Tracking COVID-19’s Employment Law Impact: The Role Of Traditional Labor

What traditional labor issues are implicated in the COVID-19 workplace?

The National Labor Relations Act (NLRA), which is the basis for traditional labor rights, protects the right of workers (with some exceptions, most notably, supervisory employees) to engage in concerted activity to improve the terms and conditions of their employment. The rights afforded  under the NLRA apply both to unionized workers and workers who are not represented by a union. In the COVID-19 world, employee concerted activity has focused on workplace safety concerns, of course, but also the bread-and-butter issues arising from the economic fallout of the pandemic. 

What kinds of activity are protected? In recent years, the National Labor Relations Board (NLRB) has endeavored to apply an aging statute to contemporary workplace issues (and it has done so in wildly divergent ways, depending on the political makeup of the Board during any given presidential administration). 

Or, asked through a COVID-19 lens: Can workers refuse to work without personal protective equipment? Can they stage a walkout if their worksites are not routinely sanitized? Can they refuse to work with a coworker who violates social distancing protocol? For unionized employees, who often work under collective bargaining agreements containing “no strike” clauses, the answer becomes thornier; for unionized hospital workers, even more so. 

Can employees gang up on non-mask-wearing coworkers on an unofficial employee Facebook page? Can an employee email the entire distribution list to invite them to a webinar on “Your COVID safety rights” by a union seeking a foothold at the company? All of these questions implicate traditional labor issues, and none of them are as clear-cut as they first appear.

What does the National Labor Relations Act say about these issues?

Employers have to consider the NLRA when responding to such employee conduct. The statute (and interpretations of the statute under Board common law) guides whether an employer may discipline or discharge workers for walking off the job, or replace workers who go out on strike. 

Most relevant currently, in the unionized workplace, is Section 502 of the Act, which addresses when employees working under a no-strike clause may nonetheless walk off the job over safety concerns. The short answer: “Nothing in this Act shall be construed … to make the quitting of labor by an employee or employees in good faith because of abnormally dangerous conditions for work … be deemed a strike under this Act.” 

Of course, as applied, the real answer is more nuanced and fact-specific. Can employees “reasonably believe” their workplace is “abnormally dangerous” if the employer is in compliance with OSHA and industry-specific coronavirus guidelines—even if those guidelines do not have the force of law? 

The NLRA also imposes a bargaining duty on employers whose workers are represented by a union. This obligation presents its own set of challenges during a pandemic, when an employer must take prompt and nimble action to protect both workers and the business. Under NLRA, Section 8(a)(5), unionized employers cannot make “unilateral changes” to employees’ terms and conditions of employment, even during the interim period between contract negotiations. That means an employer has to get the union on board if, for example, it wishes to do COVID testing, or stagger worker start times to prevent unsafe overcrowding in the employee locker room.

What are the key bargaining subjects to emerge from COVID-19?

Contract negotiations will certainly be impacted by COVID-19 and its economic repercussions. Under the current crisis, important issues have arisen affecting employees’ “terms and conditions” of employment. For example:

Health and safety: Personal protection equipment, hygiene and infection control measures (including shields); testing protocols and privacy protections; social distancing; staggered shifts and breaks; and the changing role of the union safety committee.

Wage and hour: Unions are likely to seek ongoing hazard pay as the COVID risk persists, as well as return-to-work bonuses. Parties may also negotiate whether time spent waiting for temperature screening, or donning and doffing PPE, will be compensable.

Return to work. Recall procedures, opportunities for continued telecommuting, and new rules and expectations for the post-COVID-19 workplace generally will need to be hammered out at the bargaining table.

Benefits. While the federal CARES Act has provided some additional benefits coverage, unions will seek to expand on these basic provisions. During the lockdown, unions have successfully negotiated with employers to maintain health insurance and other benefits and ensure that employers continue paying for health care premiums during furloughs and layoffs. 

Severance packages will likely be on the table, in anticipation of a possible resurgence in infections requiring another shutdown. Unions may also look to add death benefits; the Transport Workers Union successfully obtained benefits for New York Metropolitan Transportation Authority workers who die after being infected by the coronavirus. 

Employee leave. Similarly, while the federal government has extended leave options for employees during the coronavirus pandemic, the crisis has demonstrated how anemic employee leave benefits are. Unpaid job-protected leave provides some measure of solace, but unions will bargain over heightened paid leave benefits to protect workers in the event a family member becomes ill and extended medical leave benefits are needed.

How has the NLRB responded to the pandemic?

Remote work. Aside from a few temporary closures, the NLRB has kept its regional offices operating throughout the pandemic, mostly with a skeleton crew of agency staff on-site and the bulk of employees working from home. It has continued to handle unfair labor practice charges and investigations and to issue unfair labor practice complaints. Although in-person hearings were postponed, some matters were handled by phone when feasible, and the Board just announced it will resume hearings, through remote videoconferencing, on June 1. 

