Thursday, March 31, 2011

The punishment fits the crime – appropriate corrective action in harassment investigations


An employer has an absolute obligation to investigate a complaint of harassment, and, where founded, take appropriate corrective action to stop the harassment from continuing. Next week, we’ll look at the implications of when an employer fails at the former. Today, though, we’ll look at a case that helps define scope of the latter.

In Wilson v. Moulison North Corp. (1st Cir. 3/21/11), the plaintiff alleged that his employer failed to take appropriate corrective action in response to his complaint that coworkers created a workplace permeated by heinous racially discriminatory taunts. The plaintiff argued that the employer’s verbal reprimand and warning that future harassment would result in termination was too mild a sanction, and that the company should have immediately terminated them instead.

The court refused to armchair-quarterback the employer’s business judgment:

In most situations—and this case is no exception—the imposition of employee discipline is not a rote exercise, and an employer must be accorded some flexibility in selecting sanctions for particular instances of employee misconduct.... The short of it is that, given the totality of the circumstances, the punishment seems to have fit the crime....

We appreciate the sincerity of the plaintiff's outrage, but the discipline imposed need not be such as will satisfy the complainant.... The plaintiff’s argument that the sanction must have been inadequate because it was ineffective to stop the harassment is nothing more than a post hoc rationalization.... Barring exceptional circumstances (not present here), a reasoned application of progressive discipline will ordinarily constitute an appropriate response to most instances of employee misconduct.

The key takeaway here is the progressiveness of progressive discipline. When might a similar warning not suffice, and a court require more severe corrective action?

  • If the perpetrators are repeat offenders.
  • If discrimination is a long-standing problem for the employer.
  • If the employer has a history of inconsistent discipline.

Absent these “exceptional circumstances,” do not always jump to the conclusion that a harassment investigation must end in termination. Instead, make the punishment fit the crime.


Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.

Today is the final Day for Medical Costs Price is Right


Today is the last day to enter my little Medical Costs Price Is Right Contest (official rules and pictures of the fabulous prize package here). Here are the bids so far:

  • $10,000
  • $62,000
  • $64,250
  • $92,750
  • $117,684.34
  • $121,000
  • $140,000
  • $192,000
  • $234,000
  • $249,999
  • $265,000
  • $275,000
  • $386,000
  • $389,750.19

Remember, the closest to the actual, retail, non-insurance adjusted price of my son’s 19-day stay at the Cleveland Clinic wins. Those of you waiting until the last minute to underbid someone else now have your chance. The contest closes at 11:59 p.m. tonight, so enter now (but not often—one entry per person). I’ll announce the winner tomorrow.


Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.

Wednesday, March 30, 2011

Reading the tea leaves: The Dukes v. Wal-Mart oral argument


Today, the Supreme Court heard oral argument in Dukes v. Wal-Mart (transcript available here). Dukes will determine the propriety the certification of the largest sex-discrimination class action ever—a nationwide class of 1.5 million employees. I've previously covered the background of this case. If you have any doubts about the potential significance of Dukes, consider that 66 uninvolved businesses and lobbying groups filed 28 different briefs with the Court advocating for one side or the other. I’m not sure of the record for these filings, but Dukes has to be close.

According to Bloomberg Businessweek, “The suit, citing what are now dated figures from 2001, contends that women are grossly underrepresented among managers, holding just 14 percent of store manager positions compared with more than 80 percent of lower-ranking supervisory jobs that are paid by the hour.” According to Wal-Mart, however, the certified class “includes too many women with too many different positions in its 3,400 stores across the country. [I]ts policies prohibit discrimination and that most management decisions are made at the store and regional levels, not at its Bentonville, Ark., headquarters.”

In pre-gaming today’s oral argument, the Los Angeles Times not only framed the issues but also the importance of this case:

The court’s ruling could be the most far-reaching decision on job bias in more than a decade, according to experts on both sides. A win for [the plaintiffs] could open the door for the broader use of statistics to prove job discrimination—and not just on behalf of women, but also for minorities or persons with disabilities.

However, a win for Wal-Mart could deal a death blow to nationwide job-bias suits by ruling that employees who work in different stores and hold different jobs do not have enough in common to be a class.

