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It’s Now Easier for Employees to Sue Their
Companies for Retaliation |
Federal law prohibits employers from firing or
demoting workers based on a variety of personal characteristics,
such as race, gender, disability or age.
They also can’t retaliate against workers when they
complain about such unfair treatment.
However, courts around the country have disagreed on
what’s “retaliatory” under the law. For example, must an employer
fire an employee, or can an unfavorable job reassignment be enough?
The answer is “it depends,” according to a recent
decision by the U.S. Supreme Court.
The court said whether a worker can sue for
retaliation depends on the circumstances. The question is whether a
“reasonable” employee would consider the job action retaliatory, and
whether it would deter the employee from complaining about perceived
discrimination.
For instance, a changed work schedule might have a
significant impact on a single parent with school-age children,
while it may not be that big a deal to other workers.
In the case before the court, it ruled a railroad
company retaliated against an employee who complained of sexual
harassment by reassigning her to a more arduous job and suspending
her for 37 days without pay – even though she |
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was ultimately reinstated with full back pay.
The woman lost her sex discrimination case, but won
$43,500 on her retaliation claim. The court rejected the railroad’s
argument that the woman’s retaliation claim should be dismissed
because the woman didn’t suffer a “materially adverse” job change.
The court said a reasonable employee might consider
a month without a paycheck a serious hardship. An employee facing
the choice between retaining her job and filing a discrimination
complaint might feel she has little choice but to give up pursuing
her job rights. An indefinite job suspension might deter her from
exercising her legal rights, the court added.
Employees will likely file more retaliation claims
as a result of the court’s ruling as they wage battle with employers
over how they’re treated on the job. The court didn’t establish a
clear-cut rule that certain actions are never retaliatory.
Employers are concerned the court did not provide
clear guidelines, and that claims will be bogged down in lengthy
court cases.
We are available to help you in the wake of this
decision.
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Employer Concerns Grow With Increased
Employee Web Use |
Many workers across the country use their work
computer to access the Internet for entertainment and personal use.
While employers generally turn a blind eye to the
occasional check on sports scores or weather report, problems can
arise if employees are routinely surfing the ‘Net for porn.
An employee viewing porn sites at the workplace can
lead to a claim of sexual harassment, for instance, with the
employee’s use of the Internet as evidence of a hostile work
environment.
Another potential problem is when an employee uses
e-mail to threaten harm to somebody. If something ever happened, the
injured person could claim that the employer should have known about
it and didn’t do anything to stop it.
Personal use of a company computer also risks a
potential security threat to a |
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company’s computer network – such as picking
up a virus or creating a security breach.
Employee blogs may cause problems, too, by defaming
the company or disclosing trade secrets.
Employers at a minimum should have a written policy
in place concerning employee use of the Internet. And they should
monitor their employees within reason, depending on the size of
their company and IT resources.
Some companies install software so that every time a
user logs on to the Internet, a warning screen appears telling
employees the company reserves the right to monitor their use of the
Internet, and by clicking “Okay,” they consent to that monitoring.
Once a policy is put in place, it’s very important
for employers to enforce it, otherwise it likely will be
ineffective.
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Overtime, Minimum Wage Claims on the Rise
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Employees are increasingly filing lawsuits alleging
companies have violated the federal law requiring payment of minimum
wage and protecting the right to overtime pay.
Claims under the law – known as the Fair Labor
Standards Act – have almost doubled over the past six years. And
claims under similar state laws have also increased.
Employees, for example, are claiming minimum wage or
overtime violations by their employers, or are seeking wages for
meal and rest-time periods, or are suing over expenses that haven’t
been reimbursed.
In the past, these claims were usually filed by
service employees such as wait staff or retail workers. But
higher-paid employees, like stockbrokers, are now also filing
claims.
New Department of Labor regulations changing the
overtime rules went into effect August 2004. The new rules were
intended to limit the number of employees seeking overtime, but they
may have had the opposite effect because they heightened employee
awareness about potential wage and hour violations.
Another factor is that some employers are trying to
avoid their obligations under the law by labeling workers as
“independent contractors” even though the job requirements haven’t
really changed. And some companies are trying to get more
productivity out of employees for less money, which may lead to wage
and hour violations.
Some states have laws that mirror the federal law,
but others have different rules, which sometimes trip up employers
that have operations in multiple states.
For example, New York and the District of Columbia
have a higher minimum wage than the national standard, while others,
such as Florida, have linked their |
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minimum wage to the consumer price index,
which is adjusted annually.
