Insights

In Watson v. Manhattan Luxury Automobiles, the Southern District of New York weighed in on the ongoing debate over whether scientific evidence offered in relation to a motion for class certification must meet the Daubert standard of reliability, which has been the subject of a deepening circuit split. In dicta, the Supreme Court implied that expert evidence at the class certification stage likely would be required to meet the standards of Daubert in at least some circumstances, but it has yet to definitely decide the issue. The Third, Fifth, Seventh, Ninth, and Eleventh Circuits require scientific evidence to satisfy a full Daubert analysis at the class certification stage, while the Eighth Circuit requires only a “limited” Daubert analysis. The remaining circuits, including the Second Circuit, have not yet issued clear rulings on the matter. 

In U.S. ex rel. Foreman v. AECOM, the U.S. Court of Appeals for the Second Circuit confirmed that the materiality factors set forth by the Supreme Court in Universal Health Services, Inc. v. U.S. ex rel. Escobar apply to all types of False Claims Act claims and reinforced the relator’s heavy burden even at the pleading stage. This precedential opinion provides several key takeaways for defendants facing FCA liability where the significance of the allegations to the government’s payment decision is in doubt. 

On November 22, 2021, the Department of Labor (“DOL”) published its final rule, “Increasing the Minimum Wage for Federal Contractors,” which requires a $15 hourly minimum wage for some, though not all, employees of certain federal contractors and subcontractors beginning January 30, 2022. The tipped hourly minimum wage will increase to $10.10. The final rule further provides that the hourly minimum wage will also increase annually based on inflation, beginning January 1, 2023, at an amount to be determined by the Secretary of Labor. Currently, the hourly minimum wage for federal contractor workers is $10.95 and the tipped hourly minimum wage is $7.65.