Reading the tea leaves, I predict a resounding Wal-Mart victory at the Supreme Court. It is no surprise that given the political makeup of the Court, Justice Kennedy is the swing vote in close cases. As Justice Kennedy goes, so goes the majority. Thus, the following exchange between Justice Kennedy and the plaintiff’s lawyer signals that employees’ string of victories in employment cases may be coming to an end:

   Q: It’s not clear to me: What is the unlawful policy that Wal-Mart has adopted, under your theory of the case?

   A: Justice Kennedy, our theory is that Wal-Mart provided to its managers unchecked discretion in the way that this Court’s Watson decision addressed that was used to pay women less than men who were doing the same work in the same – the same facilities at the same time, even though – though those women had more seniority and higher performance, and provided fewer opportunities for promotion than women because of sex.

   Q: It’s – it’s hard for me to see that the – your complaint faces in two directions. Number one, you said this is a culture where Arkansas knows, the headquarters knows, everything that’s going on. Then in the next breath, you say, well, now these supervisors have too much discretion. It seems to me there’s an inconsistency there, and I’m just not sure what the unlawful policy is.

Suffice it to say that if the key vote on the Court does not fully understand the plainitffs’ argument, Wal-Mart is feeling pretty good about its chances right now.


Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.

Tuesday, March 29, 2011

Ohio House considering comp time bill (HB 61)


One of the biggest wage and hour mistakes a company can make is assuming that it is legal to pay comp time in lieu of overtime for any hours employees work in excess of 40 in a work week. Make no mistake, with the exception of state and local governments, it is illegal to pay comp time as a replacement for overtime wages.

Ohio House Bill 61, currently under consideration, is trying to change this rule for Ohio’s small businesses. HB 61 would allow workers to bank up to 240 hours of comp time per year. At the end of a year, employers would have to pay out overtime wages for any unused comp time. Covered workers would have the right to chose between comp time and overtime pay. Employers would be prohibited from requiring workers to elect comp time, in addition to threatening, intimidating, or firing workers who choose overtime wages.

Here’s the catch: this bill only applies to those small businesses covered by Ohio’s Fair Wage Standards Act but not covered by the Federal Fair Labor Standards Act—those that have gross annual gross sales between $150,000 and $499,999.99. Nevertheless, according to PolitiFact Ohio, this bill has the potential to reach at least 10,000 Ohio small businesses.

HB 61 is a significant move in the right direction to making Ohio a more business-friendly environment. By allowing small businesses the ability to offer comp time to employees, Ohio’s small businesses will be able to provide workplace flexibility that currently does not exist and that employees covet. This benefit will help Ohio attract and maintain the small businesses we need as the backbone of our economic recovery.


Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.

Monday, March 28, 2011

The 5 most interesting things about the ADAAA Regulations


Last Friday, the EEOC published its long-awaited (and hotly debated) regulations implementing the Americans with Disabilities Act Amendments Act (ADAAA) [pdf]. The blawgosphere has lit up with extensive summaries. Instead of doing the same, I thought I’d share with my readers what strikes me as the five most interesting things I’ve found in these regulations.

     1. Broad Coverage. In case there is any doubt in anyone’s mind, the purpose of the ADAAA is to make it easier for employees seeking the ADA’s protection to establish a disability within its meaning. In other words, employers, the EEOC, and courts are supposed to interpret the definition of disability “broadly.” As a result, ADA cases will no longer focus whether an employee qualifies as disabled, but instead on the merits of the challenged employment decision. Notwithstanding the breadth of these amendments, groups such as the U.S. Chamber of Commerce and SHRM (registration required) are applauding the EEOC for the pro-business changes incorporated into the regulations.

    2. Individualized Assessments for Medical Conditions. The regulations abolish any notion that certain medical conditions will always qualify as disabilities. Instead, the regulations call for an “individualized assessment” of whether a certain condition “substantially limits a major life activity.” For many conditions, this assessment should be simple and straightforward. For example, deafness, blindness, intellectual disability, partially or completely missing limbs, mobility impairments requiring use of a wheelchair, autism, cancer, cerebral palsy, diabetes, epilepsy, HIV infection, multiple sclerosis, muscular dystrophy, major depressive disorder, bipolar disorder, post-traumatic stress disorder, obsessive-compulsive disorder, and schizophrenia will usually, but not automatically, qualify as disabilities.

