Author: JGL Law

While a number of counties in Maryland such as Montgomery and Prince George’s had an existing minimum wage rate higher than the federal minimum wage (which currently sits at $7.25 per hour), as of January 1, 2024, almost all employers in the state of Maryland are now required to compensate their employees at $15.00 an hour.

This new, across-the-board, Maryland state requirement came into effect when Maryland Governor Wes Moore signed Maryland Senate Bill 555, better known as the Fair Wage Act of 2023, into law in April 2023.

Importantly, the exceptions to the Fair Wage Act are very limited. For instance, small employers, defined as those with fourteen or fewer employees, now have to compensate employees at $13.40 an hour, unless required to pay a higher rate by county law or another locality requirement. Additionally, tipped workers must make at least $3.63 an hour (half the federal minimum wage), and with tips, now must earn a minimum of $15.00 an hour. So, if tipped workers are compensated, including with tips, at a rate less than $15.00 an hour, their employers have to fill in the gap until they get to at least $15.00 an hour. Finally, workers under the age of 18 must be paid at least at a rate of 85% of the minimum wage rate or $12.75 an hour.

As always, employers should make sure they are compensating employees consistent with all federal, state, and local laws and other regulatory requirements. Failure to follow all requirements can lead to hefty penalties for employers, including fines and up to double damages on top of the amount of compensation owed to their employees. As the Appellate Court of Maryland explained, employers “doing business in Maryland must be aware of the requirements affecting a Maryland business enterprise, including whether state and federal laws apply.” Pinnacle Grp., LLC v. Kelly, 235 Md. App. 436, 467 (2018).

JGL attorneys Tim Maloney and Kevin Redden represented Gwen Wright, a longtime Montgomery County Planning Board member who was fired. After her termination, the entire Montgomery County Planning Board resigned.

You can read the article here.

The Appellate Court of Maryland issued a reported opinion December 20, 2023, in favor of JGL’s client, the developer of the Suffrage Point development in Hyattsville. The Appellate Court determined that the Prince George’s Planning Board had not erred in approving our client’s Preliminary Plan of Subdivision for the development. Senior Counsel Alyse Prawde briefed and argued this case.

The case concerned important issues about the procedure for developers moving through the zoning and subdivision process. The Appellate Court of Maryland found that the pending appeal of the Conceptual Site Plan did not prohibit the Planning Board from approving our client’s Preliminary Plan of Subdivision. The court also determined that there was no requirement in the County’s Zoning Ordinance requiring a preliminary plan of subdivision to conform with a conceptual site plan.

Hear JGL Principal Veronica Nannis speak about the recent $345 Million Settlement Announced 12/19/2023. Veronica was lead counsel on this matter.

Settlement breaks record for largest recovery of its kind in U.S. history 

INDIANAPOLIS, Dec. 19, 2023 – The United States Department of Justice (DOJ) today announced a settlement with Indiana-based Community Health Network (Community) for $345 million for healthcare fraud claims on Medicare. The False Claims Act (FCA) case spanned 2008 to 2020. This historic settlement comes more than nine years after it was first filed. Community must also comply with a Corporate Integrity Agreement, ensuring five years of continual monitoring by the government. This is the second settlement with recidivist offender Community; the first was 2015 for $20.3 million.

The settlement comes after seasoned healthcare finance and operations executive Thomas Fischer sued his former employer, Community. Fischer is a whistleblower, or “relator,” under the FCA, who filed suit on behalf of the government based on detailed insider knowledge of fraud. Fischer’s complaint (PDF) included allegations that Community violated the federal Stark Law, which prohibits payments of any kind – including inflated salaries – to physicians to influence where they treat or refer patients. DOJ supported Fischer, intervening in 2019 with its own complaint (PDF).

Today’s $345 million settlement is reportedly nearly triple the largest prior Stark Law False Claims Act settlement.

“This historic settlement is thanks to the public-private partnership unique to the FCA,” said whistleblower attorney Veronica Nannis of Joseph Greenwald and Laake, which leads Fischer’s team with several other law firms. “Uncovering and prosecuting healthcare fraud takes skill, diligence and meticulous coordination with the government; all on display here.”

DOJ alleged Community illegally paid physicians inflated salaries: “After Bryan Mills became CHN’s Chief Executive Officer (CEO), CHN embarked on an aggressive campaign to recruit physicians for employment.” Its complaint described the physicians’ excessive salaries as a “defensive” tool used to recruit physicians to “secure their referrals.” It warned, the Stark law “plays a key role in ensuring that services are reasonable and necessary, and not provided merely to enrich the parties in a financial relationship at the expense of federal health programs and their beneficiaries.”

Fischer stated, “I am grateful for this recovery. These claims are not mere technicalities; they directly affect patients, hospital employees and the high cost of healthcare. This puts money back into the healthcare system and is a victory for the Indiana taxpayer.”