States such as Colorado, Illinois, Kentucky and
Nevada also have overtime rules that differ from the federal
regulations.
And California mandates that workers entitled to
overtime (known as non-exempt employees) are entitled to overtime
for hours exceeding 40 each week, and hours exceeding eight each
day.
Also, the rules vary from state to state whether on
mid- to low-level employees are entitled to overtime.
Classifying mid-level managers as either non-exempt
(entitled to overtime) or exempt under the varying rules can be
tricky. They can be exempt under federal law, but non-exempt under
state law, for example.
Employers should review each employee’s job
description and classification each year to make sure each employee
is classified properly under both federal and state law.
Sometimes violations are accidental. For example, an
employee may be assigned to a certain position, but the job
requirements may evolve over a period of time, making the employee
eligible for overtime without the employer realizing it.
Written job descriptions may be out of date, which
means companies should conduct an in-depth audit of payroll records
and employees’ daily tasks to search for potential violations.
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Employee Can’t Be Fired for Obeying the Law
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Normally, employees who are “at-will” – meaning they
have no written employment contract – can be fired at any time for
any reason as long as the termination doesn’t violate a federal or
state law against job bias.
Courts, however, will sometimes create an exception
to this longstanding rule.
In a recent Nebraska case, an at-will nursing home
employee was fired after she discovered an unreported injury at the
home and reported it to state regulators.
She filed a lawsuit claiming her termination was
unlawful. Her employer claimed she had no legal basis to sue because
she was an “at-will” employee.
But the Nebraska Supreme Court said the nurse could
sue despite her “at-will” status because state law requires |
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employees to report nursing home abuse.
That law would be useless if nursing homes could
threaten employees with termination if they reported suspected
abuse, the court said.
Most states have established various “public policy”
exceptions protecting at-will employees – saying they can’t be fired
for serving on a jury, filing a workers’ compensation claim or
refusing to break the law at an employer’s behest.
Some states also protect at-will employees by
recognizing implied contracts of employment. A handful of states
also require a “covenant of good faith and fair dealing” in every
employment relationship, which means an employer has to have “just
cause” for terminating an employee, or can’t have a bad faith motive
in firing someone.
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Family Leave Act Doesn’t Protect Workers
Whose Jobs Are Downsized |
A casino worker went on medical leave after
suffering a heart attack. While he was out on medical leave, his
employer told him that it was reorganizing its work force and his
prior position was being eliminated.
He chose not to apply for any newly-created position
and was eventually discharged.
The man sued the casino, claiming it violated the
federal Family Medical Leave |
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Act by not letting him have his job back at
the end of the leave.
However, the federal court covering Virginia, North
Carolina and South Carolina ruled against the worker, saying federal
law doesn’t guarantee a return to a prior job following medical
leave if an employee would have been discharged had he not taken
leave.
Federal courts in other areas of the country have
made similar rulings.
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Death of Employee Doesn’t End
Discrimination Suit |
A Massachusetts plumber sued his employer when he
was not reinstated following an authorized medical leave of absence
because of a heart condition.
He died while his case was pending. The cause of his
death was unrelated to his medical leave of absence. The employer
asked the court to dismiss his claim as a result, saying the man’s
discrimination claim did not survive his death.
But the Massachusetts Supreme |
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Judicial Court disagreed, ruling the claim did
in fact continue despite the man’s death. His estate can pursue the
claim.
The court said the claim against the employer – a
discriminatory refusal to permit the plaintiff to return to work
after a medical leave – is an alleged violation of the man’s implied
contractual rights. A contract claim can survive the death of an
individual, the court noted.
The court followed similar rulings from federal
courts around the country.
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Stolen E-Data Prompts Companies to Get
Tough With Security |
A spate of stolen employee laptops around the
country filled with personal information of consumers has prompted
more and more employers to crack down on mobile technology security
with stricter policies, more training and tougher enforcement.
The security breaches could mean lawsuits against
companies and possible violations of new consumer protection laws
passed in the wake of the stolen data.
Below are some tips to help employers enhance laptop
security and minimize risk, yet allow employees to continue using
mobile technology:
• Establish a clear security policy defining the
boundaries of employee mobile technology use.
• Train employees on basic security measures, such
as not leaving laptops |
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unattended while on a business trip and
regularly changing passwords.
• Limit employee access to confidential information.
• Urge employees to always log off and shut down
laptops (as well as their office computers) when they’re not using
them.
• Consider purchasing software that keeps track of
laptop locations, remotely deletes data that is incorrectly
accessed, or requires a fingerprint to log in.
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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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