FIRM NEWS 

Recent developments in matters being handled by Altshuler Berzon attorneys.

February 2008 -- United States Supreme Court Justice Anthony Kennedy denies employer association's application to vacate stay entered by Ninth Circuit, permitting San Francisco universal health care ordinance to continue in effect while appeal of district court decision is pending. On February 21, 2008 United States Supreme Court Justice Kennedy rejected the Golden Gate Restaurant Association's application for an order vacating a stay issued by the Ninth Circuit. The effect of the denial was to permit the San Francisco universal health care ordinance to remain in effect while an appeal of a district court order holding the ordinance preempted by the federal ERISA statute is pending. Altshuler Berzon LLP, representing the San Francisco Labor Council, SEIU United Healthcare Workers-West, SEIU Local 1021, and UNITE-HERE! Local 2, filed a joint response with the City and County of San Francisco urging Justice Kennedy to reject the restaurant association's application. The San Francisco ordinance requires employers to make a minimum level of expenditures on their employees' health care, and establishes a health care program that will provide a broad range of primary and preventive care services to all uninsured San Francisco residents. While the appeal is pending, the ordinance is in effect and employers are required to make the minimum expenditures required by the law, thanks to the emergency stay issued by the Ninth Circuit. Oral argument before the Ninth Circuit will be held on April 17, 2008 in Pasadena. [Joint Response to Appellants for Stay] (pdf) [Joint Opening Brief of Appellants] (pdf)

February 2008 -- Oral argument heard in the Ninth Circuit Court of Appeals on petition to block the Bush administration's attempt to allow Mexico-domiciled trucks to travel throughout the United States without complying with congressional prerequisites. Altshuler Berzon LLP, on behalf of the Sierra Club, Public Citizen, the Teamsters, and the Environmental Law Foundation filed a lawsuit to block the Bush administration's pilot program allowing Mexico-domiciled trucks to travel throughout the United States in direct contravention of Congress' direction to stop the program and in violation of numerous federal safety laws. [petition] (pdf) [motion] (pdf) [Pittsburgh Tribune-Review article] [SignOnSanDiego.com article] [SignOnSanDiego.com article] [SFGate.com article]

February 2008 -- District Court grants preliminary approval to nationwide race discrimination class action against Morgan Stanley Dean Witter Altshuler Berzon LLP, together with Lieff, Cabraser, Heimann & Bernstein LLP and Outten & Golden LLP represent a class of Latino and African-American current and former financial advisors and financial trainees (i.e., brokers of Morgan Stanley Dean Witter). Under the proposed settlement, Morgan Stanley will (1) change its policies with respect to distribution of the accounts of departing brokers to deemphasize historical factors such as assets under management that have an adverse impact on minorities, and annually test for adverse impact of factors used; (2) actively recruit FAs of color, and report annually on success; (3) provide FAs trainees help to pass the series 7 exam; (4) provide resources to FAs of color; (5) institute diversity training that has an Implicit Association Test component-- a revolutionary term in such an agreement; (6) ensure that a substantial portion of manager compensation is tied to success in hiring and retaining FAs of color; ( 7) retain two IO psychologists to perform a job analysis of the FA job and to facilitate multi-racial partnerships among FAs; and (8) conduct interviews of departing FAs of color to determine their reasons for leaving. In addition to that injunctive relief, Morgan Stanley will pay $18 million for the benefit of the plaintiff class. Class members will have an opportunity to submit claims and receive a proportionate share of the settlement fund.

January 2008 -- California Supreme Court denies review of a $40 million class action judgment Altshuler Berzon and co-counsel obtained against the University of California for fee overcharges to thousands of undergraduate, graduate, and professional students. [SFGate.com article]

