Wednesday, July 2, 2008

More on compensation for meal periods


Yesterday, a Minnesota judge ruled that Wal-Mart violated state wage and hour laws by failing to provide meal and rest periods to more than 56,000 of its employees. The judge found evidence of more than 2 million separate violations, and awarded the class of employees $6.5 million in back wages. The judge will hold a second hearing on possible penalties, which could exceed $2 billion.

In light of this news, now is as good a time as any to revisit my post from a couple of weeks ago on whether employees' meal periods counted as "hours worked" under the FLSA:

A bona fide meal period, however, is not considered hours worked. To be a bona fide meal period the employee must be totally relieved of his or her work duties. According to the Department of Labor: "The employee is not relieved if he is required to perform any duties, whether active or inactive, while eating."

So, what does it mean to be "totally relieved of one's work duties?" The 6th Circuit falls in line with most of the federal courts in applying the "predominant benefit" test to determine whether an employee's meal period is compensable. Under this test, first applied by the 6th Circuit in Myracle v. Gen. Elec. Co., the employee bears the burden to prove that the normally non-compensable meal period should be compensable because it is spent predominantly for the employer's benefit. The key inquiry is whether the employee engaged in the performance of any substantial duties during the lunch break. As long as the employee can pursue his or her mealtime adequately and comfortably, is not engaged in the performance of any substantial duties, and does not spend time predominantly for the employer's benefit, the employee is not entitled to compensation under the FLSA for a lunch break. Thus, for example, it may not matter if an employee is "on call" during a meal break, unless the employee's meal is actually disturbed.

As most employment law issues, it is best to set out expectations about meal breaks in a clear policy. For example: "Each employee is entitled to a 30-minute lunch break each day. That lunch break is unpaid. Because it is unpaid, it is the employee's time to spend as he or she sees fit. Employees should expect to enjoy their lunch breaks without interruption by a co-worker, supervisor, or manager, except in the event of a emergency that requires an employee to cut his or her lunch break short. No employee is permitted to work through a lunch break without the prior approval of his or her immediate supervisor." Of course, such a policy is only as good as how it is enforced.

Tuesday, July 1, 2008

Did you know that FMLA policies are mandatory?


Did you know that if you are covered by the FMLA and have an employee handbook, the FMLA's regulations require that handbook to contain an FLMA policy?

If an FMLA-covered employer has any eligible employees and has any written guidance to employees concerning employee benefits or leave rights, such as in an employee handbook, information concerning FMLA entitlements and employee obligations under the FMLA must be included in the handbook or other document. For example, if an employer provides an employee handbook to all employees that describes the employer's policies regarding leave, wages, attendance, and similar matters, the handbook must incorporate information on FMLA rights and responsibilities and the employer's policies regarding the FMLA.

An annual review of an employee handbook or other policy manual is always a good idea. Laws are constantly in flux. New laws are passed (for example, Ohio's workplace smoking ban in 2006) that may require new guidance for employees. Courts issue decisions that may make old policies either obsolete or downright illegal. The only way to make sure that a handbook is up to date is to actually take a close look at it as often as every year.

The bottom line - if you have 50 or more employees for each working day during each of 20 or more calendar workweeks in the current or preceding calendar year, and your handbook at all deals with employee benefits or leave rights (as most do), take a look at the handbook and make sure it has an FMLA policy.

Monday, June 30, 2008

Do wage and hour laws apply to independent contractors?


Every once in a while I'll answer a question that comes from my readers. Sometimes a question comes by email. Other times (to break down the 4th wall) they come from a search someone ran to find the blog.

Last week, someone asked, "Do minimum wage laws apply to 1099 independent contractors?" The answer is no. The FLSA (and Ohio's parallel wage and hour laws) only apply to employees.

But, companies should tread very carefully before classifying a worker as an independent contractor. Among the factors that the Department of Labor will examine in determining whether one is an employee or a contractor are:

  1. The extent to which the services rendered are an integral part of the principal's business.
  2. The permanency of the relationship.
  3. The amount of the alleged contractor's investment in facilities and equipment.
  4. The nature and degree of control by the principal.
  5. The alleged contractor's opportunities for profit and loss.
  6. The amount of initiative, judgment, or foresight in open market competition with others required for the success of the claimed independent contractor.
  7. The degree of independent business organization and operation.

