Breaking Employment and Labor Law Developments and SOX Spotlight Presented by: Margaret (Meg) Campbell A. Craig Cleland Thornell Williams, Jr.. ogletreedeakins.com

Atlanta / Austin / Berlin / Birmingham / Boston / Charleston / Charlotte / Chicago / Cleveland / Columbia / Dallas / Denver / Detroit Metro Greenville / Houston / Indianapolis / Jackson / Kansas City / Las Vegas / London / Los Angeles / Memphis / Miami / Minneapolis / Morristown Nashville / New Orleans / New York City / Orange County / Philadelphia / Phoenix / Pittsburgh / Portland / Raleigh / Richmond San Antonio / San Diego / San Francisco / St. Louis / St. Thomas / Stamford / Tampa / Torrance / Tucson / Washington, D.C. Significant Trends in Class Actions Developments Since Dukes Damages Since Comcast—Washing Machine Cases Partial Certification Under (c)(4) Hybrid Classes Under (b)(2) and (b)(3)

Atlanta / Austin / Berlin / Birmingham / Boston / Charleston / Charlotte / Chicago / Cleveland / Columbia / Dallas / Denver / Detroit Metro Greenville / Houston / Indianapolis / Jackson / Kansas City / Las Vegas / London / Los Angeles / Memphis / Miami / Minneapolis / Morristown Nashville / New Orleans / New York City / Orange County / Philadelphia / Phoenix / Pittsburgh / Portland / Raleigh / Richmond San Antonio / San Diego / San Francisco / St. Louis / St. Thomas / Stamford / Tampa / Torrance / Tucson / Washington, D.C. Significant Trends in Class Actions Timing of Certification Trial by Formula After Dukes Offers of Judgment After Symczyk Arbitration After Concepcion and Italian Colors

Atlanta / Austin / Berlin / Birmingham / Boston / Charleston / Charlotte / Chicago / Cleveland / Columbia / Dallas / Denver / Detroit Metro Greenville / Houston / Indianapolis / Jackson / Kansas City / Las Vegas / London / Los Angeles / Memphis / Miami / Minneapolis / Morristown Nashville / New Orleans / New York City / Orange County / Philadelphia / Phoenix / Pittsburgh / Portland / Raleigh / Richmond San Antonio / San Diego / San Francisco / St. Louis / St. Thomas / Stamford / Tampa / Torrance / Tucson / Washington, D.C. Significant Trends in Class Actions Cases to Watch Fraud-on-the-Market Theory in Securities Cases—Halliburton Co. v. Erica P. John Fund States-Attorneys-General Consumer Cases (Parens Patriae Cases)—Mississippi ex rel. Hood v. AU Optronics Corp. Ascertainability of Absent Class Members—Carrera v. Bayer Corp. (3d Cir.)

Atlanta / Austin / Berlin / Birmingham / Boston / Charleston / Charlotte / Chicago / Cleveland / Columbia / Dallas / Denver / Detroit Metro Greenville / Houston / Indianapolis / Jackson / Kansas City / Las Vegas / London / Los Angeles / Memphis / Miami / Minneapolis / Morristown Nashville / New Orleans / New York City / Orange County / Philadelphia / Phoenix / Pittsburgh / Portland / Raleigh / Richmond San Antonio / San Diego / San Francisco / St. Louis / St. Thomas / Stamford / Tampa / Torrance / Tucson / Washington, D.C. Sarbanes-Oxley Developments: Enter the Supremes Lawson v. FMR The Question: Does coverage extend beyond publicly- held companies? The Answer: Unusual line-up says, yes The law has to mean what it says, until Congress changes what it says So…

Atlanta / Austin / Berlin / Birmingham / Boston / Charleston / Charlotte / Chicago / Cleveland / Columbia / Dallas / Denver / Detroit Metro Greenville / Houston / Indianapolis / Jackson / Kansas City / Las Vegas / London / Los Angeles / Memphis / Miami / Minneapolis / Morristown Nashville / New Orleans / New York City / Orange County / Philadelphia / Phoenix / Pittsburgh / Portland / Raleigh / Richmond San Antonio / San Diego / San Francisco / St. Louis / St. Thomas / Stamford / Tampa / Torrance / Tucson / Washington, D.C. Post-Lawson Whistleblowers The Supreme Court expanded the class of potential whistleblowers by creating 2 tiers Tier 1: Employees, contractors, or agents of a public company Tier 2: Employees and (possibly) contractors of persons and entities in tier 1

