Professional Liability Matters

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December 30, 2014 • Employment Practices Liability, Professional Liability Matters

What is Work? New Definitions for the New Year

Under the Fair Labor Standards Act (“FLSA”), employees are entitled to compensation for “hours worked.” However, what is considered compensable work time is a contentious topic for many employers. A recent decision by the Supreme Court is likely to help clarify the test for compensable work under the FLSA and effectively end much of the current litigation faced by employers surrounding back wages and overtime pay. This month, in a rare unanimous decision, the Supreme Court held that employees’ time spent waiting for and undergoing security screenings is not compensable under the Fair Labor Standards Act.

December 23, 2014 • Cyber-Liability, Professional Liability Matters

Lessons from Sony: Cyber Attack

Sony Pictures recently became the target of a sophisticated and debilitating digital attack. The first signs of the hack appeared in late November, when an image of a skull flashed on every employee’s computer screen accompanied by a threatening message that the company’s internal data had been compromised. The company initially experienced a shutdown of many of its computers. In the following days, the hackers began to leak private company data. Five Sony films, including four unreleased projects were leaked online, along with compensation information for the top seventeen Sony executives and social security information for more than 6,000 current and former employees. In addition, countless confidential email exchanges were exposed to the public. One month on, Sony continues to suffer fallout from the attack, including the suspension of several film projects due to the inability to process payments, and a decision earlier this week to cancel the release of the upcoming comedy The Interview.

December 18, 2014 • Law Practice Management, Professional Liability Matters

My Colleague’s Keeper – Benefits & Pitfalls of Law Firm Structures (Part II)

Monitoring Matters: In the first portion of this series, we examined how a recent New Jersey case highlighted the benefits of the law firm structure. Next we explore the risks, and responsibilities, of a supervising attorney at a law firm. Often, a good team is the most critical component of producing excellent services. A well-trained, productive, and properly supervised staff is undoubtedly an asset, but delegating to your team can present its own challenges. With this in mind, it is important for any attorney with supervisory capacity to keep a close eye on co-workers for, under the Model Rules of Professional Conduct, the attorney remains liable for the ultimate work product.

December 17, 2014 • Employment Practices Liability, Professional Liability Matters

NLRB: Limiting Limits on Employee E-mails

If you frequent Professional Liability Matters than you’ve heard us rant about the importance of up-to-date computer use policies. An employee’s use of workplace computers and other company provided devices may trigger employer liability. As a result, employers must be careful to tailor policies that protect the employer but don’t go too far. It may be tempting for an employer to consider an outright ban of non-work related e-mail use by employees. Tempting, maybe, but improper according to the NLRB. The NLRB’s recent decision very well could have major implications on an employer’s right to restrict employee e-mail communications.

December 15, 2014 • General, Professional Liability Matters

New Reinsurance Deskbook from Thomson Reuters and DRI Features Thomas Segalla as Editor, Seven Goldberg Segalla Contributors

Goldberg Segalla founding partner Thomas F. Segalla led the team of lawyers who wrote the inaugural edition of the Reinsurance Professional’s Deskbook: A Practical Guide, a new treatise co-produced by leading legal publisher Thomson Reuters and DRI – The Voice of the Defense Bar, the largest organization of defense lawyers in the country.

December 11, 2014 • Advertising, Ethics, Professional Liability Matters

Advertising Via Text is :(

We work in a competitive environment in which professionals seek various methods to reach would-be clients. Social media and other electronic resources may help professionals to connect and establish the brand. But, your friends at PL Matters routinely warn of the risks of new marketing methods that may infringe upon applicable ethics rules. A New York law firm recently learned that unsolicited text messaging may constitute improper advertising.

December 10, 2014 • Law Practice Management, Professional Liability Matters

My Colleague’s Keeper – Benefits & Pitfalls of Law Firm Structures

There are many benefits to working in a professional firm including the ability to collaborate and seek support from colleagues. Teamwork amongst colleagues may improve efficiency, innovation, flexibility and branding. But, through the doctrine of vicarious liability, a professional may be liable for her colleague’s conduct in certain situations. There are various corporate models intended in part at protecting an individual for corporate (mis)conduct. But these models are not bulletproof. A recent New Jersey decision emphasizes the double-edged nature of practice in a professional corporation in the context of a multi-attorney law firm. In light of this case, we took a closer look at the benefits and risks of attorney partnerships.

December 9, 2014 • Cyber-Liability, Director and Officer Liability, Professional Liability Matters

Cyber Liability in the C-Suite

Everything is electronic. Companies are increasingly reliant on electronic processes to obtain and store valuable customer data, confidential, privileged and proprietary information. With that increased reliance comes the increased risk that this information can be compromised. In light of many recent high-profile data breaches, litigation surrounding data and privacy protection is increasing. A side effect of this litigation is the attention now paid to the role of boards of directors in managing and responding to cyber liability risks. Boards concerned about potential liability of its officers and directors can look to two recent sources for guidance on this issue.

December 2, 2014 • Employment Practices Liability, Professional Liability Matters, Risk Management

Tis the Season of Gift Giving (Policies)

Whether it’s a fruit basket from a vendor or an employee gift exchange, it’s that time of year when the approaching holidays can stir up a frenzy of gift giving in the office. Many companies find themselves struggling to define what is appropriate, fair and festive when it comes to holiday gift giving. Certainly no one wants to be a Grinch, but creating a clear gift policy ahead of time is an easy way to avoid controversy and liability. Consider the following tips when creating a company gift policy.

December 1, 2014 • Law Practice Management, Professional Liability Matters, Risk Management

Paralegal Power! Appropriate Delegation = Client Satisfaction

The practice of law is changing. In particular, as a result of modern technology, attorneys’ reliance upon support staff is not what it used to be. This has impacted the role of paralegals, members of a dwindling field. Indeed, according to the 2012 Survey of Law Firm Economics, the average number of paralegals per law firm has dipped by over 30%. However, paralegals still play an important role in a law firm. If utilized effectively, paralegals have proven to be invaluable players who provide a key service to clients.