Liquidated Damages

News & Analysis as of

New York Strengthens Equal Pay Protections

In October of 2015, the New York Legislature passed the Achieve Pay Equity Act (the Act) as part of the Women's Equality Agenda. 2015 N.Y. Lab. Law § 194 (McKinney), which can be found at...more

Liquidated Damages: A Viable Alternative to Noncompetition Agreements in Louisiana?

The Louisiana Third Circuit Court of Appeal recently issued an opinion that might pave the way for employers to use liquidated damages as a means of discouraging competition by former employees in certain...more

Avoiding Unenforceable Penalty Clauses

The Supreme Court in 2015 reviewed and redefined the rules governing unlawful penalty clauses. The new test considers whether there is a legitimate interest in creating damages or a fine and whether such fine imposes an...more

Legal Trends: Litigation & Dispute Resolution

In 2016, regulated persons in Canada are increasingly likely to find themselves facing prosecution before tribunals, rather than in courts, and facing significant exposure to monetary penalties in those...more

UK Supreme Court clarifies the law on penalties Cavendish Square Holding BC v Talal El Makdessi [2015] UKSC 67

The UK Supreme Court has recently clarified the English (and Scottish) law on penalties in the (joint) appeals in Cavendish Square Holding BV v Talal El Makdessi (“Cavendish”) and ParkingEye Ltd v Beavis [2015] UKSC 67...more

Labor and Employment Group News: Retaliation Claims Difficult to Defend

A recent judgment in the United States District Court in Connecticut of over Five Hundred Thousand Dollars ($502,402.05) illustrates the difficulties involved in defending retaliation claims. Summerlin v. Almost Family, Inc.,...more

Triple Dipping Remedies

The Tenth Circuit recently announced that employees who prove they are owed wages under both Federal and Colorado state law may be entitled to the unpaid wages, plus penalties under both statutes, possibly recovering more...more

Double the Pain: DOL Now Assessing Liquidated Damages for Overtime Violations

For some time now, the U.S. Department of Labor’s Wage and Hour Division (“WHD”) has been taking a progressively more aggressive approach to wage and hour compliance, marked by increased staffing/resources and more frequent...more

U.K.’s Revised Law on Liquidated Damages Clauses Could Mean Similar Changes for Commercial Contracts in Canada

Last week, the U.K. Supreme Court (UKSC) changed the law on liquidated damages clauses (LDCs), giving parties greater freedom to decide on damages for contractual breaches. The case may cause Canadian courts to revise the law...more

Supreme Court Ruling on Penalties: A Genuinely Commercial Approach

The Supreme Court has clarified and restated the scope of the English law rule against penalties. This important decision will have a far-reaching impact on commercial parties’ assessment of whether contract provisions...more

Liquidated Damages Clause in Employment Contract Backfires on Quebec Employer

Under article 2091 of the Civil Code of Quebec (the “C.C.Q.”), employers can terminate employment contracts of indeterminate length so long as the employee is given reasonable notice or an indemnity in lieu of reasonable...more

New York State Employers Face Strict New Equal Pay and Sex Discrimination Laws

New York Governor Andrew Cuomo recently signed a series of bills entitled the “Women’s Equality Agenda” that significantly amend the State’s equal pay, sex discrimination, harassment and other laws to provide additional...more

Proving Contractor Licensure in California. The Tribe Has Spoken.

As I mentioned in an earlier post, in California you must “prove” you’re a licensed contractor in a construction case. But in whose hands are you entitled to place your fate  – the judge or the jury?...more

Consequential Loss in Energy Commodity Contracts

Energy commodity contracts can be of significant monetary value, and their breach may expose the defaulting counterparty to significant liabilities for contractual damages. In considering potential liabilities, contracting...more

Corporate Divorce Series: Disparage-Me-Not

If you have been following my corporate divorce series, you may have read the “Break Up” piece where I advised newly terminated folks to keep their cool if they are unexpectedly fired because their post-firing behavior might...more

Nursing Mother's USDOL Claim Settled

The U.S. Labor Department reports that a temporary-staffing employee has received $1,152 in back-wages and unspecified "other damages" for what it contended was a violation of the federal Fair Labor Standards Act's Section...more

Leases

TRUE LEASE V. DISGUISED SECURITY INTEREST - The characterization of a transaction as either a true “lease” or a secured transaction is likely to impact the putative lessor’s rights and remedies both with respect to the...more

Leveraging employment restraints to protect business assets

When a key employee subject to an employment restraint leaves a business to join a competitor, fast decisions need to be made to protect client goodwill or guard against misuse of confidential information....more

Contractor Given a Wake-Up Call for Using a "Sham" RMO/RME

Two weeks ago we wrote about a disgorgement case winding its way through the courts where a contractor who let its license lapse after assigning its contract to a related but properly licensed entity was still facing...more

Insurance News, Summer 2015

The U.S. Senate Commerce Committee asked Michael Menapace to testify as an expert witness at a hearing called by the Subcommittee on Consumer Protection, Product Safety, Insurance and Data Security entitled, "Examining the...more

Indiana Employment Law Update: 5 Changes to Laws You Should Know

A number of significant changes to Indiana employment law took effect on July 1, 2015. These changes affected employer’s obligations in areas such as hiring, wages, discrimination, and termination. If employers have not...more

Second Circuit Speaks: No Private Settlements of FLSA Actions

In Cheeks v. Freeport Pancake House, Inc., the Second Circuit held that without the approval of a district court or the U.S. Department of Labor, parties cannot secure a stipulation of dismissal with prejudice of an FLSA...more

Are Liquidated Damages Down the Drain in California?

Liquidated damages can provide parties added incentive to perform all types of contracts, including commercial real estate contracts. But are they enforceable in California? The short answer is that they’re presumed to be...more

PilieroMazza Legal Advisor - Third Quarter 2015

NOW’S THE TIME FOR SBA TO EXPAND WOSB-ELIGIBLE INDUSTRIES - On May 1, 2015, the U.S. Small Business Administration issued a proposed rule to amend its regulations to implement Section 825 of the National Defense...more

Drafting Valid Damages Provisions in Settlement Agreements

Often thought of as a formality that should take minimal effort and expense to prepare, the drafting of the settlement agreement can quickly turn into a “devil in the details” scenario. One or more of the parties to the...more

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