     3. Handling of Episodic Conditions and Ameliorative Effects. The current effects of a disability are not the only factors that one considers in determining whether a medical condition is substantially limiting. Impairments that are episodic or in remission—including cancer, epilepsy, hypertension, asthma, diabetes, major depressive disorder, bipolar disorder, and schizophrenia—qualify as disabilities if substantially limiting when active. Additionally, mitigating measures—those that eliminate or reduce the symptoms or impact of an impairment—do not factor into the “substantially limiting” calculus. These mitigating measures include medication, medical equipment and devices, prosthetic limbs, low vision devices (except ordinary eyeglasses or contact lenses), hearing aids, mobility devices, oxygen therapy equipment, use of assistive technology, reasonable accommodations, learned behavioral or adaptive neurological modifications, psychotherapy, behavioral therapy, and physical therapy.

     4. Most Adverse Action Claims Going Forward Will Be “Regarded As” Claims. The ADAAA does not change the statute’s three-pronged approach to defining disability:

  • a physical or mental impairment that substantially limits one or more major life activities (an “actual disability”)
  • a record of a physical or mental impairment that substantially limited a major life activity (a “record of disability”)
  • when a covered entity takes an action prohibited by the ADA because of an actual or perceived impairment that is not both transitory and minor (“regarded as” disabled).

What has changed, however, is the agency’s approach to how these definitions factor into claims brought by employees. There is no rule that an employee must use a particular prong when challenging an employer’s actions. However, because an employer is not required to provide a reasonable accommodation for a “regarded as” disability, an employee claiming a denial of a reasonable accommodation must bring the claim as an “actual disability” claim or a “record of” claim. While an employee can bring an adverse action claim under any of the three definition, the EEOC believes that they should be brought under the “regarded as” prong because of its ease of coverage.

     5. Coverage for Temporary or Short-Lived Impairments. The ADAAA substantially expanded the circumstances in which employers may be liable under the “regarded as” prong by removing the requirement that an employee prove that the perceived impairment substantially limits a major life activity. The only exception to the “regarded as” prong is for “transitory and minor” impairments. “Transitory and minor” is an affirmative defense that employers must prove. It is only a defense, however, to claims brought under the “regarded as” prong. It is not a defense to actual disabilities or a record of disability.


Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.

Friday, March 25, 2011

WIRTW #170 (the “Come On Down” edition)


There is still one week left to enter Medical Costs Price Is Right. The bids so far:

  • $10,000
  • $62,000
  • $64,250
  • $92,750
  • $117,684.34
  • $192,000

The official rules, along with a picture of the exiting prize package are here. Remember, there are three ways to enter:

  1. Posting a comment to the original blog post.
  2. Send a reply with your guess to @jonhyman on Twitter, using the hashtag #MedicalCostsPriceIsRight.
  3. Post your guess on the wall of the Ohio Employer’s Law Blog Facebook Page, also using the hashtag #MedicalCostsPriceIsRight.

Happy bidding!

Here’s the rest of what I read this week:

Discrimination

Employee Relations & HR

Social Media & Workplace Technology

Wage & Hour

Labor Relations


Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.

Thursday, March 24, 2011

BREAKING NEWS: EEOC releases its final regulations interpreting the ADA Amendments Act


Today, the EEOC made available to the public its final regulations interpreting the Americans with Disabilities Amendments Act (ADAAA). The regulations will become official upon their formal publication in tomorrow’s Federal Register. The EEOC is providing a website that collects links to the final regulations, a Q & A on the regulations, a Q & A for small businesses, and a fact sheet discussing the regulations.

I am going to take the weekend to read the regulations, and will share my thoughts and analysis on Monday. In the meantime, Daniel Schwartz, at his Connecticut Employment Law Blog, reports that SHRM has advised its members “that they were pleased with several changes from the draft version.” There is at least some hope that the final regulations will not be as onerous on businesses as originally feared.


Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.

How soon is too soon to fire a complaining employee?


More than three year ago, the 6th Circuit concluded that where an adverse employment action occurs very close in time after an employer learns of a protected activity, the temporal proximity between events is significant enough to constitute evidence of a causal connection for the purposes of satisfying a prima facie case of retaliation. Yesterday, in Hill v. Air Tran Airways [pdf], the same court used a three-day gap between a complaint of discrimination and a termination to reverse a trial court’s grant of summary judgment in a retaliation case:
Although prior to the incident on April 10, 2007, Hill had not formally complained about Thornton in over five months, it is undisputed that Hill complained about Thornton only a few days before the termination. Hill complained to Hughes about Thornton on April 10, 2007, the day of the last incident with Thornton and a few days before Hill’s termination on April 13. Hill also complained about Thornton in an email to Hughes on April 10, the same day Hughes recommended Hill’s termination. Although these complaints were informal, they are relevant to an assessment of temporal proximity.
No employee is bulletproof, and employers should not shy away from firing a deserving employee merely because the employee complained about discrimination. Indeed, some employees, seeing the writing on the wall, complain in an effort to save their jobs or create a lawsuit. However, if you are going to terminate an employee close in time to the exercise of protected activity (and three days is pretty close), you should be prepared for the retaliation lawsuit that is likely to follow.

Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.

Wednesday, March 23, 2011

File this one away: Supreme Court continues its trend of protecting complaining employees from retaliation


Kasten v. Saint-Gobain Performance Plastics asks a very simple question: does the word “file” in the Fair Labor Standards Act’s anti-retaliation provision only refer to written complaints, or does it also cover oral complaints? Yesterday, by a 6-2 majority, the Supreme Court concluded the latter, resolving a split among the federal appellate courts and, yet again, opening employers to more expansive liability for retaliation.

The Court spent nearly half of its analysis discussing the merits of various definitions of the word “file,” only to conclude that “the text, taken alone, cannot provide a conclusive answer to our interpretive question. The phrase ‘filed any complaint’ might, or might not, encompass oral complaints.” It instead reached its conclusion that the FLSA’s “antiretaliation provision cover[s] oral, as well as written, ‘complaint[s]’” based on policy concerns:

Why would Congress want to limit the enforcement scheme’s effectiveness by inhibiting use of the Act’s com­ plaint procedure by those who would find it difficult to reduce their complaints to writing, particularly illiterate, less educated, or overworked workers? …

To limit the scope of the antiretaliation provision to the filing of written complaints would also take needed flexi­bility from those charged with the Act’s enforcement. It could prevent Government agencies from using hotlines, interviews, and other oral methods of receiving com­ plaints. And insofar as the antiretaliation provision cov­ers complaints made to employers…, it would discourage the use of desirable informal workplace grievance procedures to secure compliance with the Act….

The Court concluded that the method of communication of a complaint is irrelevant to whether it qualifies as protected activity. A complaint is protected, whether oral or written, if it is “sufficiently clear and detailed for a reasonable employer to understand it, in light of both content and context, as an assertion of rights protected by the statute and a call for their protection.”

This case merely brings the FLSA’s anti-retaliation provision in line with most, if not all, other statutes. Employers simply need to be aware that they take must all complaints seriously, whether communicated verbally or in writing.

The takeaway that is significant for employers, however, is just how difficult oral complaints are to handle. Oral complaints often place employers in the difficult position of having to prove a negative—that is, that the employee did not complain. To combat this problem, employers should consider establishing a protocol that all complaints must be documented, whether by the employee making the complaint or the individual receiving it. Provided that this protocol is consistently and uniformly followed, an employer will at least have the benefit of an inference that an oral complaint was not made if no written record exists.

As always, I’m happy to share the thoughts of my fellow blawgers:


Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.

Tuesday, March 22, 2011

BREAKING NEWS: FLSA anti-retaliation provision covers oral complaints, per SCOTUS


This morning, the Supreme Court held that the FLSA’s anti-retaliation provision includes oral, in addition to written, complaints.

I’ll have analysis of this opinion tomorrow, including what it means for employers.

