Author: Gibbons P.C.

Paid Suspension Not Adverse Employment Action Under Title VII, According to Third Circuit Court of Appeals

In Jones v. Southeastern Pennsylvania Transportation Authority, the Third Circuit Court of Appeals concluded that a paid suspension is not an adverse employment action in the “substantive discrimination context.” A predicate for a discrimination claim under the various anti-discrimination laws, requires the plaintiff to show she suffered an “adverse employment action,” generally described as an action or incident substantially serious to alter an employee’s compensation, terms, conditions, or privileges of employment. In the absence of an adverse employment action, a discrimination claim fails. Now, a paid suspension, as determined by the Circuit Court, is not significantly sufficient to affect the employment relationship to create liability under Federal and Pennsylvania State anti-discrimination laws.

USPTO Proposes a Pilot Program to Allow a Single APJ to Institute an Inter Partes Review

The United States Patent and Trademark Office (“USPTO”) has published a request for comments in the Federal Register for a proposed pilot program which would allow for a single Administrative Patent Judge (APJ) to determine whether to institute an inter partes review (IPR), with two additional APJs being assigned to the IPR if a trial were instituted.

Target/Visa Settlement: A Potential Guide Post in Data Breach Litigation

While the winter holidays are a time for spending and good cheer, the 2013 holiday season was one that continues to be costly for Target. On December 19, 2013, Target publicly announced that computer hackers had stolen data, including credit card payment information, from millions of Target shoppers. In January 2014, Gibbons P.C., in light of the Target data breach, discussed the ramifications of delay in notifying consumers, whether the delay was intentional or as a result of compliance with law enforcement requests. Banks and credit unions, which had issued credit cards affected by the breach, were forced to reimburse Target customers in some cases and reissue millions of cards, brought a class action lawsuit against Target.

NLRB Calls a Timeout in Northwestern Football Players Case

Last week, the National Labor Relations Board (NLRB) issued its long-awaited decision in Northwestern University, a case involving an attempt by scholarship football players to unionize under the National Labor Relations Act. About a year-and-a-half ago, in response to the university’s attempt to dismiss a union election petition filed on behalf of the players, a regional director decided that the students were statutory employees who could unionize. The university challenged the regional director’s decision, which set the stage for the Board’s decision.

Jury Awards $2.2 Million to Employees Over DNA Tests in Violation of GINA in “Devious Defecator” Case

A federal court jury in Georgia recently awarded $2.22 million to two employees in what is believed to be the first jury verdict in a Genetic Information Nondiscrimination Act (“GINA”) employment case since the law went into effect in 2008. Dubbed the “devious defecator” case by the court, Lowe v. Atlas Logistics Group Retail Services (Atlanta), LLC involved an employer’s testing of two employees’ facial cheek (or “buccal”) swabs to identify whether either was the individual who had been repeatedly defecating on the employer’s premises. All jokes aside, the decision is notable, not only because it is one of the few, if only, jury verdicts awarded under GINA, but because it serves as an important warning to employers that GINA may apply more broadly than some initially believed, while also possibly providing a blueprint for other courts on how to interpret the statute.

New Jersey Tax Court Alarms Nonprofits in the Morristown Memorial Hospital Case

In a detailed and closely-watched decision issued on June 25, 2015, Judge Vito Bianco, a New Jersey Tax Court judge sitting in Morristown, denied a property tax appeal of Morristown Memorial Hospital. This case, AHS Hospital Corp., d/b/a Morristown Memorial Hospital v. Town of Morristown, has received great attention in the press for good reason. By holding that a nonprofit hospital is not exempt from paying real estate taxes, the implication is that many hospitals could face this fate as well. For municipalities, this will be welcome news, but for hospitals – and, potentially, other nonprofits – this is a very unwelcome result.

Supreme Court Declines to Hear Challenge to New Jersey’s Requirement of Express Waiver Language for Enforcement of Arbitration Provision in Consumer Contracts

The Supreme Court of the United States declined to review the New Jersey Supreme Court decision in U.S. Legal Services Group v. Atalese, holding that an arbitration provision in a consumer contract was not enforceable because the contract’s language waiving the consumer’s right to sue was not clear and unambiguous. The New Jersey Supreme Court’s decision, which affects the enforceability of arbitration provisions interpreted under New Jersey law, directs that such provisions must clearly notify the parties of their waiver of the right to bring a lawsuit.

Wrap Up of United States Supreme Court’s 2014-2015 Term

With the close of the United States Supreme Court’s 2014-15 term, we offer this wrap up of the Court’s term, focusing on the Court’s most important business and commercial cases (excluding patent cases). Omnicare, Inc. v. Laborers Dist. Council Constr. Indus. Pension Fund: It is widely known that if the registration statement an issuer files with the SEC contains an untrue statement of a material fact or omits to state a material fact necessary to make the statements therein not misleading, then a purchaser of securities sold pursuant to the registration statement may sue the issuer for damages.

Employees Stealing Employer Confidential Information Not Immune From Criminal Charges

Five years ago, in Quinlan v. Curtiss-Wright, 204 N.J. 239 (2010), the New Jersey Supreme Court adopted a balancing test for trial courts to use to determine if the unauthorized taking of confidential company documents by an employee constituted protected activity in support of the employee’s claim under the Law against Discrimination. Now, the Supreme Court has ruled that the Quinlan decision does not preclude criminal charges from being brought against an employee who steals confidential documents from her employer in support of a whistleblower lawsuit. On June 23, 2015, in a 6-1 ruling, the New Jersey Supreme Court decided State v. Saavedra, and upheld the denial of defendant Ivonne Saavedra’s motion to dismiss the indictment against her for official misconduct and theft by unlawful taking of movable property. The high court found that the State presented a prima facie showing to the grand jury with regard to the two charges, that the State did not withhold exculpatory information from the grand jury regarding defendant’s intent to use the stolen documents in her civil lawsuit, and – most importantly for employers – that the indictment does not violate due process standards or public policy by conflicting with Quinlan.

Online News Sources Have Standing to Protect Free Speech Rights for Anonymous Users, According to New Jersey Appellate Division

Online newspapers, internet service providers, and website hosts have standing to assert the constitutional rights of their users, according to the New Jersey Appellate Division’s recent unpublished decision in Trawinski v. Doe. In Trawinski, the Appellate Division affirmed the denial of a plaintiff’s request for a subpoena requiring NJ.com to disclose the identity of an anonymous commenter. Underlying plaintiff’s request were allegedly defamatory remarks made by an anonymous poster using the screen name “EPLifer2” concerning plaintiff and her husband, a borough council member of Elmwood Park.