Labor of Law: Artificial Intelligence Goes to Washington | New Sexual Harassment Ruling | Workplace Romances | Plus: Who Got the Work
Here are some early observations on the Trump administration's moves on the artificial intelligence. Plus: there's a big new sexual harassment ruling out of the Fourth Circuit, and check out Around the Water Cooler and our roundup of notable moves. Thanks for reading!
February 14, 2019 at 12:00 PM
8 minute read
Welcome to Labor of Law. Artificial intelligence is the topic du jour in the labor and employment world, as companies adopt new technology and lawyers and regulators scramble to respond to a changing workforce. The Trump White House is jumping on the bandwagon, announcing a new research push and directing agencies to prioritize AI. Plus, happy Valentine's Day! We've got some workplace tips below. Plus, scroll down for Who Got the Work and notable moves.
I'm Erin Mulvaney in Washington, covering labor and employment from the Swamp to Silicon Valley. Follow this weekly newsletter. If you have a story idea, feedback or just want to say hi, I'm at [email protected] and on Twitter @erinmulvaney.
Artificial Intelligence Goes to Washington
Automation has delivered robots, algorithms and other tech tools throughout the workplace. Companies have heralded modernization and new efficiencies, and employee advocates have raised concerns about potential discriminatory practices and workforce displacement.
>> The federal government wants in. President Donald Trump issued an order that directs the government to “prioritize research and development of America's artificial intelligence capabilities.”
This directive encourages investment and research in AI technologies and also directs regulators to establish guidance for AI development.
“Developing America's ability to leverage AI is critical to increasing prosperity, enhancing our national and economic security, and protecting our values,” the order says. The New York Times, reporting on the order, said Trump “did not set aside funds for A.I. research and development, and the administration provided few details on how it planned put its new policies into effect.”
Paul Hastings partner Bradford Newman in Palo Alto, who represents Silicon Valley tech companies, told me the executive order falls short of real action. He is shopping a draft bill to members of Congress that he created to propose a commission to regulate artificial intelligence.
“There is absolutely no money allocated for any item. It's grandiose and lofty but has no executables and no solutions and doesn't identify a problem that requires a legislative solution,” said Newman, who leads the firm's international employee mobility and trade secret practice. “It's just a proclamation that AI is important and we need to look at it closely. That is typical of what has been coming out of Congress and what has been proposed up to this point.”
Jeremy Elman, a partner at Dorsey & Whitney in Palo Alto, California, told my colleague Dan Clark this week: “I think law firms will suddenly get a lot more interested in using AI if there is going to be more regulatory oversight and more topics and if there is going to be an AI czar in the White House.”
>> Companies move forward—with caution. Artificial intelligence programs are attractive to large companies. A recent survey by the management-side firm Littler Mendelson found that the most common use of data analytics and artificial intelligence is in hiring and recruiting. Google, Amazon and other big players are leading the charge. Nearly half of those employers surveyed said they use some kind of advanced data techniques to grow their workforce.
Wired reports that Google cofounder Sergey Brin warned about the potential downsides of artificial intelligence when it comes to jobs and fairness. Google published a white paper last month on artificial intelligence.
“To date, self- and co-regulatory approaches informed by current laws and perspectives from companies, academia, and associated technical bodies have been largely successful at curbing inopportune AI use,” according to the paper. “We believe in the vast majority of instances such approaches will continue to suffice.”
Who Got the Work
>> The U.S. Court of Appeals for the Fourth Circuit last week revived hostile work and retaliation claims from a female employee who was the target of a false rumor that she slept with her boss to get a promotion. Dennis Corkery of the Washington Lawyers' Committee for Civil Rights and Urban Affairs argued for employee Evangeline Parker, and Donald Walsh of Wright, Constable & Keen in Baltimore, Maryland, represented Reema Consulting Services Inc. The EEOC's Julie Gantz was an amicus advocate. A team from Boies Schiller Flexner represented the National Women's Law Center. Alison Frankel at Reuters has more here on the ruling.
