Texas Governor Perry Vetoes Bill Promoting Equal Pay for Women

Last Friday Texas Governor Rick Perry vetoed HB 950, a bill to prevent wage discrimination against women. The bill had been passed through the Texas House and Senate with bipartisan support.

The bill would have made Texas’ equal pay act more closely mirror the federal Lilly Ledbetter Act. Under federal law, the act’s 180-day statute of limitations restarts every time a pay check is issued. Under Texas law, however, the 180-day statute of limitations to bring suit runs only from the time of the original pay decision.

Gov. Perry suggested that at least one of his reasons for vetoing the bill was that federal law already provides women protection from wage discrimination. However, as the bill analysis points out, the state and federal laws regarding equal pay should be uniform so that consistent laws govern relationships between employees and employers, avoiding confusion. Additionally, the bill analysis points out that the time and cost involved in proceeding in federal court may be more than in federal court.

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Open Letter to Texas Governor Rick Perry In Favor of HB 950 Fair Pay Bill

Dear Governor Perry:

 
Please sign HB 950 regarding equal pay.  Texas values stand for treating people equally and based on their merits regardless of gender.  Discrimination is wrong and helping make sure that people are paid based solely on their own merit means stronger Texas families.  
 
HB 950 passed with both Republicans and Democrats supporting it and shows both sides can work together on important issues.  The bill also protects businesses by not applying to pay decisions made years ago.
 
Please sign HB950 because it is the right thing to do.
 
Thank you.
 
 
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EEOC Files Suit Against BMW & Dollar General for Use of Criminal Background Checks

A BMW manufacturing facility in South Carolina, and the largest small-box discount retailer in the United States violated Title VII of the Civil Rights Act by implementing and utilizing a criminal background policy that resulted in employees being fired and others being screened out for employment, the U.S. Equal Employment Opportunity Commission alleged in two lawsuits filed this week. 

 
The EEOC's Charlotte district office filed suit in U.S. District Court of South Carolina, Spartanburg Division against BMW Manufacturing Co., LLC, and a separate suit was filed in Chicago against Dolgencorp, doing business as Dollar General. 
 
In the suit against BMW, the EEOC alleges that BMW disproportionately screened out African Americans from jobs, and that the policy is not job related and consistent with business necessity. The claimants were employees of UTi Integrated Logistics, Inc. ("UTi"), which provided logistic services to BMW at the South Carolina facility. The logistics services included warehouse and distribution assistance, transportation services and manufacturing support. 
 
Since 1994, BMW has had a criminal conviction policy that denies facility access to BMW employees and employees of contractors with certain criminal convictions. However, when UTi assigned the claimants to work at the BMW facility, UTi screened the employees according to UTi's criminal conviction policy. UTi's criminal background check limited review to convictions within the prior seven years. BMW's policy has no time limit with regard to convictions. The policy is a blanket exclusion without any individualized assessment of the nature and gravity of the crimes, the ages of the convictions, or the nature of the claimants' respective positions.  
 
 
 
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More Lawsuits on the Way Because Companies Are Still in Denial About Discrimination in the Workplace

In the article, In denial: Corporate America’s blindness to gender discrimination the author, Jonathan A. Segal, makes some good points regarding the continued presence of gender discrimination in the workplace. The article points out that business risks, just like legal risks, come hand-in-hand with gender discrimination. “How can a company expect to survive, let alone thrive, if half of the talent pool is excluded from key positions?”

But the legal implications are certainly serious. Despite the fact that the Supreme Court threw out a gender bias class action suit against Wal-Mart(WMT) in 2011, discrimination class actions continue to be filed. In the wake of the Supreme Court’s decision, we are seeing more carefully worded class action complaints. We are also seeing smaller classes, where settlements may be “only” in the hundreds of millions rather than in the billions of dollars. So, it’s fair to expect more gender bias class action suits against employers. Why aren’t more employers doing more to change their practices?

The authors also points out that he believes that one of the problems with gender discrimination is that people tend to think that it is happening at someone else’s business, not theirs.

“We all know there is unconscious bias. It’s just others who have it. We all know there are Boys’ Clubs. It’s at the company next door. It’s hard for many people to believe that their organization could have a Boys’ Club. That they could be part of a Boys’ Club is inconceivable because it is inconsistent with how they see themselves.”