If a company errs by misclassifying an employee as a contractor, it would be liable for back wages (up to the minimum wage if the hourly rate is less) and unpaid overtime for two years, or even three years if employer was trying to willfully avoid the FLSA.

In other words, I would think long and hard before paying a worker like a contractor, and would not do so without some input from an employment lawyer and a written agreement setting forth the terms of the relationship.

To whoever typed that search into Google, thanks for the question. If anyone has any topics they'd like to see covered, email me and I'll do my best to accommodate.

Thursday, June 26, 2008

House overwhelmingly votes in favor of ADA Amendments Act of 2008


By a margin of 402-17, the House yesterday voted in favor of the ADA Amendments Act of 2008. The New York Times is reporting that the Senate is expected to take similar action soon, but that President Bush is concerned that "it 'could unduly expand' coverage and significantly increase litigation."

The highlights of the bill (the full text of which is available here) are several. It defines "substantially limits" to mean "materially restricts," it specifies examples of major life activities, and expands upon them to include major bodily functions, and helps employers by exempting from "regarded as" claims transitory or minor impairments that last or are expected to last for 6 months or less.

The biggest changes, however, come to the definition of "disability" itself. In Sutton v. United Airlines, the Supreme Court held that whether an impairment substantially limits a major life activity is to be determined with reference to the effects of mitigating measures on the impairment. For example, a diabetic who has the condition under control with insulin might not meet the definition of "disability." These amendments expressly reverse that ruling:

  • An impairment that is episodic or in remission is a disability if it would substantially limit a major life activity when active.
  • The determination of whether an impairment substantially limits a major life activity is to be made without regard to the ameliorative effects of mitigating measures, such as medications, equipment, assistive technology, auxiliary devices, learned behavioral, or adaptive neurological modifications.
  • Eyeglasses or contact lenses, however, can still be considered in determining whether an impairment substantially limits a major life activity.

All in all, the goal of this legislation is to be lauded: "To carry out the ADA's objectives of providing 'a clear and comprehensive national mandate for the elimination of discrimination' and 'clear, strong, consistent, enforceable standards addressing discrimination' by reinstating a broad scope of protection to be available under the ADA." These amendments may not necessarily increase litigation, but they will certainly make it more difficult for employers to get ADA cases dismissed on summary judgment.

Delay in reporting harassment dooms employee's claim


Federal Express terminated the employment of Deborah Thornton after she failed to return to work from a 16-month leave of absence taken because of alleged stress stemming from sexual harassment by her immediate supervisor, David Bragorgos. She did not report the retaliation to FedEx until two months after her leave of absence began, claiming that she feared retaliation from Bragorgos and others if she reported it. In Thornton v. Federal Express, decided early this week, the 6th Circuit rejected that argument and upheld summary judgment entered in the employer's favor.

An employee’s subjective fears of confrontation, unpleasantness or retaliation do not alleviate the employee’s duty under Ellerth to alert the employer to the allegedly hostile environment.

In other words, employees have an affirmative obligation to report harassment. In return, the employer has an affirmative to ensure that the employee can do so free from retaliation. The employee is not excused from her responsibilities out of a fear that the employer will not live up to its end of the bargain.

Wednesday, June 25, 2008

Is the FLSA anachronistic?


Earlier this week I wrote about whether employees are entitled to overtime pay for reading emails. Michael Moore (the author of the Pennsylvania Labor & Employment Blog, not the director of Roger & Me) posted a comment to my post that is so wonderful that I'm reprinting it to make sure that all of my readers see it:

ballpointpenThe only area immune from technology is the FLSA which is stuck in the year 1938, when it was enacted. Incidentally, this is the same year that the ball point pen was invented by the Argentine-Hungarian journalist László Bíró. I wonder if the DOL sat around in 1938 wondering if employees who wrote themselves work-related “To Do” list at home might actually be engaged in compensable work time activities entitling them to overtime?... or if the invention of the ball point pen (as opposed to the clunky fountain pen) would have so dramatically reduced these efforts that it would make the time de minimis?