January 2008 -- Ninth Circuit grants emergency stay motion, permitting San Francisco universal health care ordinance to go into effect while appeal of district court decision is pending. Altshuler Berzon LLP, representing the San Francisco Labor Council, SEIU United Healthcare Workers-West, SEIU Local 1021, and UNITE-HERE! Local 2, filed a joint emergency motion with the City and County of San Francisco, asking the Ninth Circuit to stay a district court decision invaliding a San Francisco health care ordinance. The ordinance requires employers to make a minimum level of expenditures on their employees' health care, and establishes a health care program that will provide a broad range of primary and preventive care services to all uninsured San Francisco residents. The district court invalidated the law on ERISA preemption grounds, and the matter is now pending on appeal before the Ninth Circuit, on an expedited schedule. While the appeal is pending, the ordinance will go into effect and employers will be required to make the minimum expenditures required by the law, thanks to an emergency stay issued by the Ninth Circuit. [Ninth Circuit Order] (pdf)

October 2007 -- District Court grants nationwide preliminary injunction against Department of Homeland Security "no match" rule that would harm U.S. citizens and other authorized workers. Altshuler Berzon LLP, representing the American Federation of Labor and Congress of Industrial Organizations, filed a lawsuit along with the American Civil Liberties Union, and the National Immigration Law Center charging that a new Department of Homeland Security rule regarding "no-match" letters will threaten jobs of U.S. citizens and other legally authorized workers simply because of errors in the government's inaccurate social security earnings databases. The federal court granted a temporary restraining order to prohibit implementation of the new rule until the plaintiffs' motion for a preliminary injunction could be heard. On October 15, 2007, the federal court entered a preliminary injunction that bars enforcement of the new rule. [National Immigration Law Center Press Release] [ACLU Press Release] [First Amended Complaint] (pdf) [Memorandum in Support of Preliminary Injunction] (pdf) [Reply Memorandum in Support of Preliminary Injunction] (pdf) [Order granting Preliminary Injunction] (pdf) [Preliminary Injunction] (pdf)

July 2007 -- Altshuler Berzon attorneys obtain a preliminary injunction protecting the right of pilots at SkyWest Airlines, Inc. to organize. After a two-day trial, Altshuler Berzon attorneys obtained a preliminary injunction from the U.S. District Court for the Northern District of California protecting the right of pilots at SkyWest Airlines, Inc. to organize for the purpose of electing the Air Line Pilots Association as their collective bargaining representative. SkyWest vigorously opposed the pilots' attempt to wear union insignia and engage in other protected activity. The preliminary injunction protects SkyWest pilots’ federal rights to engage in expressive and associational activity as part of their organizing campaign.

June 2007 -- Altshuler Berzon Attorneys Help Obtain $65 Million Settlement in Overtime Misclassification Class Action Suit against IBM. Altshuler Berzon attorneys, together with co-counsel, represented a class of approximately 37,000 current and former tech support workers who allege they were misclassified as exempt from overtime pay. The class is composed of persons who install and maintain computer hardware and software. On January 11, 2007, U.S. District Judge Phyllis Hamilton granted preliminary approval to a $65 million settlement in the action. The final approval hearing is set for July 11, 2007. James Finberg, Eve Cervantez, and Rebekah Evenson were Altshuler Berzon LLP attorneys for the plaintiff class. [Daily Journal article] (pdf)

June 2007 -- Court Grants Final Approval of $12.8 Million in Overtime Misclassification against Wells Fargo. U.S. District Judge Claudia Wilken of the Northern District of California granted final approval of a $12.8 million settlement between Wells Fargo and a class of approximately 4,500 current and former employees on January 26, 2007. Class members alleged that Wells Fargo violated the Fair Labor Standards Act (FLSA) and California State law by misclassifying business systems employees as exempt from overtime. Class members were represented by attorneys from five firms, including James M. Finberg of Altshuler Berzon LLP. [The American Lawyer article] (pdf)

June 2007 -- Altshuler Berzon attorneys, together with co-counsel, represent tech support workers who were misclassified as exempt from overtime. [The Recorder article] (pdf)

May 2007 -- Court Approves Settlement for Bonuses and Severance Payments Due to Former Employees of Bio-Tech Company. The San Mateo County Superior Court granted final approval to a class action settlement of claims for unpaid severance pay and bonuses on behalf of former employees of a bio-tech company. When the plaintiffs' company was purchased and slated to be closed in 2003, their employer promised them a certain amount of bonus and severance pay if they stayed on during the transition. But the employer later claimed that its calculations had been mistaken and that most employees were entitled to less than they had been promised. Under the settlement, class members will be paid the entire amount of back pay owed, plus interest. Altshuler Berzon attorneys Michael Rubin, Linda Lye, and BJ Chisholm represented the plaintiffs, along with attorneys from two other law firms.

