Friday, November 8, 2013

For Second Year in a Row, Wessels Sherman Ranked as a Top Law Firm in the Midwest!

Wessels Sherman Joerg Liszka Laverty Seneczko P.C. has been providing first-rate legal services to employers for more than 25 years.  For the second year in a row, our dedication to clients has earned our firm national acclaim from some of the most prestigious and well-recognized sources in the legal field.  LexisNexis® Martindale-Hubbell® - the authoritative resource for U.S. lawyers since 1868 - has named Wessels Sherman to its 2014 list of America's Top Ranked Law Firms. This rating is driven by the confidential opinions of lawyers and members of the judiciary researched from a database of 1 million lawyers and firms in over 160 countries. Only 2,400 firms qualified nationwide!*  

We are proud of this national recognition, yet what we are most proud of is the recognition of our dedicated clientele who have come to rely on our lawyers as an indispensable resource to, as we like to say: "Help management manage."


*As reported in FORTUNE's® 2013 December Issue in addition to the December 2013 editions of The American Lawyer and Corporate Counsel magazines.

Tuesday, July 30, 2013

Female Wal-Mart Employees Again Fail to Sustain Class Action

Undeterred by the 2011 ruling of the U.S. Supreme Court in Wal-Mart Stores, Inc. v. Dukes, another group of that same company’s employees tried bringing a similar class-action lawsuit, this time on behalf of a slightly narrower scope.  In Dukes the plaintiffs’ class-action lawsuit alleged company-wide sex discrimination on behalf of all female employees and former employees, nation-wide.  The Supreme Court in that case dismissed the class action on the grounds that the plaintiffs could not show sufficient “commonality” among such a diverse group of putative plaintiffs, especially where the challenged decisions involved distinct stores and managers.  The plaintiffs in Ladik v. Wal-Mart Stores, Inc., apparently tried to get around the problems encountered by the plaintiffs in Dukes by limiting the scope of their complaint to “Region 14,” which included all female Wal-Mart employees in Wisconsin, Illinois, Indiana and Michigan. Unfortunately for the plaintiffs and their counsel the Seventh Circuit Court of Appeals nixed their class action claims for the same reasons relied on in Dukes.  Although the plaintiffs in this case limited their geographic scope, the court held that they did not overcome any of the obstacles that prevented the plaintiffs in Dukes from proceeding as a class; they did not show that all of the proposed class members shared any common questions of law or fact.

As in Dukes, the plaintiffs in this case complained of a number of practices they claim resulted in lower rates of pay and promotion for female employees than for their male counterparts.  However, disparate results do not necessarily mean that there is a specific discriminatory policy that has negatively affected all of the potential class members.  Even if these women were all discriminated against because of their sex, the court determined that a class-action lawsuit was not the appropriate avenue for them to pursue their claims. 

Monday, June 3, 2013

Union’s Tacky/Stinky Strike Tactic Survives Federal Court Challenge

A federal court in Illinois recently dismissed a Chicago hotel’s complaint against UNITE HERE, Local 1.  The Congress Plaza Hotel and Convention Center claimed in its suit that the union engaged in unlawful “secondary boycotting” as part of its strike against the hotel.  The union was accused of trying to cause business groups not to hold their conventions at the struck hotel.  In what can only be characterized as a stinker of a strike tactic, the complaint alleged that UNITE HERE, Local 1 delivered a heart-shaped package, filled with cow manure, to a group of scientists who had scheduled their convention to take place at the struck hotel. 

Section 8(b)(4)(ii)(B) of the National Labor Relations Act prohibits unions from exerting pressure on secondary businesses with the objective of causing them not to do business with a “primary” employer (one with whom the union has a labor dispute).  The allegations of this case seemed to fit the bill for such a claim. After all, if the scientists “got the drift” of the message behind the union’s lovely “gift,” it certainly appeared the union was unhappy with their choice of the location for their convention.  Unfortunately, the court never decided whether the union’s creative but raunchy “cow pie” package crossed the line because it ruled the hotel failed to bring suit within the applicable statute of limitations. 

Labor unions generally have little clout during a labor dispute.  To be sure, employees may lawfully withhold their services in an attempt to get their way at the bargaining table; i.e. go on strike.  But employers willing to withstand a strike are within their legal rights to hire replacement workers and continue operating, as was the case in this particular matter.  Faced with this kind of dilemma unions sometimes resort to “creative” measures such as the secondary pressure aimed at customers as alleged in this case.  Other cases with which our attorneys have been involved in the past include a union using giant inflatable rat; public campaigns through social and other media; and, on occasion, acts of violence.  Knowing how and, as this case demonstrates, when to react to such union tactics is part of management’s careful strike preparation plan in anticipation of any potential labor dispute.


For knowledgeable advice and assistance with advance planning for possible labor disputes or dealing with union pressure tactics, seek the advice of an experienced labor lawyer.  Contact: James B. Sherman at (952) 746-1700, or email jasherman@wesselssherman.com.

Friday, May 24, 2013

Labor Unions Win Big in Minnesota

By the narrowest of margins (2 votes) the Minnesota legislature voted to give certain in-home child-care providers and personal care attendants (PCAs) the right to unionize.  This comes at a time when nearby states are curbing organized labor’s clout.  For example, last year Wisconsin eliminated union rights to bargain over wages, etc. in public schools and most other public sector jobs, and Indiana and Michigan passed “Right-To-Work” legislation, where union membership cannot be made a mandatory condition of employment.  By contrast, the new Minnesota law stands to benefit two labor unions that lobbied aggressively for its passage.  The American Federation of State, County and Municipal Employees (AFSCME), is organizing the in-home child-care providers and the Service Employees International Union (SEIU) is seeking to represent the in-home PCAs.  As with most hotly contested political issues, opinions on the impact of this legislation depends on who is talking.