Delayed implementation of new rules. At the height of the pandemic, the NLRB on April 1 issued its anticipated final rule addressing the representational status of unions in the construction industry and other piecemeal changes to how unions attain or keep their representational status under the federal labor law. Later, perhaps more fully cognizant of the challenges employers were already facing from the unprecedented public health crisis, the NLRB put off the effective date of this “election protection” regulation from June 1 to July 31. The Board also delayed implementation of its more sweeping rule pulling back Obama-era changes to the timing and conduct of Board-run representation elections. The new procedures, initially slated to take effect April 16, were delayed to May 31. 

Temporary suspension of elections. As the scope of the pandemic became clear, the NLRB on March 19 temporarily suspended representation elections through April 3—even mail-ballot elections. At the time, several regional and field offices had been closed and other locations were operating with limited staff, leaving the Board doubtful of its bandwidth to effectively conduct elections. With elections now officially resumed, regional directors have discretion to decide on a case-by-case basis whether an election can be conducted, and how, taking into account “the extraordinary circumstances of the current pandemic, to include safety, staffing, and federal, state, and local laws and guidance,” the Board said. 

Already, regional directors have had to contend with several disputes over whether to make concessions to the coronavirus by delaying a scheduled union election or holding elections by mail ballot rather than at the worksite. Employers have been arguing, first, that the public health crisis requires the suspension of representation elections and, somewhat paradoxically, that if an election must be held, it should be conducted in person. Neither argument has prevailed. 

Mail-in ballots. In one case, a regional official refused to delay an election at an acute-care hospital despite the employer’s contention that the extraordinary circumstance justified a stay. The NLRB upheld the regional director’s decision, even while acknowledging that the pandemic raises significant challenges for the employees, the union, and the hospital as it girds itself for an influx of COVID-19 patients. Nonetheless, the Board cited its obligation to maintain operations to the extent it is safe and feasible to do so. 

Also, the NLRB and the agency’s regional officials are increasingly inclined to order mail-in balloting over employer objections in light of the pandemic, including in one high-profile organizing effort among Instacart in-store shoppers. In one case that already made its way to the Board, the employer’s request for review was denied, reflecting both the Board members’ deference to the agency’s regional directors and its recognition of the pandemic’s ongoing health risks.

More recently, in recognition of pandemic-induced worksite shutdowns, the Board temporarily revised its unfair labor practice remedy to require that employers that violate the NLRA are to post a remedial notice of the Board’s findings at the affected worksite within 14 days of the “substantial complement” of the employer’s workforce returning to the facility. (This temporary change does not apply to “essential” worksites that have remained open through the pandemic.) Also of note, the Board issued a published ruling in which it held that the ongoing COVID-19 pandemic amounts to “compelling circumstances” sufficient to warrant holding a pre-election hearing remotely.

How have labor unions responded to the pandemic?

Cooperate. The overarching dynamic has been cooperation, perhaps in keeping with the “we’re all in this together” mindset that marked the early days of the pandemic. As the coronavirus shutdown racked up staggering job losses, unions were acutely aware that their employers were vulnerable and that it was in members’ best interests to keep them up and running. At many unionized worksites, management and union safety committees collaborated as to worker safety. For example, Albertsons Companies and the United Food and Commercial Workers International Union (UFCW) launched a joint effort to seek a temporary designation of “extended first responders” or “emergency personnel” for the supermarket chain’s employees, in an effort to secure COVID testing priority, as well as PPE and other protections.

Advocate. Unions have taken a more combative posture when they believed it necessary, however. For example, while Association of Flight Attendants-CWA International President Sara Nelson advocated fiercely for financial support for the COVID-decimated airline industry, she also lobbied for labor-friendly conditions on that support in the federal CARES Act. The UFCW pushed back against national grocery and retail chains, both union and nonunion, that started to scale back “emergency” or hazard pay for front-line workers as the pandemic wore on. (As of mid-May, the union noted, 65 grocery store workers had died from COVID-19.) 

Regulate. Unions also have aimed their ire at regulatory agencies. For example, UFCW, which represents a sizeable share of workers in the hard-hit meatpacking and meat processing industries, called for the U.S. Department of Agriculture to compel employers to provide testing, PPE, and other protections, to mandate social distancing in the plants, suspend USDA waivers that allow companies to speed up processing lines, and isolate workers who are symptomatic or test positive, allowing them to quarantine at home, with pay. 

Litigate. The AFL-CIO, in conjunction with several unions, sued the Department of Labor, asking a federal circuit court to force the Occupational and Safety Administration to issue an emergency temporary standard on respiratory diseases to guard against coronavirus. The agency has been reluctant to do so; its approach has been to offer industry-by-industry safety guidance that imposes no new requirements in lieu of enforceable mandates, insistent that existing enforceable standards cover COVID-related risks. The unions filed suit only after direct appeals to Labor Secretary Eugene Scalia proved fruitless.

“Alt labor” group Fight for $15 also has turned to litigation, joining five McDonald’s employees in Illinois in a “public nuisance” action contending that the fast-food chain is not sufficiently protecting its workers. The group, which is affiliated with the UFCW, also has organized walkouts of McDonald’s workers at locations across the country. 

Concerted action. Service Employees International Union members employed at skilled nursing facilities in Illinois secured hazard pay, better PPE, more paid sick days for COVID testing, illness, or quarantine, and other concessions after threatening to walk off the job, leveraging their critical-worker status during the public health crisis.