Michael is dead on. As our employment laws move forward, the FLSA remains stuck in the past. The FLSA was enacted in 1938 to the curb worker exploitation, boost job creation, and bring the country out of the Great Depression. Last year, I asked if the 40-hour work week is still relevant in the modern world.  Michael's comment really drives home the point that a law enacted to address workplace conditions that existed during the Depression may need to be seriously reworked to address the realities of the modern workplace.

Protected activity does not protect theft of confidential information


Let's suppose an employee opts-in to a class action lawsuit against your company. Let's also suppose after she opts-in to the class action, she believes that her supervisor begins retaliating against her by treating her poorly. As part of discovery in the class action, she provides documents to her attorneys. Those documents not only include documents that might relate to the class action and potential retaliation claim, but also confidential customer files that she believes will jog her memory about specific instances of retaliation. The employer has a Privacy Policy, a Code of Conduct, and a Conflict of Interest Policy, all of which expressly prohibit the disclosure of confidential information, including customer information. When the employer learns of the delivery of the confidential customer files, it terminates her for violating company policy.

Does the delivery of the confidential files constitute protected activity for which the employee cannot be terminated? According to the 6th Circuit in Niswander v. Cincinnati Insurance, decided yesterday, the answer is it depends, but in this case no.

First, the Court analyze the dissemination for whether it constituted "participation" in protected activity. Because the confidential documents were not relevant to her claim, the Court concluded it did not:

This is not a case of an employee mistakenly or inadvertently delivering confidential information out of a belief that the documents provided direct proof of discrimination. Instead, Niswander delivered numerous documents, some of which were copies of e-mails from her supervisors related to her job performance, but some of which were claim-file documents that included confidential personal information of insured individuals....

Our analysis would be different if the documents that Niswander had given to her lawyers, and that they in turn produced to CIC, had reasonably supported her claim of gender-based pay discrimination—or if she reasonably believed that they did.

[C]oncluding that Niswander’s conduct here is protected participation ... would provide employees with near-immunity for their actions in connection with antidiscrimination lawsuits, protecting them from disciplinary action even when they knowingly provide irrelevant, confidential information solely to jog their memory regarding instances of alleged retaliation.

The Court also analyzed whether the dissemination qualified as "opposition" to an unlawful employment practice. The Court laid out 6 factors critical to its determination as to whether the dissemination of the documents was "reasonable" and therefore worthy of protection:

  1. How the documents were obtained.
  2. To whom the documents were produced.
  3. The content of the documents.
  4. Why the documents were produced, including whether the production was in direct response to a discovery request.
  5. The scope of the employer’s privacy policy.
  6. The ability of the employee to preserve the evidence in a manner that does not violate the employer’s privacy policy.

The Court found that the factors generally weighed against Niswander:

Although employees deserve protection when they make reasonable attempts to preserve evidence of illegal employment practices, including discrimination and retaliation, “we are loathe [sic] to provide employees an incentive to rifle through confidential files looking for evidence that might come in handy in later litigation.” To hold in favor of Niswander would turn the opposition clause into “a license to flaunt [sic] company rules or an invitation to dishonest behavior.” (quoting O’Day v. McDonnell Douglas Helicopter Co. (9th Cir. 1996)).

This case underscores the importance for employers to have clearly written confidentiality and other policies to govern employee ethics. The disclosure of confidential materials could very well be transformed into protected activity if the employer does not take active steps to protect the documents' confidentiality.

Moreover, businesses must also act swiftly and decisively when discovering a breach of confidentiality by any employee. Separate from being smart business, consistent enforcement diffuses any claim by an employee like Niswander of pretext - that she was treated differently than employees who breached policy but who had not filed a lawsuit.

Tuesday, June 24, 2008

What would President Obama look like to employers?


crystal_ball2_bmwPreview Yesterday, Senator Barack Obama gave some insight into employment policy in his administration. RealClearPolitics has his words from a speech given in Albuquerque. The highlights:

  • He will push for the passage of the Lilly Ledbetter Fair Pay Restoration Act, which will overturn Ledbetter v. Goodyear Tire & Rubber. Recall that Ledbetter held that the statute of limitations for a pay discrimination claim under Title VII begins to run when the pay-setting decision is made, and not when the employee learns of the discrimination. The Ledbetter Fair Pay Act would start the statute of limitations when the employee learns of the pay discrimination. In my view, this law would create a floating statute of limitations for pay discrimination claims, which severely undermines the important aspect of certainty that statutes of limitations provide for businesses.