The unions and their supporters say the new law merely allows eligible child-care and personal care attendants the option to vote on whether or not they want a union.  Of course they also claim that union representation will translate into higher pay, greater benefits and training (which they equate with improving quality of care).  Left unanswered is a question all too often ignored in politics these days:  Who will pay for all this, including the dues these unions will undoubtedly charge?  The providers of these critical in-home services will have no choice but to raise their rates and the state, with tax dollars, will have to pick up the tab. 

Opponents of this law are left to lick fresh wounds.  They argued, obviously unsuccessfully, that passage of this bill was tantamount to the DFL-controlled Minnesota legislature simply repaying AFSCME and the SEIU for making significant campaign contributions to help elect a DFL majority.  With an estimated 21,000 in-home child-care and personal care attendants now open for organizing, the union dues they would be charged could bring in millions per year in new revenues for these two unions.   Because these union revenues would come, albeit indirectly, from tax payers to cover the necessary price hikes providers must charge, opponents see this new law as diverting public monies to unions as a payback for help in last year’s elections.

Perhaps lost in all the political rhetoric is the fact that this legislation goes beyond simply allowing people a choice.  Anyone who knows how union organizing really works knows that union elections are a far cry from “just letting people vote for or against a union.”  As with any union vote, all the union needs to win are a majority of those who show up to vote.  For example, if only 1,000 of the estimated 21,000 eligible voters actually vote, the unions would need only 501 votes in their favor to win.  What’s more – and few people, including the care providers themselves, realize this – if the unions win, they win representational status for all 21,000 individuals, including those who choose not to vote and those who vote against the union! 

The legislature had to make sweeping changes and redefine relationships across the state to make it possible for these two unions to have a shot at organizing 21,000 new dues-paying members.  Besides changing the legal landscape of well-established laws of union organizing, the new law effectively redefines the covered providers as all being employed by the State of Minnesota.  Yet most in-home care providers work for themselves; that is, they are considered in the eyes of existing law to be so-called “independent contractors” and not employees.  Those that do not work for themselves are employed by hundreds of small employers.  Whereas union organizing has forever sought the union’s status to bargain on behalf of employees, with their employers, the new law groups independent contractors with employees for the purpose of bargaining with the state!  By pure political fiat these diverse groups have been effectively re-designated as employees of the State of Minnesota, all to pave the way for two unions to organize thousands of new members.

Numerous legal challenges to this new law are expected.  If the union-supporting politicians win in court, it begs the question:  Who is next?  If the State of Minnesota can essentially annex entire occupations to make individuals working in those fields employees of the state, what would stop the legislature and governor from going after plumbers, electricians, lawyers, and doctors?  The only requirements seem to be that (1) government monies are flowing their way, and (2) a politically active union wants the ability to organize them.  Unfortunately, today all too often companies in the private sector rely on government monies as government continues to grow as a dominant player in the economy.

One legislator who supported the AFSCME/SEIU bill was asked to respond to the opposition’s claim that people who do not want union representation could be forced into a union by this law.  The legislator glibly replied:  “If they don’t want the union, they can simply choose not to take the government’s money” (state subsidies to pay for child and personal in-home care).  The irony of this is that the new union organizing law was accompanied by tax hikes on many businesses and higher wage earners.  When the government takes more and more of businesses’ money it gets harder and harder for them not to rely for their survival on some of the government’s handouts of that money.  Unfortunately, government handouts come with conditions.  In this case, the conditions appear to have been set by organized labor – allow union organizing or stay away from the government’s money!

Judge Postpones Implementation of Governor Dayton's Executive Order Permitting Daycare Workers to Vote to Unionize

Thursday, May 9, 2013

Another Win for Employer Rights - The U.S. Court of Appeals for the District of Columbia Circuit Struck Down the NLRB's "11-by-17" Poster Requirements

In another win for Employer rights, an appeals court on May 7, 2013 struck down a federal rule that would have required millions of businesses to put up posters informing workers of their right to form a union.

The poster rule would have required businesses to display an 11-by-17-inch notice in a prominent location explaining the rights of workers to join a union and bargain collectively to improve wages and working conditions.

The U.S. Court of Appeals for the District of Columbia said the National Labor Relations Board (NLRB) violated employers' free speech rights in trying to force them to display the posters or face charges of committing an unfair labor practice.

This ruling is another victory for Employers. Earlier this year, the same appeals court threw into question hundreds of other NLRB decisions after finding that President Obama's recess appointments to the board were unconstitutional. The Obama administration is appealing that decision to the U.S. Supreme Court. We will need to wait and see if the Obama administration appeals this ruling as well.

NLRB Postpones its Mandatory Notice-Posting Until 1/31/2012

Thursday, April 18, 2013

Seminar/Weather Update for Wisconsin Dells (April 19, 2013)


We are posting this note to inform you that the “Legal Safari” seminar scheduled for tomorrow, 4/19, in Wisconsin Dells is still on and will take place as scheduled.

We recognize that the weather conditions in some parts of the area were extreme in the past 24 hours, but hope that everything will now start clearing and everyone will still be able to attend.  However, the safety of our guests and their families is paramount, and if you will be unable to attend, please contact us.  Thank you.