Public sector. In the public sector, the American Federation of Government Employees (AFGE) has sued the U.S. government in an effort to procure hazard pay for federal employees who work in close proximity to “virulent biologicals” (in this case, the coronavirus), as federal law requires, according to the union. The AFGE also issued a list of detailed preconditions it says must be met before the government reopens, including universal COVID testing, adequate protective supplies to minimize the spread of infection, and leave time for symptomatic employees. 

In addition, the union, which represents 6,500 federal meat inspectors, decried President Trump’s executive order mandating the reopening of meatpacking plants. (Well over 100 inspectors have contracted the virus, and by April’s end, several inspectors already had died.)

How will the pandemic impact union organizing going forward?

“Sickouts.” The most high-profile work stoppages during the pandemic thus far have been unaffiliated with organized labor. Nonunion workers staged “sickouts” at Target, Amazon, Instacart, and other large employers, pressing for workplace safety protections as well as some measure of security from the economic turmoil that the pandemic has caused. According to the National Council for Occupational Safety and Health, by mid-May, the United States had seen more than 200 employee walkouts arising from COVID-19-related safety concerns. These incidents point to an organic groundswell of labor activism arising from the pandemic.

Treatment of essential workers. Essential workers have been on the front line since the early days of the pandemic. Healthcare professionals, police and firefighters, and other first responders—heavily unionized workers—have garnered much admiration during the crisis. Retail and service employees, food production workers, delivery drivers, and similar professions are now counted among the “essential” as well and have gained newfound public appreciation. Those laboring in these critical yet low-wage jobs are prime targets for union organizing. 

Economic insecurity. The coronavirus has cast a cold light on the economic insecurities plaguing much of the workforce. Yet many unionized workers received hazard pay, additional paid sick time, continued health coverage through furloughs, and stronger safety protections during the crisis. 

Greater appeal? To the extent organized labor has shown its value in protecting workers and their jobs, union representation will have strong appeal now. Coupled with a strong pro-worker sentiment and inklings of a latent labor activism, this may well be an opportune moment for organized labor. However, if the favorable union climate don’t translate into actual bargaining power, that moment could be fleeting.


Lisa Milam is a Senior Editor/Analyst for Labor & Employment Law Daily. She has been a member of the labor and employment team at Wolters Kluwer Legal & Regulatory U.S. for more than 15 years.

Ronald Miller is a senior employment law analyst for Labor & Employment Law Daily. He has more than 35 years of experience covering employment law for Wolters Kluwer Legal and Regulatory U.S. and has written and edited publications on a variety of employment law topics.

IRS Spotlights Calculation of Economic Impact Payments (FS-2020-7; IR-2020-99) [Sponsored]

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SEC Busily Issuing Slaps On The Wrist

Adding An Extra Role While Facing A Pandemic

Ed. note: This is the latest installment in a series of posts on motherhood in the legal profession, in partnership with our friends at MothersEsquire. Welcome DawnMarie White back to our pages.

We’ve been thrown curve balls left and right for about two months now as we have adjusted to the COVID-19 pandemic. These sudden changes are stressful. In addition to the societal changes, many of us are also faced with the additional role of caring for and teaching our children during our work hours while managing our caseloads and the changes at work. Each of these issues (the pandemic, the closures, the changes at work, and the new role as a teacher) are overwhelming on their own. Now we are muddling through and seeking a magical combination that will work for our families and clients.

As I’ve turned to social media to stay connected and find resources, I’ve seen a lot of messages on social media chastising and criticizing working moms for voicing the stress and struggle of this. It usually starts with moms expressing frustration or concerns about eLearning or providing other educational instruction to their children and then someone comments or posts a meme about how parents should be excited about some “downtime” with their kids instead of complaining. Those criticizing comments are not only unfair but also untrue. I’d love some downtime with my kid — especially the family vacation we had to cancel for spring break. We aren’t complaining about having to take care of our children and their education. We’re scrambling to make it all work — to be everything to everyone. We’re often Type-A perfectionists so we don’t accept anything but the best in the services we provide our clients, and we won’t accept our children receiving a subpar or nonexistent education for months while schools are closed. As we navigate how to fit full-time teacher into our full-time advocate schedules, we’re expressing our stress and reaching out to our communities for support and commiseration. To be criticized and chastised for that is completely unfair, and a mischaracterization of our words and who we are.

Lawyer moms juggling your deadlines while finding a way to make sure your child still receives educational time, I see you. I see you piecing together resources for educational time, making schedules, stocking your pantries for all-day snacking, searching for toilet paper and disinfectants, and figuring out ways to make sure tiny humans don’t invade your Zoom court hearings. I see you holding it together. But as we practice social distancing, don’t forget to stay connected and reach out to your community and supports. It’s not complaining, it’s taking care of yourself.

Lawyers are often leaders in their communities. Your clients and your communities need you. Your kids need you. You already know you must take care of yourself in order to give to others. Be a lifeline to another lawyer mom and remind her to not give into the feelings of being overwhelmed. Let her know that you see her. Share resources with each other (some of mine are below). But most importantly, take care of yourself so you can be there for everyone else. We’ll all make it through this. And, if you’re looking for a silver lining, remember that we’ll be able to remind our children of yet another sacrifice we made for them when they’re deciding which long-term care facility is best for us one day.

