A key federal contracting overseer put law firms on notice Wednesday, warning that the government is paying attention to the diversity gap in the legal industry. Plus: business advocates jump into the big Microsoft gender bias case in the Ninth Circuit, and a federal appeals court revives an age-discrimination claim against a national clothing retailer. Scroll down for Who Got the Work and our latest roundup of notable moves. I'm Mike Scarcella in D.C.—feedback, tips and general musings on your practice and how to make sourdough bread can be sent to [email protected]. Follow me on Twitter @MikeScarcella. Thanks for reading Labor of Law!

Government Warns Law Firms of Consequences for Diversity Failures

Craig Leen, director of the Office of Federal Contractor Compliance Programs, is touring the country to talk contract compliance. He was in New York this week, meeting with financial industry professionals and legal industry reps. In February, Leen took part in sessions in Seattle and San Jose.

Wednesday's meeting, which included the Equal Employment Opportunity Commission and other agencies, focused on topics that included how firms are addressing low representation rates of women and minorities at the partner levels, and how billable hours requirements accommodate family leave, my colleague MP McQueen reports.

“There is evidence of low representation at law firms and financial firms and our goal is to fix it and work with them to do so. This is the beginning of the process,” Leen (at left) said after Wednesday's meeting in New York.

At a town hall in Seattle, “Leen spoke passionately about the need for greater inclusion in the workplace for individuals with disabilities and noted that individuals with disabilities face significant obstacles in the workforce,” according to a post from T. Scott Kelly, an Ogletree Deakins shareholder in the firm's Birmingham office who co-chairs the firm's affirmative action/OFCCP compliance practice group.

Last month, the Office of Federal Contractor Compliance Programs publishedits new corporate scheduling announcement list of 3,500 contractors and subcontractors that may be subject to a compliance evaluation in Fiscal Year 2019.

Management-side lawyers tend to advise clients to conduct data analysis in advance of any audit. DOL's contract compliance regulators look at a host of areas, including compensation and hiring.

There are many household corporate names on the list, and a handful of law firms were also identified. The firms on the audit list include Ballard Spahr, Fox Rothschild, Haynes and Boone, Mayer Brown, Morgan, Lewis & Bockius; Paul Hastings; and Pillsbury Winthrop Shaw Pittman.

There's no certainty that OFCCP will get to all the audits before Sept. 30, the end of the fiscal year.

Leen's remarks come amid mounting scrutiny—and litigation—over alleged discriminatory practices at law firms. Former associates at Jones Day filed new claims alleging a “fraternity culture” there.

“Jones Day is proud of its success in promoting a diverse group of outstanding lawyers,” the firm said in a statement this week. “The success of Jones Day's women lawyers has been supported by our inclusive culture that rewards talent, teamwork, integrity, and mutual commitment to our clients and the firm.”

An open question for law firms that might be subject to an audit is the extent to which OFCCP has jurisdiction—including who can be considered an “employee.”

Leen made it clear the OFCCP regards associates as employees under its jurisdiction and that associate promotion rates to partner would be subject to OFCCP review. “We are going to be looking at that,” Leen said. “We are very keen on the issue of promotions.”

Who Got the Work

>> Jenner & Block appellate partner Adam Unikowsky was on an amicus brief for the U.S. Chamber of Commerce backing Microsoft Corp. in a Ninth Circuit workplace bias class action. “Under the Supreme Court's controlling decision in Walmart, this is an easy case,” Unikowsky wrote. “First, plaintiffs have failed to establish any common policy of discrimination that would justify linking the fate of their claims to those of thousands of other Microsoft employees. Second, the practicalities of this case confirm that it is fundamentally ill-suited for class adjudication.” Orrick, Herrington & Sutclifferepresents Microsoft, and lawyers from Outten & Golden, Lieff Cabraser Heimann & Bernstein and Frank Freed Subit & Thomas represent the employees. “Contrary to the district court's conclusion, this case is factually unlike Dukes in nearly every respect,” the plaintiffs contend.

>> A team from Morgan, Lewis & Bockius argued unsuccessfully for the retailer Anthropologie in the Second Circuit. The appeals court this week revived age discrimination claims. My colleague Colby Hamilton has more here. Outten & Golden's Darnley Stewart represented the National Employment Lawyers Association, and the EEOC amicus team, backing the employee, included Gail Coleman. The employee was represented on appeal by Schwartz Perry & Heller name attorney Brian Heller. My colleague Colby Hamilton has more here.

>> Ogletree Deakins successfully advocated for Jacobs Technology Inc. in the U.S. Court of Appeals for the Tenth Circuit. The appeals court on Tuesday upheld the dismissal of an age-discrimination claim brought by a systems test mechanical technician who was fired at age 49 in July 2015. El Paso-based attorneys Brett Duke and John Mobbs represented the employee.