While it may be inconsistent with how most executives see themselves, it is completely consistent with the fact that the senior management teams of most large companies are still overwhelmingly male.

Unfortunately, discrimination is a problem that can never be fully eliminated until it is acknowledged by everyone. This holds true not just for gender discrimination, but for all types of discrimination. Businesses and their employees should strive for a diversity of people and ideas to be as successful as possible.

Read the entire article here.

 

 

Weekly Reading List - June 3, 2013

$2 Million Dollar Verdict for Healthcare Whistleblower

Whistleblower claims in the healthcare industry are on the rise across the country.  Last week the Healthcare Employment Counsel blog reported on a New Jersey jury verdict of over $2 million to a medical lab technician who was terminated following a whistleblower complaint. The case, Doculan v. Bayonne Medical Center (No. HUD-L-6670-10), involved claims under the New Jersey Conscientious Employee Protection Act (CEPA), a state whistleblower law with several health-specific components that generally bars employers from taking retaliatory action against an employee who makes a good-faith complaint regarding illegal employer conduct.

 
According to the complaint, the plaintiff was a hematology technician at a medical center who alleged that he had been terminated after complaining to upper management and human resources about improper blood bank staffing and management procedures. The plaintiff also complained about his supervisor’s alleged insufficient credentials to supervise the blood bank. The plaintiff further alleged the lab was not properly covered with appropriately skilled employees during all shifts, and that these practices were illegal under New Jersey law.
 
After a six-day trial in the Superior Court of New Jersey, on May 7, 2013, a unanimous eight-member jury awarded the plaintiff $80,640 in lost wages, $60,000 for pain and suffering, and $2 million in punitive damages.
 
 
 

 

Courts Make it More Difficult for Employees to Pursue Tip Theft by Employers

The federal courts, led by the U.S. Supreme Court, are continuing to look for ways to limit or eliminate employees' ability to hold employers accountable for failure to pay overtime and other forms of wage theft traditionally actionable under the FLSA.

Greg Mersol at the Employment Class Action Blog posted this article recently on the courts' efforts to shut these cases down before they even get started. He writes "[a]nyone who has dined at a restaurant is aware of the importance of tipping, even if the exact rules, like the percentage and how it should be calculated, may be a bit fuzzy at times.  From the standpoint of the restaurant, too, the standards of what may or may not be tipped work for taking advantage of the FLSA’s tip credit may be less than clear. A recent case from the Northern District of Indiana demonstrates not only some of the issues to be considered, but also that it may be difficult for a plaintiff to pursue claims challenging the amount of tipped work on a class-wide basis."

In the case, (Roberts v. Apple Sauce, Inc) the plaintiff, a former Applebee’s waitress, brought suit against the franchisee for whom she had worked, contending that it had not properly taken advantage of the tip credit exception contained in the FLSA.  She claimed that she was required, in addition to waiting tables, to perform various non-tipped duties such as dishwashing, food preparation, cleaning the kitchen and bathrooms, and trash removal. As if often the case, she sought to pursue her claims on a collective basis on behalf of the wait staff at 24 Applebee’s restaurants. 

Class and collective actions have been given a bad name through a forceful marketing campaign conducted by the U.S. Chamber of Commerce, its membership and their allies. In the FLSA context, collective actions are often the only way that employees can obtain legal counsel and effectively pursue the wages that have been stolen by their employer.  In such cases, employers often get away with wage theft because they are taking a relatively small amount of money from a large group of people.  These cases can be very expensive for a plaintiff-side employment lawyer to pursue.  The corporation will hire a large legal team who generally send hundreds of document and information requests.  There may be dozens of depositions taken.  All of this attorney time and expense (court reporters and travel around the country doesn't come cheap) simply is not sustainable on behalf of a single employee who has lost a dollar or two per hour for the last two years.  The only way to make pursuit of such a claim viable is for all of the employees who have been similarly affected to group together and pursue their claims together. This is what companies have been trying to stop for years and where they have recently been finding a sympathetic ear among an increasingly pro-big business federal court system.

In the Applebee's case, the Court dismissed the bulk of Roberts' claims before the parties even engaged in discovery under a recent expansion to Federal Rule 12(b)(6). The case is significant because it signals an increasingly willingness on the part of some courts to bar plaintiffs from collective action (and therefore from any remedy at all) without even allowing normal discovery to take place. As a result, we will likely never discover the truth in this case. If the company was indeed engaged in wage theft, it will likely get away with it.  