Atlanta / Austin / Berlin / Birmingham / Boston / Charleston / Charlotte / Chicago / Cleveland / Columbia / Dallas / Denver / Detroit Metro Greenville / Houston / Indianapolis / Jackson / Kansas City / Las Vegas / London / Los Angeles / Memphis / Miami / Minneapolis / Morristown Nashville / New Orleans / New York City / Orange County / Philadelphia / Phoenix / Pittsburgh / Portland / Raleigh / Richmond San Antonio / San Diego / San Francisco / St. Louis / St. Thomas / Stamford / Tampa / Torrance / Tucson / Washington, D.C. So, What Now? Best practice has now become a legal requirement for many companies How do you know whether you’re covered? Plan for the future Err on the side of caution Every employer should put into place a robust internal compliance program

Atlanta / Austin / Berlin / Birmingham / Boston / Charleston / Charlotte / Chicago / Cleveland / Columbia / Dallas / Denver / Detroit Metro Greenville / Houston / Indianapolis / Jackson / Kansas City / Las Vegas / London / Los Angeles / Memphis / Miami / Minneapolis / Morristown Nashville / New Orleans / New York City / Orange County / Philadelphia / Phoenix / Pittsburgh / Portland / Raleigh / Richmond San Antonio / San Diego / San Francisco / St. Louis / St. Thomas / Stamford / Tampa / Torrance / Tucson / Washington, D.C. Putting Your Program in Place A culture of compliance Encourage ethical conduct Commit to complying with the law Ethical compliance is more than legal compliance—doing the right thing Set the “tone at the top”—leadership and engagement are key Compliance is everyone’s responsibility

Atlanta / Austin / Berlin / Birmingham / Boston / Charleston / Charlotte / Chicago / Cleveland / Columbia / Dallas / Denver / Detroit Metro Greenville / Houston / Indianapolis / Jackson / Kansas City / Las Vegas / London / Los Angeles / Memphis / Miami / Minneapolis / Morristown Nashville / New Orleans / New York City / Orange County / Philadelphia / Phoenix / Pittsburgh / Portland / Raleigh / Richmond San Antonio / San Diego / San Francisco / St. Louis / St. Thomas / Stamford / Tampa / Torrance / Tucson / Washington, D.C. What Does That Program Look Like? A Business Code of Conduct Core focus on criminal activity and regulatory compliance Honesty and integrity Conflicts of interest Protection of corporate assets Respectful work environment Safety Lobbying and political activity Communications systems and policies

Atlanta / Austin / Berlin / Birmingham / Boston / Charleston / Charlotte / Chicago / Cleveland / Columbia / Dallas / Denver / Detroit Metro Greenville / Houston / Indianapolis / Jackson / Kansas City / Las Vegas / London / Los Angeles / Memphis / Miami / Minneapolis / Morristown Nashville / New Orleans / New York City / Orange County / Philadelphia / Phoenix / Pittsburgh / Portland / Raleigh / Richmond San Antonio / San Diego / San Francisco / St. Louis / St. Thomas / Stamford / Tampa / Torrance / Tucson / Washington, D.C. What Does That Program Look Like? Policies and procedures Avenue for anonymous reporting (e.g., compliance hotline or ethics help line) Designation of “high-level” personnel to oversee compliance Communicate the program Orientation Posters, brochures, other “hard” communications

Atlanta / Austin / Berlin / Birmingham / Boston / Charleston / Charlotte / Chicago / Cleveland / Columbia / Dallas / Denver / Detroit Metro Greenville / Houston / Indianapolis / Jackson / Kansas City / Las Vegas / London / Los Angeles / Memphis / Miami / Minneapolis / Morristown Nashville / New Orleans / New York City / Orange County / Philadelphia / Phoenix / Pittsburgh / Portland / Raleigh / Richmond San Antonio / San Diego / San Francisco / St. Louis / St. Thomas / Stamford / Tampa / Torrance / Tucson / Washington, D.C. What Does That Program Look Like? Training Reach everyone as cost-effectively as possible (e.g., online) Specialized training for senior executives Specialized, targeted training as appropriate Monitoring, auditing, and reporting systems Annual code certifications

