BEWARE Pension Plan Trustees: The United States Supreme Court has Reinforced Your Responsibility

2022/01/31

On Monday, January 24, 2022 the United States Supreme Court issued its much-anticipated opinion in the Hughes, et al. v. Northwestern University, et al. case. Before the Court was the issue of whether Northwestern University violated its fiduciary duty to a class of employee-investors under ERISA by allegedly including unnecessarily expensive investment options and paying excessive fees although they simultaneously offered low cost options. In short, is it a violation of Northwestern’s fiduciary duty to offer both reasonable and unreasonable investment options if they ultimately allow the employee investor to choose which plan to invest in? The District Court ruled the university satisfied their fiduciary duty and dismissed the case. The Seventh Circuit agreed affirming the lower court. The Supreme Court ultimately disagreed and reinstated the class action finding that employee choice does not cure the universities’ potentially imprudent offerings. The basis for the Supreme Court’s reversal and remand is that the lower courts’ rationale was inconsistent with the explanation of the duties owed by a fiduciary explained in Tibble v. Edison Int’l, including the duty to monitor and oversee all plan investment options and remove any deemed imprudent. 575 U. S. 523, 530 (2015). While the Seventh Circuit also based its opinion on guidance provided in Tibble, namely the duty to offer a diverse menu of plan options, it ignored the duty to remove imprudent offerings. The Court briefly touched on the Petitioners’ allegation including: 1. Northwestern failed to monitor record keeping and investment management fees; 2. Northwestern offered plan options including “retail” share classes while identical and cheaper “institutional” share classes were available; and 3. Northwestern created confusion by offering over 400 investment options. By focusing solely on the university diversifying their plan options and providing participant choice, the Seventh Circuit and District Court ignored other equally important aspects of the duty of prudence owed by a fiduciary. Read More

Pietragallo Expands Litigation Practice with Another Round of New Hires

2022/01/24

In another significant expansion of the firm’s litigation practice, Pietragallo Gordon Alfano Bosick & Raspanti, LLP is pleased to announce the addition of new associates to the firm’s Pittsburgh and Philadelphia Offices. “Despite these challenging times, we remain fully committed to providing our clients with top flight service. We are thrilled to welcome this talented and diverse group of litigators to our team,” said Pietragallo Chairman William Pietragallo, II. The group of four new associates includes:   Quintin DiLucente joins our Commercial Litigation team in our Pittsburgh office. While attending law school at Duquesne University School of Law, Quintin worked for the Court of Common Pleas in the Criminal and Family Divisions.   About Pietragallo Pietragallo Gordon Alfano Bosick & Raspanti, LLP is a multi-disciplined business and commercial litigation firm headquartered in Pittsburgh with five offices throughout Pennsylvania, Ohio, and West Virginia from which we serve our clients in all 50 states and the District of Columbia. Read More

Privacy, Data and Cyber Security: The Current Legal Landscape CLE (Webinar)

2021/11/11

Companies and consumers alike are under perpetual assault from bad actors as IoT, work from home, and cloud migration – all intended to improve productivity – have expanded the cyber attack surface. The continually evolving privacy legislation and cyber regulation requires companies to adapt and comply with collection, use, retention, and disclosure of personal information, and requires the implementation of internal controls, systems, and policies to better protect information from cyber criminals. During this one hour CLE hosted webinar we will discuss: An overview of the current state of U.S. privacy law, including state privacy legislation, breach notification, and enforcement Overview of the legal framework in data security Cybersecurity threats and the attendant risk Regulatory frameworks and the future of managing security in large supply chains Best practices for companies to launch or improve their security program Click here to register. Zoom details to follow. *Attendance is limited. When Thursday, November 11, 2021 12:00 p.m. – 1:00 p.m. EST Host Christopher A. Iacono, Partner Martin T. Shepherd, Partner Credit CLE credit in PA is currently pending approval. Read More

20 Pietragallo Lawyers Named in 2022 The Best Lawyers in America and Ones to Watch

2021/08/19

Pietragallo Gordon Alfano Bosick & Raspanti, LLP is pleased to announce that 20 lawyers have been named as 2022 The Best Lawyers in America and 2022 Ones to Watch, including two lawyers who were recognized for Bet-the-Company Litigation. Best Lawyers employs a sophisticated, conscientious, rational, and transparent survey process designed to elicit meaningful and substantive evaluations of the quality of legal services. Recognition by Best Lawyers is based entirely on peer review. The following were chosen as The Best Lawyers in America: Gaetan Alfano (Bet-the-Company Litigation) Pamela Coyle Brecht Phillip R. Earnest Mark Gordon James W. Kraus James F. Marrion Richard J. Parks William Pietragallo, II (Bet-the-Company Litigation) Francis E. Pipak, Jr. Kevin E. Raphael Marc Stephen Raspanti Douglas K. Rosenblum Clem C. Trischler Peter St. Tienne Wolff The following were chosen as The Best Lawyers in America: Ones to Watch: John Kettering Leslie A. Mariotti Peter W. Nigra Frank H. Stoy   About Pietragallo Pietragallo Gordon Alfano Bosick & Raspanti, LLP is a multi-disciplined business and commercial litigation firm headquartered in Pittsburgh with five offices throughout Pennsylvania, Ohio, and West Virginia from which we serve our clients in all 50 states and the District of Columbia. Read More