>> Michael Wolff of the St. Louis firm Schlichter Bogard & Denton is counsel of record on a Supreme Court petition for Chevron Corp. workers fighting over the management of a $19 billion 401(K) plan, Bloomberg Law reports. A team from O'Melveny & Myers represented Chevron in the Ninth Circuit, which upheld the dismissal of the workers' complaint.

>> Robert Pritchard of Littler Mendelson advocated for General Nutrition Centers at the Pennsylvania Supreme Court on Wednesday in a dispute over the standards for calculating overtime for all workers in the state, including salaried employees who work a fluctuating work week. Roe & Simon attorney Michael Simon represents the plaintiffs.

>> Lawyers from Stoel Rives in Oregon, including partner Reilley Keatingand associate Brianne Bridegum, represented the Oregon-based health industry company Agate Resources Inc. at the U.S. Labor Department's Administrative Review Board. A panel recently upheld a judge's ruling that a whistleblower complaint was untimely filed.

Around the Water Cooler

>> Labor Department Official Resigns Amid Possible Ethics Probe. “A Labor Department official who worked for a steel company in a lawsuit against a worker union after joining the Trump administration has stepped down from his post in the face of ethics questions. Associate Deputy Labor Secretary Michael Avakian resigned effective April 5.” [Bloomberg Law] Avakian was formerly the principal member in the Washington office of Atlanta-based Wimberly, Lawson, Steckel, Schneider & Stine before joining the Labor Department in April as associate deputy secretary in the agency's front office.

>> The Age of Robot Farmers. “If the future of fruit-and-vegetable farming is automation, farmers will not only need the machines, and the funds to afford them, they will also require a new class of skilled farm workers who can debug the harvesters when something goes wrong.” [The New Yorker]

>> There Are Times Hidden Cameras Can Record Employee Behavior—But Not Always. The use of hidden cameras to monitor employees suspected of improper conduct can be an effective—and legal—means of catching workplace wrongdoers. A new lawsuit in San Diego court challenges the cameras that were set up inside a hospital. [Legaltech News]

>> Walmart Is Doubling Down on Robot Janitors. Here's Why. “Walmart says these 'smart assistants' will reduce the amount of time workers spend on 'repeatable, predictable and manual' tasks in stores and allow them to switch to selling merchandise to shoppers and other customer service roles.” [CNN]

>> En Banc Ninth Circuit Will Rehear Major Equal Pay Challenge After Reinhardt's Death. The U.S. Court of Appeals for the Ninth Circuit is preparing to rehear a key equal pay challenge asking whether employers can use salary history as a reason to pay a woman less than a man for the same work. A team from Jones Day represents the Fresno County superintendent of schools. Daniel Siegel, a partner at Siegel, Yee & Brunner in Oakland, California, represents the plaintiff Aileen Rizo. [Law.com]

>> New Salary Thresholds on the Horizon. “The DOL estimates that the proposed rule, if finalized, will make more than one million additional American workers eligible for overtime pay. In reality, the proposed rule will likely cause many employers to increase salaries or limit the number of hours employees are allowed to work,” a Skadden Arps team, including partner David Schwartzand counsel Risa Salins write. [New York Law Journal]

>> Google Will Now Require Suppliers to Give Benefits to Workers. “Google said it will require outside companies that supply it labor to offer better working conditions, including comprehensive health care, 12 weeks of parental leave, and a $15-per-hour minimum wage.” [Wired] The Hill, which obtained an internal Google memo, has more here.

Notable Moves & Announcements

• Ogletree, Deakins, Nash, Smoak & Stewart, continuing its push into Canada, has hired Lucie Guimond as partner in Montreal. Guimond previously was a partner in Canadian-British firm Gowling WLG and then had her own firm.

• Former Ogletree Deakins shareholder Cheryl Stanton(at left) was confirmed Wednesday by the U.S. Senate in a 53 to 45 vote to be administrator of the Wage and Hour Division at the U.S. Labor Department.

• Jackson Lewis P.C. said Danielle Alexis Matthews has joined the firm's Dallas office as a principal. Matthews joins the firm from Norton Rose Fulbright

• Fisher Phillips has opened a Pittsburgh office and expanded its Denver presence by adding a six-lawyer workplace and mine safety team from Jackson Kelly, my colleague Meredith Hobbs reports. Partners Hank Moore, Arthur Wolfson and Patrick Dennison opened the Pittsburgh office. Two other partners, Kristin White and Christopher Peterson, with associate Benjamin Ross, joined the firm's Denver office.

• Patrick Menasco has joined Goodwin Procter as a partner in the ERISA and executive compensation practice in the Washington office. Menasco was previously a partner at Stroock & Stroock & Lavan and at Steptoe & Johnson LLP.

• Megan Brennan has joined the Minneapolis office of Littler Mendelson as of counsel. She joins the firm from Cargill, where she was the federal contract compliance manager.