>> The U.S. Court of Appeals for the Sixth Circuit ruled in favor of off-duty police officers in a wage dispute in which they said they were employees—and not contractors—who were entitled to certain wages. DOL attorney Dean Romhilt argued for the U.S. Labor Department. Raymond Haley III, a partner in the Louisville office of Fisher Phillips, represented the company employing the off-duty officers. Read the ruling here.
>> “The Hershey Co. falsely told its 52-year-old senior counsel for global intellectual property that his job was eliminated, a new lawsuit alleges.” Michael Kelley and Wendell Courtney of the Harrisburg firm Smigel, Anderson & Sacks represents Kurt Ehresman, who filed the complaint Feb. 6 in the U.S. District Court for the Middle District of Pennsylvania. Bloomberg Law has more here.
>> The California Supreme Court, ruling for payroll provider ADP LLC, said an employee of the travel agency Altour wasn't a third-party beneficiary of a contract between the companies. The decision is a win for ADP and its lawyers at Morgan, Lewis & Bockius. Morgan Lewis partner Robert Lewis argued for ADP. Glen Broemer of Jersey City, New Jersey, represented the plaintiff. Read more here.
Love's in the Air… But Maybe Not the Office
Workplace romance can pose challenges to employers, particularly in the #MeToo era. It's hard to implement an outright ban, but management-side lawyers say good practices involve crafting policies that address workplace romances.
Karen Cain, a labor and employment attorney at Polsinelli in Kansas City, says companies should have policies in place that prohibit employees who have a supervisory role over another employee from engaging in personal relationships. She also says employers should consider having policies and procedures addressing when and how employees are required to disclose they are in a personal relationship with a coworker.
Phillips & Associates partner Gerry Filippatos and associate Erica Sanders write: “Employers should know that Cupid Day shenanigans in the workplace have spawned a plethora of litigation.” Their takeaway point: “All in all, it is best for employers to avoid complicated situations and reduce liability by steering clear of Valentine's Day celebrations.”
Companies appear to be instituting policies that limit dating for their top executives, according to a report compiled by the global outplacement and business coaching consultancy Challenger, Gray & Christmas.
“Over the last two years especially, leaders at many companies are taking it upon themselves to create an environment that fosters safety from sexually inappropriate conduct. This includes establishing clearer guidelines on who can date,” Andrew Challenger said. “Boards are instituting zero-tolerance policies on sexual harassment and cracking down on even consensual relationships, particularly between leaders who may have any kind of perceived or actual professional power over the other person.”
Notable Moves & Announcements
>> Seyfarth Shaw has hired Bryan O'Keefe as the firm's labor and employment department in Washington as a partner. O'Keefe joins from Kirkland & Ellis, where he was a labor and employment partner.
>> Jordan Barab, formerly the Obama-era deputy assistant secretary of labor at OSHA, is ending retirement to join the House Education and Labor Committee. “Now that we actually have our hands on some of the tools of power for the first time in two years, I'm anxious to stop just writing and tweeting about what's wrong with this country and this administration, and start doing something about it again,” Barab wrotein a post at his work-safety blog Confined Spaces.
>> Jackson Lewis P.C. has appointed Conrad S. Kee as office managing principal of the firm's Salt Lake City office. Kee joined the firm in 1996.
>> Scott Fiddler has closed his firm Fiddler & Associates, which he opened in 1990, to join the Houston office of Jackson Walker as partner.
Around the Water Cooler
• “AccuWeather, a private weather company whose former chief executive is President Trump's nominee to head the National Oceanic and Atmospheric Administration, agreed to pay $290,000 as part of a settlement after a federal oversight agency found the company subjected female employees to sexual harassment and a hostile work environment.” [The Washington Post]
• The Merit Systems Protection Board has been “basically neutered, and I think it's ridiculous,” John Palguta, a retired director of the board's research department, told WaPo. “It's not overly dramatic to say that the civil service is at risk here.” [The Washington Post]
• “The overseer of New York City's pension funds is urging the Securities and Exchange Commission to investigate whether Oracle Corp. misled investors about alleged pay bias across its workforce.” [Bloomberg Law]
• “More workers were involved in strikes and other labor disputes in 2018 than at any point in the past three decades, fueled by widespread teacher protests last spring.” [WSJ]
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Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
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