24 Pietragallo Lawyers Named in 2021 Pennsylvania Super Lawyers and Rising Stars

2021/06/08

Including Recognition in Top 100 in Pennsylvania and Top 100 In Philadelphia Pietragallo Gordon Alfano Bosick & Raspanti, LLP is pleased to announce that 24 attorneys have been named as 2021 Super Lawyers and 2021 Rising Stars, including two attorneys who were also recognized in the Top 100 in Pennsylvania and Top 100 in Philadelphia. Super Lawyers is a service of Thomson Reuters legal division which compiles a list of outstanding lawyers from more than 70 practice areas. Each year, a research team at Super Lawyers conducts a multi-phase selection process reviewing independent research, peer nominations, and peer evaluations. The following were chosen as Pennsylvania Super Lawyers: Gaetan J. Alfano (Top 100 in Philadelphia) Joseph J. Bosick Mark Gordon Christopher A. Iacono P. Brennan Hart James W. Kraus Michael A. Morse William Pietragallo, II Francis E. Pipak, Jr. Kevin E. Raphael Marc S. Raspanti (Top 100 in Pennsylvania and Top 100 in Philadelphia) Douglas K. Rosenblum John A. Schwab Clem C. Trischler Paul K. Vey The following were chosen as Pennsylvania Rising Stars: Jeremy E. Abay John R. Brumberg Sarah R. Goodman Joseph L. Gordon John W. Kettering Peter W. Nigra Peter St. Tienne Wolff About Pietragallo Pietragallo Gordon Alfano Bosick & Raspanti, LLP is a multi-disciplined business and commercial litigation firm headquartered in Pittsburgh with five offices throughout Pennsylvania, Ohio, and West Virginia from which we serve our clients in all 50 states and the District of Columbia. Read More

Tax Credit Provides Direct Relief for COVID-19 Leave

2021/04/27

Takeaway: Intended to provide direct relief to small businesses, the ARP employer tax credit provides an excellent opportunity for employers to reduce their tax liability. Small business owners may be eligible for additional financial relief to assist in recovery from the COVID-19 pandemic under the new American Rescue Plan (ARP) signed into law on March 11, 2021. Under the ARP, small and midsize employers may be eligible to claim tax credits to reimburse the costs of providing paid sick and family leave to employees due to COVID-19. This includes time taken by employees to receive or recover from COVID-19 vaccinations. Pursuant to a fact sheet recently released by the IRS, here are some of the key provisions for employers. Eligible Employers Include: Any business with fewer than 500 employees. Tax exempt organizations (excluding certain federal government agencies). Self-employed individuals may be eligible for similar credits. Employers may take the tax credits for wages paid for leave taken by employees related to COVID-19 vaccinations and recovery. The relevant time frame is employee leave between April 1 through September 30, 2021. Employers can receive credit for the time that their employees are unable to work or telework. Leave includes the time necessary for employees to receive a COVID-19 vaccination and recover from any condition caused by the vaccination. The ARP Leave Credits act as Tax Credits Against Employer’s Share of Medicare Tax If the credits exceed the employer’s share of Medicare tax, the excess is refunded directly back to the employer. The Tax Credit is Equal to Sick Leave Wages Paid for COVID-19 Related Reasons For Individuals: up to two weeks (80 hours), limited to $511 per day and $5,110 in the aggregate, at 100 percent of the employee’s regular rate of pay. For Family Leave Wage: up to twelve weeks, limited to $200 per day and $12,000 in the aggregate, at 2/3rds of the employee’s regular rate of pay. Read More

Pietragallo Elevates New Partner for 2021

2021/04/22

Pietragallo Gordon Alfano Bosick & Raspanti, LLP is pleased to announce the internal promotion of one lawyer to partnership: John W. Kettering in Sharon, PA. The announcement follows on the heels of the firm’s recent string of new litigation hires. “We are extremely proud and excited to welcome John to the partnership. His dedication to continued outstanding client service and their commitment to teamwork represent Pietragallo’s core values,” said William Pietragallo, Chairman of Pietragallo Gordon Alfano Bosick & Raspanti, LLP. The new partner: John W. Kettering practices in the field of Business & Corporate, Commercial Litigation, and Bankruptcy. John has experience in all areas of business, from transactional to litigation, with a focus on the enforcement of creditors’ rights.   About Pietragallo Pietragallo Gordon Alfano Bosick & Raspanti, LLP is a multi-disciplined business and commercial litigation firm headquartered in Pittsburgh with five offices throughout Pennsylvania, Ohio, and West Virginia from which we serve our clients in all 50 states and the District of Columbia. Read More