[Hat tip: Lawffice Space]


Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.

6th Circuit disables the “cat’s paw” in ADA cases (for now)


Earlier this month, in Staub v. Proctor Hospital, the Supreme Court upheld the cat’s paw doctrine in discrimination cases. While Staub was a USERRA case, at the time I pointed out the likely broad-reaching implications of the holding:

While the Court limited its holding to USERRA, it pointed out that USERRA’s “motivating factor” causation standard is “very similar to Title VII.” It will be difficult for lower court’s to avoid this broad application of the cat’s paw in Title VII (and likely ADA) cases. The only hold-out will be ADEA cases, which, in light of Gross v. FBL Financial Services, Inc., requires “but for” causation.

It took less than three weeks for the 6th Circuit to gut this holding in ADA cases. In Lewis v. Humboldt Acquisition Corp. (6th Cir. 3/17/11), Ohio’s federal appellate court upheld this circuit’s use of a “but for” causation standard in ADA cases. Because this circuit judges ADA cases under a “but for” standard, Staub’s application of the cat’s paw to discrimination statutes using a “motivating factor” standard has no application.

Employers should not get too excited about this victory. The 6th Circuit cautioned that its reading of the ADA’s causation standard is very much in the minority, and invited an appeal to the entire circuit to revisit (and likely overrule) the issue:

The ADA prohibits discrimination “on the basis of” disability.... Of the ten circuits that have considered the contours of this causation standard, eight currently apply a “motivating factor” (or a “substantial cause”) test; that is, a plaintiff must prove that his disability was only a motivating factor of the adverse employment action in order to prevail.... The current law in the Sixth Circuit, however, is that a plaintiff must prove that his disability was the “sole reason” for the adverse employment action....

“A panel of this Court cannot overrule the decision of another panel. The prior decision remains controlling authority unless an inconsistent decision of the United States Supreme Court requires modification of the decision or this Court sitting en banc overrules the prior decision.” ...

Unless that holding is overruled by the full Sixth Circuit sitting en banc or is undermined by an inconsistent decision from the U.S. Supreme Court, it remains good law in this circuit.

For more on the implications of the Lewis decision on the continuing viability of the cat's paw in 6th Circuit ADA cases, I recommend my fellow bloggers at the Employer Law Report.


Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.

Monday, March 21, 2011

Quicken Loans beats multi-million dollar overtime claim


The Department of Labor may not be the most hospitable place for employers these days. Federal juries, however, can prove to be just the opposite. Nearly a year ago, the DOL issued a game-changing Administrator’s Interpretation that mortgage loan officers are not exempt under the Fair Labor Standards Act. Last Thursday, a federal jury concluded that a class of 350 specific mortgage loan officers employed by Quicken Loans are exempt administrative employees under the FLSA.

Here’s the jury’s verdict form:

What does this mean?

  1. The jury’s conclusion that the mortgage brokers are exempt is the complete opposite of the DOL’s conclusion in its March 2010 Administrator’s Interpretation. In other words, while employers should be wary of what the DOL is doing in this area, its words is not the gospel.
  2. Even though the jury concluded the plaintiffs were exempt, they took the time to fill in an unnecessary “0” on the line asking how many average hours the plaintiffs worked in a week. In other words, the jury simply did not believe the plaintiffs’ story. While lawyers are trained on the law, cases are won and lost on their facts.

The Detroit Free Press quotes Quicken Loans founder and Chairman Dan Gilbert, “It was never about money for us. It was always about right and wrong.” Crains Detroit Business estimates that the defense verdict saved Quicken Loans between $4 million and $30 million in damages for unpaid overtime. Sometimes, it absolutely pays to fight these battles.


Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.

Friday, March 18, 2011

WIRTW #169 (the madness edition)


If you wonder why office productivity sinks like a rock for the next two weeks, look no further than all of your employees checking their brackets while clogging up your computer network watching live college basketball feeds. Three of my fellow bloggers shared their thoughts this week on March Madness’s effect on the workplace:

Here’s the rest of what I read this week:

Discrimination

Labor Relations

Social Media & Workplace Technology

HR & Employee Relations

Wage & Hour


Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.

