Can You Pass The "Acid Test"? 10 Short Questions To Determine If You Are Protected Against Discrimination Liability

One year ago, we asked employers the key question "Can You Pass The Acid Test?"  

That is, can you feel secure that you have taken all possible steps to avoid discrimination or harassment lawsuits that, even if you win, can cost hundreds of thousands of dollars to defend?    We wrote:  "An ounce of prevention ..."

Back by popular demand is "the test."  Take it if you dare.  Just open the link above and answer the 10 questions.

 

 

Fed Ex to Deliver $3 Million Settlement to OFCCP

The Department of Labor announced that it had reached a $3 million settlement with two FedEx Corp. subsidiaries to address discriminatory hiring practices.  The settlement also requires FedEx to change its hiring practices and provide anti-discrimination training.

 

As we have noted in several prior posts, the OFCCP is ramping up its enforcement efforts.  This is the latest big money settlement achieved by the OFCCP in a matter of months.  (10/11 Cavines Beef $600,000 settlement and 9/11 Tyson Foods $2.25 million settlements to name a few).

 

In statements to Reuters, FedEx denied any wrongdoing and noted that the OFCCP filed a complaint based solely on statistical analysis and not based on any individual complaints.  Interestingly in cases like this, it means lots of individuals will be receiving a check without probably even knowing they were discriminated against or that a complaint had even been filed.

 

It is important for all employers, not just federal contractors, to insure that they have records of applicants and hiring decisions in order to defend against such failure to hire cases.  If you do not have a record retention policy, we suggest you implement one asap.

Lots of Media Attention For Pregnancy Discrimination Cases

We spoke recently about the EEOC seeking to increase visibility and attention to cases of pregnancy discrimination.  This appears to be happening.

A couple of weeks ago we mentioned a federal judge who awarded a pregnant woman substantial damages after finding that her employer made offensive comments about her pregnancy, and then terminated her by certified mail while she was recovering in the hospital recovering from a Caesarean section.   This case is getting wide play in blogs around the country; see Oanow.com in Alabama.

In another case, it was reported by The Fresno Bee that the EEOC just settled with a large agricultural company which had rescinded an offer of employment to a woman when it found out that she was pregnant.   This settlement has been reported widely.

Proposed Federal Legislation Would Require Companies to Publicly Disclose Pay of Women and Minorities

A bill quietly introduced in Congress could result in a big bang to publicly traded companies.

 

On January 18, 2012, Rep. Meeks (D-NY) introduced a bill to amend the Securities Exchange Act.  Interestingly, the bill has nothing to do with what you might think given the financial meltdown of the last few years.  Instead, H.R. 3791, would amend the Securities Exchange Act to require publicly traded companies to include information in their annual 10K regarding the compensation of minorities and women.

 

If passed, companies who must file annual 10K reports would need to review compensation information for all employees and create 5 brackets of compensation that range from the lowest paid 20% of employees to the highest paid 20% of employees.  The bill would then require companies to report the number of minorities and women that fall in each bracket.

 

In addition to creating new reporting requirements, the bill would also provide information not generally available to employees.  The goal of the legislation is to identify companies that have a "glass ceiling" as far as women and minorities are concerned.  The hope is that the public would avoid companies that do not adequately reward women and minorities and thus compel those companies to change inequitable pay practices.

 

Obviously, this also means that there might be an increase in claims under the Equal Pay Act or other anti-discrimination laws as more employees may have statistical evidence of discriminatory practices.  If the bill does become law, then companies subject to it should be proactive about reviewing compensation scales and addressing discrepancies.

 

(photo courtesy of borman818 via Flickr)

 

 

Want an Easy and Cost-Effective Defense to Employment Discrimination Claims? Provide Harassment Training for Your Employees

Harassment training? If you read the title of this blog out loud and heard groans from other people in your office, I understand. In fact, when I have done harassment training for clients, I have heard every complaint and bad joke about harassment training there is.



Harassment training is one of those dreaded exercises by employees and management alike. Indeed, harassment training has become comedy fodder for many a tv sitcom. My personal favorite is still The Office episode "Diversity Day" where a sensitivity trainer is sent out to the branch due to Michael's comments. A perfect what not to do lesson. Check it out if you want a good laugh.



But while The Office may be funny, a real harassment claim is anything but funny for employers. As we posted in our February 10, 2011 blog, employers who provide regular training on their harassment and discrimination policies may be able to assert an affirmative defense to a claim of discrimination where an employee is aware of the policy and fails to report the harassment prior to filing a lawsuit. 
 

