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.  
 
 
 

In 2008, UTi ended its contract with BMW. During a transitional period, UTi employees were informed of the need to re-apply with the new contractor to retain their positions in the BMW warehouse.  As part of the application process, BMW directed the new contractor to perform new criminal background checks on every current UTi employee applying for transition of employment. The new contractor subsequently discovered that several UTi employees had criminal convictions in violation of BMW's criminal conviction policy. As a result, those employees were told that they no longer met the criteria for working at the BMW facility and were subsequently terminated and denied rehire as employees of the new contractor, despite the fact that many of the employees had worked at the BMW facility for years. 

 
In Illinois, the Chicago office of the EEOC filed a nationwide lawsuit based on discrimination charges filed by two rejected black applicants.  That lawsuit charges that Dollar General conditions all of its job offers on criminal background checks, which results in a disparate impact against blacks.  Dollar General operates 10,000 stores in 40 states, plus 11 distribution centers. Ninety percent of all Dollar General employees are store clerks who are both stockers and cashiers at the stores. 
 
According to the EEOC, one of the applicants who had filed a charge with EEOC was given a conditional employment offer, although she had disclosed a six-year-old conviction for possession of a controlled substance.  Her application also showed that she had previously worked for another discount retailer as a cashier-stocker for four years.  Nevertheless, her job offer was allegedly revoked because Dollar General's practice was to use her type of conviction as a disqualification factor for 10 years.
 
The other applicant who filed an EEOC charge was fired by Dollar General although, according to the EEOC, the conviction records check report about her was wrong - she did not have the felony conviction attributed to her.  The EEOC said that although she advised the Dollar General store manager of the mistake in the report, the company did not reverse its decision and her firing stood.
 
Both lawsuits were brought under Title VII of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race and national origin as well as retaliation.  The EEOC will assert claims of disparate impact, in both cases, against African Americans. The EEOC filed suit in each instance after attempting to resolve the matter through settlement.  In all, the Commission will seek back pay, as well as injunctive relief to prevent future discrimination of employees and applicants. 
 
Eliminating barriers in recruitment and hiring, especially class-based recruitment and hiring practices that discriminate against racial, ethnic and religious groups, older workers, women, and people with disabilities, is one of six national priorities identified by the Commission's Strategic Enforcement Plan(SEP).  
 
On April 25, 2012, the EEOC issued updated enforcement guidance on employer use of arrest and conviction records. The EEOC is a member of the federal interagency Reentry Council, a Cabinet-level interagency group convened to examine all aspects of reentry of individuals with criminal records.  Among other issues, the Reentry Council is working to reduce barriers to employment, so that people with past criminal involvement - after they have been held accountable and paid their dues - can compete for appropriate work opportunities in order to support themselves and their families, pay their taxes, and contribute to the economy.
 
 

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.

 

Straight Talk on Harassment from EEOC Regional Attorney, Robert Canino

The EEOC has released a series of helpful videos regarding various issues relating to discrimination in the workplace but they can be a little difficult to locate so we thought we would start posting them here as well.  This week EEOC Attorney, Robert Canino, discusses some important issues relating to harassment in the workplace.

 

 

The only thing that I would add to Mr. Canino's comments is this: If you believe you are being unlawfully harassed, don't hesitate to contact a board certified employment lawyer.  Even if your situation does not present a case that can be immediately filed in court, an employment lawyer can assist you evaluating your situation and advising you as to the most appropriate course of action to take to stop the unlawful harassment.

 

 

 

Scooter Store Pays $99,000 to Settle ADA Suit

The U.S. Equal Employment Opportunity Commission (EEOC) has settled a disability discrimination lawsuit against The Scooter Store, a nationwide, Texas-based retailer, the agency announced today. The terms of the settlement require The Scooter Store to pay money damages to a disabled former employee and to make changes designed to prevent discrimination and retaliation.

According to the EEOC's lawsuit, filed in U.S. District Court for the Eastern District of New York, the EEOC alleged that The Scooter Store discriminated against James Sherman, a mobility manager, by failing to grant his request for a reasonable accommodation. Sherman suffers from psoriatic arthritis and needed a temporary leave of absence from work. The EEOC claimed that the Scooter Store denied Mr. Sherman's request and fired him, in violation of the Americans with Disabilities Act of 1990 (ADA).

