Top Legal Issues for 2006

Three instances stand out as the top legal issues for 2006, according to a recent article in Thomson-West’s Employment Alert newsletter.

“Hamdan v. Rumsfeld is absolutely the decision of the year,” Laurie Levenson, professor of criminal law and procedure ethics & evidence at Loyola University, said. “From a criminal law perspective, Hamden not only asks how much power the executive branch has in setting rules for criminal proceedings, but launches the whole discussion of what the minimum due process we accept is? What rules will make a fair trial and get us an accurate result?”

Lee Petillion, a corporate securities attorney and author, told Thomson West, “The Securities & Exchange Commission’s decision [amended final SEC Release 33-8732 (8-29-2006)] to overhaul disclosure rules on executive pay shedded new light on the transparency of executive compensation packages that include line-item reporting of all salary, bonus, perks, stock options, and retirement benefits, and is the most significant legal event because of its potentially profound implications for executive compensation, which has become a highly controversial issue.”

“The Pension Protection Act (PL 109-280) is the most significant overhaul of ERISA since the statute was enacted in 1974, setting a multitude of new standards for pensions and 401(k) plans, “ said Frederick Brodie, a law partner and author. “It increases required disclosure to plan participants, imposes stricter rules & penalties on companies with under-funded plans, and adopts a variety of measures affecting plan investments, structures, funding, and administration.”