Thursday, March 17, 2011

What does St. Patrick have to do with human resources?


Legend tells us that in the 5th century, St. Patrick banished all snakes from Ireland. In honor of the day that celebrates Ireland’s patron saint, consider banishing the following metaphorical snakes from your HR practices:

  • Illegal questions on employment applications, such as age, medical conditions, or workers compensation histories.
  • Irregularities in pre-hiring procedures, such as unlawful background checks, medical inquiries, and medical exams.
  • Overly broad policies in employee handbooks, such as anti-union no-solicitation policies or policies that ban discussions of wages and other workplace terms and conditions.
  • FMLA policies that do not comply with the law’s recent regulatory changes.
  • Absent technology and social media policies.
  • Harassment training done less frequently than ever other year.
  • Misclassified employees (non-exempt as exempt, and employees as independent contractors).
  • Managers and supervisors that have not been trained in the handling, discipline, and documentation of problem employees?
  • Missing EEO, DOL, and other mandatory employment law postings.
  • Key employees that are not locked down with appropriate confidentiality, no-solicitation, and/or non-competition agreements.

While there may never have been snakes in Ireland, we at least know that they haven’t bothered anyone on the Emerald Isle since the time of St. Patrick. Do yourself a favor by ensuring that these employment law snakes do not bother your business again.

Wednesday, March 16, 2011

Telecommuting employees raise special wage and hour issues


Dilbert comic strip for 12 16 2001 from the official Dilbert comic strips archive.



At Overlawyered, Walter Olson asks whether telecommuting is the next wave of wage and hour litigation. He might have a point. Some estimate that as many as 50 million Americans work remotely at least part of the time. Because many of these telecommuters will be non-exempt, how employers track their hours and pay their wages has the potential to cause problems.
Pursuant to the Fair Labor Standards Act, non-exempt employees must be paid for all time worked, including overtime for hours in a week worked in excess of 40. Employers must also maintain a tracking system that accurately records this compensable work time. Because telecommuters work outside of the workplace, and often during odd hours, they present special problems for accurately tracking the amount of time spent working.

If your business is going to employ telecommuters, you should take appropriate measures—in a telecommuting policy or contract—to control the time spent working:
  • Employers should clearly communicate to the employee the number of hours expected to be worked each week.
  • Telecommuting employees must be required to accurately track all time spent working. Whatever the system used (pen and paper timesheets, Excel spreadsheets, timekeeping software, or electronic logins or other “punches”), employees must understand that they will only be paid for the amount of time reported.
  • Because telecommuting employees are working without direct supervision, all submitted work should be reviewed by a manager or supervisor to ensure that the work performed correlates to the amount of working time reported. An employer cannot dock time or refuse to pay an employee for time spent working. However, an employer can take away an employee’s ability to telecommute (or otherwise discipline) if the employee proves to be irresponsible or abuses the telecommuting privilege.
Telecommuting may not be “the next big thing” in wage and hour litigation. It raises, however, enough unique wage and hour issues that inattentive employers who ignore these issues risk getting burned.

Tuesday, March 15, 2011

Time to play Medical Costs Price is Right


As many of you know, last month my son spent 19 days in the Cleveland Clinic. Now that he is home and, most importantly, healthy, I thought we’d have a little fun, while at the same time providing an editorial on the ridiculously high cost of American medical services. It’s time to play Medical Costs Price is Right.

Here are the rules:

