Every so often I come across an interesting ERISA case or compelling article on the topic. This week, I read a thorough case analysis of a recent ERISA case out of the Seventh Circuit Court of Appeals that dealt with a venue selection clause. While ERISA might not be an everyday matter that readers deal with in the workplace, I highlight this article to give readers a broad overview of a wide range of employment and labor law topics.
As always, below are a couple articles that caught my eye this week.
Consistency Is Key With Restrictive Covenants in Employment Agreements
Consistency, consistency, consistency. If there is one takeaway from Melissa Dunn's article about employers attempting to utilize and enforce restrictive covenants, this is the message to key in on. I point readers in particular to the "lessons for employers" provided at the end. However, note that while consistency (in terms of enforcement) is vital, Melissa is careful to differentiate and establish that consistency does not necessarily mean sticking to the same non-compete agreement for all employees. Food for thought.
Illinois Governor Vetoes $15/Hour Minimum Wage Legislation
Recently, Illinois Republican Governor Bruce Rauner vetoed a bill that would have raised hourly minimum wage rates in the state up to $15/hour by 2022. The current hourly rate, $8.25, would have been raised to $9/hour in January and gradually increased to the $15/hour threshold by 2022. While Governor Rauner's veto should not come as much of a surprise, had the legislation been approved, Illinois would have joined California and New York as the third state to pass $15/hour legislation. As Alexia Elejadle-Ruiz at The Los Angeles Times writes, while state lawmakers could attempt to override Rauner's veto, there do not appear to be enough votes to do so. For the time being, the "Fight for $15" has stalled out in Illinois.
Seventh Circuit Court of Appeals Rules on ERISA Plan's Venue Selection Clause
At the start of August, the Seventh Circuit Court of Appeals issued an opinion in In re Mathias in which the Court held in a 2 - 1 split decision that a venue selection provision in an employee benefit plan governed by ERISA was enforceable and was not inconsistent with ERISA's venue provision in ERISA Section 502(e)(2). Interesting to note this was a case of first impression for the Seventh Circuit (and tracked a similar decision from the Sixth Circuit Court of Appeals). For those looking for a rather in depth and thorough analysis of In re Mathias, this article from The National Law Review is worth a read.
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