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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

 

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

 

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


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

 

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


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

 

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

 

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

 

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

 

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.



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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