Labor & Employment Practice News | Winston & Strawn LLP
••••  October 2015  
Select events and news from the world of organized labor
Organizing | Strikes & Labor Disputes | Major Contract Settlements & Negotiations | Administrative, Court & Other Decisions | Legislation & Politics | Miscellaneous | Events | Publications | Winston & Strawn Contacts
Organizing
Approximately 200 full- and part-time adjunct professors, including assistant and associate adjunct professors at Barnard College in New York City, voted to unionize with the United Auto Workers (UAW) union.
 
 
The NewsGuild of New York won an NLRB-supervised mail-ballot election to represent about 50 digital journalists at Al Jazeera America’s New York City station.
 
 
The Writers Guild of American East won an NLRB-supervised mail-ballot election covering approximately 200 writer-producers at Leftfield Entertainment, a reality TV production firm.
 
 
The Service Employees International Union (SEIU) is planning to conduct a unified campaign for union representation of employees employed by airline contractors in airports around the country, including Portland, Philadelphia, Boston, and Chicago.
 
 
As the legal cannabis industry continues to grow, more workers in the industry are seeking union representation by the United Food and Commercial Workers (UFCW). UFCW already represents thousands of medical cannabis workers in California, Colorado, Minnesota, New Mexico, Oregon, and Washington.
 
 
Approximately 150 security guards at the Sands Casino Resort in Bethlehem, Pa., voted 90-38 in favor of representation by the International Union of Security, Police and Fire Professionals of America.
 
 
The UAW petitioned the National Labor Relations Board for an election to represent a subset of workers at a Volkswagen Group of America Inc. plant in Chattanooga, Tenn., which VW is opposing. The group who the UAW seeks to represent includes 164 maintenance employees, comprising only 10 percent of the overall workforce at the plant. This new tactic follows the UAW’s failure to organize the workforce in 2014 when workers at the plant voted down representation 712 to 626.
 
 
The International Association of Machinists (IAM) is renewing efforts to organize 7,500 workers at the Boeing Co. airplane manufacturing plant in North Charleston, S.c. The new effort comes six months after the IAM withdrew a request for the NLRB to conduct a representation election. This time, IAM is using the internet to collect the authorization signatures electronically—now valid under the NLRB’s new election rules adopted in September—which they need to convince the NLRB to conduct another representation election.
Strikes & Labor Disputes
Safeway Inc., through its contractor that operates its distribution centers in Maryland, informed Teamsters, which represents the warehouse employees, that it is closing its Maryland distribution centers. Union members and local politicians have announced plans to protest the closure.
 
 
Short-haul drivers in California continued striking to protest being classified as independent contractors rather than employees. Drivers who work at the ports of Los Angeles and Long Beach for Pacific 9 Transportation and XPO Logistics, Inc. launched their latest strike efforts on October 26, 2015. On October 27, 2015, drivers for Intermodal Bridge Transport Inc. and warehouse workers for the California Cartage Co. announced their intention to strike, and on October 29, 2015, drivers for Gold Point Transportation Inc. struck.
Major Contract Settlements & Negotiations
According to data compiled by Bloomberg BNA, the average first-year wage increase for contracts settled through the first three quarters of 2015 was 2.6 percent, compared to 2 percent for the same period the prior year. Year-to-date increases in the manufacturing industry averaged 2.3 percent, down from 2.6 percent in the comparable period in 2014. First-year wage increases in the nonmanufacturing industry rose from 2.3 percent last year, to an average of 3.4 percent this year.
 
 
According to Labour Canada, six collective bargaining agreements were reached in Canada in August 2015 covering approximately 13,600 employees. Five of those agreements covered employees in the public sector. The length of the agreements averaged 48.3 months. Base rate wage increases averaged 1.3 percent, down from the rates in May, June, and July. There were no major work stoppages during August.
 
 
The Atomic Trades Labor Council, part of the Metal Trades Department of the AFL-CIO, and UT-Battelle agreed to a five-year labor contract covering 600 workers at the Oak Ridge National Laboratory in Oak Ridge, Tenn., a multi-program research and developmental facility. Details of the proposed labor contract are currently unavailable.
 