  • To assist working parents, he would expand the Child and Dependent Care tax credit to 50%.

  • He would expand the FMLA to cover employers as small as 25 employees, to permit leave for the care of elderly parents, to allow parents 24 hours of annual leave to join school activities with their kids, and to cover employees who are victims of domestic violence or sexual assault.

  • Finally, he would require employers to provide all workers with seven paid sick days a year.

It's clear from Senator Obama's words that family responsibility will be a driving force in his administration:

As the son of a single mother, I also don't accept an America that makes women choose between their kids and their careers. It's not acceptable that women are denied jobs or promotions because they've got kids at home. It's not acceptable that forty percent of working women don't have a single paid sick day. That's wrong for working parents, it's wrong for America's children, and it's not who we are as a country.

It's hard to argue against greater family leave benefits on a national scale (The Ohio Healthy Families Act is an entirely different story). As I've said before, this country lags behind most of the civilized world, and even some of the third world, in family leave benefits. Until we solve this problem legislatively, aggressive plaintiffs will continue to push for judicial solutions - such as the $2.1 million verdict against Kohl's Department Stores in Cuyahoga County last year.

Overtime pay for reading emails


899402_you_have_mailMore than a year ago I asked the question, "Is time spent outside the office e-mailing from a Blackberry compensable under the Fair Labor Standards Act?" According to yesterday's New York Times, writers for ABC News are asking the same question.

BlackBerrys blur the lines between work and play. A recent dispute at ABC News asked: at what point does checking e-mail after hours constitute working overtime?

Several weeks ago, ABC’s news division presented three new writers with a waiver stating that they would not be compensated for checking their company-issued BlackBerrys after office hours. The waiver prompted some concern, leading ABC to take the BlackBerrys away from the three writers the week of June 9.

Before deciding whether time spent checking emails off-hours is compensable, several questions must be answered:

  1. How much time is spent? The FLSA permits employers to disregard and not pay employees for off-hours de minimis time. Time is considered de minimis if it is insubstantial or insignificant, cannot as a practical administrative matter be precisely recorded for payroll purposes, is no more than a few minutes in duration, and where the failure to count such time is justified by industrial realities.
  2. Is the employee checking emails of his or her choice, or is the employee essentially expected to be on-call 24/7?
  3. Does the employer require the employee to carry a PDA or Blackberry, or does the employee choose to do so as a matter of personal convenience?

The safest course of action for employers is to provide PDAs only to exempt employees. But, if companies are going to provide PDAs to non-exempt employees, they should have a policy in place stating that employees who check emails off-the-clock do so of their own choice, and that the time spent will not be compensated. Of course, such a policy is not foolproof, and businesses who make it possible for employees to remain connected off-duty will have to take the risk that the time might count as hours worked.

My take is that most emailing should meet the test for de minimis time. Checking an email takes at most only a few moments, and it would create an administrative nightmare for companies to have to track this time for pay purposes. While I am not aware of any cases discussing this issue, it is only a matter of time before we get some judicial guidance for companies that provide PDAs to non-exempt workers. In the meantime, this debate remains academic, albeit with significant real-world implications.

Monday, June 23, 2008

Two new ways to search the blogosphere go live


It's easy to get lost in the blogosphere. There are thousands of lawyers publishing blogs, and new blawgs launch everyday, each elbowing each other for room in an increasingly more crowded market.

Two services have recently launched to help keep it all straight. LexMonitor strives to be a comprehensive database of every blawg. It's organized by category, author, and tags, and is updated as frequently as blogs update their feeds. It touts itself as "a free daily review of law blogs and journals highlighting prominent legal discussion and the lawyers and other professionals participating in this conversation." It launched last Friday, and on my initial review over the weekend, I have to say I'm impressed so far, in its organization, scope, and what it hopes to achieve.

Law.alltop.com has been around a little longer. It thinks of itself as the “digital magazine rack” of the Internet. It imports the last five posts from the blogs it lists. It is not trying to catalogue every piece of information out there, but to provide a representative sample of the best of the blogosphere.

Because alltop.com is more selective in its listings than LexMonitor, it may be a less intimidating starting point for those starting out searching legal blogs. LexMonitor, however, is an ambitious project, and has real potential to become the portal for those searching for up to the minute legal information.

