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Find out how Gardner Bell's experience promoting financial and economic development initiatives both locally and abroad informs his role as an attorney. Find out more>

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On December 1, 2016, Parker Hannifin Corporation and CLARCOR Inc. announced that the companies have entered into a definitive agreement under which Parker will acquire CLARCOR for approximately $4.3 billion in cash, including the assumption of net debt. The transaction has been unanimously approved by the board of directors of each company. Upon closing of the transaction, expected to be completed by or during the first quarter of Parker’s fiscal year 2018, CLARCOR will be combined with Parker’s Filtration Group to form a leading and diverse global filtration business. Bass, Berry & Sims has served CLARCOR as primary corporate and securities counsel for 10 years and served as lead counsel on this transaction. Read more here.

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Securities Law Exchange BlogSecurities Law Exchange blog offers insight on the latest legal and regulatory developments affecting publicly traded companies. It focuses on a wide variety of topics including regulation and reporting updates, public company advisory topics, IPO readiness and exchange updates including IPO announcements, M&A trends and deal news.

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Labor Talk Blog: DOMA and the FMLA - What Should Employers Do "In the Meantime?"

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June 28, 2013

The Supreme Court's Defense of Marriage Act ("DOMA") ruling will impact the "spouse" definition in the Family and Medical Leave Act ("FMLA") (among other extensive impacts in the employment law and employment benefits industry). Employers can expect the Department of Labor to issue, relatively soon, some guidance on the definition of spouse in light of the DOMA ruling.

It is anticipated that the definition of spouse will look to the state of celebration – that is, the state where the same-sex union was performed, or what state issued the license, regardless of the state of residence of the couple. But, until the guidance is issued, what should an employer do "in the meantime?"

Below is some guidance:

  • Employers should proceed with some caution (a blast of the obvious).
  • If faced with an employee who requests leave for an ailing same-sex spouse, and the couple lives and works in a state that recognizes the same-sex union, the employer can (and should) grant the leave and count it as FMLA; not doing so likely will invite an interference claim;
  • If faced with an employee who requests leave for an ailing same-sex spouse, and the couple lives and works in a state that does not recognize the same-sex marriage BUT,
    • the couple has a license from a state that does recognize same-sex marriage, then the employer can (and likely should) grant the leave. Granting the leave will avoid an interference claim. However, there is some risk that the leave, if granted, will later be considered non-FMLA-qualifying and thus will not be considered to have exhausted the employee's available leave time. To address that risk, the employer should document
      • That the leave is being granted at the employee's request
      • That the request is being granted in the midst of legal uncertainty
      • That the employer is relying on the request and the information provided to grant the leave under FMLA.

      Documenting the employee's request in this way will help the employer show promissory estoppel. That is, the employer is changing its conduct (granting the leave) in reasonable reliance on the employee’s "promise" (the request to treat the leave as FMLA-qualifying).

    • the couple does not have a license from a state that recognizes same-sex marriage, then the employer should deny the leave as counting under the FMLA but can choose to grant the leave under some other employer policy (sick leave, vacation, personal leave). If the employer grants the leave and tries to count the leave as FMLA-qualifying, the employer would have a difficult time in showing "reasonable reliance" – a necessary element in promissory estoppel identified above. The promissory estoppel doctrine requires that the employer's reliance be "reasonable" and relying on a request in a state that does not recognize the marriage, for a couple that does not have a license from a state recognizing the marriage, would not likely be viewed as reasonable.

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