 
The UAW and General Motors Co. agreed to a tentative four-year contract covering nearly 50,000 workers. The contract gives senior workers two 3 percent wage increases during the contract term and two lump sum payments of 4 percent of annual pay. It also brings second-tier workers’ wages closer to those of traditional autoworkers. Senior- and second-tier workers get full vision and dental coverage with no co-insurance or deductible and workers who retire between February 1 and May 1 could be eligible for $60,000.
 
 
Multiple bargaining units consisting of 4,200 American Red Cross employees in 24 states represented by the American Federation of Teachers; International Brotherhood of Teamsters; American Federation of State, County and Municipal Employees; Communication Workers of America; SEIU; UAW; UFCW; and United Steelworkers ratified a three-year labor agreement with the American Red Cross. The employees work as nurses, drivers, phlebotomists, and donor representatives. The agreement took effect October 3, 2015, and expires September 30, 2018, and it provides for wage increases, improved health insurance benefits, standardizes employee paid-time-off benefits, improves premium pay, and provides for a $1,000 ratification bonus for all full-time employees.
 
 
Deere & Co. and the UAW settled a new six-year bargaining contract covering 10,000 UAW members at 12 Deere & Co. facilities in Illinois, Iowa, and Kansas. Highlights of the agreement include a $3,500 signing bonus, guarantee of no plant closings during the term, no big increases in health insurance premiums and annual wage increases. The new agreement was ratified by a wide margin.
 
 
Members of the Pantex Metal Trades Council (which includes 10 unions) ratified a four-year contract with a Pantex nuclear weapons maintenance plant near Amarillo, Texas, ending a 37-day strike. The contract covers 1,200 workers and includes an annual wage increase of 2 percent and improved medical coverage for members.
 
 
Members of the UAW and Mitsubishi Motors North America Inc. reached a plant closure agreement covering 1,000 production and maintenance employees who are members of UAW Local 2488 at Mitsubishi’s Normal, Ill. plant, which is set to close its doors next month. The contract maintains most of the terms of the previous collective bargaining agreement (including hourly wages at $24 for production associates and $28.50 for skilled workers), but also includes severance packages and a continuation of benefits for a period of time for all members.
 
 
Members of the UFCW ratified a three-year contract with Rite Aid Corp. covering 6,000 retail clerks, pharmacists, and pharmacy technicians in Southern California. The contract includes annual hourly wage increases as well as improved health and pension benefits.
 
 
Members of UFCW also ratified a four-year collective bargaining agreement with Rite Aid Corp. covering approximately 2,500 hourly pharmacy technicians, retail clerks, pharmacists, and shift supervisors in Northern California. The collective bargaining agreement provides substantial annual wage increases over the four-year term (rather increases based on “progression steps,” which was the prior policy), ratification bonuses of $500 for full-time retail clerks and pharmacists who have been with the company more than six years ($250 for part-time retail clerks and pharmacists), and protects the employees’ health benefit funds.
 
 
Members of the UFCW ratified a new three-year contract (through April 2018) with Macy’s Inc. covering approximately 1,200 workers at seven stores in the Seattle, Wash. area. The contract provides for retroactive wage increases (35 cents retroactive to May 2015; 20 cents effective May 29, 2016; 25 cents effective November 27, 2016; and 45 cents in 2017); retirement plan changes; revised health care benefits (employees working 30 or more hours are eligible for health care benefits); and, changes to Macy’s holiday policy.
 
 
Security guards represented by SEIU Local 32BJ employed by Allied Barton Security Services, Chesley Brown, G4S, Securitas, International Investigative Services, ISS, SOS, St. Moritz Security Services, and Universal Protective Services at Pittsburgh office buildings larger than 100,000 square feet ratified a three-year agreement covering 1,000 workers. The terms of the agreement include: a minimum wage increase to $11.75 per hour (70 cents per hour in the first year; 65 cents per hour in the second year; and 60 cents per hour in the third year), employer-paid health care plan premiums, job protection during contractor transition, a grievance procedure, and job training.
 
 
Transport Workers Union members ratified a five-year contract with Capital Bikeshare in Washington, D.C. covering 75 Bikeshare workers. Under the contract, expiring in January 2020, employees will receive a 25 cent wage increase every six months and a workers’ council will meet regularly with management to provide employees a voice on the job.
 