Mo Willems’s Lunch Doodles via Facebook Live every weekday at 1 p.m.

McHarper Manor has art classes via Facebook Live every weekday at 1 p.m.

Atlantic White Shark Conservatory has a story/educational hour centered around sharks via Facebook Live every weekday at 10 a.m.

Cincinnati Zoo and Botanical Garden has a daily animal chat via Facebook Live every day (Saturdays and Sundays, too!) at 3 p.m.

The San Diego Zoo has animal webcams via their website. You can have your child watch and make a log book of observations (Yay, science!).

Several authors are doing live readings. The John F. Kennedy Center for the Performing Arts has a short list of such readings.

Libby Library App (You need a library card.), Audible, Amazon Prime Books, Overdrive, and Hoopla have e-books (some with narration) and audible books.


DawnMarie WhiteAfter graduating from IU Robert H. McKinney School of Law and opening her own solo practice, DawnMarie joined Emswiller, Williams, Noland & Clarke, LLC in 2019. She is a devoted wife and proud mom to her son, cat, and giant puppy. When she’s not focused on her clients, with her family, or volunteering in her community, she will likely be enjoying conversation at her book club, crocheting, practicing hot yoga, at the kickboxing gym, or eating cheesecake, or writing for MothersEsquire. She can be reached at dmwhite@ewnc-law.com.

Women Associates More Satisfied With Their Biglaw Jobs In Post-Pandemic World

The coronavirus pandemic has changed the modern workplace as we know it, pushing lawyers into working from the safety of their homes instead of commuting to offices where they may contract an illness that’s caused more than 100,000 deaths in America thus far. Law firms themselves have had to adjust to this new reality, slashing pay, furloughing employees, and even conducting layoffs to come out on the other side of the virus alive.

You’d think that in this often hectic environment, Biglaw associates would be less satisfied with their jobs — especially given the fact that many of them are now working without any childcare whatsoever — but according to a new survey, women associates’ satisfaction has climbed to new heights. How could this be?

According to BTI Consulting, which interviewed and surveyed 369 law firm associates before and during the pandemic, women are responsible for a 12 percent uptick in overall associate job satisfaction, while men’s satisfaction remained unchanged.

On a scale of 1 to 10, with 10 being extremely satisfied and 1, representing you are ready to leave: 

Pre-Pandemic Post-Pandemic
Overall Associate Satisfaction 7.4 7.9
Women Associates 7.0 7.9
Men Associates 7.9 7.9

What’s driving women’s newfound satisfaction with their jobs during the pandemic? According to the survey, Biglaw firms are showing more empathy to their employees, which is ranked higher by women in importance than men. Firms are also giving their associates some breathing room during these tumultuous times, giving them 10 to 15 percent wiggle room in their billable hour targets, which ranked higher for women associates than men. From the survey:

Law firms did a good job of delivering on associates’ high expectations for how they would be treated and how well-informed they would be. Men have the same concerns but value these behaviors differently than women associates – resulting in the surge.

Let’s see if law firms are able to keep these satisfaction rates up when it’s time for associates to head back to the office. For some reason, we have our doubts.

Women Associate Job Satisfaction Soars During Pandemic [Mad Clientist / BTI Consulting Group]


Staci ZaretskyStaci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.

Donald Trump Getting Blasted For Doing What Joe Biden Says He Wants To Do

(Photo by Chip Somodevilla/Getty Images)

Barring some crazy turn of events, Donald Trump is about to introduce an executive order that launches an assault on Section 230 of the Communications Decency Act in a bid to stick it to Twitter — ironically the President’s most powerful political tool — for having the gall to label his tweets as misleading even though there is very little argument that the tweets in question were, in fact, lies. If ever there was an “Emperor Wears No Clothes” moment, this is it, and Twitter is about to be lambasted for having eyes.

Section 230, as a refresher, is the provision that allows Facebook to not get sued immediately when someone hops on and libelously explains that their neighbor is a pedophile. The neighbor has a defamation claim against the user, but not Facebook assuming Facebook at least tries to stay on top of bad conduct. We don’t expect Facebook to moderate every comment and certainly not every comment posted in real time, so they get a break as long as they can demonstrate that they made a good faith effort to keep that content off their platform.

Twitter didn’t remove Trump’s false tweets; it merely flagged them as misleading, a step it took in its effort to act in good faith. But that’s enough for Trump to get in a huff, so there’s an order in the works. Here’s what the order will purportedly attempt to do according to CNN, who claims to have seen a draft:

* The Federal Communications Commission will be asked for new regulations clarifying when a company’s conduct might violate the good faith provisions of Section 230 with an eye toward making it easier for tech companies to be sued.

* The Justice Department will consult with state attorneys general on allegations of anti-conservative bias.

* It bans federal agencies from advertising on platforms that have allegedly violated Section 230’s good-faith principles.

* Direct the Federal Trade Commission to report on complaints about political bias collected by the White House and to consider bringing lawsuits against companies accused of violating the administration’s interpretation of Section 230.

