Legislative, Regulatory & Legal

Oklahoma City – Hobby Lobby has received permission from the 10th Circuit Court of Appeals in Denver to continue its challenge of the federal mandate requiring for-profit employers to offer certain types of birth control coverage as part of their employee health care plans. As a result, Hobby Lobby will at least temporarily avoid having to start paying millions of dollars in fines for non-compliance next week.

New York – Macy’s will pay $175,000 in civil penalties to the U.S. government in an agreement with the Department of Justice (DOJ) settling claims of mistreatment of immigrant workers. In addition to paying the $175,000 fine, Macy’s will also revise its employment eligibility reverification policies and procedures and to provide training to its human resources personnel across the country on the anti-discrimination provision of the Immigration and Naturalization Act (INA).

Macy's has agreed to pay a $175,000 civil fine for discriminating against immigrant employees when verifying their eligibility to continue working for the company, according to a Reuters report. 

The retailer will have to walk the fine line between ensuring equal opportunity rights to workers while not running afoul of complex immigration laws. To that end, in addition to paying the fine, Macy’s has agreed to improve the manner in which it verifies workers’ eligibility to work legally.

Toano, Va. – Boston-based class action law firm Block & Leviton said it is investigating claims that Lumber Liquidators Holdings sold floors to consumers with illegal levels of formaldehyde. Independent testing conducted at two different IAS-certified laboratories has reportedly revealed formaldehyde levels as high 0.17 ppm, three-and-a-half times the government mandated maximum emission level, in Mayflower flooring.

Matthews, N.C. – A lawsuit filed against Family Dollar by Pipefitters Local No. 636 alleging that Family Dollar violated federal securities laws has been voluntarily dismissed by the plaintiff. Family Dollar had petitioned to have the suit dismissed, but Pipefitters Local No. 636 abandoned its claims before the court made a ruling. Family Dollar said it did not pay any money or make any concessions in relation to the claim being dropped.

Seattle – The New York Court of Appeals has ruled that Starbucks shift supervisors are eligible to share tips left in plastic containers by cash registers with baristas. However, assistant managers are not entitled to share in the tips.

Washington, D.C. – Neil Trautwein, VP and employee benefits policy counsel of the National Retail Federation, told a congressional panel today that retail and chain restaurant companies continue to have serious concerns about the Patient Protection and Affordable Care Act and remain worried by the quickly approaching deadlines for full healthcare reform implementation, anticipated for January 2014.

Washington, D.C. – A sizable majority of American consumers oppose efforts by the government to impose limits on the size of soft drinks and other sugary beverages sold in restaurants, according to results of a new Gallup poll. Sixty-nine percent of 1,015 consumers ages 18 and older said they would vote against a law limiting the size of sugary beverages to 16 oz.

New York – Former Duane Reade CEO Anthony Cuti and CFO William Tennant failed in an attempt to have their 2010 convictions for securities fraud overturned. The Second U.S. Circuit Court of Appeals in New York upheld a June 2010 federal jury decision to find Cuti and Tennant guilty of providing misleading earnings information to shareholders and private equity group Oak Hill Capital partners, which purchased Duane Reade in 2004, between 2000 and 2004.