Category: Business Law

Philadelphia Cracking Down on Discriminatory Business Practices

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The Fair Practice Ordinance of the Philadelphia Code (FPO) prohibits businesses from discriminating (against patrons) on the basis of race, ethnicity, color, sex, sexual orientation, gender identity, religion, national origin, ancestry, age, disability, marital status, familial status, genetic information, or domestic or sexual violence. Recently, there has been public outcry over alleged discrimination toward LGBT people in some Philadelphia bars and restaurants. In light of this, Mayor Jim Kenney recently signed a bill amending the FPO to more stringently punish businesses who engage in “severe or repeated violations” without efforts to remediate such practices by authorizing the Philadelphia Commission on Human Relations (PCHR) to order a business to cease operations “for a specified period of time.” The PCHR will eventually enact further regulations to clarify the meaning of “severe and repeated” and “effective efforts” or the length of time are.

Philadelphia’s amended FPO law comes at a critical time in the unfolding of discriminatory business-patron regulations nationwide. This June, the Supreme Court decided to grant cert to a related case involving a baker in Colorado refusing to bake wedding cakes for same sex couples because of his religious beliefs. The Court will hear Masterpiece Cake Shop v. Colorado Civil Rights Commission in the coming term; its outcome will likely have determinative implications for the enforceability, or lack thereof, of laws like the FPO.

For more information, contact our Philadelphia business lawyers at Sidkoff, Pincus & Green at 215-574-0600 or contact us online.

Philadelphia Business Lawyers: Trade Secrets Lawsuit

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An architecture and construction company, Tesla Wall Systems LLC, has been awarded $14.5 million in damages in a claim against its former president. Among other things, the claim alleged breach of contract based on the trade secret/restrictive covenant clause in the employment contract. The contract contained post-employment restrictions barring the ex-president from interference with company business relationships for six months, and from soliciting employees for nine months.

Tesla Wall alleged that the breach of confidentiality began as early as September 2012 when the defendant bought three laptops. The company maintained that he did not ask to be reimbursed for his purchase because he was using them to steal trade secrets. In the complaint, Tesla employees said that after his departure, the defendant continued to pursue Tesla projects and customers with his new company. The list of proprietary information that he allegedly took with him included everything from software and technology, to technical data and research, engineering designs, internal bids and proposals, as well as customer lists and internal pricing information.

Many claims involving restrictive covenants never make it to trial as the parties often opt for a settlement.  However in this case, the employer decided to pursue the claim to its conclusion. After sitting through more than ten days of trial, a federal jury in the Southern District of New York returned a verdict in favor of Tesla Wall LLC.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Represent Clients in Breach of Contract Matters, Restrictive Covenant Actions and Trade Secret Claims

The Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. have experience in contract law, restrictive covenants and trade secrets. Please call us at 215-574-0600 or contact us online. Our offices are in Philadelphia and we serve clients nationwide.

Philadelphia Business Lawyers: Court Rules on Copyright

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Recently, the U.S. Supreme Court issued a watershed decision in Star Athletica v. Varsity Brands, holding that the decorative features on cheerleading uniforms are protected by federal copyright law. The issue before the court was what was the appropriate test to determine whether a feature of a useful article, such as an article of clothing, is protected under the 1976 Copyright Act’s Section 101. The Court set out to resolve a widespread disagreement as to what testing standard is most appropriate.

Justice Clarence Thomas authored the opinion. He wrote that an artistic feature of a uniform’s design can be copyrighted if it can be perceived as a two or three-dimensional work of art that stands separate from the uniform itself. The analysis applies equally to all “useful articles.” In addition, the feature must qualify as a protectable pictorial, graphic, or sculptural work either on its own or in some other medium if imagined separately from the uniform.

Varsity Brands manufactures cheerleading uniforms and athletic apparel. Varsity has more than 200 copyright registrations for two-dimensional designs consisting of various patterns, chevrons, and shapes. Designers create concepts that consist of original combinations, positionings, and arrangements of elements and do not consider functionality or the ease of actually producing uniforms. Varsity sued Star Athletica, who also markets cheerleading uniforms, after they allegedly copied two-dimensional art designs that Varsity had copyrighted. The Court held that the uniforms at issue met the requirements set forth by the newly devised test.

Justice Stephen G. Breyer dissented, finding that Star Athletica’s designs looked like generic pictures of cheerleader uniforms. He compared the situation to a pair of old shoes in a Van Gogh painting—stating that it would not qualify as a shoe design copyright, though the painting itself would be copyrightable.