COVID-19 Back-To-Work Guidance [WEBINAR]

2021/05/06

What to Know about Returning to an In-Person Environment Please join us as we provide guidance to employers ensuring their employees, and customers, feel safe in returning to an in-person environment. The presentation will address various topics such as: Workplace Safety Transitioning Back to the Office Alternative Work Arrangements Updating & Revising Policies and Procedures Establishing a Clear Communications Plan Click here to register.* Zoom details to follow. *Attendance is limited. When Thursday, May 6, 2021 10:00 a.m. – 11:00 a.m. Host Leslie A. Mariotti, Partner Joseph L. Gordon, Senior Associate Credit CLE credit in PA is currently pending approval. Leslie A. Mariotti works closely with public, private, and government entities to help them improve their corporate culture, increase employee morale, strengthen customer loyalty, and enhance their relationships with stakeholders. Joseph L. Gordon regularly counsels businesses on strategic initiatives designed to minimize the threat of employee lawsuits. He has been intimately involved with counselling businesses on a variety of Coronavirus-related issues since the start of the Pandemic. Read More

Uncertain Future: Rethinking the Law Firm Lease Post-COVID-19

2021/03/26

Due to COVID-19’s impact, the commercial office market should fundamentally shift in favor of tenants for the next several years. Law firm tenants should find an environment characterized by friendly concessions, options across asset classes and price ranges, and limited competition for space. Here are some market factors: Global office vacancy will rise from a pre-pandemic rate of 10.9% to 15.6% next year. See, https://www.cushmanwakefield.com/en/insights/covid-19/global-office-impact-study-and-recovery-timing-report Rents in the United States likely will fall 6.5% this year and 2.3% in 2022. https://www.bloomberg.com/news/articles/2020-09-23/office-leasing-seen-remaining-below-pre-covid-levels-until-2025 The length of lease terms has dropped to a five-year low. https://www.us.jll.com/en/trends-and-insights/research/office-market-statistics-trends So, what does all of this mean to your law office? If you are negotiating a new lease, or renegotiating an existing one, consider including these seven provisions: Contraction Option. A contraction option is a right to reduce the size of a tenant’s leased premises. As office space needs change, the firm may want to reduce square footage. In seeking to reduce your law office footprint, you should be prepared to negotiate the responsibility for the cost to physically redemise the space. Shorter Terms. Commercial office landlords generally desire longer term leases (typically seven to 10 years) to maximize a building’s value for financing purposes. Tenants conversely prefer the inherent flexibility of shorter-term leases. Given the anticipated oversupply for the next several years, you should be poised to negotiate a shorter lease term, while recognizing that a shorter-term lease may impact a landlord’s willingness to fund space improvements and to provide other financial incentives, such as an upfront period of free or reduced rent. Option to Terminate Early. Be prepared to experience a period of trial and error as you attempt to quantify office space needs. Where there is a sizable oversupply of office space, a law firm could become an “office nomad” of sorts and set up shop in less costly space (through a direct lease or sublease) as such space becomes available. Read More

So You Want to Implement a Mandatory Vaccination Policy – What Should You Know?

2021/02/23

Many employers are considering implementing a mandatory vaccination policy. Can you? Yes. Should you? It depends on your business, and consideration of the following issues: Accommodating Certain Employees—Your company can implement a mandatory vaccination policy requiring all employees to be vaccinated before returning to the office. However, the policy must recognize that the company may need to make accommodations, if feasible, for certain employees who oppose getting vaccinated for religious or medical reasons. Using Third Party to Administer Vaccine—If your company retains someone to give the vaccine on-site, it must ensure that no confidential medical information is obtained in the process. When using a third party to administer the vaccine, the company can require proof from that third party that the vaccine was administered. But again, the company should not have access to the employee’s confidential medical information. Employees that Refuse Vaccine—Your company must be prepared for employees who refuse to get the vaccine for medical, religious or other reasons. If an employee refuses to get the vaccine, your company would have to engage in an interactive process to determine whether that employee being in the workplace without being vaccinated would pose a direct threat to other employees. In assessing that direct threat, your company would need to engage in an individualized assessment and consider the following four factors as to the unvaccinated employee: (1) duration of the risk; (2) nature and severity of the harm; (3) likelihood of the harm; and (4) imminence of the harm. A conclusion that there is a direct threat would include a determination that an unvaccinated individual will expose others to the virus at the worksite. If an employer concludes an employee is a direct threat, the employer might have grounds to terminate the employee, but only after considering whether the employer is able to accommodate the employee working remotely. Read More