 
SEIU Local 32BJ members ratified a four-year agreement with Building Operators Labor Relations Inc., a division of the Building Owners and Managers Association of Philadelphia, covering approximately 2,800 commercial office cleaners who work at 168 office buildings and facilities in Philadelphia. The contract allows the union members to maintain their health care and pension benefits with no changes. It also provides wage increases of $1.70 over the term of the agreement.
 
 
UFCW Local 8–Golden State members ratified a four-year labor agreement covering 130 Safeway stores and a four-year agreement with several Vons stores. The agreements cover 9,000 employees at Safeway and Vons supermarkets in central and northern California. The agreements include wage increases, bonuses, and health care and pension benefits.
 
 
The CWA reached a tentative four-year collective bargaining agreement with AT&T Inc. covering 24,000 workers in the Southeast United States. Terms include: a weekly cap on overtime, wage increases (3 percent in the first two years, 2.25 percent in the third year, and 2.5 percent in the fourth year), an increase in pension bands (1 percent), and an increase in health care insurance cost share (1.5 percent in the first year and 1 percent in the second through fourth years).
 
 
FedEx Corp. and members of the Air Line Pilots Association ratified a six-year contract covering 4,000 FedEx pilots. Pilots will receive compensation gains worth $1.42 million dollars over the life of the contract, including pay increases of 10 percent initially and slightly more than 3 percent a year through 2021, plus one-time signing bonuses worth $22,000 to $39,000 per pilot.
 
 
Southern California grocery chains, Ralphs, Vons, and Albertsons, ratified a five-year contract with the Teamsters covering 2,000 drivers, warehouse workers, and dairy and manufacturing employees. The contract provides employees with increased wages and health care benefits, as well as retirement security.
 
 
School bus contractor, First Student, settled a five-year collective bargaining agreement with members of the Teamsters covering 20,000 workers across the country. The agreement provides for “improved safety and training, quicker turn-around for employees returning to work because of an injury or health reasons, an improved defined progressive disciplinary system, and a health care committee with binding authority to explore future health options for employees.” The agreement is intended to serve as a framework for local unions to negotiate wages and other economic terms.
 
 
Members of the IAM ratified a three-year contract with Raytheon Missile Systems in Tucson, Ariz. covering 1,300 workers. Terms of the agreement include: wage increases for workers (2.5 percent in 2015, 2.75 percent in 2016, and 3 percent in 2017); no cap on health-care premium contributions; no co-payments for health-care services (but higher deductibles); a ratification bonus of $750; $500 payments every January during the term of the agreement; and health savings account plans.
 
 
After three years of negotiations, UNITE HERE Local 5 ratified a three-year collective bargaining agreement with Kaiser Permanente Hawaii covering 1,900 housekeepers, medical assistants, transporters, lab assistants, receptionists, and surgical technicians at Kaiser facilities on the islands of Oahu, Hawaii, and Maui. The agreement includes wage increases of 9.5 percent over the term of the agreement, free retiree medical care, a lump sum bonus based on compensable wages earned, no monthly medical premiums, and no increase in medical co-payments. The agreement also preserves employee pension benefits.
 
 
Members of the Teamsters ratified a three-year collective bargaining agreement with Republic Airways Holdings Inc. covering 2,100 pilots working at Republic Airways Holdings Inc. subsidiaries Republic Airlines and Shuttle America averting Republic Airways Holdings Inc. from going bankrupt. The agreement increases pilot wages to those at the top of the regional industry. Pilots will also receive significant ratification bonuses up to $10,000 and an bonus after one year of the agreement’s term ($10,000 for pilots and $5,000 for co-pilots).
Administrative, Court & Other Decisions
The NLRB held that as a successor to a unionized entity, Lily Transportation Corp. was required to bargain with the union for a reasonable period of time before employees could raise a question about union representation. In 2013, Lily Transportation Corp. succeeded another entity at a Toyota Motors parts distribution center. Lily Transportation employed 20 drivers, 13 of whom were union-represented employees of the prior employer. The union demanded recognition and filed an unfair labor practice charge when the company refused. The company contended that it received signed statements from a majority of the formerly unionized workers stating that they no longer wished to be represented by the union. However, the NLRB agreed that the successor company violated the NLRA by failing to recognize and bargain with the union. Lily Transp. Corp.
 