Justice Ruth Bader Ginsburg concurred with the majority’s judgment, but not its opinion. She said that designs are not designs of useful articles, but rather are themselves copyrightable graphic works reproduced on useful articles. She found that the designs were standalone works of sculptural art that were covered by Section 101 of the 1976 Copyright Act.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Handle All Types of Trademark Litigation

If you are seeking representation in any type of business, copyright, or trademark matter, the Philadelphia trademark litigation lawyers at Sidkoff, Pincus & Green P.C. are available to answer your questions. To schedule a consultation with us, call us at 215-574-0600 or contact us online today.

Philadelphia Wage Dispute Lawyers: Future of the Overtime Rule

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Last year, the Department of Labor issued a new ruling for overtime pay extending the maximum salary threshold a worker can earn and still be eligible for overtime to $47,500.  The new rule, which was set to take effect on December 1, 2016, would enable approximately 4 million more workers to become eligible for overtime pay.  However, in November of 2016, a federal court judge in Texas temporarily blocked the rule, holding that it does not comply with the Fair Labor Standards Act on the grounds that the Labor Department may not decide which workers qualify for overtime based only on their salary.  The Department of Justice under President Obama appealed this decision.

With the law temporarily blocked and a new administration in place, the future of the overtime rule is uncertain.  The federal court in Texas has given the DOJ until May 1, 2017 to file a brief stating its position.  Aside from the uncertainty of whether the DOJ pursues its appeal, another issue is whether the Department of Labor intends to simply repeal the new rule, or issue an alternative rule.  The current salary threshold below which workers qualify for overtime wages is just $23,660 per year.  Millions of workers will be impacted by the future of the overtime rule and their fates hang in the balance.

Philadelphia Wage Dispute Lawyers at Sidkoff, Pincus & Green P.C. Represent Employees in Overtime and Wage Disputes

If you have an employment concern or wage dispute issue, the Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. have the experience to help you achieve an optimal outcome. Call 215-574-0600 to schedule a consultation about your case or contact us online. Our offices are conveniently located in Philadelphia and we serve clients in Southeastern Pennsylvania and New Jersey.

Philadelphia Employment Lawyers: Philadelphia Passes Wage Equity Bill

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In an effort to close the wage gap between men and women, Philadelphia Mayor Jim Kenney recently signed a bill preventing employers from asking applicants about their salary history. The Wage Equity Bill makes Philadelphia the first major American city to ban employers from asking candidates what they were paid at previous jobs. Companies in violation of the new ordinance face fines of up to $2,000.

The bill, first introduced in September 2016, is designed to eliminate the income disparity between men and women. According to a 2015 United States Census Bureau report, women make 79 cents for every dollar that men make. This discrepancy exists regardless of experience, education, or industry. The Pew Research Center also reports that as of 2015, women earn 83% of men’s hourly wages.

The rationale behind the bill is that if women are paid less than what they deserve at beginning of their careers, and potential employers base their salary on previous jobs, they will never catch up to their male counterparts. Though similar legislation already exists in Massachusetts, Philadelphia is the first major city to ban salary inquiries. New York State and Pennsylvania are also considering passing wage equity bills.

The City Council passed the bill with a unanimous vote, but it is already experiencing some pushback from one of the city’s largest employers – Comcast. The media giant, with headquarters in Center City Philadelphia, has already vowed to challenge the ban in court on grounds that it violates employers’ free speech. The Greater Philadelphia Chamber of Commerce also opposes the bill, saying it gives the perception that the city is “anti-business,” and discourages new employers from setting up shop in Philadelphia.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green Represent Clients in Wage Disputes

The team of Philadelphia employment lawyers at Sidkoff, Pincus & Green understands the complexities of employment law matters. Our attorneys represent employees in all aspects of employment law, including wage disputes. Call our Center City Philadelphia offices today at 215-574-0600 or contact us online to schedule a consultation with one of our attorneys.

We serve clients throughout the Greater Philadelphia area including Delaware County, Montgomery County, Philadelphia County, and the towns of Bala Cynwyd, Merion Station, Wynnewood, Darby, Narberth, Upper Darby, Sharon Hill, Cheltenham, Clifton Heights, Folcroft, Lansdowne, Drexel Hill, Elkins Park, Havertown, Glenolden, Ardmore, Gladwyne, Wyncote, Norwood, Holmes and Haverford, as well as New Jersey.

Philadelphia FINRA Lawyers: UBS Seeks to Overturn FINRA Ruling

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Swiss financial wirehouse UBS is seeking to vacate a Financial Industry Regulatory Authority (FINRA) ruling and $18.5 million award on the basis that two out of three arbitrators on the case were not impartial. UBS claims that one of the clients involved in the case went against their financial recommendations, a decision leading to substantial losses. However, the crux of USB’s case to overturn the award is their assertion that arbitrators failed to disclose concerning personal and professional financial details prior to their involvement in the case.

