SimplyHR | Employment & Labor Blog 

With 2013 at its close, let’s take a peek at two cases currently pending in the United States Supreme Court that will have implications for employers in 2014.

Sandifer v. U.S. Steel Corp.

On February 19, 2013, the United States Supreme Court granted certiorari to review a decision by the 7^th Circuit Court of Appeals holding that time spent donning and doffing protective gear, as well as time spent traveling from the locker room to work stations, constituted “changing clothes” under the Fair Labor Standards Act (FLSA) §203(o), thus excluding the activities from being considered work time under the Collective Bargaining Agreement (CBA) between U.S. Steel and the United Steelworkers union. The briefing is complete and the Supreme Court held oral argument on November 4, 2013, so a decision should be forthcoming soon.

On December 16, 2013, the United States Supreme Court held that an employer sponsored disability plan with a provision requiring a plan participant to file suit within three (3) years after filing a written proof of loss under the plan is enforceable under the Employee Retirement Income Security Act (ERISA). The decision by the Court in Heimeshoff v. Hartford Life & Accident Ins. Co., No. 12-729, resolved a deep split among the federal Courts of Appeals regarding the enforceability of such limitation provisions.

Class and collective action lawsuits, particularly in the area of wage and hour claims under the Fair Labor Standards Act (“FLSA”) and state law, continue to be on the rise and are difficult and costly for employers to defend. A newly decided case reminds us that employers should consider the use of mandatory arbitration agreements that waive class action lawsuits for employment disputes.