Recently, the issue of training came up again in the New Jersey Appellate Division case Wallace v. Mercer County Youth Detention Center.  In addressing when an employer could be liable where a non-supervisory co-worker commits the harassment, the Court re-emphasized the need for employers to not only issue policies but also to provide harassment training to its employees.  The Court noted that providing harassment training, in addition to properly training those investigating the complaints on how to do a correct investigation, was critical to asserting an affirmative defense to liability. 

 

In short, employers must make it clear to their employees, through training, that harassment of any kind will not be tolerated.

 

Although it may be possible to assert the defense even in the absence of training, providing the training is an easy fix.  Generally, the cost to employers, both in terms of lost productivity while the employees are at training and any costs paid to a trainer, are minimal as compared to litigation costs.

 

Gimme That Ol' Time Religion!

The quietly slumbering area of religious discrimination has been thrust into the news lately. In our  blog entry for September 21, 2011, we noted the general principle that Title VII, 42 U.S.C. § 2000e-2, prohibits discrimination based upon, among many other things, religion.  That is, an employer cannot discriminate on the basis of religion in hiring, firing or the terms and conditions of employment. 

We then discussed the exemption from this religious anti-discrimination provision provided to religious organizations which are permitted to hire and employ only those who subscribe to their religious beliefs. 

 

Finally, we described that this exemption, while originally applying only to the religious or non-secular activities of the organization (so that, for example, the organization could not discriminate on the basis of religion against a receptionist who was uninvolved in the religious activities of the organization), is now applicable even to the receptionist, irrespective of the nature of the activities or tasks performed, secular or non-secular, under an amendment to the statute. 

 

An important case in this area was argued in the Supreme Court yesterday. In

Hosanna-Tabor Evangelical Church and School v. EEOC, the Court dealt with a religious institution which employed a teacher who taught both secular subjects and a class in religion. She claimed to have a disability, and when she threatened to file a charge of disability when a new teacher was hired to replace her, she was fired for insubordination and because one of the tenets of the religious institution was that all disputes must be resolved internally and not in the courts. The issue placed squarely before the Court the eternal tension between government and religion, the ”wall” between them, and the possible “entanglement” between church and state.

 

At issue was the definition of “minister,” because” the “ministerial exception,” holds, in effect, that the government should not get involved in internal church affairs involving “ministers,” and therefore courts should not become embroiled in lawsuits involving “ministers.” The specific question was whether the teacher in this case was a “minister,” and therefore precluded from filing or suing for disability discrimination. The lower appeals court decided that she was not because, it reasoned, she spent far more time teaching secular courses than religious courses. Other lower courts have come up with other diverse holdings.             

  

The Supreme Court justices peppered counsel with questions trying to figure out the limits of the “ministerial exception,” when Justice Breyer frankly stated “This is tough and I’m stuck on this.”  Counsel for the religious institution argued that an “ordained” minster was clearly within the exception, and that a teacher of religion should be within the exception because “the government does not set the criteria for selecting and removing officers of the church.” The EEOC responded that the government has a compelling state interest in making sure that people are free to file charges of illegality or civil wrongs with government agencies without fear of retaliation. Indeed, Justice Sotomayor asked whether "society has a right at some point to say certain conduct is unacceptable? And once we say that’s unacceptable, can and why shouldn’t we protect the people who are doing what the law requires, i.e., reporting it?”      

   

The ultimate decision in this case will likely be a significant one in this highly charged area of the law.  

 

 

EEOC Has A Busy Week Suing

The EEOC has been working late – it has filed numerous new law suits this week, many of which are class actions.   

The EEOC’s week looked a little like this:

 

Monday, September 26, 2011

 

On behalf of black applicants who sought to become coal miners in Kentucky, the EEOC filed a class action case of racial discrimination.  

 

Tuesday, September 27, 2011

 

In a case alleging gender discrimination, the EEOC sued another coal mine owner in Illinois on behalf of female applicants.  

 

Wednesday, September 28, 2011

 

The EEOC filed a class action in Tennessee against U-Haul based upon racial discrimination. 

 

In another action that is more interesting, a complaint filed in Texas entitled EEOC v. Vitol, 4:11 cv 03506 (S.D. Texas), the EEOC claimed that a woman was fired subsequent to filing a claim of sexual harassment against her employer, although the EEOC dismissed the charge. However, her presumably spiteful first employer sent a copy of her previous charge to her new employer, and she was fired the same day. 

