Page 42 - MetalForming February 2011

You and The Law
6)Ensure that safety blocks used during repairs and adjustments performed inside the die area have a cord and plug attached inside a protective metal chain. Safety blocks should be painted yellow and be available at every
mechanical press—inspectors look for them.
7)Prevent class actions and major claims, which are in vogue. Review exemption categories. Consider weekly
incentive pay when necessary as part of the overtime pay-rate computation. Class actions challenge independent con- tractor classifications, industry-based pay practices and claims for work allegedly performed during unpaid meal peri- ods or off-the-clock work.
8)Pay attention to sales and management employment agreements—often neglected and occasionally litigat- ed, these confidentiality and noncompete agreements can assist in reigning in managers from disclosing pricing, trade secrets or proprietary data to competitors. And, maintain a
strong e-mail and computer-use policy.
9)When considering any plant closing or major layoff,
review the impact thresholds for required advance notices to employees under the Federal Warn Act. The act is not triggered if fewer than 50 full-time employees suffer employment losses at a single site of employment within any 90-day period. Tracking this count at each single site of employ- ment acts as an early warning system for potential Warn Act exposure. (State law note: The same doesn not hold true in
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every state, so applicable state law also must be consulted.) If the 50-employment-loss minimum threshold is crossed, whether the act is triggered depends on whether there also has been a plant closing or mass layoff. Applicability will be triggered by a plant closing if the 50-employment-loss test is exceeded during any 90-day period by counting only employ- ment losses due to the closure or substantial closure of one or more facilities or operating units within the single site of employment. The act also will be triggered by a mass layoff if the 50-employment-loss test is exceeded, and at least one- third of the active full-time employees at the single site of employment suffer employment losses within any 90-day period. Alternatively, Federal Warn liability will be triggered by a mass layoff if at least 500 full-time employees (active or not) at the single site of employment suffer employment loss-
es within any 90-day period.
10)This is a good time to review and tighten up purchase
orders, order entries, and sales acknowledgment and contract-collection procedures and clauses. The “battle- of-the-forms” still exits along with the “magic language” clause. Also examine your remedy and damages limitation clauses for maximizing protection when goods purchased or sold are defective, out of spec or untimely.
11)Review and update employee handbooks and poli-
cies. Ensure there is a no-retaliation aspect to the worker-complaint reporting procedures. MF
40 MetalForming/February 2011
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