Atlanta / Austin / Berlin / Birmingham / Boston / Charleston / Charlotte / Chicago / Cleveland / Columbia / Dallas / Denver / Detroit Metro Greenville / Houston / Indianapolis / Jackson / Kansas City / Las Vegas / London / Los Angeles / Memphis / Miami / Minneapolis / Morristown Nashville / New Orleans / New York City / Orange County / Philadelphia / Phoenix / Pittsburgh / Portland / Raleigh / Richmond San Antonio / San Diego / San Francisco / St. Louis / St. Thomas / Stamford / Tampa / Torrance / Tucson / Washington, D.C. And…Consistent Enforcement Create a sense of organizational justice—prove the system works Respond appropriately to offenses and take steps to prevent further offenses—every time Investigate Discipline Improve Ensure non-retaliation

Atlanta / Austin / Berlin / Birmingham / Boston / Charleston / Charlotte / Chicago / Cleveland / Columbia / Dallas / Denver / Detroit Metro Greenville / Houston / Indianapolis / Jackson / Kansas City / Las Vegas / London / Los Angeles / Memphis / Miami / Minneapolis / Morristown Nashville / New Orleans / New York City / Orange County / Philadelphia / Phoenix / Pittsburgh / Portland / Raleigh / Richmond San Antonio / San Diego / San Francisco / St. Louis / St. Thomas / Stamford / Tampa / Torrance / Tucson / Washington, D.C. And…Continuous Improvement Periodic risk assessments and corrective actions to fill gaps Periodic anonymous surveys Regular reinforcement of culture of compliance

Atlanta / Austin / Berlin / Birmingham / Boston / Charleston / Charlotte / Chicago / Cleveland / Columbia / Dallas / Denver / Detroit Metro Greenville / Houston / Indianapolis / Jackson / Kansas City / Las Vegas / London / Los Angeles / Memphis / Miami / Minneapolis / Morristown Nashville / New Orleans / New York City / Orange County / Philadelphia / Phoenix / Pittsburgh / Portland / Raleigh / Richmond San Antonio / San Diego / San Francisco / St. Louis / St. Thomas / Stamford / Tampa / Torrance / Tucson / Washington, D.C. What Would the NLRB Say? National Labor Relations Act “Whistleblower” Provision - 29 U.S.C. §158(a)(4): Employer unfair labor practice “to discharge or otherwise discriminate against an employee because he has filed charges or given testimony under this subchapter.” Breakneck-Speed Developments at the Board …

Atlanta / Austin / Berlin / Birmingham / Boston / Charleston / Charlotte / Chicago / Cleveland / Columbia / Dallas / Denver / Detroit Metro Greenville / Houston / Indianapolis / Jackson / Kansas City / Las Vegas / London / Los Angeles / Memphis / Miami / Minneapolis / Morristown Nashville / New Orleans / New York City / Orange County / Philadelphia / Phoenix / Pittsburgh / Portland / Raleigh / Richmond San Antonio / San Diego / San Francisco / St. Louis / St. Thomas / Stamford / Tampa / Torrance / Tucson / Washington, D.C. Current Board has aggressively moved to invalidate any workplace rules that could conceivably be read by employees to restrict Section 7 protected concerted activity (“PCA”). Regional Offices are finding and challenging such rules on their own initiative, even when the charging party has not raised the issue in the unfair labor practice charge. For example, NLRB General Counsel has issued multiple reports summarizing the NLRB’s cases addressing social media policies. What Would the NLRB Say?

Atlanta / Austin / Berlin / Birmingham / Boston / Charleston / Charlotte / Chicago / Cleveland / Columbia / Dallas / Denver / Detroit Metro Greenville / Houston / Indianapolis / Jackson / Kansas City / Las Vegas / London / Los Angeles / Memphis / Miami / Minneapolis / Morristown Nashville / New Orleans / New York City / Orange County / Philadelphia / Phoenix / Pittsburgh / Portland / Raleigh / Richmond San Antonio / San Diego / San Francisco / St. Louis / St. Thomas / Stamford / Tampa / Torrance / Tucson / Washington, D.C. Social Media Policies – Areas of Scrutiny Prohibiting discussion of wages, benefits, and other terms and conditions of employment; Restricting sharing of “confidential” information without clarifying definition; Prohibiting “non-disparagement”, words of “negative impact”, or “harmful to the reputation” of the company; Vague restrictions about “inappropriate” conversations; Restricting “offensive/demeaning” remarks. Protected Concerted Activity

