Overview of Employment and Benefits Practice

Pedersen & Houpt has substantial experience representing our corporate clients in connection with various employment law issues.  Our attorneys regularly counsel employers in a diverse range of industries, including global companies manufacturing consumer and industrial products and local businesses providing goods or services, on compliance with state and federal employment laws, and to protect their business interests.  The workplace strategies and solutions we offer to our clients as part of our employment law counseling services not only assist with the proper operation of the company, but also can serve to provide defenses, strengthen litigation positions, and often prevent claims from being filed with administrative agencies or the courts.

Our employment law counseling services include:

• Employment Manuals, Forms and Policies.  Pedersen & Houpt's employment law counseling attorneys develop and update employment policies, employee manuals, and personnel forms for both large, well-established companies and small, fast-developing ones.  We also assist employers in developing anti-discrimination and anti-harassment policies and procedures that comply with federal, state, and local laws.  These policies and procedures are designed to comply with existing laws and provide defenses and minimize exposure in the event of litigation.
  
  
• Hiring and Discipline of Employees.  Pedersen & Houpt counsels employers on ways to manage and reduce risks in personnel decisions, including screening, hiring and disciplining employees.  We assist companies in developing non-discriminatory information-gathering techniques and drug and alcohol screening devices for potential new hires.  We also work with human resources personnel and supervisors in investigating and documenting performance issues and discrimination claims, and in implementing corrective measures and progressive discipline that are designed to improve workplace morale and productivity, as well as minimize the threat of litigation.
  
  
• Employment and Restrictive Covenant Agreements.  Pedersen & Houpt is regularly called upon by companies to draft employment agreements as well as other types of employee agreements for both management and non-management personnel.  We also draft non-competition and non-solicitation agreements to prevent employees from competing against an employer and soliciting other employees and suppliers to terminate their relationship with an employer.  We also prepare confidentiality agreements to protect intellectual property and other proprietary information.
  
  
• Executive Compensation.  Pedersen & Houpt structures and prepares the necessary documentation for various types of non-qualified deferred compensation and incentive bonus arrangements, and counsels on compliance with applicable Internal Revenue Code requirements regarding these arrangements.  We also design and work with companies in the implementation of various types of equity compensation plans, including non-qualified and incentive stock option, phantom stock, stock appreciation rights and restricted stock plans, and advise clients on tax and other legal issues involved with these equity compensation arrangements.
  
  
• Compliance with Wage and Hour Laws.  Pedersen & Houpt counsels employers on the requirements of the Fair Labor Standards Act (FLSA) and state wage and hour statutes.  We work with human resources personnel to properly classify employees and to address other specific employee compensation issues for the purposes of complying with these laws.
  
  
• Workers' Compensation. Pedersen & Houpt counsels employees on how to reduce the number of workers' compensation claims filed before the Illinois Industrial Commission ("IIC"). In addition, Pedersen & Houpt has successfully defended employers before the IIC and is experienced in settling claims.
  
  
• Leaves of Absence/Disability.  Pedersen & Houpt advises employers on the requirements of the Family Medical Leave Act (FMLA), the Americans with Disabilities Act (ADA) and various other state laws which address employee rights to take leaves of absence or receive workplace accommodations due to a disability.  We also help employers respond to employee requests for leave and evaluate requests for accommodations in situations covered by these statutes and regulations.
  
  
• Termination of Employees and Force Reductions.  Pedersen & Houpt prepares severance pay plans, separation agreements and releases for terminated employees and negotiates severance packages, which often include non-compete, outplacement services, stock options, bonus compensation and benefits components.  We design non-discriminatory Reductions-in-Force (RIF) plans and consult with employers regarding the notice requirements of the federal Worker Adjustment and Retraining Notification (WARN) Act and equivalent state statutes and regulations.  We also advise clients on potential multi-employer plan withdrawal liability that may arise as a result of plant shutdowns or related issues involving unionized employees.
  
  
• Training of Supervisors/On-Site Seminars.  Pedersen & Houpt conducts training and on-site seminars on various employment law topics, including anti-discrimination and sexual harassment, for business owners, human resources personnel and supervisors, and lower level personnel.  Our on-site training and seminars are designed to educate all levels within the company on existing federal and state laws that regulate employers and their employees, as well as to familiarize them with the company's internal policies, procedures and requirements.  We advise and train on "best practices," a concept developed by the Equal Employment Opportunity Commission (EEOC) to encourage the adoption of employment policies and programs that increase diversity and eliminate hiring and promotion barriers for women, minorities and other protected classes.
  
  
• Transaction Support.  Pedersen & Houpt employment attorneys assist employers engaged in merger and acquisition transactions with due diligence reviews of pending and potential employment claims.  We also work with employers who are purchasing other companies to review and modify employment policies, evaluate potential retirement and other employment liabilities, and consolidate benefit programs to ensure consistency and compliance with applicable laws.