The case was initially decided in favor of the plaintiffs, a married couple, who won damages based on UBS sale of closed-end funds of Puerto Rican bonds, claiming unsuitability and breach of fiduciary duty. The claimants also accuse UBS of violating Puerto Rico’s own financial statutes. The couple initiated their arbitration a year after the Puerto Rican bond market collapsed. They allege that UBS misled clients about the potential vulnerability of their investments, while artificially inflating the local demand for bonds.

A FINRA three-member arbitration panel found that UBS failed in their obligation to these clients. FINRA is a not-for-profit organization dedicated to ensuring the integrity of broker-dealer industry and protecting investors. FINRA is not a part of the government, but is authorized by Congress. FINRA supervises more than 635,000 brokers and 3,900 securities firms.

Philadelphia FINRA Lawyers at Sidkoff, Pincus & Green Resolve the Toughest Business Law Cases

Philadelphia FINRA lawyers at Sidkoff, Pincus & Green bring experience and knowledge to business law cases. If you are seeking representation in a FINRA matter, call our Philadelphia offices today at 215-574-0600 or contact us online to discuss your situation.

Philadelphia Wage Dispute Lawyers: Third Circuit Rules That Overtime Class Action Cannot Proceed In Arbitration

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Recently, the Third Circuit weighed in on the issue of whether it is up to courts or arbitrators to decide if a class action lawsuit should be adjudicated in court, or in an arbitral forum. This case also dealt with the issue of whether an employment agreement that is silent on the issue of class arbitration permits employees to proceed on a class-wide basis on that basis. In Opalinski v. Robert Half International, the 3rd Circuit sided against the plaintiffs who wished to proceed on a class wide basis in arbitration. The case involved employees of the placement firm, Robert Half.

The plaintiffs were two former staffing managers at Robert Half in New Jersey. The men claim that they were improperly classified as exempt from overtime pay, and wrongfully denied such pay in violation of the Fair Labor Standards Act (FLSA). The defense argued that when the men signed their employment contracts, they waived their right to resolve employment disputes in court. Their contracts provided that such disputes must be submitted to arbitration. However, their contracts were silent in regards to class wide arbitration. The two men brought an action on behalf of themselves and other putative class members who were denied overtime pay.

Shortly after filing the claim, a United States Dihttps://overtimestrict Court judge granted the defendant’s motion to compel arbitration of the employees’ individual claims. However, the district court determined that the arbitral forum had jurisdiction to decide whether class wide arbitration was permissible.  The arbitrator found that such claims could proceed on a class basis in arbitration – and when the defendant sought to overturn this ruling in district court, the trial court sided with the plaintiffs.  Subsequently, the defendant appealed this ruling and the 3rd Circuit reversed and remanded, finding that the decision lies with the courts. The United States Supreme Court then declined to hear the case on appeal. After the case was remanded, the district court granted Robert Half’s motion to dismiss, finding that parties cannot be compelled to submit to class wide arbitration unless there is a contractual basis for concluding such.

The plaintiffs appealed this decision yet again, and the 3rd Circuit recently ruled against them, finding it had already “explicitly decided,” in a precedential opinion in this same case, that the question of arbitrability of class claims is for the court, not the arbitrator, to decide.

Philadelphia Wage Dispute Lawyers at Sidkoff, Pincus & Green Represent Clients in All Types of Wage Dispute Cases

At Sidkoff, Pincus & Green, we routinely handle FLSA claims involving unpaid overtime. Our respected Philadelphia wage dispute lawyers are prepared to answer whatever questions you may have. To schedule a confidential consultation, call us today at 215-574-0600 or contact us online.

 

 

 

Philadelphia Consumer Protection Lawyers Discuss the Unfair Trade Practices Consumer Protection Law

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Pennsylvania’s Unfair Trade Practices and Consumer Protection Law, 73 P.S. § 201-1 et seq. (“UTPCPL”) is Pennsylvania’s consumer protection law. It seeks to prevent “[un]fair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce….” Id. § 201–3. Its aim is to protect the public from unfair or deceptive business practices.

The UTPCPL provides a private right of action for anyone who “suffers any ascertainable loss of money or property” because of an unlawful method, act or practice. See id. § 201–9.2(a). Upon a finding of liability, the court has the discretion to award “up to three times the actual damages sustained” and provide any additional relief the court deems proper. Id.  There are 20 enumerated practices which constitute actionable “unfair methods of competition” or “unfair or deceptive acts or practices.” Id. § 201–2(4)(i)–(xx). The UTPCPL also contains a catchall provision which refers to “[e]ngaging in any other fraudulent or deceptive conduct which creates a likelihood of confusion of or misunderstanding.” Id. § 201–2(4)(xxi).