The legality of this order is… suspect. Presidents can’t willy-nilly overturn acts of Congress that they don’t like and they can’t tell the Federal Trade Commission to do anything, but the Trump administration’s vision of constitutional power is guided by the scholarly maxim “you miss 100 percent of the shots you don’t take.”

And Republicans in the legislature are working on a bill to strip Twitter of its Section 230 protections entirely arguing that correcting a lie robs the site of its status as a neutral platform, which is not something Section 230 requires. As a technical matter, the provision states:

No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider.

So Twitter can’t be sued because of something an idiot — in this case, the President — posts. But that’s the floor, not the ceiling, of Twitter’s options. It can more or less do whatever the hell it wants with what people put on its private forum. Which is why none of this is really a Section 230 issue. This is more akin to cutting off Michigan’s emergency aid because the White House is mad about absentee ballots — which only a complete dumbass would think is legal. Trump’s mad at Twitter’s private speech and, since he can’t ban that, he’s lashing out by trying to take away the legal shield that allows Twitter to exist at all.

As one might expect, the backlash is mounting as Trump’s critics rally behind the social media companies that he’s attacking. Without robust Section 230 protections from a hail of lawsuits — in this case alleging “anti-conservative bias” for pointing out that elections are held on Tuesdays — social media can’t function. Becoming a wholly unmoderated message board would nuke their appeal quickly and the center could never hold if they begin shifting algorithms to please whomever occupies the White House.

Twitter’s effort to highlight that Trump was lying in an effort to suppress the vote was the right move. Not because it needed to get out of a lawsuit, but to avoid sinking into the irrelevancy of a Nazi subreddit. And Twitter has definitely flirted with becoming that in the past and it was market pressure that turned them around. The invisible hand of corporate credibility may not provide perfect solutions, but it’s a better watchdog than exposing social media to arbitrary “good faith” reinterpretations dictated by Bill Barr.

Unfortunately, when November rolls around, the only realistic choice for these critics to coalesce around is… this guy:

“The idea that it’s a tech company is that Section 230 should be revoked, immediately should be revoked, number one.”

Cue the sad trombone.

Yes, the Democratic Party went out of its way to nominate a guy who incapable of credibly challenging Trump’s latest broad assault on the First Amendment. There’s a strain of liberal talking head that bemoan “both-sideism” as if it’s per se vicious slander, but while there are some egregious “apples to oranges” attempts at both-sideism, more often than not the phenomenon is just the inevitable result of Republicans realizing that Democrats routinely refuse to strategize a coherent worldview beyond “x vs. not x.” That sets up a pretty simple model: Trump and his cronies abuse a system, wait until Democrats forge a ham-fisted solution, then immediately co-opt that solution and use it as a cudgel. Nuanced arguments like, “Section 230 remains, but require social media to deploy stronger moderation algorithms to stop people lying about specific legal requirements and deadlines in order to facilitate election fraud” can’t be seized upon as easily because they take the discussion out of the “two-sides of a coin” script, but alas, that’s not popular enough to win a Democratic primary. “Grrr, Trump lies on Twitter so Twitter bad!” is what wins on Super Tuesday.

So now the only protection Americans have from a broken internet is Mark Zuckerberg’s inherent likability.

We’re all doomed.


HeadshotJoe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news. Joe also serves as a Managing Director at RPN Executive Search.

Family Separation Is Back

TIMOTHY A. CLARY/AFP/Getty Images

Back in the summer of 2018, two years and approximately an eon ago, you might recall a little political kerfuffle about the Trump administration separating families. Elie Mystal put it well when he characterized it as terrorism; this was the brainchild of alleged “white nationalist” Stephen Miller, who is willing to traumatize hundreds of children for life in the name of deterring immigration because he clearly doesn’t think Latinos are people.

Now, just in time for the anniversary of the original family separation scandal, we have what the American Immigration Council calls Family Separation 2.0. This time, instead of literally taking screaming children from their parents’ arms, they have framed it as a choice for parents to make. Parents can allow the children be released without them, or they can all be detained by ICE together for as long as ICE wants. Spoiler alert: ICE wants to keep them so long that they give up and take voluntary deportation.

To understand why the Trump administration is expressing its racism in this particular way, you need a bit more background. The rights of minors in U.S. immigration custody are governed by the 1997 settlement of a case that was, at that time, called Flores v. Reno. (It’s been reopened so many times, due to violations by the federal government, that most of the AGs of the past 30 years have been named at some point.)

The Flores settlement has been interpreted to protect minors accompanied by their parents as well as unaccompanied minors, and it requires (among many other things) that those minors be released “without unnecessary delay.” This is, obviously, directly contrary to the Trump administration policy of deterring immigration through abject cruelty. Unfortunately for them, binding contracts are binding even when you don’t like them, and the outright stealing of children turned out to be less popular than Miller believed, even when the victims have the bad taste to be brown-skinned.

So they had to come up with something new, and that turns out to be “binary choice”: Give up your child or give up your child’s rights. The administration has, in the past, argued in court that the mean old Flores settlement forced them to do this, an argument with a hole so big you can drive an ICE prisoner van through it. No law or rule or norm — literally nothing — is stopping them from releasing the parents with the children, as was routine for most asylum seekers under the Obama administration. But somehow, I doubt that possibility is going to make it into the briefs of whatever DOJ attorney has to defend this steaming turd in court.