The following are some specific examples of our employment law counseling experience:

• Pedersen & Houpt handles all of the employment-law related issues for a U.S.-based manufacturer and supplier of nozzles and spraying equipment worldwide.  We consult with human resources personnel on a regular basis and provide counseling on all aspects of hiring, management and termination of employees.  We coordinate the training of the company's management and other supervisory personnel on the requirements of state and federal employment laws and conduct regular on-site seminars to ensure compliance with these rules and regulations.  We have also drafted their employment manual and have prepared and implemented anti-sexual harassment, internet and other employment-related policies and handle all disputes relating to these policies and procedures.  Furthermore, since this client does not maintain workers' compensation insurance, we have been asked to handle the defense of all of this client's workers compensation claims.
  
  
• For a national steel product manufacturer based in the Chicago area, Pedersen & Houpt is "on call" to handle all of the company's legal matters involving employment law issues.  Pedersen & Houpt has dedicated a lawyer to this client who visits the company's department and division heads on a regular basis to provide general legal advice on employment law issues.  We also created their employment policies and procedures, including policies to protect intellectual property and assets.  In addition, we draft all of the company's employment contracts (exceeding a certain dollar amount) and review employee documentation and records prior to termination.
  
  
• Pedersen & Houpt was referred by the EEOC to present an anti-discrimination and sexual harassment seminar to an employer in the food service industry as part of its compliance with an EEOC-structured settlement.
  
  
• Pedersen & Houpt counseled a publicly traded manufacturer of food products on compliance with federal and state wage and hour regulations.
  
  
• Pedersen & Houpt has drafted and revised employee handbooks and related employer policies and procedures manuals for a variety of businesses, such as hotels, automobile dealerships, manufacturing companies and landscaping companies to name a few.
  
  
• Pedersen & Houpt also has substantial experience in the employee benefits area.  Our employee benefits attorneys regularly consult with the firm's corporate clients to address various employee benefit plan design and administration issues and to develop agreements designed to retain and incentivize key management personnel.

Our employee benefit services include:

• Pension Benefit Plan Issues.  Pedersen & Houpt designs, drafts and implements benefit plans for employers in both service and manufacturing industries.  Our work in this area also includes guiding companies through the termination of their qualified plans.  Pedersen & Houpt employee benefit attorneys obtain Department of Labor exemptions from prohibited transaction rules and as a result, help clients prosecute and defend ERISA litigation claims.  Our attorneys also advise clients on Internal Revenue Service and Department of Labor audits of their employee benefit plans.  In addition, we analyze plans to determine compliance with minimum coverage and no discrimination requirements and, when necessary, work with plan sponsors to bring their plans into compliance with applicable laws through the use of Internal Revenue Service and Department of Labor compliance procedures.
  
  
• Employee Welfare Benefit Issues.  Pedersen & Houpt counsels clients on the many federal laws that govern employee welfare benefits.  We advise employers on the requirements of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) and regularly answer legal questions on the COBRA notification process and other COBRA issues.  We also work with employers to address various issues relating to the Health Insurance Portability and Accountability Act of 1996 ("HIPAA"), including the new privacy and security regulations.  Our employee benefit attorneys closely monitor all proposed health coverage legislation to determine its potential impact on private business.  When new legislation is enacted, we assist our clients in making the necessary adjustments so that they are in compliance with the new laws.
  
  
• Transaction Support.  Pedersen & Houpt employment attorneys assist employers engaged in merger and acquisition and financing transactions in due diligence reviews of employee benefit plan issues which arise in these transactions.  We also advise clients in loan and acquisition transactions concerning covenants and representations involving employee benefit issues.

The following are some specific examples of our employee benefits experience:

• Pedersen & Houpt has drafted and maintained the qualification of various types of defined contribution and defined benefit plans for clients in a variety of industries and has been successful in obtaining favorable determination letters for these plans from the Internal Revenue Service.  We also regularly advise these clients on changes in the law governing these plans and draft any necessary plan amendments to ensure continued compliance with applicable Internal Revenue Service and Department of Labor rules and regulations.
  
  
• Pedersen & Houpt handles all of the employee benefit plan issues for a U.S.-based manufacturer and supplier of nozzles and spraying equipment worldwide and routinely counsel the company personnel who handle benefit-related issues on administrative and other plan compliance issues.  We have drafted both a profit sharing and a 401(k) plan sponsored by this client and provide advice and documentation for all of the internal plan administration policies and procedures.  We have also drafted all of the health and welfare plans for this client.  These welfare plans are unique in that the benefits provided under these plans are entirely self-insured and one of the health plans contains a Health Spending Account (HSA) feature.  We have worked with this client to ensure compliance with both COBRA and HIPAA (including the HIPAA privacy and security regulations) and have drafted all of the forms used for the administration of their health and welfare plans.
  
  
• Pedersen & Houpt has handled a variety of employee benefits matters for a Chicago-based plastic components manufacturer.  We have prepared the plan documents and summary plan descriptions for this client's health and welfare plans and regularly consult with the human resources director on various compliance issues for their 401(k) plan.  We also worked with this client to avoid significant penalties upon an audit of its welfare benefit plans by utilizing the Department of Labor Delinquent Filer Voluntary Compliance Program as a result of their failure to prepare and file proper Form 5500's for these plans for several years prior to our engagement.