 
The NLRB held that video testimony does not violate an employer’s right to due process during an unfair labor practices hearing. The NLRB has held that the rule of procedures in unfair labor practices cases that “[w]itnesses shall be examined orally under oath, except that for good cause shown after the issuance of a complaint, testimony may be taken by deposition,” precludes use of telephonic testimony. The NLRB refused to extend that rule to also prohibit video testimony, specifically where the video testimony is regulated (e.g., with the use of video technicians). EF Int’l Language Schools, Inc.
 
 
The National Labor Relations Board’s general counsel concluded that Sherwin Alumina Co. LLC lawfully locked out 450 United Steelworkers-represented employees at Sherwin’s Texas plant, denying the United Steelworker’s appeal of a Regional Director’s refusal to issue a complaint over the lockout, which began in October 2014. Sherwin Alumina Co.
 
 
The U.S. Court of Appeals for the Eleventh Circuit ruled that an arbitrator exceeded his power by issuing a substitute award, because although he had the ability to decide the issues submitted and those argued by the parties, he did not have the ability to revisit the merits of the award once it had been issued. The arbitrator initially held that pursuant to a collective bargaining agreement, laid-off employees had the ability to “bump” current employees with less seniority if the laid-off employee previously held the same position. The arbitrator then subsequently issued a substitute award. Electrical Workers IBEW Local Union 824 v. Verizon Fla., LLC.
 
 
A federal court in Arizona ruled that the NLRB did not improperly process union election petitions based on a “micro-unit” organizing strategy despite the fact that employees rejected full union representation in 2008. In 2008, 760 employees at Yuma Proving Ground, owned by TRAX International Corp., a defense contractor, voted against IAM representation. Since July 31, 2015, IAM Local 2282 has filed six petitions with the NLRB seeking union elections for different groups of employees at Yuma Proving Ground. The federal court noted that absent a showing that the NLRB acted in excess of its statutory powers (it found no such showing was made), it had no jurisdiction over the issue. Trax Int’l Corp. v. NLRB.
 
 
The Eleventh Circuit held that state lawmakers’ records relating to a law are protected by the legislative privilege. The Alabama Education Association sought to compel records of lawmakers showing that a law barring state and local government employees from paying union dues through payroll deduction was passed in retaliation for the union’s past support of educational policies the lawmakers opposed. The circuit court reasoned that because information relating to the motivation behind a law is exactly what the legislative privilege is meant to protect, the union was not entitled to the records requested. In re Hubbard.
 
 
A federal trial court in Pennsylvania ruled that, under ERISA, claims for delinquent contributions may only be brought against signatories to a collective bargaining agreement. The plaintiff sought contributions from three entities, only one of which signed the collective bargaining agreement. The plaintiff claimed the other two entities were joint employers. The court, in dismissing the plaintiff’s claims against the two non-signatory entities, noted that the specific provision under ERISA at issue in this case targeted “an employer who is obligated to make contributions under a multiemployer plan or collective bargaining agreement,” not simply any employer. Carpenters Combined Funds Inc. v. Kelly Sys., Inc.
 
 
An NLRB regional director held that Danbury Hospital of the Western Connecticut Health Network’s search of one database for employee phone numbers and email addresses did not comply with the NLRB’s requirement that employers make a good-faith effort to produce available personal email addresses and available home and cell phone numbers of all eligible voters before a union representation election. Danbury Hospital of the Western Connecticut Health Network did not search other databases it used to store employee contact information or other resources it had, like phone lists. The regional director ordered that a second union representation election take place. Danbury Hosp.
 
 
The U.S. Court of Appeals for the Second Circuit ruled that an employer’s firing of two employees for “liking” and commenting on a Facebook post that was critical of the employer violated the NLRA because the “liking” and commenting constituted protected, concerted activity. The Facebook post disclosed an ongoing labor dispute over income tax withholdings. The court noted that the “liking” and commenting was not intended to defame the employer, but rather that it was simply an employee discussion of labor issues. Three D LLC v. NLRB.
 
 
The NLRB granted the UAW’s request that it reconsider a 2004 decision to deny collective bargaining rights to research and teaching assistants and other graduate students at the New School in New York. The New School.
 