In order to establish a private right of action under the UTPCPL, a plaintiff must demonstrate that he/she detrimentally relied upon the deceptive practice of the defendant and that the plaintiff suffered harm as a result of this reliance. Toy v. Metro. Life Ins. Co., 863 A.2d 1, 9 (Pa. Super. 2004).  It is the plaintiff’s burden to demonstrate the level of reliance that normally accompanies a common law fraud claim.  This means a plaintiff must show not just reliance on the misrepresentation, but also that the reliance was justifiable.  Id. at 11.

Philadelphia Consumer Protection Lawyers at Sidkoff, Pincus & Green Represent Consumers in Claims for Fraud and Unfair Trade Practices

If you have been defrauded or subject to an unfair or deceptive business practice, you may have a valid claim under the UTPCPL, among other potential causes of action. Philadelphia consumer fraud lawyers at Sidkoff, Pincus & Green will seek maximum compensation for your damages. To learn more about how we may be able to help you, call us at 215-574-0600 or contact us online today.

 

 

 

Philadelphia Employment Lawyers Discuss the Pennsylvania Commissioned Sales Representative Act

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The Pennsylvania Commissioned Sales Representative Act, 43 Pa. Stat. § 1471 et seq. (“PCSRA”) provides statutory remedies for certain sales representatives when they are not paid timely commissions. Under the PCSRA, a “principal shall pay a sales representative all commissions due at the time of termination within 14 days after termination” and “all commissions that become due after termination within 14 days of the date such commissions become due.” 43 Pa. Stat. §§ 1473–74. If a principal “willfully” violates these provisions, then the sales representative may bring a civil action to collect all unpaid commissions plus exemplary damages and attorneys’ fees. Id. § 1475. The Act thus governs the payment of commissions owed by a “principal” to a “sales representative,” and a defendant can only be liable if the plaintiff is a “sales representative” as that term is used in the Act.

A key factor in determining whether you have a claim under the PCSRA is to understand how the law defines the terms “sales representative” and “principal”.

The PCSRA defines the term “sales representative” as follows:

“Sales representative.” A person who contracts with a principal to solicit wholesale orders from retailers rather than consumers and who is compensated, in whole or in part, by commission. The term does not include one who places orders or purchases for his own account for resale or one who is an employee of a principal.

Id. § 1471.

Thus, a “sales representative” is someone who solicits wholesale orders from “retailers” rather than “consumers.”

A “principal” is defined by the PCSRA as any person who does all of the following:

(1) Engages in the business of manufacturing, producing, importing or distributing a product for sale to customers who purchase such products for resale.

(2) Utilizes sales representatives to solicit orders for such product.

(3) Compensates sales representatives, in whole or in part, by commission.

Id.

Finally, a sales representative should be cautioned against bringing a meritless claim against a principal under the PCSRA.  If judgment is entered for the principal and the court determines that the action was brought frivolously, then the principal will be awarded attorneys’ fees and costs. Id. § 1475.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green Represent Sales Commissioned Representatives in Claims to Recover Unpaid Commissions

If you are owed unpaid commissions, you may have a valid claim under the Pennsylvania Commissioned Sales Representative Act, among other potential causes of action. Philadelphia employment lawyers at Sidkoff, Pincus & Green will seek maximum compensation for your damages. To learn more about how we may be able to help you, call us at 215-574-0600 or contact us online today.

Philadelphia Business Lawyers: Foreign Arbitration

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In a recent decision out of the Second Circuit, a U.S. Court of Appeals held that American courts can enforce an international arbitral award notwithstanding the fact that it was annulled by a court in a foreign country.

In Commisa v.Pemex, a Mexican subsidiary of a Texas corporation (Commisa) sued a state-owned Mexican oil company (Pemex), regarding several contracts to build infrastructure in the Gulf of Mexico, after a Mexican arbitral tribunal awarded the Texas company over $350 million. A Mexican court later set aside the award. Commisa then sought enforcement in the United States, and a New York district court judge held that the award should be enforced. The Second Circuit affirmed his ruling.

The Second Circuit noted that under the Panama Convention, American courts must enforce the award unless one of seven defenses enumerated in the Panama Convention is established. Although one of those seven defenses (a set aside) was satisfied, the judge ruled that he was constrained by the prudential concern of international comity—and that the Mexican decision violated international policy.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green, P.C. frequently represent Businesses in Arbitration

If your business is involved in a commercial dispute that is subject to arbitration, the Philadelphia business lawyers at Sidkoff, Pincus & Green may be able to help you. To learn more or schedule a consultation, call us at 215-574-0600 or contact us online today.