New COBRA Laws

Job huntOn December 21, 2009, President Obama signed the Fiscal Year 2010 Defense Appropriations Act into law. The Act will extend the current nine-month COBRA subsidy for an additional six months, allowing for a total of 15 months of COBRA subsidy. The Act will also extend eligibility to workers who are involuntarily terminated through February 28, 2010; prior to the enactment, the law covered workers involuntarily terminated through December 31, 2009. Please note that the Fiscal Year 2010 Defense Appropriations Act requires employers to provide current and future COBRA beneficiaries with notice of this new extension.

Traci Bixenmann, Legal Administrator

schoolOn November 25, 2009, the Nevada Supreme Court addressed an appeal on a lawsuit which was dismissed under Nevada’s anti-SLAPP statute.  Nevada adopted a statute similar to several other states, which protects against a meritless suit filed primarily to chill the defendant’s exercise of First Amendment Rights, such as when a citizen makes a report or request to a government agency and someone else takes offense and sues them in retaliation.  Thus, Nevada seeks to protect the free speech rights of its citizens.  The Court found that Nevada’s anti-SLAPP statute can be applied to a cause of action based upon a federal statute, and that the district court was correct in dismissing the lawsuit under the terms of that statute.

In this employment discrimination lawsuit, commonly known as John v. Douglas County School District, a security officer at a school district had been disciplined and suspended for unprofessional conduct and sexual harassment.  His appeal through his labor union went through three layers of appeals, and on each level the discipline was held.  He then filed an Equal Employment Opportunity Commission (EEOC) complaint in Nevada district court, claiming both state and federal causes of action.

A year later, the school district found that he had improperly obtained confidential student records, and he refused to cooperate in their investigation.  He was suspended during the investigation and at the end, was fired based upon information found during the investigation and his prior misconduct.  He modified his lawsuit to assert numerous new claims against all parties involved.  The district court dismissed his state law-based causes of action, as those claims were barred under the union’s collective bargaining agreement.  The court then granted a special motion to dismiss, based upon application of Nevada’s anti-SLAPP statute and the security officer’s failure to show sufficient evidence that he would probably prevail on his claim.

The Nevada Supreme Court found that a state court can apply federal law, using the state civil procedures which are neutral and procedural and do not obstruct federal substantive law.   The Court found that the defendants’ communications concerning his conduct were protected free speech and were truthful or made without knowledge of falsehood.  The communications were important to the school district, as they addressed the school environment and impacted the possible legal liability of the school district.  Once the school district had established that threshold, the burden of proof shifted to the claimant to establish a genuine issue of material fact regarding the relevant communications.  Since the security guard did not raise such an issue, the lawsuit was properly dismissed. 

This case was heard and decided by the entire panel of the Nevada Supreme Court.

Steven R. Bartell, Esq.

Solders marchingThe Justice Department announced October 28, 2009  that it reached a settlement to resolve its suit filed on behalf of former Utah Army National Guardsman and current Air Force Reservist Matthew T. Denning against Stonescape Pavers, LLC.  The settlement must be approved by the federal court in Las Vegas.  The Department’s complaint, filed in June 2009, alleges that Stonescape violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by terminating Denning during his statutorily protected reemployment period.  Under the terms of the settlement, embodied in an agreement that has been submitted to the court, Stonescape must provide Denning with $10,000 to compensate him for his lost wages and benefits as a result of Stonescape’s actions.

Among other things, USERRA prohibits employers from terminating a servicemember except for cause for 180 days after the employee’s date of reemployment if his or her recent period of uniformed service was more than 30 days but less than 181 days.

In its complaint, the Justice Department alleged that Denning was a salesperson for Stonescape when he was called to active duty to deploy to Iraq with the Utah Army National Guard in January 2006.  After he was honorably discharged in June 2006, he was reemployed by Stonescape.  According to the lawsuit, Stonescape terminated Denning without cause in August 2006 during his statutorily protected reemployment time period.   

“We all have a duty to ensure the brave men and women who serve our country in uniform can land on their feet after they return from active duty.  This settlement demonstrates our vigilant protection of the employment rights of our servicemembers, and our commitment to vigorous enforcement of the laws that protect them,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.

Carlos L. McDade, Esq.


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