Out of respect for the work the ACLU Immigrant Rights Project and other advocates are doing, I’d like to add that family separation never really went away. If you look through the docket in Ms. L v. ICE, the lead lawsuit trying to stop family separation, you will see that the Trump administration continued separating families whenever it had a thin excuse — a minor or accused crime by the parent, or “suspicions of trafficking” because the adult is an extended family member. America’s attention moved on, but the policy really didn’t. It just adapted, like a Borg drone.

That’s what I think they’re counting on now. I think they believe the pandemic is so distracting that we’re not going to notice them doing it all over again. Please notice.


Lorelei Laird is a freelance writer specializing in the law, and the only person you know who still has an “I Believe Anita Hill” bumper sticker. Find her at wordofthelaird.com.

International Law Firm Opts To Permanently Close Office In Wake Of COVID-19

We knew, in the back of our minds, that our post-COVID work world would be very different than the one we left. Some firms are extending work-from-home policies, others are trying to make their spaces safer (office tents are for real, people), and now we’re hearing about a firm that is eschewing office space on a permanent basis.

According to a report from Law.com, Australia-based Slater and Gordon is saying goodbye to its London physical offices once its lease is up in September. That means all 200 of the firm’s London employees will transition to working from home for good, though Slater and Gordon said they may look for meeting space in London. Also the firm will provide extra screens or office furniture to those who need the equipment.

The firm’s chief executive, David Whitmore, had this to say about the change:

“Today we have announced to our staff that we won’t ever go back to how we worked before COVID.”

He added, “When we do look to return to our offices they won’t look like they used to and colleagues will be encouraged to continue working remotely for the majority of the time. Working smart is better for everyone.”

The firm has not made any announcements about office space in any of the firm’s other locations.


headshotKathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).

Litigation Finance: Pricing

(Image via Getty)

Ed. note: Litigation finance is transforming the fields of both law and finance. To help our readers gain a better understanding of what litigation finance entails, we’ve partnered with Lake Whillans to present a new series so you can better understand how litigation funding works, its pros and cons, and its past, present, and future.

By now you’ve likely heard about litigation finance and some of the advantages it can offer to claimholders (in a nutshell, the flexibility to pursue a claim without having to pay attorneys’ fees or other costs from the company’s balance sheet, as well as the ability to monetize all or a portion of a claim).  “Sounds great,” you might be thinking, “but how much is this going to cost me?”

This article will review the basic pricing structures that litigation funders typically employ and the reasons why a claimholder may prefer one approach over another.  At Lake Whillans, we have transacted using each of these pricing structures, and approach each transaction flexibly with the mindset of utilizing whatever structure works best for the claimholder.  Further, we provide pricing early in the process; you can generally expect to have terms from us within 5-10 days of reaching out to discuss your matter.

Factors driving litigation finance pricing

Litigation funders consider two primary factors when setting pricing for an investment: risk level and timeline of the case.  For a funder, investments in a single litigation or arbitration claim investment involves significant risk.  Funders provide capital on a non-recourse basis, meaning that if the claim fails, the funder loses its entire investment.  The greater the risk that a case will fail to achieve a return, the greater the cost of funding will be.  Key drivers of the risk level of a case are the strength of the claim (and any defenses), the certainty and amount of damages, and likelihood of collection.  When claims are bundled in a portfolio, the risk of loss is generally mitigated to a degree (as long as the claims do not all turn on the same risk), and therefore portfolios will generally receive lower pricing than a single claim.

As for timeline, the longer the funder anticipates its capital will be tied up, the greater the return the funder needs to reflect the time value of money.  Key drivers of the timeline of a case include the stage of the case at the time of investment, the type of case, and the particular decision maker (i.e., the court/judge/tribunal).  Litigation funders can make an investment at any stage, ranging from before the case has been filed through to after a judgment has been secured (but before it has been collected).  Early-stage cases tend to be riskier and to have a longer timeline than later-stage cases, and the pricing will reflect those differences.

Given the high degree of uncertainty inherent to a litigation investment, funders naturally must require a larger return than, for example, a bank would earn on a fully secured recourse commercial loan.  At the same time, responsible funders agree that the claimholder should keep the majority of any litigation proceeds.  An experienced funder like Lake Whillans will work with the claimholder to structure a funding agreement that makes sense for all parties.  Responsible funders will model various outcomes in terms of timeline, range of awards, and settlement projections, and may decline to fund a case if, in the likely scenarios, too little is left for the claimholder, in particular when the funding would prevent the claimholder from accepting a reasonable settlement.  