Read the case opinion here.

 

 

Weighing the Pros and Cons of Employer Wellness Programs

As employer wellness programs become increasingly more common, so do questions regarding their benefits and drawbacks. On May 8, 2013, the EEOC issued a press release that outlined a meeting of a panel of representatives of business, advocacy groups, and providers held that same day. You can read the full press release here.

According to the EEOC’s release, the panelists discussed potential violations of the Americans with Disabilities Act (ADA), Genetic Information Nondiscrimination Act (GINA), Title VII, and the Age Discrimination in Employment Act (ADEA) that may arise through the implementation of employer wellness programs. For example, one of the panelists pointed out that certain groups such as women or older people tend to have more health problems than other groups. Additionally, certain races tend to have more problems with health conditions such as obesity and diabetes. Therefore, employer wellness programs may have a disparate impact on these groups that tend to have more health problems.

Some panelists also had questions regarding the interaction between employer wellness programs and the ADA or employer wellness programs and HIPPA. The ADA and HIPPA both allow for certain health related information to remain confidential but the employer wellness program may ask for the same information to be disclosed.  Employers will need to be careful to ensure that wellness programs do not cross the line to impermissible medical examinations of employees.

Despite the questions that these wellness programs bring, the programs may also have a positive impact by rewarding healthy behavior by employees. Some wellness programs may provide financial incentives for those that do not smoke cigarettes or are active in monitoring their health. Whatever your personal opinion is regarding employer wellness programs, it is clear that employers will be wise to seek guidance about their interplay with federal anti-discrimination laws before implementing such a plan.

 

Corporate Attorneys Planning Strategies to "Pick Off" FLSA Collective Actions

Corporate defense lawyers are sharpening their knives in light of the Supreme Court's recent opinion in Genesis Healthcare v. Symczyk.  And, while there is still some debate as to the long-term implications of the case due to procedural issues regarding the way it came to the high court, the majority opinion in Genesis seemed to clearly indicate a willingness to allow companies to thwart employees' FLSA overtime collective actions by simply offering the lead plaintiff(s) the entire amount that they were owed.  This would allow companies to crush FLSA collective actions before they get started, get away with wage theft from employees who would have otherwise eventually joined the action, and potentially keep millions of dollars in ill-gotten gains.  More importantly, it has the potential of making collective actions so difficult to prosecute that lawyers will stop taking the cases altogether and the FLSA will effectively go the way of the dodo.


Not bad for a day's work at the highest court in the land.

 

And predictably, corporate defense lawyers are already discussing the best ways to "pick off" FLSA plaintiffs.  Jon Hyman of Ohio Employer's Law Blog writes: 

 

There is nothing inherently unethical in defense counsel contacting putative class members at the pre-certification stage. According to ABA Comm. on Ethics and Prof’l Responsibility, Formal Op. 07-445 (2007), communications between defense counsel and putative class members does not violate the Models Rules of Professional Responsibility because there is no attorney-client relationship between plaintiffs’ counsel and members of an un-certified, putative class.

Yet, a court still might limit such communications if they are designed to confuse or coerce.

 

Protip: Whenever a lawyer says "nothing inherently unethical," that's where the horse is buried.


Everything Jon writes in his post is perfectly true. And he is correct to point out that courts in the past have been reluctant to interfere with such communications absent smoking gun evidence of malicious intent and abuse.  However, given that confusing and coercing potential class members is in reality the primary reason for any such contact, the courts certainly will need to do a better job limiting such conduct after the Genesis decision than they have done in the past.

 


 

Loss Prevention Often Lies to Employees

 Loss Prevention Is Lying To You

So you're called into the back room. It's a tiny one with no windows and only one door. In the room is someone who identifies himself as being from Loss Prevention. He seems so nice. He tells you he's there to help you save your job. If you only tell him what he wants to hear, you can go back to work.

He's lying! Don't fall for it. Everything you say can and will be held against you. Be careful.

Donna Ballman put up a good article last week about the tricks and traps often utilized by Companies' so-called "Loss Prevention" departments.  In my experience, Loss Prevention generally doesn't show up until after a decision to fire someone has been made.