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Facebook apps on iPhones. REUTERS Stephen Lam

Litigation report sees focus on social media and wage-hour cases

1/31/2013 COMMENTS (0)

By Brendan O'Brien

Jan 31 (Reuters) - While the National Labor Relations Board has given notice that it will focus on social media in the workplace, the relevant law is far from completely defined, Crowell & Moring said in its Litigation Forecast for 2013.

According to the report, the agency signaled its interest in social media when it ruled in September that Costco Wholesale Corp's social media policy was not specific enough and could stifle employees' rights to free speech under the National Labor Relations Act.

But the NLRB "didn't give specific guidance on what language would be enforceable," Trina Fairley-Barlow, a partner at Crowell & Moring, said in the report. "There is currently no clear road map for parsing unlawful and lawful social media policies."

Separately, the report also said there is "no end in sight" in wage-and-hour class action litigation, the fastest-growing segment of employment law that deals with disputes over terms of employment such as pay and time worked.

The report predicts that wage-and-hour cases will continue to outpace other employment litigation because of legal questions involving worker classification, exemption and decentralized business operations.

"A key challenge employers face in those cases is how to handle the problem of the eager, non-exempt employee who performs work functions after hours remotely," says Tom Gies, a partner at Crowell & Moring. "While strong workplace policies and periodic audits are part of the solution, they unfortunately are not a panacea."

The report also said employers should beware of anything that could cause the Equal Employment Opportunity Commission to open a systemic discrimination investigation.

"Companies might want to be more aggressive at the investigative stage to convince the EEOC that the issue is not the type of claim the agency should pursue, either because the facts are not good or because the law is against them," Fairley-Barlow said.

The report also said employers need to understand that the landscape of whistle-blower cases has changed, after a federal court defined a whistle-blower broadly when it refused to dismiss a case against lighting company Trans-Lux last year.

"For companies, that means that if a plaintiff files suit, disposing of the case on a motion to dismiss will likely be more difficult, which means that companies may find themselves spending more time and resources defending these cases," Fairley-Barlow said.

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