 
The NLRB held that it would process union petitions that do not disclose whether the union issued a demand for recognition. The International Union of Operating Engineers Local 501 left block 7 (where unions are instructed to include a description of their bargaining demand and an employer’s response) on the NLRB’s standard form petition (Form NLRB-502(RC)) blank, so MGM Grand Hotel LLC moved to dismiss the union election that the union had previously won. In upholding the election, the NLRB noted that there is a longstanding practice of not dismissing a petition where a question concerning representation exists. MGM Grand Hotel, LLC.
 
 
The NLRB held that Marina Del Rey Hospital’s policy barring off-duty employees from entering the interior of the hospital “except to visit a patient, receive medical treatment, or conduct hospital-related business” was lawful on its face. In January 2013, an ALJ (acting on unfair labor practice charges filed by the California Nurses Association and the SEIU) held that the policy was unlawful on its face based on precedent that found a similar provision violated the NLRA because it interfered with employees’ right to engage in union or protected concerted activity. The NLRB, noting that the precedent relied on by the ALJ had been vacated, reasoned that the policy was lawful on its face because it applied to off-duty access for all purposes, not just union activity. The ALJ and NLRB agreed, however, that Marina Del Rey Hospital applied its facially lawful policy in an unlawful manner when it allowed off-duty employees to enter the hospital for other reasons not noted in the policy, such as for social events and to apply for job transfers. Marina Del Rey Hosp.
 
 
The U.S. Court of Appeals for the Fifth Circuit reversed a decision by the NLRB, which found that an arbitration agreement that barred workers from pursuing class actions in all forums was unlawful. The Fifth Circuit find that Murphy Oil did not commit an unfair labor practice by using the arbitration agreement, noting that that the arbitration agreement at issue specifically stated that the arbitration agreement did not prohibit employees from filing charges with the NLRB. Murphy Oil USA Inc. v. NLRB.
 
 
An employer sought NLRB review after a Regional Director decided to exclude ballots in a UFCW-affiliated union election finding that, although they were mailed in before the deadline, they were not received until after and thus ineligible to be counted. The NLRB declined to review the regional director’s decision noting that the employer Classic Valet Parking Inc. did not present any substantial issues warranting review and that adhering to the established practice of not counting ballots that come in after a tally (even though they may have been postmarked before) is the best approach. Classic Valet Parking Inc. and Local 1102, Retail, Wholesale & Department Store Union, United Food and Commercial Workers.
 
 
An NLRB Regional Director dismissed a petition for a representation election by graduate student workers at Columbia University in New York. The regional director reasoned that she was bound by the decision in Brown University that graduate students could not be considered employees under the NLRA because their primary relationship with the university was an academic one. The dismissal sets up a possible appeal to the NLRB. Columbia Univ.
 
 
A federal judge in New York partially granted enforcement of an administrative subpoena by the NLRB for records, including emails regarding union representation sent from executives and supervisors at McDonald’s to franchisees. Although at its core the underlying case is about employee firings and suspensions at 29 McDonald’s locations for involvement in protests, the outcome of the case could have a more far-reaching impact on McDonald’s and its peer companies. Specifically, at issue is whether McDonald’s and its peer companies could be found to be joint employers with their franchisees. NLRB v. McDonald’s USA LLC.
 
 
The NLRB affirmed an order blocking Teamsters Local 210 from serving as the exclusive collective bargaining representatives of custodians at New York’s John F. Kennedy International Airport Terminal 2. The dispute arose after ISS Facility Services Inc., which contracts with Delta to clean at the airport, granted Local 210 exclusive representation at Delta’s Terminals 2 and 4 and then entered into a collective bargaining agreement just a few months later. The Terminal 2 and 4 workers previously had different bargaining representatives. After the United Service Workers Union disclaimed its rights to the Terminal 2 facility, the Board found that the Teamsters illegally rolled Terminal 2 employees in the fold by so-called accretion, finding that neither ISS nor the union demonstrated that the Terminal 2 employees shared an overwhelming community of interest with their Terminal 4 counterparts. The Board ordered ISS to cease and desist from recognition of the Teamsters as the exclusive bargaining unit of custodians at Terminal 2. ISS Facility Services Inc. and Gwenette Adams and Local 210, International Brotherhood of Teamsters and Local 210, International Brotherhood of Teamsters and Gwenette Adams.
Legislation & Politics
Senator, and Democratic presidential candidate, Bernie Sanders (D-Vt.), along with Representative Mark Pocan (D-Wis.), introduced proposed legislation, the Workplace Democracy Act, making it easier for workers to form unions. Specifically, the legislation requires employers to negotiate union representation within 10 days after receiving a request and compels binding arbitration where an agreement is not reached within 90 days.
 