By the terms of the consent decree settling the suit, The Scooter Store agreed to pay $99,000 to Mr. Sherman. Further, The Scooter Store agreed to comply with the requirements of the ADA and modify its leave policy. The decree also requires monitoring and training on anti-discrimination law. The decree will last for five years.

Read the Full Press Release Here

 

Deadline Today to Provide EEOC with Input in Developing Its Strategic Enforcement Plan

In February 2012, the U.S. Equal Employment Opportunity Commission (EEOC) approved a Strategic Plan for Fiscal Years 2012 – 2016. The Strategic Plan establishes a framework for achieving the EEOC’s mission to stop and remedy unlawful employment discrimination by focusing on strategic law enforcement, education and outreach, and efficiently serving the public. The first performance measure of the plan requires the Commission to approve a Strategic Enforcement Plan (SEP). The Commission is now developing the SEP and would like input from the public. The agency encourages participation from individuals, employers, advocacy groups, agency stakeholders and other interested parties.

While no specific format is required, the agency is most interested in what the EEOC’s national priorities should be for the next three years to have the greatest impact in combating discrimination in the workplace; and recommendations for improving enforcement, outreach and prevention, and customer service. You should also include a contact email and/or mailing address.

Suggestions must be submitted by 5:00 pm EDT TODAY, June 19, 2012,  to strategic.plan@eeoc.gov or received by mail at Executive Officer, Office of the Executive Secretariat, U.S. Equal Employment Opportunity Commission, 131 M Street, NE, Washington, DC 20507.

 

Texas Leads The Nation In EEOC Charge Filings

This blog's humble author is quoted in a Law360 story today about the dubious distinction Texas has as the state responsible for more EEOC Charge filings than any other state:

"More federal workplace discrimination charges were filed in Texas than in any other state in 2011, with 10 percent of all charges nationwide lodged there, according to state-by-state data released by the U.S. Equal Employment Opportunity Commission on Monday.

The EEOC received a record 99,947 charges of discrimination during the 2011 fiscal year, which ended Sept. 30, and of those, 9,952 charges were brought in Texas, the agency said.

* * * * 

While the sheer size of Texas' population is most likely a factor in the state's position as the one with the most charges, it is not the only factor, attorneys say. Population size alone can't account for why Texas' number would trump that of another populous state like California, attorneys told Law360.

“Many states like California have a robust state-level agency that provides protections for workers, but in Texas the agency provides very little, so more of that work has to be shouldered by the federal government rather than the state,” said San Antonio-based attorney Christopher J. McKinney of The McKinney Law Firm PC, who represents employees and select employers.

Management-side attorney Ron Chapman Jr. of Ogletree Deakins Nash Smoak & Stewart PC agreed that the state agencies' activity level likely accounted for the number of charges being higher in Texas than in California. ..."

 Read the entire story at Law360.

The statistics really are quite damning for Texas. Texas accounted for a full 10% of all national EEOC charge filings, and 15% of the country’s religion and national origin charges. That's pretty deplorable. 

Followup: 

Link to the EEOC Chart of Charge Filings by State

 

 

EEOC Issues its Final Regulations for the ADA Amendments Act

Today the U.S. Equal Employment Opportunity Commission ("EEOC") issued its final regulations to the 2008 ADA Amendments Act.  You can find the new regulations here.  The ADA Amendments Act of 2008 (ADAAA) was enacted on September 25, 2008, and became effective on January 1, 2009. The law made a number of significant changes to the definition of “disability” under the Americans with Disabilities Act (ADA). It also directed the U.S. Equal Employment Opportunity Commission (EEOC) to amend its ADA regulations to reflect the changes made by the ADAAA. The EEOC issued a Notice of Proposed Rulemaking (NPRM) on September 23, 2009. The final regulations were approved by a bipartisan vote and will be published in the Federal Register on March 25, 2011.

The agency has also put together a page collecting the ADAA along with the new regulations and some helpful FAQs.  You can find it all here.

