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In March 2024, the US District Court for the Eastern District of Texas in the matter of Yarbrough v. Glow Networks, Inc. overturned a $70 million employment discrimination verdict and ordered a new trial for two claims relating to only two specific Plaintiffs.  How did this happen? In December 2019, fourteen former employees of Glow Networks, Inc. (“Glow”), 13 of whom are Black, filed suit against their former employer for racial discrimination in the workplace. All Plaintiffs but one alleged racial discrimination based on tangible actions and/or a hostile work environment. Some Plaintiff

Although the changes to Chapter 53 of the Texas Property Code, the statute governing Mechanic’s Liens in Texas, went into effect on January 1, 2022, questions still abound regarding the rights and responsibilities of project consultants on construction projects, i.e. architects, engineers, and the like. Below is primer on the changes to Chapter 53 and how they affect these specific individuals as well as a brief discussion on the changes to statutory retainage and lien law. For starters, Section 53.021 removes the requirement that an architect, engineer or surveyor provide services “under

The Department of Labor’s (DOL) 2024 rule regarding the classification of employees/independent contractors recently took effect on March 11, 2024. The rule officially repeals the DOL’s 2021 Independent Contractor Status Rule and returns to a “totality of the circumstances” approach. The Fair Labor Standards Act (FLSA) establishes minimum standards of employment such as minimum wage, overtime pay, record keeping, and youth employment. These standards extend to employers and employees as defined by the FLSA. However, the FLSA’s standards do not extend to independent contractors. Thus,

The Fifth Circuit Court of Appeals has reduced a $366 million verdict from a Texas jury to $284,619 in a race discrimination and retaliation case against FedEx Corporate Services, Inc. (FedEx). Why and how did this happen? In August 2019, Jennifer Harris reported her manager for discrimination and retaliation because the manager had not assigned a certain customer to her.  A written warning from the manager about Harris’ performance followed the next month.  Harris said FedEx subsequently conducted a sham investigation of her claims and terminated her in January 2020.  Harris filed the su

What is the penalty for a pro se party retaining a “consultant” who used “artificial intelligence hallucinations” to prepare an appellate brief with fictitious case law? A Missouri Court of Appeals recently had the opportunity to answer that question. In Molly Kruse v. Jonathan R. Karlen, et al., Kruse sued her former employer for unpaid wages.  Kruse alleged she was chief creative officer for her employer from 2015 to 2019, but that the employer failed to pay her wages for 2018 and 2019. Karlen, appellant, was the owner and chief executive officer of her former employer. The trial co

Is a worksite accident that occurred during the construction of a stormwater detention vault excluded from coverage by a residential construction exclusion in a commercial general liability policy?  A Washington State court recently answered, yes. In Evanston Insurance Co. v. NW Classic Builders, LLC, Felipe Flores was injured while constructing a stormwater detention vault for a new residential subdivision in Sammimish, Washington. His employer, ARH & Associates, contracted with NW Classic Builders, the general contractor.  Flores sued NW Classic Builders for failing to provide a safe w

With tighter terms on construction loans and permanent financing, payment claims in the construction arena have increased. Noticeable during this uptick are assertions of violations of the Texas Construction Trust Fund Act. The Act is found in Chapter 162 of the Texas Property Code and creates overarching rules for all real property construction projects, with one applying specifically to residential construction over $5,000. The Construction Trust Fund Act classifies construction payments made to a contractor or subcontractor or one of their officers, directors, agents under a construction co