 

The EEOC sued both employers for retaliation, alleging that the employee’s right to engage in activity protected by Title VII, i.e., to file a charge of discrimination against employer one, was violated when she was fired by employer two.         

 

Finally,the EEOC filed a national origin discrimination lawsuit in Arizona against AN Luxury Imports of Tucson, Inc. and Autonation USA Corp. based upon the alleged harassment of both a German and Polish employee. The German employee was referred to as a “Nazi” and a “German spy,” given a Nazi salute, and had pictures of Hitler put on his equipment. The Polish employee was repeatedly called a “f---ing Polack” and “dumb Polack.”   It is alleged that although supervisors knew of this harassment, they did nothing to remedy the situation but instead retaliated against the employees by disciplining and then firing them.

Employers: Are You Ready for Turnover?

The Wall Street Journal has reported the results of a recent survey that shows that nearly half of U.S. workers are dissatisfied with their jobs.  A full third of those surveyed indicated that they want to quit their jobs.

 

During the last few years of the recession, employers may have been dealing more with reducing staff than recruiting staff.  Now that there are signs that the economy is reviving, although sluggishly, employees who once thought that they had no option but to stay at the job that they hate are now thinking they can escape that job. 

 

Here are the top 5 things an employer can do to address and be prepared for employee turnover:

  1. Address morale issues as they come up in the workplace -- addressing morale issues not only helps prevent turnover in the first place, it can also help reduce harassment claims.  Harassment claims often stem from more vague claims such as "my boss is unfair" and "my co-workers are mean."
  2. Re-evaluate salaries and salary increases that may have been put on hold -- again this addresses the morale issue, but it is also a good time to evaluate pay discrepancies between men and women in similar jobs, which could lead to claims under the Equal Pay Act.
  3. Re-examine operations -- do you actually need to replace the person who quit?  This may be time to streamline operations and an opportunity to cut costs.
  4. Have employment applications reviewed by counsel to insure that they are in compliance with federal and state laws -- the biggest issue is making sure that they do not ask for improper information, i.e., what year did the applicant graduate from school as that could reveal the applicant's age.
  5. Train all managers who will be interviewing applicants on how to interview --  this may seem like a no-brainer, but you would be surprised at how many people ask improper questions like, "this job requires travel, do you have small children at home that would prevent you from traveling?" 

THE PAYCHECK FAIRNESS ACT -- FORGOTTEN BUT NOT DEAD

In a statement issued on June 10, 2010, President Obama made a direct call to the Senate to enact the Paycheck Fairness Act.   As employers may remember, there was a flurry of activity surrounding the United States Supreme Court’s Lily Ledbetter decision which narrowly construed the applicable statute of limitations in cases brought under the Equal Pay Act.  Indeed, the 2007 decision became a part of President Obama’s campaign platform of promoting equal opportunities for all people. It was no accident that the first bill signed into law by President Obama was the Lily Ledbetter Fair Pay Act, which directly overruled the Supreme Court’s decision.  Nearly simultaneously, the Paycheck Fairness Act was introduced by then Senator Hillary Rodham Clinton and Rep. Rosa DeLauro to strengthen the Equal Pay Act (“EPA”).  The Paycheck Fairness Act, as proposed, caused an initial stir, which was quickly lost in the fray surrounding the various economic stimulus initiatives and then the health care reform debate. Now that the Paycheck Fairness Act seems to be coming off the back-burner, employers should watch the debate with interest. The Paycheck Fairness Act, as proposed, makes several key changes to the EPA, which exposes employers to additional liability, which are as follows:

  • Enhanced Damages -- Plaintiffs would be permitted to recover compensatory and punitive damages. The EPA currently provides only for liquidated damages and back pay awards.
  • Opt-out Class Actions -- Class action lawsuits could be filed pursuant to the Federal Rules of Civil Procedure (FRCP). This would make it easier to file class actions as the EPA, adopted prior to the current federal class action rule, requires plaintiffs to opt in to a suit. Under the federal rule, class members are automatically considered part of the class until they choose to opt out of the class.
  • Limitation of Affirmative Defense -- Currently, an employer may assert an affirmative defense that the pay differential between men and women is based on a “factor other than sex.” This defense had been broadly interpreted. The Act tightens this affirmative defense so that it can excuse a pay differential for men women only where the employer can show that the differential is truly caused by something other than sex and is related to job performance and consistent with business necessity.

Remember, it’s never too early or too late to start talking to your elected representatives about the Act.