 

Here are the high-points of the new regulations, per the EEOC:

 

In enacting the ADAAA, Congress made it easier for an individual seeking protection under the ADA to establish that he or she has a disability within the meaning of the statute. Congress overturned several Supreme Court decisions that Congress believed had interpreted the definition of “disability” too narrowly, resulting in a denial of protection for many individuals with impairments such as cancer, diabetes, and epilepsy. The ADAAA states that the definition of disability should be interpreted in favor of broad coverage of individuals.

The EEOC regulations implement the ADAAA -- in particular, Congress’s mandate that the definition of disability be construed broadly. Following the ADAAA, the regulations keep the ADA’s definition of the term “disability” as a physical or mental impairment that substantially limits one or more major life activities; a record (or past history) of such an impairment; or being regarded as having a disability. But the regulations implement the significant changes that Congress made regarding how those terms should be interpreted.

The regulations implement Congress’s intent to set forth predictable, consistent, and workable standards by adopting “rules of construction” to use when determining if an individual is substantially limited in performing a major life activity.These rules of construction are derived directly from the statute and legislative history and include the following:

  • The term “substantially limits” requires a lower degree of functional limitation than the standard previously applied by the courts . An impairment does not need to prevent or severely or significantly restrict a major life activity to be considered “substantially limiting.” Nonetheless, not every impairment will constitute a disability.
  • The term “substantially limits” is to be construed broadly in favor of expansive coverage, to the maximum extent permitted by the terms of the ADA.
  • The determination of whether an impairment substantially limits a major life activity requires an individualized assessment, as was true prior to the ADAAA.
  • With one exception (“ordinary eyeglasses or contact lenses”), the determination of whether an impairment substantially limits a major life activity shall be made without regard to the ameliorative effects of mitigating measures, such as medication or hearing aids.
  • An impairment that is episodic or in remission is a disability if it would substantially limit a major life activity when active.
  • In keeping with Congress’s direction that the primary focus of the ADA is on whether discrimination occurred, the determination of disability should not require extensive analysis.

As required by the ADAAA, the regulations also make it easier for individuals to establish coverage under the “regarded as” part of the definition of “disability.” As a result of court interpretations, it had become difficult for individuals to establish coverage under the “regarded as” prong. Under the ADAAA, the focus for establishing coverage is on how a person has been treated because of a physical or mental impairment (that is not transitory and minor), rather than on what an employer may have believed about the nature of the person's impairment.

The regulations clarify, however, that an individual must be covered under the first prong (“actual disability”) or second prong (“record of disability”) in order to qualify for a reasonable accommodation . The regulations clarify that it is generally not necessary to proceed under the first or second prong if an individual is not challenging an employer’s failure to provide a reasonable accommodation.

The final regulations differ from the NPRM in a number of ways. The final regulations modify or remove language that groups representing employer or disability interests had found confusing or had interpreted in a manner not intended by the EEOC. For example:

  • Instead of providing a list of impairments that would “consistently,” “sometimes,” or “usually not” be disabilities (as had been done in the NPRM), the final regulations provide the nine rules of construction to guide the analysis and explain that by applying those principles, there will be some impairments that virtually always constitute a disability. The regulations also provide examples of impairments that should easily be concluded to be disabilities, including epilepsy, diabetes, cancer, HIV infection, and bipolar disorder.
  • Language in the NPRM describing how to demonstrate that an individual is substantially limited in “working” has been deleted from the final regulations and moved to the appendix (consistent with how other major life activities are addressed). The final regulations also retain the existing familiar language of “class or broad range of jobs” rather than introducing a new term, and they provide examples of individuals who could be considered substantially limited in working.
  • The final regulations retain the concepts of “condition, manner, or duration” that the NPRM had proposed to delete and explain that while consideration of these factors may be unnecessary to determine whether an impairment substantially limits a major life activity, they may be relevant in certain cases.

 

 

 

EEOC Report: Agency Receives Record Number of New Charges & Collects More than $319 Million for Employees

 The U.S. Equal Employment Opportunity Commission (EEOC) issued its annual Performance Report last week, stating that the agency is making progress in rebuilding its capacity to enforce the civil rights laws protecting the nation’s workers. Over the past two years, the EEOC has begun to replenish its depleted ranks and dedicate significant resources to training employees, the largest sustained training effort the agency has conducted in at least a decade.