“The government’s dedication over nearly 10 years is a testament to its commitment to eliminating fraud,” added Jay Holland, counsel for Fischer. Holland lauded the DOJ team, led by Arthur DiDio, and described it as “providing a master class in Stark Law litigation.”

Fischer’s Indianapolis attorney Kathleen DeLaney added, “Our local United States Attorney’s Office, led by Civil Chief Shelese Woods, contributed significantly, and stood by past statements that Medicare fraud will not be tolerated. This is justice served for Indianapolis.”

For DeLaney and Fischer’s other counsel, Tim McCormack, this has been a nearly 10-year journey.

“I could not be prouder of Mr. Fischer’s tenacity,” said McCormack. “Cases like this are vital to keeping financial incentives away from medical judgment. Without a brave insider like Mr. Fischer, willing to speak up, speak out, and then blow the whistle, Community likely would have continued to get away with its fraud.”

Much of the case continues. Today’s settlement is only for intervened claims by the United States. Team Fischer continues to pursue Community for similar fraud under Stark, Anti-kickback, employment and retaliation claims.

The case is U.S. and State of Indiana ex rel Fischer v. Community Health Network, Inc., et al., Case No. 1:14-cv-1215-RLY-MKK. Fischer is represented by lead counsel Veronica Nannis, Jay Holland and Virginia Grimm, Joseph, Greenwald & Laake; Tim McCormack and Michael Smith, Preti Flaherty Beliveau & Pachios, LLP; Steve Greenfogel and Bruce Greenberg, Lite DePalma; and local and employment counsel Kathleen DeLaney, DeLaney & DeLaney LLC. The government’s team is led by Arthur DiDio of the DOJ, United States Attorney for the Southern District of Indiana Zachary A. Myers and Civil Chief for the U.S. Attorney’s Office, Southern District of Indiana, Shelese Woods. 

JGL Partner, Reza Golesorkhi, is featured in Modern Luxury Magazine‘s Modern Man Spotlight.

Read his spotlight piece here (PDF)

JGL Attorneys Veronica Nannis and Timothy Maloney were quoted in the latest Law360 article “Marriott Can’t Use Class Waiver To Block Cert. In Breach Row.”

A Maryland federal judge reinstated certification for several classes of consumers in a lawsuit against Marriott and its information technology provider over a massive data breach in 2018. The breach affected around 133 million Starwood guests in the U.S. The judge found Marriott’s response to the litigation inconsistent with its argument that guests had agreed to pursue claims individually. The decision overturned a Fourth Circuit ruling that vacated the certification order, citing a “choice of law and venue” clause in a guest rewards contract. The judge concluded that Marriott had waived the clause and that it was ineffective to override the court’s discretion to certify a class. The dispute is part of a larger data breach class action involving millions of consumers. Marriott plans to seek leave to appeal the ruling.

Click here for more background regarding this matter.

JGL Senior Counsel Christopher Castellano was featured in Washington Parent with his article entitled “Navigating the Holidays as a Separated or Newly Divorced Parent: A Survivor Guide.” This article was featured in their December edition.

Click here to read the article (PDF)

Family law specialist David Bulitt was praised as the lawyer who “epitomizes stability and old-fashioned common sense” by Bethesda Magazine. David was recognized and listed under The Best of Potomac Readers’ Choice Winners as “Best Family Attorney,” as seen on page 32.

He is routinely listed among Washington DC’s top family law attorneys and was honored by Maryland’s Daily Record as a “Leader in the Law” for his work in the area of Alternate Dispute Resolution, earlier this year.

The law is ever-evolving. October 1, 2023 changes to Maryland’s intestacy laws have significant consequences for separated, but not yet divorced, spouses who don’t have a Last Will & Testament. If you don’t have a Will, read on about why you need one.

Intestacy laws dictate how an estate is distributed when a person passes away without a valid Will. This is especially important for separated, but not yet divorced spouses who don’t have a Last Will & Testament. This blog underscores the importance of having a valid Will and the consequences of failing to do so.

The Old Law: A Split Between Spouse and Heirs

Under the previous intestacy law, the estate was divided in a way that aimed to strike a balance between the surviving spouse and heirs, whether minor children, adult children, or surviving parents if no children. In most instances, the surviving spouse receive $40,000 plus half of the remainder, while the other half would be allocated to the heirs. This approach recognized the importance of both the spouse and children or surviving parents in the decedent’s life.

The New Law: More for the Surviving Spouse

In an important departure from the old law, the new grants the surviving spouse 100% of the estate when 1) all surviving children in common are adults; or, 2) when the couple had no children and the deceased had surviving parents. Additionally, the $40,000 surviving spouse share increased to $100,000 when there are surviving adult children of the decedent who are not also the children of the surviving spouse. These changes prioritize the surviving spouse’s financial well-being in such circumstances.

Implications of the Change

These changes raise the stakes for individuals who are separated (but not yet divorced) from their spouse and have no estate plan. Especially when there are adult children or no children and surviving parents. It is now more critical to have a valid estate plan in place during a couple’s separation.