Because I'm listed on both services, I'm happy to plug them both. It's because I think that they each offer something of real value that I'm also happy to recommend them.

Court limits employers' access to employee text-messages


It is generally understood that employers have the right to read employees' emails sent and received through the corporate email system. The system is owned and operated by the employer, and employees should have no expectation that such communications are private.

What about electronic communications that are not stored on an employer's server - for example, text messages from mobile devices? Can an employer legitimately intercept those communications without the employee's consent? According to the 9th Circuit in Quon v. Arch Wireless, the answer might be no. For those who want more information, Workplace Privacy Counsel has the details.

The bottom line for companies is that Internet Service Providers, text messages services, and online email services (such as Yahoo or Gmail) are prohibited from disclosing stored messages without the consent of the sender or the recipient. This ruling, however, should not affect an employer's ability to control its own property, such as cell phones or computers that it owns and provides to employees to use. The key is for companies to have clearly written electronic communications policies that spell out the expectations, and make it clear to employees that they have no expectation of privacy in the use of any corporate-issued equipment.

Friday, June 20, 2008

What I'm reading this week #36


We'll start this week's review with a couple of posts on firing employees. The Business of Management asks - is there ever a good time to fire someone? Meanwhile, The HR Capitalist gives us some tips on what to say to an employee after you make the termination decision.

Workplace Horizons gives us another update on the revamped ADA Restoration Act, and reports that a compromise is closer to being worked out.

The Word on Employment Law reminds us that fairness definitely matters when dealing with employees.

The Delaware Employment Law Blog (with a spiffy new design) talks about respectful workplace policies.

Finally, the Pennsylvania Labor & Employment Blog, as part of its series on resources for HR generalists, advises that it's a good idea to pay employees' final paychecks on time to avoid legal trouble.

Thursday, June 19, 2008

Employers go 2 out of 4 at the Supreme Court today


The Supreme Court this morning released a quartet of opinions that impact employers. Continuing this Court's somewhat surprising trend, the employer came out on the winning end of only half of these cases.

In MetLife v. Glenn, the Court ruled that the fact that a claim administrator of an ERISA plan also funds the plan benefits is a "conflict of interest" that must be weighed in a judicial review of the administrator's benefit determination. I have always been troubled by benefit plans that both pay benefits and make the decision whether to pay. To the extent that such plans will no longer have the protection of the arbitrary and capricious standard upon judicial review of their decisions, I applaud the Court's decision.

In Kentucky Retirement Systems v. EEOC, the Court ruled that a benefit plan's use of age as a potential factor in the distribution of retirement benefits to disabled workers does not establish a prima facie case of age discrimination. For the background on this case, see Supreme Court considers use of age as factor in disability retirement benefits. I think the Court got it partially right. It seems to me that retirement eligibility is a proxy for age, but the employer in this case did not use the factor arbitrarily or discriminatorily.

In Meacham v. Knolls Atomic Power Laboratory, the Court ruled that when an employee alleges disparate impact under the ADEA, the employer bears the burden of persuasion on the "reasonable factors other than age" defense. Again, I think the Court got this right. If the employer is raising the defense, the employer should have the burden of proving it.

Finally, in Chamber of Commerce v. Brown, the Court ruled that federal labor law prohibits state from regulating or limiting an employer's right to speak out about labor union organizing by their employees.

[Hat-tip: SCOTUSblog]

Giving "high in the sky" a whole new meaning


There are certain thinks you just don't want to think about while your sitting at the gate waiting to board a flight. One of them is the pilot in the bathroom of the 737 you are about to board doing a few lines of coke. This morning, in Gabbard v. FAA, the 6th Circuit made the friendly skies a little bit safer by affirming an arbitrator's decision that had approved the FAA's revocation of a pilot's license after he had failed a drug test.

The take-away from this case has nothing to do with airlines, drug tests, or arbitrations. Instead, this case serves as another reminder that employees can sue for any reason at any time. Gabbard could not possibly have thought he was going to have his license reinstated, especially after an arbitrator had ruled against him. Yet, he had no shame in parading his shameful conduct before the second highest court in the land. Even the most rock solid termination can end in a lawsuit. That risk, however, should not hamstring employers from taking necessary actions to rid their workplaces of bad employees, especially when good cause exists.