As a result, the federal agency ended Fiscal Year 2010 with 86,338 pending charges—an increase of only 570 charges, or less than one percent. Between fiscal years 2008 and 2009, the EEOC’s pending inventory increased 15.9 percent.

“The EEOC is on the path toward rebuilding and on track to make further progress in the upcoming fiscal year to more efficiently and effectively enforce the federal laws prohibiting employment discrimination,” said EEOC Chair Jacqueline A. Berrien.

The EEOC received a record 99,922 charges in FY 2010, which ended Sept. 30, —the highest number of charges in the agency’s 45-year history. EEOC staff also delivered historic relief for victims of workplace discrimination. The agency secured more than $319 million in monetary benefits for individuals—the highest level of relief obtained through administrative enforcement in the Commission’s history. Among other agency achievements:

  • The mediation program ended the year with a record 9,370 resolutions, 10 percent more than FY 2009 levels, and more than $142 million in monetary benefits;
  • The EEOC also expanded its reach to underserved communities by providing educational training, and public outreach events to approximately 250,000 persons;
  • The agency continued its concerted effort to build a strong national systemic enforcement program. At the end of the fiscal year, 465 systemic investigations, involving more than 2,000 charges, were being undertaken;
  • The EEOC resolved a total of 7,213 requests for hearings in the Federal Sector, securing more than $63 million in relief for parties who requested hearings. The agency also timely resolved more than 66 percent of Federal Sector appeals.

The EEOC’s FY 2010 annual Performance and Accountability Report is posted on the agency’s web site at http://www.eeoc.gov/eeoc/plan/2010par.cfm. Comprehensive enforcement and litigation statistics for FY 2010 will be available in early 2011.

 

  

Federal Judge Delivers Fee Smack Down to EEOC

The Equal Employment Opportunity Commission has been ordered to pay $4.5 million in attorney fees to a Cedar Rapids trucking firm that the agency sued more than two years ago for allegedly sexually harassing female drivers, a federal judge ruled earlier this week.

The award comes from U.S. District Judge Linda Reade. She rejected claims by the federal Equal Employment Opportunity Commission that CRST Van Expedited Inc. subjected women to sexual harassment and improper touching when they were paired with male drivers in sleeper-cab trucks for long-haul truck driver training.

The judge ruled in October that she was dismissing the "poorly prepared case" because doing otherwise "would ratify a 'sue first, ask questions later' litigation strategy on the part of the Equal Employment Opportunity Commission."  In her February 9, 2010 order and opinion, Judge Reade held that an award of substantial fees to CRST as the prevailing party was warranted because EEOC, among other things, acted unreasonably by suing CRST without first conducting the proper investigation required by law. “The EEOC’s failure to investigate and attempt to conciliate the individual [female driver] claims constituted an unreasonable failure to satisfy Title VII’s prerequisites to suit."

Ouch!

Read More:

Article from the Des Moines Register

 

EEOC Holding Public Hearing Next Week on Age Discrimination

The EEOC has scheduled a public hearing Wednesday, July 15, 2009, at 10 a.m. (Eastern Time), at agency headquarters, 131 M St, NE, Washington, DC., to discuss age discrimination in employment.

In a release, the agency states that, in light of widespread layoffs, a significant spike in age discrimination charges, threats to employee benefits, and controversial recent court decisions, such a hearing is advisable.  At the hearing, experts will discuss the results of age stereotyping on older workers’ ability to keep their jobs during layoffs or to find work afterwards and the effect of recent controversial Supreme Court decisions on enforcement of the Age Discrimination in Employment Act (ADEA). Panelists will suggest potential enforcement and policy solutions. In addition, representatives from recent ADEA cases will discuss their experiences. Finally, the Commission will issue a technical assistance document that explains terminated employees’ rights and obligations when offered severance pay in exchange for a waiver of discrimination claims.

The meeting is open for public observation of the Commission’s deliberations. Seating is limited and it is suggested that visitors arrive 30 minutes before the meeting in order to be processed through security and escorted to the meeting room. 

Unfortunately, the hearing is not be webcast so its usefulness, in my opinion, is somewhat limited.

Additional information about the hearing, when available, will be posted at http://www.eeoc.gov/abouteeoc/meetings/index.html