  1. Anyone who is 18 years of age or older, a legal U.S. resident, and has a valid email address is eligible to enter.
  2. Current KJK employees and their immediate family members are not eligible to enter.
  3. No purchase of anything (including legal services) is required to enter.
  4. Your bid will be for the total, non-insurance adjusted, cost of a 19-day inpatient stay at the Cleveland Clinic, including all procedures, doctors, tests, and labs:
    • 19 days in the pediatric ward at the Cleveland Clinic Main Campus
    • 1 endoscopy (with general anesthesia)
    • 1 PICC line insertion (with general anesthesia)
    • Professional fees for gastroenterology, surgery, cardiology, and hematology
    • Emergency room fees
    • 3 x-rays
    • 1 ultrasound
    • 2 echocardiograms
    • 16 days of intravenous feedings
    • Laboratory charges for blood work
  5. The closest bid that does not go over the total cost wins.
  6. Bids will be accepted until March 31 at 11:59 p.m.
  7. There are 3 ways to enter:
    • Post a comment with your guess to this blog post. I will not accept any anonymous comments as an entry.
    • Send a reply with your guess to @jonhyman on Twitter, using the hashtag #MedicalCostsPriceIsRight.
    • Post your guess on the wall of the Ohio Employer’s Law Blog Facebook Page, also using the hashtag #MedicalCostsPriceIsRight.
  8. Each person is only allowed one entry total, no matter how the guess is submitted. I will disqualify anyone that submits more than one guess.
  9. I will reject any bids that do not follow these rules.
  10. The winning bid must provide a valid address within one week of my announcing of the winner. Otherwise, I reserve the right to select the next closest bid that did not go over the total cost.
  11. If no bids are submitted that do not go over the total cost, I reserve the right to select the closest overall bid to the total cost.

What will the winner get?

IMAG0156

A box of KJK-branded Pro V1s and a KJK-branded water bottle (I never promised a car).

Good luck and happy bidding.


Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.

Monday, March 14, 2011

Understanding the legal issues of the NFL labor problems


New nfl logo-1-_938 At 11:59 p.m. Friday night, the collective bargaining agreement between the NFL and the NFLPA expired, and the owners locked out its players. We’ve all heard about lockouts before, but what does all this mean? Gabriel Feldman, at the Huffington Post, provides the answer for those unaccustomed to the ins and outs of federal labor law:

A lockout is the “withholding of employment by an employer from its employees for the purpose of either resisting their demands or gaining a concession from them.” In other words, a lockout is when an employer refuses to let workers work, and therefore get paid, as a form of leverage. A lockout is prohibited if it is motivated primarily as an attempt to discourage union membership or interfere with employees’ organizational rights. Lockouts can occur before or after a bargaining impasse has been reached.

Mr. Feldman offers answers to 25 other labor law questions necessary to understand the NFL’s labor strife, including:

  • What is decertification?
  • What is the process for decertification?
  • Why do the players have to break up their union to bring an antitrust suit?
  • And, would the NFL owners be permitted to lock out Brett Favre, and only Brett Favre?

The article is mandatory reading for anyone looking to understand the basics of the complex issues behind the NFL’s ongoing and evolving labor woes.


Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.

Friday, March 11, 2011

WIRTW #168 (the Tiger blood … Winning … Whatever … edition)


My god, I tried to avoid Charlie Sheen this week. Yet, here’s my fourth Sheen-related post in the last four days. I guess you can’t avoid the inevitable, especially when there’s $100 million at stake. In fact, Sheen’s been a popular topic around the blawgosphere:

Here’s the rest of what I read this week:

Discrimination

Social Media & Workplace Technology

Labor Relations

Wage & Hour

Litigation & Employee Relations


Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.

Thursday, March 10, 2011

I love it when I’m right: Charlie Sheen sues for disability discrimination


Hot off the presses, TMZ has a copy of the lawsuit Charlie Sheen filed against Chuck Lorre and Warner Brothers. And, as I discussed Tuesday, Sheen is alleging disability discrimination.

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Sheen also alleges retaliation, in addition to various contractual theories. Let the fun begin!

Thanks to Eric Meyer (via twitter), for pointing me to this filing.


Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.

EEOC to review “significant regulations”; do you smell trouble?


According to the EEOC, it is “beginning a new, periodic retrospective review of its existing significant regulations to determine whether any such regulations should be modified, streamlined, expanded, or repealed, to make the EEOC’s regulatory program more effective and/or less burdensome in achieving its regulatory objectives.” Huh? Cutting through the government-speak, I think the EEOC is trying to say that it is looking to rewrite its regulations. Given the current political tenor of this agency, does this concern you? It certainly concerns me.

