Category: Labor & Employment
Sixth Circuit Approves NLRB Micro-Bargaining Units
As originally posted on
On August 15, 2013, the Sixth Circuit Court of Appeals affirmed the National Labor Relations Board’s (NLRB or the Board) controversial ruling in Specialty Healthcare, 357 NLRB No. 83 (2011), which has allowed the proliferation of what some term “micro-bargaining units.” This decision makes it easier for unions to organize employees from all industries into smaller units than in the past and makes it challenging for employers to successfully challenge smaller bargaining units.
The Board’s Specialty Healthcare decision overruled its decision in Park Manor Care Center, 305 NLRB 135 (1991), which set forth the Board’s previous test for determining the appropriateness of a bargaining unit in non-acute healthcare facilities. Park Manor Care established a “pragmatic and empirical community of interest” approach that considered traditional community-of-interest factors, as well as evidence considered relevant by the Board during rulemaking … Read More »
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As the pharmaceutical industry changes, it must take note of the impact such change has on employee relations and the potential for lawsuits. Big Pharma has shed thousands of jobs in the past few years, with reports showing that the industry has lost more than 6,000 jobs from January –May 2013, up from the approximately 5000 lost in the first 5 months of 2012. And there will be more to come as the industry continues to react to lab failures, pressure to cut costs and lower prices due to lower profits, and increased competition from generics.
The result is employee disruption felt not only by those displaced, but also by the remaining workforce which often finds itself under stress from having to maintain productivity with fewer numbers, and who may feel threatened by the culture of layoffs. Either way, employee relations … Read More »
Yahoo’s Ban on Working from Home: Does it Raise Red Flags for Life Sciences Companies?
Yahoo’s widely reported decision to require its remote workforce to physically report to one of Yahoo’s office locations – or face termination of employment – has caused a social media stir. Here are some of the common questions, and our thoughts about whether Yahoo’s decision signals a trend applicable to Life Sciences companies.
Q: Can Yahoo fire its remote workforce if they refuse to return to the office?
A: For the most part – yes. If employees are employed “at-will,” then they can be fired with or without cause, and without notice. In other words, Yahoo’s statement that they feel the business is best served by the regular, spontaneous interactions resulting from having employees in the office is a legitimate non-discriminatory reason to require employees to return to the offices. Therefore, any employee who refuses to physically report to a Yahoo office location can … Read More »
2013 Life Sciences Employment Outlook: What Does It Mean for HR Compliance?
On January 30, 2013, BioSpace.com, an online life sciences recruitment company, released BioSpace Annual Report: Life Sciences Employment Outlook. The report is based on a site demographic study, review of industry job openings from 2010-2012 and salary data collected by BioSpace. The report is cautiously optimistic about employment security/opportunity in the life sciences industry. BioSpace reports that unemployment is down 3.4% since 2010, and average salaries are inching back up from the low point in 2010 towards the high level mark recorded in 2008. Employees with a doctorate or MD degree have the highest spike in average salary growth since 2010.
California, NJ/NY and Massachusetts remain as the top 3 hiring locations in 2012. The study notes that large companies are continuing to explore outsourcing jobs in process, manufacturing and production to overseas locations in India, China and South Korea. As … Read More »
Whistleblower Lawsuit Against Drug Maker Fails Because “Off-Guideline” Marketing Does Not Constitute “Off-Label” Marketing
In welcome news for the pharmaceutical industry, the U.S. District Court for the Eastern District of New York, in United States ex rel. Polansky v. Pfizer, Inc., 2012 U.S. Dist. LEXIS 163557 (E.D.N.Y. Nov. 15, 2012), issued a decision distinguishing between unlawful “off-label” marketing and lawfully marketing a drug for use outside of recommended guidelines. By way of background, the Food and Drug Administration approves “labels” (which, in some cases, may be lengthy and more akin to pamphlets or brochures) that must accompany prescription medications. A label states the purposes for which a medication has been determined to be safe and effective, and pharmaceutical companies are prohibited from promoting or marketing the medication for other “off-label” uses.
Since early 2004, Pfizer, Inc. has been defending a qui tam action that its former Director of Outcomes Management Strategies, Dr. Jesse Polansky, filed under … Read More »
7th Circuit Finds Pharma Sales Reps are Exempt Employees on Eve of Anticipated Ruling from Supreme Court
In a significant opinion for the pharmaceutical industry, the U.S. Court of Appeals for the Seventh Circuit found this week that pharmaceutical sales representatives at Eli Lilly and Abbott Laboratories are exempt from overtime under the administrative employee exemption in the Fair Labor Standards Act (“FLSA”). That exemption applies to employees who 1) primarily perform nonmanual work directly related to the business of the employer, and 2) exercise discretion and independent judgment with respect to matters of significance to the business of the employer.
The Seventh Circuit, rejecting the position of the Department of Labor as amicus curiae, found that the administrative exemption applied because the substantial work of the sales representatives is to prepare for, make, and document their sales calls to physicians to persuade them to prescribe the companies’ products, and that they exercise “significant discretion in the manner and mode of delivery of … Read More »