Fortis Blog

Even Presenting an Employee with an Overbroad Severance Agreement Can Create Employer Liability

By Leni Plimpton Employers: Does your company regularly provide employees with severance agreements? If so, it is critical to be aware of changing labor laws and review your severance and separation agreements accordingly.  Recently, the National Labor Relations Board overruled two of the previous Board’s decisions from 2020. In McLaren Macomb, issued February 21, 2023, the Board imposed strict requirements on employers, holding that it is unlawful to even present

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US Department of Justice Reaches Penalty Deal for Biased Job Ads, Highlighting Discrimination Based on Citizenship

By Leni Plimpton The US Department of Justice has recently reached another penalty deal concerning biased job advertisements. This development sheds light on the pervasive issue of discrimination based on citizenship status, reinforcing the importance of adhering to the principles set forth in the Immigration and Nationality Act (“INA”) and Title VII of the Civil Rights Act of 1964. Enacted in 1952 and amended many times since, the INA was

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EEOC Sees Surge in Discrimination Charges in 2022; Backlog Spikes

EEOC Sees Surge in Discrimination Charges in 2022; Backlog Spikes

By Leni Plimpton In March this year, the federal Equal Employment Opportunity Commission (“EEOC”) issued its annual performance report. The EEOC pointed to a “significant increase” in the number of charges filed in the 2022 fiscal year compared to the prior year—about a 20 percent spike. According to agency data, 2021 was a low point in filed charges, with only about 61,000 filed. In comparison, there were about 91,500 charges

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Prepare Now for Delays in Trademark Application Review and Processing

Fortis clients should be aware that the United States Patent and Trademark Office (USPTO) received a record-high number of trademark application submissions in 2022. Unfortunately, the USPTO is also experiencing a shortage of staff to process and review submissions.  As a result, processing times are delayed, and applications are taking significantly longer than usual, up to twice as long as they did in 2020.  Current expected wait times are as follows:

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Colorado’s FAMLI Law: A Complete Employer Guide & Answers to FAQs

In November 2020, Colorado became the first state to pass a paid family and medical leave law by popular vote, joining a wave of similar laws since enacted in several other states. The law will allow Colorado employees to access paid time off, which can be used to recuperate from a medical condition,  childbirth, or care for a sick family member. The Fortis employment law team has received many questions

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Attention Employers! Colorado’s FAMLI Grace Period is Ending

By Leni Plimpton  As most Colorado employers should know, and as was noted in an earlier blog post, Colorado’s Family and Medical Leave Insurance (“FAMLI”) law requires payroll withholdings. Those withholdings should have started on January 1, 2023.  Employers with more than nine employees must pay .45% of the employee’s wage, and the employee must pay .45% as well (for smaller employers, the employer contribution is not required). The premium

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Employer Alert: Full Compliance with the PUMP Act Now Required

By Liz Hartsel What is the PUMP Act?  The Providing Urgent Maternal Protections for Nursing Mothers Act (PUMP Act) establishes nationwide protections for employees who need to express milk for nursing children at work.  Although President Biden signed it into law in late December 2002, requirements for compliance have been rolled out in phases to allow employers time to prepare. However, as of April 28, 2023, all employers are expected

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Why Delaying Equity Grants Can Lead to Enormous Tax Complications and Consequences

By Brian Barrett Companies often promise service providers equity, both as compensation for past services and as an incentive to remain with the company. However, it is not uncommon for this promise to fall by the wayside and go unfulfilled. As Business owners focus on running their company and growing the business, they sometimes neglect to track equity grants made under complex equity incentive plans and in conjunction with a

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New Act Prohibits Confidentiality, Non-Disparagement Provisions in Severance Agreements

By Liz Hartsel On February 21, 2023, the National Labor Relations Board (NRLB) issued a decision that confidentiality and non-disparagement agreements in employment severance agreements may be deemed unlawful under the National Labor Relations Act (the “Act”) if they interfere with an employee’s right to discuss working conditions as guaranteed by Section 7 of the Act. In McLaren Macomb, 372 NLRB No. 58 (2023), the NLRB determined that simply offering a separation agreement with

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New Ruling Determines that Delaware Officers Can Now Be Held Liable for Lack of Proper Oversight

By Dustin Rickett The Delaware Court of Chancery recently ruled that officers of Delaware corporations can be personally liable for failing to properly oversee their respective corporations. This is the first Delaware ruling that has explicitly stated that officers of Delaware corporations have a duty of oversight. The duty of oversight stems from the broader duty of loyalty, which requires that directors and officers act in good faith and in

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