Clearing up some wage and hour misconceptions


The Fair Labor Standards Act has two basic requirements for non-exempt employees 18 years old and over: the payment of a minimum wage (which is currently $7 an hour in Ohio), and the payment of one and one-half times the regular rate of pay for any hours worked in excess of 40 in any work week. What's missing from this list are typical payroll practices such as vacation, holiday, severance, or sick pay; meal or rest periods; premium pay for weekend, holiday, or off-shift work; pay raises or benefits; the payment of final wages to terminated employees; and pay stubs or W-2s.
Some of these payroll practices have no provision whatsoever in any federal or state law. For example, no law requires the payment of vacation, holiday, severance, or sick pay, premium pay (except for the over-40 requirements of the FLSA), pay raises, or benefits (although ERISA regulates the latter if benefits are provided). Of course, many of these are typical in virtually all businesses. Good luck hiring or retaining any decent employees if you don't offer paid holidays and annual raises, for example.
Ohio law regulates the handling of employees final paychecks. In Ohio, paychecks must be provided no less often than semi-monthly, which means that a severed employee must be paid no later than either the 15th or the last day of the month, depending on whether the employee's last day of employment falls within the 1st half of 2nd half of the month.
The Internal Revenue Code governs the handling of W-2s. Suffice it to say that if you are paying an employee any wages during the year, you must provide that employee with a W-2, and make all the applicable withholdings on that employee's behalf.
Meal and rest periods are not required by any law. Neither federal law or Ohio law requires employers to provided employees with any breaks during the work day. Federal law, however, does provide for whether meal and rest breaks are counted as "hours worked." This distinction is important. If time is counted as "hours worked," it goes into the calculation of time worked during the work week for consideration of whether the employee has crossed the 40-hour threshold for overtime pay.
Rest periods, which are considered breaks of 20 minutes or less, are counted as hours worked whether or not the break is paid. Rest breaks are customarily paid, and if they must be counted as work hours, they might as well be paid for.
A bona fide meal period, however, is not considered hours worked. To be a bona fide meal period the employee must be totally relieved of his or her work duties. According to the Department of Labor: "The employee is not relieved if he is required to perform any duties, whether active or inactive, while eating."
Next week, we'll delve into the mistakes employers make in the handing of rest and meal periods, which has led to a lot of wage and hour class action litigation and some huge judgments against unwary employers.

Wednesday, June 18, 2008

Color-blind employment practices


The Word on Employment Law has an interesting post this morning about the effect of color on the Presidential election. Note that I said color, and not race. Under Title VII (and Ohio's parallel employment discrimination statute) it is illegal to make an employment decision because of "color." How, exactly, is color different than race?

The EEOC gives us some guidance in its Compliance Manual on Race and Color Discrimination. "Color" means:

pigmentation, complexion, or skin shade or tone. Thus, color discrimination occurs when a person is discriminated against based on the lightness, darkness, or other color characteristic of the person. Even though race and color clearly overlap, they are not synonymous. Thus, color discrimination can occur between persons of different races or ethnicities, or between persons of the same race or ethnicity.

The EEOC also provides some hypothetical examples of color discrimination:

  • An African American employer violates Title VII if she refuses to hire other African Americans whose skin is either darker or lighter than her own. For example, it would be an act of unlawful color discrimination for an employer to refuse to hire a dark-skinned person to work at a cosmetics counter because the vendor prefers a "light skinned representative."
  • A dark-complexioned African American manager violates Title VII if he frequently makes offensive jokes and comments about the skin color of a light-complexioned subordinate. This example is based on the EEOC's settlement of a claim against Applebee's.

Moreover, the EEOC's E-RACE Initiative is targeting these types of claims for special enforcement efforts:

Color discrimination in employment seems to be on the rise. In Fiscal Year 1992, EEOC received 374 charges alleging color-based discrimination. By Fiscal Year 2006, charge-filings alleging color discrimination increased to 1,241. A recent study conducted by a Vanderbilt University professor "found that those with lighter skin earn on average 8 to 15 percent more than immigrants with the darkest skin tone -- even when taking into account education and language proficiency. This trend continued even when comparing people of the same race or ethnicity." Similarly, a 2006 University of Georgia survey revealed that a light-skinned Black male with only a Bachelor's degree and basic work experience would be preferred over a dark-skinned Black male with an MBA and past managerial positions. However, in the case of Black female applicants seeking a job, "the more qualified or experienced darker-skinned woman got it, but if the qualifications were identical, the lighter-skinned woman was preferred."

