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Paul Zimmerman

Showing 6 posts from December 2016.

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Regulators Rebuffed: CA Court Rejects $27 Million “Broker Fees” Fine

For decades, the California Department of Insurance (CDI) has interpreted the California Insurance Code in a manner that recognizes broker-charged fees as part of a “premium” that may be imputed to the insurer for purposes of rate-setting and rate-filing regulations. This position has long been a roadblock for brokers in the non-standard automobile insurance industry. However, in a considerable setback for the CDI, an Orange County Superior Court has invalidated this interpretation in its review of a CDI enforcement action against an insurer. On August 12, 2016, in Mercury Insurance Company v. Jones, the court ruled that broker fees charged for services other than the procurement of insurance should not be considered a component of “premium” for purposes of rate regulations. On these grounds, the court reversed the CDI’s imposition of a record-breaking $27 million civil penalty against Mercury Insurance Company. (Read More)

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sweetok ©

Anticipating Trump’s Impact on Labor Relations in the Hotel Industry

Unlike his oval office predecessor, President-elect Donald Trump is expected to limit federal labor and employment agency activism in wage and hour and other employment-related matters. Hotel owners and franchisors, which in recent months have experienced numerous workforce-related challenges, are likely to witness significant labor and employment policy shifts, a few of which are detailed below. (Read More)

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rukanoga ©

Second Circuit Rejects Double Recovery of Liquidated Damages for Wage Claims

A recent federal appeals court decision is a welcome one for employers facing federal and state wage and hour claims in federal court. New York employers may only be found liable for liquidated damages once in wage and hour cases, and plaintiffs cannot effectively double-up on liquidated damages awards by seeking such relief under both the Fair Labor Standards Act (FLSA) and New York Labor Law (NYLL) in the same matter. (Read More)

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Zenefits Settlement a Forceful Reminder of Importance of Licensing Compliance

On Monday, November 28, 2016, the California Department of Insurance (“CDI”) announced that its enforcement action against Zenefits, a human resources software company, had resulted in a $7 million penalty. This penalty is documented in a Stipulation and Waiver agreed to by Zenefits as part of the settlement. The enforcement action involved the transaction of insurance without a license and violations of the pre-licensing education requirements for California licensees. (Read More)

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Employer Alert: Key 2017 Illinois Employment Law Updates

Recent federal, state, and municipal employment law developments will have a significant impact on employers in 2017. Employers must update their employee handbooks, employment agreements, arbitration agreements, confidentiality agreements, and related policies and procedures to ensure that they are compliant with these developments. This is Part IV of a four part series exploring key employment law updates for 2017. Part I reviewed important changes to United States federal law; Part II explored updates to California state law; and Part III addressed recent developments in New York state law.

We now address significant updates to Illinois state law: (Read More)

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Gary Arbach ©

NYC Employment News: First-of-Its-Kind Freelance Rights Bill Becomes Law

As the gig economy continues to surge throughout the United States, New York City has emerged as one of the first municipalities to protect freelance workers. The New York City Council recently passed the Freelance Isn’t Free Act (FIFA), and on November 16, 2016, it was signed into law by Mayor Bill de Blasio. FIFA establishes and enhances protections for freelancers, independent contractors and other workers not routinely covered by labor laws focusing on the employer-employee relationship. FIFA takes effect on May 15, 2017. New York City employers that rely on freelancers to any degree should immediately take notice of these new regulations, and consult experienced labor and employment counsel regarding how to maintain full compliance. (Read More)