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FIVE EASY PIECES: Take Control of Punitive Damage Awards in Employment Litigation

Articles

A recent federal case re-emphasizes the importance of management training to avoid punitive damages in employment litigation. An Alexandria jury had awarded each plaintiff $600,000 in compensatory damages and $2 million in punitive damages on claims of racial harassment. White v. BFI Waste Services, LLC, 2006 U.S. App. LEXIS 12749 (4th Cir. May 23, 2006). But the Fourth Circuit Court of Appeals held that, while the management training did not insulate the employer from all liability, the adoption and implementation of a comprehensive policy to address the issue did shield it from exposure to punitive damages. The company argued that […]

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ERISA Wake-Up Call: Self-Funded Plans Must Act to Protect Subrogation Rights

Articles

A recent U. S. Supreme Court decision has potentially far-reaching implications for self-funded health plans sponsored by many employers. Employers and their insurance companies will need to utilize effective monitoring systems to stay aware of health and medical-related lawsuits filed by plan participants if they hope to recover costs advanced. With the escalating cost of health care, employers unaware of this decision may find it difficult to exercise the subrogation or recoupment rights built into most company’s plans. In Sereboff v. Mid-Atlantic Medical Services, Inc. (“MAMSI”), decided May 15, 2006, the U.S. Supreme Court held that a health plan can […]

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Company Response to EEOC Charge

Articles

Our company has received Notice from the EEOC that a former employee has filed a discrimination charge. What do we need to know about the process? The Equal Employment Opportunity Commission (“EEOC”) is the federal agency that investigates charges of workplace discrimination, harassment, or retaliation under several federal employment laws such as Title VII, the ADA or the ADEA. When a person files a formal charge, the EEOC provides written “Notice” to the company and usually requests a response. Here is some information regarding the process. It may be helpful to know that persons file almost 80,000 charges a year […]

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ERISA Issues Affecting Employers

Articles

ERISA is the Federal law governing employer-sponsored benefit plans, including health, life, pension and disability plans, established for employees. These plans can be self-funded or insured. Typically, employers engage a third party to administer the plan, such as an insurance company responsible for deciding whether to pay the benefits under the policy. Can a Plan Create Subrogation Rights? The answer is a resounding “maybe.” In 2002, the U. S. Supreme Court held that an employer’s health plan could not bring an ERISA claim against an employee for reimbursement of medical costs when the participant had recovered those same expenses from […]

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Are Noncompetition Agreements Worth the Paper They Are Written On?

Articles

Yes, but one size does not fit all. Recent Virginia Supreme Court decisions demonstrate the importance of properly tailoring an agreement to address the specific interests of the company and the activities of the employee. While the duration and geographic scope of the noncompetition agreement remain critically important, companies must now pay particular attention to the type of activity that they seek to prohibit their employee from performing. The activities which the employee is prohibited from performing should be limited to: (1) the same or similar type of work performed by the employee for the company and (2) activities that […]

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Role of the Business Community in Economic Development

Articles

Economic Development is the implementation of a very well-defined plan by a community, region or state to attract new businesses and help existing ones grow. Success depends on an awareness of the importance of growth, and sincere cooperation among regional governments, the business community and the general public. For Western Virginia, it may be the difference between being competitive and being left behind. The business of economic development should not be reserved only to our local governments. It is the responsibility of the business leaders in the Roanoke and New River Valleys and the Alleghany Highlands to assume a major […]

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Why Appropriate Land Use Planning Matters

Articles

Land is a finite resource. Planning for its use may determine the future of a community, and will likely be the difference between smart growth and haphazard or no growth. Understanding the concepts, terminology and process used in setting land use policy is the key to successful zoning decisions. What is a comprehensive plan? A comprehensive plan is a document containing the general principles and goals intended to guide land use decisions. Virginia law requires local governments to update their comprehensive plans every five years. A municipality will often invite its citizens to participate in this process. The result should […]

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New Communications Technologies Spawn Legal Issues

Articles

Communications technology changes almost daily. Often, both statutory and case law lag behind the new technology. In this dynamic environment, there is necessarily unpredictability that makes us all uncomfortable. As lawyers it is our role to bring some predictability that the business world demands. Here are several questions growing out of our reliance on this rapidly evolving technology. As an employer, may I monitor use of company computers by my employees? Congress enacted the Electronic Communications Privacy Act in 2003 when employee use of e-mail was not as wide spread. The ECPA is potentially broad enough to encompass electronic communication […]

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Land Renewal in Virginia: Is It Safer Today?

Articles

Over the last five to ten years, the remediation and redevelopment of contaminated property, commonly called “brownfields,” has become more prevalent, in part due to both federal and state legislation which makes remediation of contaminated property easier, and provides additional liability protections for those undertaking cleanups. A “brownfield” is generally defined as “real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.” A state voluntary cleanup program, and new liability protections under federal and Virginia Brownfields Acts, are two of the major drivers of land […]

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Accountants to Veterinarians: Professional Liability a Concern

Articles

Accountants to Veterinarians: Professional Liability a Concern Issues arising from professional liability should be of great interest to professionals in today’s business environment. The general public has become increasingly aware of its legal and contractual rights and seemingly believe that a legal action may, and should, be initiated from any factual scenario that leads to an unexpected outcome. As lawyers, we are faced with these issues on a day-to-day basis – both from a preventative standpoint and in a representative capacity. What is a professional? Professionals are generally defined as those with specialized knowledge in a profession with labor and […]

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