While these claims are still rare, it is significant that EEOC charges of color discrimination have risen more than 330% since 1992. Moreover, the EEOC's E-RACE initiative calls for stepped up enforcement in this area.

It may not be a defense to a discrimination claim that two African American employees were treated differently if one is light complexioned and the other is dark complexioned. For employers, it's important to keep in mind that color discrimination is illegal, and is different than race discrimination.

Tuesday, June 17, 2008

It's a Discriminatory World After All - Sikh sues Disney for banning his turban


I am a Sikh man and the turban that I wear is a religiously-mandated article of clothing. My supervisor tells me that my turban makes my coworkers "uncomfortable," and has asked me to remove it. What should I do?

If a turban is religiously-mandated, you should ask your employer for a religious accommodation to wear it at work. Your employer has a legal obligation to grant your request if it does not impose a burden, or an "undue hardship," under Title VII. Claiming that your coworkers might be "upset" or "uncomfortable" when they see your turban is not an undue hardship.

The above is the EEOC's position on the accommodation of religious articles of clothing. I bring this up because Disney has been sued by a practitioner of the Sikh religion, who claims he was denied a job because of his turban. According to a press release by the Sikh American Legal Defense and Education Fund:

Mr. Channa applied for a job as a musician with Disney in the Fall of 2006 but was told that he would not be hired because he lacked "the Disney look" - a negative reference to his religiously-mandated dastaar (Sikh turban).

This lawsuit will most likely be decided on one question - does it pose an undue hardship on Disney for one of its performers to wear a turban? This question is not as easy to answer as it might appear. Disney World might be the most controlled environment on the planet. Employees are not called employees, but cast members. Every worker is considered integral to the suspension of disbelief that Disney is trying to create. Thus, if Mr. Channa is going to be performing, shouldn't he be required to wear the uniform, even if it means not wearing his turban?

On the flip side, Disney permitted Mr. Channa to interview and rehearse with his turban. If the specific uniform was a requirement for the job, why lead him along only to pull the rug out from under him at the last minute. Plus, I'd image that a company as large as Disney has had cast members in the past who have not been able to match the uniform exactly. For example, would Disney refuse to hire a disabled musician if he had to perform in a wheelchair?

It seems to me that Disney dropped the ball on this one. Can there really be an undue hardship on Disney by allowing Mr. Channa to wear his turban? The EEOC defines undue hardship as an accommodation that "requires more than ordinary administrative costs, diminishes efficiency in other jobs, infringes on other employees' job rights or benefits, impairs workplace safety, or causes co-workers to carry the accommodated employee's share of potentially hazardous or burdensome work." Religious head wear does not impact any of these factors. This is a lawsuit that Disney should settle and settle quickly, if for no other reason that to avoid the bad press that its small world apparently does not include Sikhs.

Monday, June 16, 2008

Is this the beginning of the end for the Ohio Healthy Families Act?


The Cleveland Plain Dealer is reporting that Governor Strickland has publicly come out against the Healthy Families Act:

Strickland, a Democrat, began speaking out publicly against the so-called Healthy Families Act last week, urging business and labor to get together and work out a compromise that would keep it off the ballot.

His motivations are both practical and political.... From a practical standpoint, Strickland clearly is concerned about the measure's economic costs. Like the coalition of business interests that is opposing the issue, he has noted how expensive it would be for companies to provide such a benefit.... Despite the concerns of employers, voters love the idea. Therein lies Strickland's political headache.

Voters of both parties support the proposal, but it is especially popular among Strickland's fellow Democrats. It has been predicted to drive Democratic turnout in this fall's presidential race in much the same way a proposed gay marriage ban did with Republican turnout in 2004. As with that issue, the sick-day proposal has national scope: it has been proposed in a dozen states and two cities, and is supported by presumptive Democratic nominee Barack Obama.

