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Wal-Mart Ordered to Pay $172 Million for
Denying Workers Lunch Breaks |
An Oakland, Calif., jury recently ordered Wal-Mart
Stores, Inc. to pay $172 million to thousands of employees who
claimed they were illegally denied lunch breaks.
The verdict requires Wal-Mart to pay $57.3 million
in compensation and an additional $115 million as punishment.
The case – filed on behalf of 116,000 Wal-Mart
employees in California – is one of about 40 against Wal-Mart in at
least 26 states alleging work place violations. The California case
was the first to go to trial.
The California verdict could hurt the retail giant
in other pending cases and might persuade the company to settle some
of the cases. The company settled a similar lawsuit in Colorado for
$50 million.
The Bentonville, Ark., company, the world’s largest
retailer, also faces a class action alleging it denied 1.6 million
current and former female employees equal pay and promotions. A
verdict or |
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settlement in that case could be much larger
than the recent California verdict.
Federal wage-and-hour laws are less strict on meal
breaks than state laws, but state laws differ on what’s required.
The California law, for example, requires companies to provide a
half-hour, unpaid break for employees who work a shift of at least
five hours. If the shift is longer than five hours but less than six
hours, employees can waive that break. If the work period exceeds
six hours, a break is mandatory, and if a break is not provided or
waived by an employee, the employer must pay an additional hour of
pay.
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Are Hispanics Being Favored Over
African-Americans In the Workplace? |
A new wave of job bias claims is emerging in the
workplace: Black workers are claiming they are being passed over in
favor of Hispanic workers.
The federal Equal Employment Opportunity Commission
has recently settled cases involving Latino workers hired over black
workers, sometimes when the Hispanics had less experience.
One factor driving this trend is that |
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some employers believe immigrant Hispanics
will work longer for less pay and are less likely to complain about
unfair work conditions. There’s also a belief that Hispanics may be
less aware of their job rights.
Companies run the risk of running afoul of job
discrimination laws if they don’t have objective hiring criteria
applied across the board without regard to race, gender, disability
or age.
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Hospital Can Be Sued for Doctor's Sexual
Harassment |
A hospital may be liable for sexual harassment by a
doctor, even if the doctor is not an employee, according to a recent
federal appeals court ruling.
Normally, an employer is not liable for the actions
of independent contractors because the employer does not control the
contractor’s actions.
In this case, a nurse sued a small hospital in
Illinois, alleging the head obstetric and emergency services made
life miserable for her and other staff nurses.
A federal trial court judge ruled |
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that the hospital could not be liable because
the doctor was only an independent contractor with staff privileges.
But the federal appeals court covering Indiana,
Illinois and Wisconsin said the hospital knew about the conduct and
did nothing to prevent it. The fact it had no control over the
doctor as an employee made no difference.
The court said the hospital could have taken steps
to minimize or stop the alleged harassment.
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Food Processing Workers Can Get More Pay
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Food processing workers must be paid for the time
walking between changing and production areas, but not for the time
spent waiting to change into their gear, according to a recent U.S.
Supreme Court decision.
The workers in the case were employed at a
slaughterhouse and a poultry processing plant. They were required to
wear significant amounts of safety gear to perform their jobs.
The employers argued that they were not required to
pay employees for the time spent walking between the changing area
and the production area.
However, the workers were performing their jobs in
the changing area, according to the court, since the |
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safety gear was integral to their positions.
As a result, the federal Fair Labor Standards Act
(FLSA) required the workers to be paid for the time walking
immediately to the production area after putting the safety gear on,
the court said.
This ruling could mean that other employers will
have to pay for previously uncompensated time for traveling from
changing rooms to the factory floor.
The FLSA was passed in 1938 and generally requires
employers to pay minimum wages to workers and to pay time and a half
for work weeks in excess of 40 hours.
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Woman Can Sue for Bias Even if Replaced By
Another Woman |
When suing for job bias, a fired worker must
establish certain facts in order to win the case.
One factor that a worker doesn’t have to
prove is that the replacement worker is from outside the "protected
class" (such as gender or age) – as long as the employee can prove
that the hiring and firing decisions were made by different people.