Fixed multiple vs. percentage of litigation proceeds

There are two basic models for structuring a litigation funder’s return on capital: fixed multiple and percentage of proceeds, and a combination of both is often utilized.  In the fixed multiple model, the funder recoups its capital along with a multiple of the amount it invested.  The multiple can vary over the duration of the case: for example, the funder may be entitled to a multiple of 0.5 on capital invested if the capital is returned within a year and then to a larger multiple as time increases.   As an example of this type of arrangement, suppose the funding agreement entitles the funder to (i) return of the capital it invested plus (ii) a 2x multiple on the capital invested.  Let’s suppose the capital invested is $1 million; when the matter concludes successfully, the funder would receive $1 million as return of capital, plus a 2x multiple or $2 million for a total of $3 million. (This might be referred to as 3x pricing since the funder receives 3x what it put in).  

In a percentage of proceeds model, the funder recoups (i) return of its invested capital plus (ii) a percentage of the proceeds from the litigation, 20% for example.  So using our $1 million investment hypothetical, if the claim recovers $10 million, the funder receives $1 million plus 20% of $10 million (i.e., $2.0 million) for a total of $3.0 million.  In the percentage model, the funder’s share of proceeds may be subject to a maximum dollar amount, or the percentage may decrease as the award size increases.

These two basic models can also be combined.  The funder may be entitled to a certain multiple, plus an additional percentage return.  In this hybrid structure, both the multiple and the percentage return are smaller than in a pure fixed multiple or percentage structure, but the combination of the two provides a risk-balanced approach to account for the possibility of achieving either the low end or high end of possible award size outcomes, which we will demonstrate below.

Reasons to prefer a given model

A claimholder’s preference for a given pricing model will depend largely on its risk tolerance and its assessment of the expected recovery relative to the funder’s investment. In our above example, assuming a $1 million investment and a $10 million return, the 3x pricing and the 20% of proceeds model yield the same result for funder and claimholder ($3 million to funder/ $7 million to claimholder).  But the ratio changes depending on the size of the award.

In our example, if the award comes in at the high end of the expected range at $20 million, the 3x multiple pricing yields the funder the same $3 million, and the claimholder receives $17 million (or 85%).  But if it was priced using the return of capital plus 20%, the funder recovers $5 million, and the claimholder receives $15 million (or 75%).   Thus, if the claimholder expects a large recovery (as compared to the capital provided by the funder), it might prefer a fixed multiple model because the claimholder retains more of the upside in a high-recovery scenario.

The converse is also true: in a low-recovery scenario, the fixed multiple is relatively more favorable to the funder.  Using the same example, if the award is $5 million, the 3x multiple pricing again yields $3 million for the funder, and the claimholder receives $2 million (or 40%).  This result would likely be undesirable to the claimholder, so it may prefer the return of capital plus percentage model.  Applying the return of capital plus 20% pricing would yield $2 million to the funder and the claimholder would receive $3 million (or 60%).  Thus, if the claimholder wants to protect against the downside risk of a lower recovery, it may prefer a percentage of proceeds model, in which it has to share more of the upside in the high-recovery scenario but is relatively more protected in the low-recovery scenario.  

Of course, the funder’s view of the case and its risk tolerance will also inform the pricing it prefers, and a hybrid model provides a compromise option that often appeals to both funder and claimholder.  For example, hybrid pricing may include (i) return of capital, plus (ii) a 1x multiple plus (iii) 10% of proceeds.   If the award yields $10 million, the split is the same ($3 million to funder, $7 million to claimholder) as it was in our two pricing examples above, but allots the risk/reward more equitably between funder and claimholder in the low recovery scenario ($2.5 million to funder, $2.5 million to claimholder) or the high recovery scenario ($4 million to funder and $16 million to claimholder).

The reserved facility vs. disbursed funds

To further understand pricing, especially in the context of a fixed multiple return structure, it is important to be aware of the distinction between the reserved facility and amount disbursed.  Funders typically do not pay out their full investment in one lump sum; instead the funder makes a series of payments over the course of the case.  The reserved facility is the amount that the funder sets aside to cover its full (projected) investment.  Disbursed funds are what the funder has paid out at any given point.  For a case litigated through trial, the reserved facility may equal the amount disbursed.  Conversely, if a settlement offer is accepted at an early stage, only a small proportion of the reserved facility is likely to have been disbursed.

From a claimholder’s perspective, it may seem most appropriate to pay the multiple on the amount disbursed: why should the claimholder have to pay for funds it never actually receives?  From the funder’s perspective, however, the reserved facility is capital that cannot be used for other investments and is at risk from the moment it is reserved or committed, so if the case settles before a large portion of the earmarked funds have been disbursed, payment of the multiple only on the disbursed funds will result in a low return to the funder that may not adequately compensate it for the risk that it took. These conflicting aims are frequently addressed by pricing that is based on a multiple of amounts actually disbursed, coupled with a minimum return for the funder.  

The waterfall

The last key term of a pricing agreement is the waterfall.  The waterfall is the order of priority in which shares of any recovery are paid to entitled parties, including the funder, the claimholder and, in some cases, counsel (if counsel has a contingent stake in the litigation). 

A standard waterfall provides for the funder to recoup its invested capital before any other party is paid.  The order of allocation of the remaining proceeds will be a product of negotiation, but it typically involves pro rata payments to the funder and counsel, based on their relative entitlements.  The claimholder typically takes the remainder, after the funder and counsel have been paid.