Because 70% of Ohioans support this measure, it will be very difficult to keep if off November's ballot, despite Governor Strickland's efforts. In the meantime, if you want more information on the likely harm the Health Families Act will cause to Ohio's already fragile business climate, visit the Ohio Chamber of Commerce's website about the OHFA, Ohio Business Votes.

The intersection of techology and labor law: new website for posting of compensation information raises concerns


George's Employment Blog reminds us that an employer cannot ban its employees from discussing wage and benefits without violating the National Labor Relations Act. According the NLRB's recent decision in Windstream Corp.:

[A]n employer rule which regards employee compensation and benefit information as confidential and prohibits employees from discussing such information with one another violates Section 8(a)(1) of the Act.... In examining whether a particular rule so violates Section 8(a)(1), the Board's analysis requires that the rule be such that "Employees would reasonably construe the language to prohibit Section 7 activity."

Windstream's challenged policy stated:

Employee compensation, benefits, and personnel records and information are confidential.

Only employees who need to know such information in the course of employment should access such employee information.

You should not disclose this information to any other Windstream employee unless that employee has a need to know such information in the course of employment.

Except as required to comply with law, you should never disclose this information to any party other than the employee or individual whose access has been authorized by the employee.

This does not prohibit you from disclosing or discussing personal, confidential information with others, so long as you did not come into possession of such information through access which you have as part of your formal Company duties.

(Winstream added the last sentence after the filing of the unfair labor practice charge). The NLRB found that the language violated Section 8(a)(1) because it was "so broadly stated that employees could and will construe them to prohibit discussions of wages and working conditions with others."

I was again reminded of this line of cases when I read an article in Business Week magazine this week touting the launch of Glassdoor.com. According to Glassdoor.com's press release, it will make available user-submitted, anonymous compensation information organized by company:

Compensation information by company and position. Unlike most salary services that only report aggregated data by generic position type and industry, Glassdoor provides details of salary, bonuses, and other compensation for actual positions and titles at specific companies. For example, users can see exactly what a software engineer at Google makes, along with bonuses and types of equity grants, in comparison to a software development engineer at Microsoft.

If employees have a statutory right to discuss compensation and benefit information, but lack the same right to use an employer's e-mail system for Section 7 purposes, can a company prohibit its employees from accessing Glassdoor.com without violating the National Labor Relations Act? The answer seems to be yes, as long as the prohibition only extends to company time and company equipment. A more broadly draft ban that applies to what employees do on their personal time very well might run afoul of the Windstream line of cases.

Friday, June 13, 2008

What I'm reading this week #35


While I recognize that the next statement might alienate some of my readers, I have to admit that I'm not the biggest NASCAR fan. That fact, however, does not stop me from reporting that a former NASCAR official has sued the racing league for sexual harassment, seeking an astounding $225 million in damages (which makes NASCAR a whole lot more interesting to me). For an HR perspective on this issue, click on over to The HR Capitalist. Meanwhile, the Connecticut Employment Law Blog has some insightful thoughts on companies being fairly stereotyped by their public image.

Rush on Business advises that companies should "build an Ark" to avoid employment lawsuit. What does Rush mean? Like Noah, businesses should be proactive in attacking issues before they become a problem that can swamp the company. Some examples include having an effective harassment policy, promptly and accurately documenting performance problems, and reviewing wage and hour compliance.

Recall that in Thompson v. North Am. Stainless, the 6th Circuit went beyond the plain language of Title VII to find a claim for associational retaliation. Jottings by an Employer's Lawyer, the granddaddy of employment law blogs, reports on a case out of the 5th Circuit that came to the exact opposite conclusion under the FMLA.

The Delaware Employment Law Blog observes that in employment disputes, simply providing an employees a forum to air their grievances can often stave off a lawsuit.

The Pennsylvania Labor & Employment Blog reports on Klopfenstein v. National Sales & Supply, in which a Pennsylvania federal court found that the act of getting coffee is not gender specific and therefore cannot form the basis for a sexual harassment claim.

Finally, this week brings us a trio of thoughful articles on preventing and avoiding retaliation claims: the Labor & Employment Law Blog on training supervisors to avoid retaliation claims; BLR's HR Daily Advisor on how not to be blindsided by a retaliation claim, and BLR's HR Daily Advisor on rules to prevent retaliation.