The federal appeals court covering Maryland,
Virginia, West Virginia, North Carolina and South Carolina recently
said that differing decision makers on hiring and firing is
noteworthy because the second decision to hire the replacement
worker doesn’t necessarily mean that the first decision to fire a
worker was free of bias.
When one individual makes the decision to fire the
employee and another makes the replacement hiring decision, the
second individual’s hiring decision doesn’t prove either way whether
the initial firing decision was motivated by discrimination, the
court said.
This means that a plaintiff can establish |
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a case of bias even if the replacement worker
is in the same protected class. However, an employer can still
establish that the firing decision was for reasons other than
discrimination, such as job performance.
In the case, the employee worked as a sales manager.
After she told her supervisor she was pregnant, he reduced her sales
territory and reassigned her key accounts. The supervisor also
increased the woman’s sales quotas and said she would have to
maintain them during maternity leave.
She eventually returned to work and received an
unsatisfactory job performance evaluation nine months later. After
the company received a customer complaint about the woman, she was
fired.
Her immediate supervisor wanted to hire a man to
replace her, but his superiors insisted that a woman fill the
position, which eventually occurred. The plaintiff sued for sex and
pregnancy discrimination.
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Employer Must Tell Older Workers Why it
Chose Them for Layoff |
An employee’s waiver of the right to sue for age
discrimination was struck down recently because the employer failed
to provide sufficiently personalized notice to employees regarding
its reasons for selecting them for a reduction in force.
In the case, 16 employees were part of a larger
group of workers selected for termination in connection with a
reduction in force. Each employee had to sign a waiver in exchange
for severance pay.
The selected employees also received written
notification of the job titles and ages of those employees selected
for termination, as well as the job titles and ages of those not
selected for termination.
The workers sued the company saying the release was
invalid under the federal Older Worker Benefits Protection Act.
The federal appeals court covering Kansas, Oklahoma,
New Mexico, |
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Colorado, Wyoming and Utah reversed a judgment
for the employer, saying the company must clearly state who has been
selected for layoff, as well as why that employee has been selected.
In the case, the company said it considered each
employee’s leadership skills, technical skills and behavior. It also
took into account whether these skills matched its business needs.
But the court noted that the company did not
communicate this specific information to the laid off workers prior
to obtaining releases from them. As a consequence, the release was
incomplete and didn’t comply with federal law.
This is the first ruling of its kind in the country,
and may be persuasive to other federal courts that consider this
issue in the future. We are available to help you assess your legal
rights and responsibilities in this area.
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Longer Commute May Be Discriminatory
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Being transferred to another job with a longer
commute may be discriminatory, according to a recent federal appeals
court ruling.
A restaurant manager was fired after refusing the
sexual advances of his female boss. He was later rehired, but
transferred to another restaurant 120 miles away. He sued the
restaurant for sexual harassment and retaliation.
A jury awarded the man money damages for sexual
harassment. The restaurant appealed, arguing that the man had failed
to produce evidence of a "tangible employment action," i.e., that he
was disadvantaged in some way, since the only difference in the
man’s job positions was location.
But the distance between the two |
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locations was significant enough to be an
"adverse employment action" according to the federal appeals court
covering Ohio, Michigan, Kentucky and Tennessee, because it forced
him to seriously consider relocating.
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Employee Can Sue for Discharge Even Though
He Was Too Sick to Work |
An employee may bring a claim under the Family and
Medical Leave Act for retaliatory discharge, even if he was unable
to work following his 12-week period of FMLA leave.
In a recent case, the employee was fired while on
medical leave for recurring migraine headaches. He admitted that he
would not have been able to return to work at the expiration of his
medical leave.
The federal appeals court covering Maine,
Massachusetts, New Hampshire |
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and Rhode Island said the man’s inability to
return to work did not preclude him from claiming retaliation, even
if his failure to return defeated a claim of interference with his
job rights. The two claims are independent of one another, the court
said.
A worker could suffer potential wage loss, or loss
of value of employment benefits in the period between termination
and the expiration of the unpaid leave, the court noted.
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This newsletter is designed to keep you
up-to-date with changes in the law. For help with these or any other
legal issues, please call our firm today.
The information in this newsletter is intended
solely for your information. It does not constitute legal advice,
and it should not be relied on without a discussion of your specific
situation with an attorney.
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