rates for the Hartford Business Journal. Click here to read the full story.

Tim Klimpl is featured in Fortune’s CFO Daily. Click here to read the story.

Tim Klimpl discusses cryptocurrency as a form of compensation for the Connecticut Business & Industry Association. Click here to read the article.

The use of cryptocurrency is starting to gain a substantial foothold in employment and compensation according to the U.S. Department of Labor. For startup companies and other employers, this trend should call for both excitement and caution. First, last month the DOL’s Employee Benefits Security Administration published a compliance assistance
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Earlier this afternoon, the U.S. Supreme Court issued a stay blocking the Occupational Health and Safety Administration (“OSHA”) from enforcing its “vaccine or test” mandate previously imposed on businesses with 100 or more employees.  This case will return to the Sixth Circuit Court of Appeals for the underlying merits to
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Mark Williams and Tim Klimpl break down the basics of remote work and state withholding in the latest article for the CBIA. Click here to read the article.

The IRS recently issued FAQs regarding the temporary, 100% COBRA subsidy created by the American Rescue Plan Act of 2021 (“Rescue Plan Act”). This subsidy is available to “Assistance Eligible Individuals” for COBRA continuation coverage during the period April 1, 2021 through September 30, 2021. We previously covered developments relating
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Sarah Healey discusses COVID-19 “long haulers” returning back to the workplace. Click here to read the full article.

In our March 29 e-alert concerning the new COBRA subsidy, we indicated that we would advise when the new COBRA notices from the U.S. Department of Labor (DOL) became available. The DOL published the model notices on April 7, 2021. Background: Under the American Rescue Plan Act (“ARPA”), a temporary
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Timothy Klimpl, of New Canaan, Connecticut has recently joined Carmody Torrance Sandak & Hennessey LLP as Counsel in the firm’s Stamford office. Tim is a seasoned attorney with experience providing ERISA advice and related services to a variety of plan sponsors and employee benefit plans, including corporate, nonprofit, multiemployer and
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As a result of the COVID-19 crisis, the Connecticut Commission for Human Rights and Opportunities (“CHRO”) has announced it will provide extensions of time for certain deadlines for COVID-19 related reasons. Sexual Harassment Training The CHRO posted on its website that it will consider a 90-day extension of the deadline
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What is the program? The Shared Work Program is administered by the Connecticut Department of Labor (“CTDOL”). It is designed to save jobs and retain workers by offering an alternative to layoffs. It allows employers to temporarily reduce an employee’s hours and supplement lost wages with partial unemployment benefits. What
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Pursuant to the Governor’s Executive Order No. 7Q (“Order No. 7Q”) of March 30, 2020 (click here), the remote notarization provisions of Executive Order No. 7K were modified to address some of the issues and oversights therein. While the 10-year retention requirement for recordings remains, Order No. 7Q does incorporate
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Enabling work from home is a solid start to managing your organization’s COVID-19 risks.  Yet, while it resolves some issues, it raises others.  Before providing remote access to the company’s IT systems and digital assets, consider the privacy and data security implications of telework.  Here are a few top-of-mind considerations:
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