Mark Twain reportedly said that “a lie can run around the world six times while the truth is still trying to put on its pants.” If Twain had ever conducted a workplace investigation, he might have more accurately remarked that the truth is actually still in bed wearing pajamas.

A recent decision by the Washington Court of Appeals clarifies two tests that are often misunderstood and misapplied by employers. In Fiore v. Ppg Indus., 2012 Wash. App. LEXIS 1556 (Div. I 2012), the Washington Court of Appeals considered the test for applying the administrative exemption test under Washington’s Minimum Wage Act (“MWA”). It also reviewed the test for calculating overtime when a non-exempt employee is paid a salary. Although the decision turned out badly for employer PPG Industries (PPG), the Court’s decision provides guidance for employers seeking to avoid costly overtime suits.

The Family and Medical Leave Act (“FMLA” or “Act”) provides eligible employees with up to 12 weeks of leave per year and, except in specified circumstances, guarantees employees reinstatement to their same or equivalent position upon return from leave. As anyone who has dealt with the Act is well aware, the FMLA is complex to administer and can be confusing both to employers and employees alike. In an effort to offer compliance assistance, the U.S. Department of Labor (“DOL”) from time to time issues guidance addressing and clarifying appropriate application of the FMLA.

Employers conduct background checks on current and prospective employees for many valid reasons. Background checks can be a useful tool for promoting productive business operations, weeding out workers who may threaten the workforce, preventing employee theft, protecting vulnerable business clients, and avoiding negligent hiring lawsuits. Under decades-old guidance, the U.S. Equal Employment Opportunity Commission’s (EEOC) position is that employer reliance on criminal background information for employment decisions may have an unlawful adverse impact based on race.

The clock is ticking toward September 1, 2012, the date on which Seattle’s Paid Sick and Safe Leave Ordinance (“the Ordinance”) will go into effect. Every employer that has employees who spend any time in Seattle should take notice. The Seattle Office for Civil Rights, the administrative body charged with overseeing and enforcing the Ordinance, recently released amended proposed administrative rules that cover aspects of the Ordinance’s implementation, such as how sick time will accrue, notice requirements for employers, notice requirements for employees, and employee documentation.

In the past few years, social media technologies have emerged as double-edged swords in the workplace. In the right hands, such technologies can provide unprecedented marketing and growth opportunities. In the wrong hands, they can create embarrassment and liability for an employer. To protect their interests, employers have implemented policies addressing, and sometimes restricting, employee use of social media.

Although most employers are sympathetic to their employees’ medical difficulties and generally are aware of the obligation to provide medical and disability leave under some circumstances, they may not realize the full scope of their obligations in this tricky area. When facing difficult return-to-work situations at the end of FMLA leave, compliance with the FMLA’s technical rules can be critical to avoiding potential liability. And the FMLA is not the end of the story—the ADA and state disability law may require extended leave even when FMLA eligibility does not exist or has been exhausted.

In the past few years, federal and state agencies have increased enforcement efforts through investigations and inspections. Now, most businesses can expect to be visited by a government agency at some point during their existence. These visits often occur because the organization was selected for an audit, either at random or in response to a specific employee complaint. Agencies such as the Equal Employment Opportunity Commission (EEOC) may also ask for documentation of personnel policies and practices in the course of investigating a discrimination charge.

In August of 2011, the National Labor Relations Board issued its controversial decision in Specialty Healthcare and Rehabilitation Center of Mobile, 356 NLRB 56 (Aug. 26, 2011), overruling 20 years of Board precedent and imposing a new approach for determining what constitutes an appropriate bargaining unit in non-acute health care facilities. There, the Board announced that it would apply the “community of interest” test to non-acute care settings, such as nursing homes. As a result, the Board allowed certification of a bargaining unit comprised of 53 certified nursing assistants who had similar “training, certification, supervision, uniforms, pay rates, work assignments, shifts and work areas,” and that excluded 33 other non-supervisory personnel. Under Specialty Healthcare, the Board gives extreme deference to a union’s petitioned-for bargaining unit.

The EEOC measures its success by numbers, and according to its annual report, 2011 was a record year. The agency received a record 99,947 charges of discrimination in fiscal year 2011, the highest number of charges in the agency’s 46-year history. It also received more than $364 million in monetary benefits, also the highest level ever obtained. The agency’s private sector mediation program also obtained a record level of monetary benefits: more than $170 million.

For many employers, the company holiday party is as ubiquitous as the holidays themselves. Many organizations are privy to holiday party legends—some good, some bad. As the holiday season unfolds, companies throughout the Puget Sound region are once again preparing to celebrate the season with their employees. If alcohol is part of your company’s holiday celebration, you could be at risk for more than just a hangover.

In the recent economic downturn, employment litigation has swelled and union organizing is on the rise. In the face of such risks and challenges, you can effectively manage your own destiny through well crafted and consistently applied employment policies and practices. As this year comes to a close and a new one approaches, now is the time for a thorough checkup and healthy dose of preventative medicine. The following are key focus areas for review that may prove invaluable in reducing the risk of lawsuits and avoiding employee morale problems that can lead to successful union organization.