May 2007 -- City of Livermore Employees Ratify New Memorandum of Understanding with the City. Employees of the City of Livermore ratified a new three-year memorandum of understanding that will provide for a 12% wage increase, substantial improvements in medical benefits for employees and their families, increases in shift differentials and uniform allowances, pay premiums for job classifications that require special licences or certification, increases in vacation benefits, a significant expansion of family and medical leave rights, and other improvements. The MOU also provides, for the first time, for binding arbitration in cases of substantial discipline. The agreement was reached after nearly three months of negotiations between the City and the Municipal Employee Association for Negotiations (MEAN). Altshuler Berzon attorneys Daniel Purtell and Eileen Goldsmith represented MEAN in the negotiations.

May 2007 -- Department of Transportation postpones implementation of pilot program for cross-border trucking. The U.S. Deparment of Transportation postponed a pilot program that would have allowed Mexico-based trucking companies to operate throughout the United States. Instead, the Department published a notice of the program in the Federal Register and allowed time for public comment. Altshuler Berzon LLP is co-counsel for a coalition of labor and environmental groups, including the International Brotherhood of Teamsters, the Sierra Club, Public Citizen and the Environmental Law Foundation, that had filed suit a few days earlier to block the pilot program from going forward because of the lack of public notice and opportunity for comment. [See news story.]

April 2007 -- Trial court grants preliminary approval to settlement of FedEx race and national origin discrimination class action. The U.S. District Court for the Northern District of California granted preliminary approval to a class action settlement of claims for race and national origin discrimination against FedEx Express. The settlement provides for $55 million in monetary relief and a consent degree containing significant changes in selection procedures and performance evaluations, including the elimination of a basic skills test challenged as discriminatory. The case, Satchell v. Federal Express Corp., No. 03-02659, was brought on behalf of a class of about 20,000 African-American and Latino employees in Fed Ex Express' western region, which includes Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming, and part of Texas. Altshuler Berzon LLP attorney James M. Finberg served as lead counsel for the plaintiff class, which was represented by seven law firms. The settlement would end four years of litigation. [Daily Journal article] (pdf) [The Recorder article] (pdf) [Reuters article] (pdf)

April 2007 -- Nurses ratify new three-year collective bargaining agreement with Stanford hospitals. Nurses at Stanford Hospitals and Clinics and the Lucille Packard Children’s Hospital ratified a new three-year collective bargaining agreement that will provide for a 17% wage increase, improvements in differentials and pensions, and better contractual language in various areas. In response to the NLRB's recent decision in Oakwood, the contract also contains a new provision that prevents the hospitals from claiming that any nurses in the units are supervisors within the meaning of the National Labor Relations Act. The agreement followed three months of negotiations by the Committee for Recognition of Nursing Achievement (CRONA), and the participation of a federal mediator. Altshuler Berzon LLP attorney Peter D. Nussbaum represented the union in negotiations.

April 2007 -- Trial court approves nationwide notice to workers in FLSA overtime collective action against Inter-Con Security Systems for off-the-clock work. The U.S. District Court for the Northern District of California granted a motion for issuance of nationwide notice to security guards employed by Inter-Con Security Systems of their right to participate in an FLSA overtime collective action seeking payment for off-the-clock work. Altshuler Berzon LLP is co-counsel for the plaintiffs, who allege that they were required by Inter-Con to attend pre-shift meetings without being paid for their time and that Inter-Con illegally deducted money from their wages for uniform deposits. About 7,000 to 10,000 current and former Inter-Con Employees should be eligible to receive the notice. Inter-Con clients include Kaiser medical facilities; Wells Fargo banks; Midwest Generation power plants; Anandale Office Centers; Indymac Bank; SBC Telephone; ; the California Secretary of State Building; California Department of Motor Vehicles; Franchise Tax Board; and the U.S. State Department. [Trial Court's Order]