* * *

For an experienced provider of litigation finance like Lake Whillans, each funding agreement is the product of careful assessment and discussion with the relevant stakeholders.  There is no one-size-fits-all pricing structure.  The best way to determine which structure best fits the needs of your situation is to contact us.

Reopening Your Law Firm During COVID-19: There’s A Bar Association Guide (Or Two) For That!

After months of business closures, many states are slowly beginning to allow more essential businesses to reopen their doors. In most states, law firms will be among the first wave of businesses permitted to resume providing services to the public.

This is a welcome development for lawyers but one that comes hand in hand with uncertainty. After all, resuming business in the midst of a pandemic is uncharted territory, and opening your firm doesn’t mean you’ll be returning to business as usual. A host of issues must be considered when reopening, not the least of which is to ensure that the health of law firm employees and clients is protected.

Establish A Reopening Committee

Safety is an important goal, but you’re a lawyer, not a public health official. You may be unsure how to proceed. That’s where the guides from two different state bar associations — Indiana and New York — come in.

First, there’s the “New York State Working Group Guidance on Re-Opening Law Firms,” which provides a useful roadmap for law firms transitioning back to the office. According to the guide, firms should establish a reopening committee whose responsibility is to create a plan for the return to work by putting in place processes that will ensure the safety of employees and legal clients.

6 Readiness Essentials

Once the committee has been established, it must address a number of important areas. As explained in the Indiana State Bar Association Guide, “Reopening Your Practice,” there are six readiness essentials that firms need to think about prior to reopening:

  • Prepare the building and workplace: Consider cleaning
    plans, pre-return inspections, HVAC, and mechanical checks.
  • Prepare the workforce: Develop plans to mitigate anxiety by creating policies for deciding when each employee returns and establishing an employee communications plan.
  • Control access points: Consider protocols for safety and health checks, building reception areas, shipping and receiving, elevators, and visitor policies.
  • Create a social distancing plan: Consider options to keep workers at a safe distance, which may include new seating arrangements and establishing office traffic patterns.
  • Reduce touch points and increase cleaning: Consider keeping doors open and develop protocols for cleaning work areas and common areas.
  • Communicate for confidence: Recognize that employees may have concerns about returning to work, so communicate transparently, and listen and survey regularly.

Reopening Committee Objectives

The reopening committee should keep those readiness essentials in mind when creating a reopening plan for the firm. As explained in the NYSBA guide, the committee’s primary objectives should be to:

  • Monitor oversight and implementation of the reopening plan.
  • Develop and update, as needed, internal policies and procedures for the transition from remote work to the workplace.
  • Communicate with legal and support staff with one voice regarding the transition process, set clear expectations, and offer firm-wide training, as needed.
  • Field questions or concerns.
  • Become familiar with federal and state statutes and programs governing office safety and human resource issues.
  • Develop a plan for testing employees for the virus.
  • Develop client and visitor policies.
  • Conduct business safely.

Ensure Necessary Technology Is Available

According to both guides, another important issue that the transition team will need to address is to establish processes that will facilitate continued social distancing efforts and allow staggered work schedules to be implemented. A necessary and important part of addressing this issue will be providing the necessary technology to allow firm employees to safely and efficiently conduct business from the office and from home.

As a result, providing offsite access to law firm information and the ability to collaborate with work colleagues, no matter where they are, will be paramount. A successful balance of those considerations requires, among other things, investing in technology like cloud-based legal software and videoconferencing tools to facilitate remote work.

Create Written Protocols

Finally, as explained in this Oregon Law Practice Management blog post, written protocols should be drafted, posted around the office, and shared with and explained to employees. The written protocols should address:

  • Recommendations or requirements for face masks for employees and clients.
  • Procedures regarding any daily health assessments for employees. These can include self-evaluation by each employee, and if deemed necessary, an evaluation conducted by someone in your office, to determine if it’s safe for an employee to return to work each day.
  • Processes should be put in place to ensure that employees are maintaining good hygiene at all times, are regularly washing their hands, and are prioritizing physical distancing.
  • Plans that provide for the cleaning and sanitizing of the office throughout, and at the end of, the workday.
  • Rules that limit the maximum capacity of various rooms in the office in order to comply with distancing guidelines.

Once the reopening committee has shared the necessary written protocols, the next steps include reorganizing your law firm’s workspace and addressing employee issues and concerns. Both bar association guides offer additional tips on those and many more issues, so make sure to read each one in its entirety.

Reopening your law firm during a pandemic may seem a bit overwhelming at first; that’s understandable since no one has ever done this before. But rest assured, as long as your firm follows the reopening schedule established by officials in your area and implements the recommendations set forth in the guides, you’ll be well on your way to successfully reopening your firm as safely as possible, with the health of your employees and clients top of mind.


Nicole Black is a Rochester, New York attorney and Director of Business and Community Relations at MyCase, web-based law practice management software. She’s been blogging since 2005, has written a weekly column for the Daily Record since 2007, is the author of Cloud Computing for Lawyers, co-authors Social Media for Lawyers: the Next Frontier, and co-authors Criminal Law in New York. She’s easily distracted by the potential of bright and shiny tech gadgets, along with good food and wine. You can follow her on Twitter at @nikiblack and she can be reached at niki.black@mycase.com.