 
Speaking at the White House Summit on Worker Voice, President Obama urged Congress to pass the Workplace Action for a Growing Family Act, which would amend the NLRA to, among other things, enhance remedies for workers disciplined for union organizing and give workers the right to sue their employers in federal court.
 
 
The American Federation of State, County and Municipal Employees has endorsed Hillary Clinton in the 2016 presidential election.
 
 
The Pennsylvania senate approved a bill ensuring that public employee union dues that are automatically deducted from employee paychecks are not used to fund political operations. The legislation is still pending.
 
 
The National Mediation Board (NMB), which adjudicates union representation, collective bargaining, and other labor disputes in the airline and railroad industries, adopted several revisions to its representation election procedures, effective October 19, 2015. Specifically, the NMB adopted a procedure that failure by an employer to provide an accurate voter list “may be considered interference with the Board’s election process and constitute grounds for setting aside an election.” Another revision to the procedures clarifies the process for validating employee signatures.
 
 
Richard F. Griffin, General Counsel of the NLRB, revised his September guidance memorandum on the submission of electronic signatures as a “showing of interest” in representation elections to include examples of declarations and confirmations to be used by labor organizations when submitting electronic signatures to the NLRB. The revised memorandum is available here.
 
 
The Pennsylvania House passed H.B. 874 amending Pennsylvania criminal law on harassment and stalking to remove an exemption for “conduct by a party to a labor dispute.” The bill eliminates a loophole in Pennsylvania criminal law that has prevented law enforcement from intervening in harassment, stalking, and threat situations if the perpetrator is a party to a labor dispute. The bill has been sent to the Governor, but it is unclear if he will sign it.
 
 
The House Education and the Workforce Committee approved the Protecting Local Business Opportunity Act amending the NLRA and limiting findings that two or more organizations are joint employers to situations where the organizations “share[] and exercise[] control over essential terms and conditions of employment and such control over these matters is actual, direct, and immediate.”
 
 
The NLRB will close its Des Moines, Iowa office on November 30, 2015. The NLRB’s Minneapolis and Milwaukee offices will handle the work in Des Moines on an as-needed basis.
Miscellaneous
According to a review of federal contracting records by The Washington Times, federal agencies under the Obama administration have provided tens of millions of dollars in grants to unions for things such safety and job training, union membership recruitment, and for stirring up support for the president’s health care initiative, Obamacare. According to The Washington Times, during President George W. Bush’s tenure the federal government awarded about $29 million in grants to two of the largest unions, the AFL-CIO and SEIU. In contrast, federal agencies during President Obama’s tenure have thus far awarded at least $53 million to these two groups.
 
 
The Central States Pension Fund, which provides pension benefits for more than 400,000 teamsters (and their beneficiaries) in the supermarket, construction, and trucking industries, may cut pension funds of current and retired members by about 23 percent to prevent insolvency. The cut is permitted under new legislation allowing adjustments to be made to retirement benefits. Even if union members disapprove the cuts, the cuts may still be implemented under the new law because of the need to protect the pension fund from insolvency.
Upcoming Events
November 13, 2015
National Employment Law Institute’s 36th Annual Employment Law Conference
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November 7, 2015
ABA’s 9th Annual Labor & Employment Law Conference
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Recent Publications
October 23, 2015
New York Legislative Update: New Employment Protections for Women
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October 16, 2015
Recent California Employment Legislation – Status Update
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October 13, 2015
California Department of Industrial Relations Raises Compensation Threshold For Computer Software Engineers, Licensed Physicians, and Surgeons Overtime Exemption
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October 8, 2015
New California Employment Legislation
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October 7, 2015
California Enacts Fair Pay Act
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Winston & Strawn Contacts
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