Why Avoid Intestacy

Intestacy laws may not align with an individual’s wishes or their family’s best interests. To avoid intestacy, it is imperative to draft a Will and estate plan that outlines how you want your assets distributed. Here are a few key reasons to avoid intestacy:

1. Control and Clarity: Having a Will allows individuals to have a say over how their estate is distributed. It offers clarity and peace of mind about having their wishes followed.

2. Protecting Family Dynamics: By creating a Will, clients can address specific family dynamics and ensure that their assets are divided in a way that best suits their unique situation.

3. Reducing Stress and Disputes: Intestacy can lead to disputes and confusion among family members, adding unnecessary stress during an already difficult time. An estate plan can help prevent these conflicts.

4. Ensuring Financial Security: Creating a Will is a responsible step to ensure that loved ones are financially secure after an individual’s passing. This is especially vital when there are adult children involved.

In conclusion, the recent changes to intestacy law emphasize the importance of having a valid Will, particularly for those who are separated from their spouse and have adult children. Don’t leave your legacy to chance; take control with a well-drafted Will and estate plan.

“Come Fly with Me”, circa 1958, is a classic song by Frank Sinatra, that could never have incorporated or imagined the events and circumstances that our flight attendants and air travel personnel deal with on a day-to-day basis in 2023.

The headlines tell us of incidents causing injuries to travelers, but in the background lies all the trauma suffered by the tremendous workforce that enables us to fly. 

Most recent was a turbulent event aboard a Delta international flight, reported September 22, 2023, where both passengers and flight attendants were injured.  Aside from natural disasters and unforeseen events, passengers have become unruly to staff, at the expense of the safety to the attendants. 
On November 13, 2022, a United flight from San Francisco to Chicago on United had disruptive passengers cause three people to seek medical care upon landing. Overstuffed personal baggage, now more common to avoid checking bags that are frequently delayed or lost, are causing back and shoulder injuries to flight attendants. The staff is under pressure to get the flight ready for take off and must do whatever is necessary to get the baggage stowed away. 

All of us have seen the videos captured by personal phones when drunk passengers become unruly, and it is the attendant who must intervene, and ultimately sustain injury. Their primary role is safety followed by hospitality, not to be forced as security guards between passengers. 

In addition to the in-flight injuries, the entire workforce involved in airport operations, is also experiencing more danger, and more trauma, and even death at work. Back in 2014, an outside worker died after being injured by a paving vehicle at BWI Thurgood Marshall.  Inhalation of gas fumes left on the tarmac can leave workers with serious lung injuries. Air traffic controllers, long known to be under extreme stress, are now being evaluated for sleep disorders and stress related conditions. During the pandemic, my services were sought out by flight attendants for their legal rights for covid related claims.
 
There are a myriad of claims that can be brought under the workers compensation statute for injuries sustained in Maryland within the airline industry.  Furthermore, in Maryland, unlike some areas of the DMV, even when filing workers’ compensation, if the injury is caused by the negligence of a co-worker for the same incident, one can sue the co-worker and the coverage is provided by the employer. 

The difference is that, in a lawsuit, one can ask for pain and suffering, which cannot be granted in a  in a workers’ compensation case.  Of course, the workers’ compensation carrier will still have a lien on any third-party recovery, even if it is the same carrier as the liability claim.

The classic tort claim still applies if some one who filed workers’ compensation is injured by someone else, not employed within the employer’s company.  Examples are assault, or an accident caused by a different contractor while the person was on duty working at the airport.

There are many other classifications of workers who are at risk and able to file claims, once causation is met, such as pilots, security staff, gate attendants, ticketing agents, baggage handlers, ground crew, and skycaps.

I sincerely believe that claims are often unreported merely because the injured worker did not realize that they had a viable claim.  For example, a flight attendant may not understand whether he or she was “on the clock” at the time of injury. It all depends on the law of the state that has jurisdiction. In Maryland, one of my favorite cases, that I call the Bubble Bath case, argued for the claimant by my dear friend and great attorney, John Noble, held that a traveling salesperson could indeed file a claim for injuries sustained by slipping in the bathtub at the hotel she was forced to stay for her sales job. The same might apply to a flight attendant who was on duty until he or she was flown back to his or her home base.

Those in the airline industry should consult an attorney if they believe an injury or condition might be compensable.  It might be just a slip and fall that caused the injury, but other hazards can be covered.  We have seen concussions, repetitive trauma to shoulders, hearing loss for noise exposure, burn and inhalation injuries, as well as toxic chemical exposure often left unfiled. 

A former top attorney for the US Labor Department is suing the agency for discrimination and retaliation, alleging a toxic workplace culture for Black attorneys.

Former Regional Solicitor, Oscar Hampton III, is being represented by attorneys Jay P. Holland and Michal Shinnar. This case is covered in the Bloomberg article “Former Regional Solicitor Alleges Black Lawyers Face Bias at DOL.”