Atlanta / Austin / Berlin / Birmingham / Boston / Charleston / Charlotte / Chicago / Cleveland / Columbia / Dallas / Denver / Detroit Metro Greenville / Houston / Indianapolis / Jackson / Kansas City / Las Vegas / London / Los Angeles / Memphis / Miami / Minneapolis / Morristown Nashville / New Orleans / New York City / Orange County / Philadelphia / Phoenix / Pittsburgh / Portland / Raleigh / Richmond San Antonio / San Diego / San Francisco / St. Louis / St. Thomas / Stamford / Tampa / Torrance / Tucson / Washington, D.C. Codes of Conduct? Karl Knauz Motors, Inc., 358 NLRB No. 164 (Sept. 28, 2012) Employer Rule: “Courtesy is the responsibility of every employee. Everyone is expected to be courteous, polite and friendly to our customers, vendors and suppliers, as well as to their fellow employees. No one should be disrespectful or use profanity or any other language which injures the image or reputation of the Dealership.” The Board found the rule unlawful, concluding employees would reasonably construe its broad prohibition against “disrespectful” conduct and “language which injures the image or reputation of the Dealership” as encompassing Section 7 activity. Protected Concerted Activity

Atlanta / Austin / Berlin / Birmingham / Boston / Charleston / Charlotte / Chicago / Cleveland / Columbia / Dallas / Denver / Detroit Metro Greenville / Houston / Indianapolis / Jackson / Kansas City / Las Vegas / London / Los Angeles / Memphis / Miami / Minneapolis / Morristown Nashville / New Orleans / New York City / Orange County / Philadelphia / Phoenix / Pittsburgh / Portland / Raleigh / Richmond San Antonio / San Diego / San Francisco / St. Louis / St. Thomas / Stamford / Tampa / Torrance / Tucson / Washington, D.C. Banner Health System, 358 NLRB No. 93 (July 30, 2012) The Board found that the employer violated the National Labor Relations Act by asking an employee who was the subject of an internal investigation to refrain from discussing the matter while the company conducted its investigation. “To justify a prohibition on employee discussion of ongoing investigations, an employer must show that it has a legitimate business justification that outweighs employees’ Section 7 rights.” Workplace Investigations

Atlanta / Austin / Berlin / Birmingham / Boston / Charleston / Charlotte / Chicago / Cleveland / Columbia / Dallas / Denver / Detroit Metro Greenville / Houston / Indianapolis / Jackson / Kansas City / Las Vegas / London / Los Angeles / Memphis / Miami / Minneapolis / Morristown Nashville / New Orleans / New York City / Orange County / Philadelphia / Phoenix / Pittsburgh / Portland / Raleigh / Richmond San Antonio / San Diego / San Francisco / St. Louis / St. Thomas / Stamford / Tampa / Torrance / Tucson / Washington, D.C. Takeaways Be mindful of employees’ Section 7 rights to engage in PCA. Ensure social media or other company policies restricting or prohibiting employee discussion of workplace issues, including allegations or investigations of violative conduct, are narrowly drafted and contain clear definitions of “confidential” (e.g., trade secrets). What Would the NLRB Say?

Atlanta / Austin / Berlin / Birmingham / Boston / Charleston / Charlotte / Chicago / Cleveland / Columbia / Dallas / Denver / Detroit Metro Greenville / Houston / Indianapolis / Jackson / Kansas City / Las Vegas / London / Los Angeles / Memphis / Miami / Minneapolis / Morristown Nashville / New Orleans / New York City / Orange County / Philadelphia / Phoenix / Pittsburgh / Portland / Raleigh / Richmond San Antonio / San Diego / San Francisco / St. Louis / St. Thomas / Stamford / Tampa / Torrance / Tucson / Washington, D.C. Takeaways Before communicating confidentiality request to employees, determine whether confidentiality is necessary to protect a witness, prevent the destruction of evidence, preserve testimony, prevent a cover-up, or further another legitimate business interest. Document the specific justification(s) for confidentiality request in each instance where a confidentiality rule is imposed. What Would the NLRB Say?

Atlanta / Austin / Berlin / Birmingham / Boston / Charleston / Charlotte / Chicago / Cleveland / Columbia / Dallas / Denver / Detroit Metro Greenville / Houston / Indianapolis / Jackson / Kansas City / Las Vegas / London / Los Angeles / Memphis / Miami / Minneapolis / Morristown Nashville / New Orleans / New York City / Orange County / Philadelphia / Phoenix / Pittsburgh / Portland / Raleigh / Richmond San Antonio / San Diego / San Francisco / St. Louis / St. Thomas / Stamford / Tampa / Torrance / Tucson / Washington, D.C. 21