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Labor & Employment Newsletter – Winter 2007


Synopsis of article:

Appeals Court Rules that Employers May Prorate an Employee’s Production-Based Bonus to Reflect FMLA Leave
The Third Circuit recently reached a decision of first impression, holding that an employer may prorate the annual bonus of an employee to reflect the employee’s FMLA leave if the bonus is production-based.

Failure to Provide Relevant Information Leads to Negligent Misrepresentation Claim
Last month, the United States Court of Appeals for the First Circuit ruled that a former employee could bring a claim of negligent misrepresentation for the company’s failure to disclose that his incentive stock option ISO agreements had to be exercised within three months of his resignation from employment. The First Marblehead Corp. v. House, (First Cir. 2006). This case shows that an employer may be held liable for what it doesn’t disclose to employees as well as affirmative misrepresentations.

Worker Eligible for FMLA Leave Despite a Five Year Break in Employment
The Family Medical and Leave Act of 1993 (FMLA) provides that an “eligible employee” shall be entitled to a total of twelve workweeks of leave during a twelve-month period for four specified reasons that are probably familiar to you by now.

Rhode Island Labor and Employment Law Update
The Rhode Island General Assembly did not enact many labor and employment laws during the 2006 session.

United States Supreme Court Rules that Title VII Anti-Retaliation Provision is Very Broad – Employees Beware
Claims of retaliation brought by persons protected by state fair employment practice laws and under the Federal anti-discrimination law, Title VII of 1964 Civil Rights Act, as amended, are the fastest growing discrimination suits brought by employees or former employees against their employer or co-workers.

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