Do you have suggestions for the EEOC on why a regulation should be modified, streamlined, expanded, or repealed; data on the costs and benefits of a regulation; or how the EEOC could better achieve a regulation’s objective? If so, I suggest you email them to:

Public.Comments.RegulatoryReview@eeoc.gov

You can be sure that 1) employee advocates will be submitting their thoughts, and 2) the agency has its own agenda to further. Employers, make your voice heard in what may be a significant re-writing of the EEOC’s interpretation of Title VII, the ADEA, and other civil rights laws.


Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.

Wednesday, March 9, 2011

Charlie Sheen and the National Labor Relations Board


Do you remember Dawnmarie Souza? She was the employee on whose behalf the NLRB issued a complaint (which it later settled), claiming that the National Labor Relations Act protects a Facebook post a concerted activity. According to Time, the company fired Souza for “serious violations,” including “several incidents of allegedly rude behavior.” The company’s discovery of Souza’s Facebook post likening her boss to “various genital parts” was the last straw.

On Monday, CBS fired Charlie Sheen, in part because he made public disparaging comments about his boss. Charlie Sheen is a member of SAG. He also has his own “performance” problems. Should he file an unfair labor practice charge with the NLRB, based on his own protected, concerted activity—for example, calling his boss a “stupid, stupid little man and a pussy punk”; a “piece of  shit”; a “turd”; and a “clown”?

Or, is Charlie Sheen being able to sue his employer over these comments as ridiculous as Dawnmarie Souza being able to sue hers? Just saying.


Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.

Tuesday, March 8, 2011

Does CBS “regard” Charlie Sheen as disabled under the ADA?


Yesterday, CBS finally pulled the plug on Charlie Sheen. I go back and forth whether he’s legitimately off his rocker, or he’s pulling off a calculated publicity stunt. Either way, CBS had enough and officially terminated him. TMZ published CBS’s 21-page termination letter [pdf].

Sheen’s agreement provides for termination in the event of “Incapacity,” including “mental disabilities, which due to the unique nature of Performer’s Obligations, are not subject to reasonable accommodation and which render Performer unable to perform the essential duties of Performer’s position.” Here’s how CBS’s lawyers discussed the touchy issue of terminating an employee with an apparent mental illness.

The facts establish that there was a serious material change in Mr. Sheen’s attributes that rendered him unwilling or unable to perform his essential duties. As the lead actor in a successful television comedy, Mr. Sheen’s essential duties encompass more than just showing up and delivering lines. One essential duty is working cooperatively and creatively with the other persons critical to the production. Mr. Sheen went from an actor who performed those duties to an individual whose self-destructive conduct resulted in his hospitalization, his inability to work at all for a period and the rapid erosion of the cooperative and creative process necessary to produce the Show. Indeed,

Mr. Sheen’s shocking behavior has continued since production was halted, further confirming such incapacity and/or a serious health condition.

CBS disposed of the contractual argument, but has it opened itself up to a claim under the ADA?

The ADA (as amended by the ADA Amendments Act), not only covers employees with actual disabilities, but also employees that an employer “regards as” disabled. There is no doubt from reading the termination letter that CBS fired Sheen because it “regarded him” as having a mental impairment. The legality of this termination under the ADA will hinge on whether Sheen is a “qualified individual”—that is, can he perform the essential functions of his position with or without reasonable accommodation. CBS clearly believes the answer is “no.”

Given the amount of money at stake, a court or arbitrator will have the final say. I suspect, however, that given Sheen’s public tirades about his boss, coupled with his public displays of incoherence (real or calculated), he is going to have a tough row to hoe in litigation.


Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.

Monday, March 7, 2011

Follow these 6 easy steps to avoid harassment and retaliation liability


Do you want to avoid harassment and retaliation liability at your company? Here are six easy steps to follow:

  1. Have a sexual harassment policy, which includes procedures for employees to complain about harassment.
  2. Train all employees on the harassment policy.
  3. Make sure your human resources manager knows the definition of sexual harassment.
  4. Do not let a manager expose his genitals to female employees, and force one to place her hand on his private parts.
  5. Do not require women to participate in a “kissing” or “smooching” club to receive the sales leads and accounts necessary to earn commissions.
  6. Do not fire women who reject managers’ sexual advances and complain about them.

According to the EEOC, a Memphis company failed in each of these steps. The result—a $1.5 million verdict.


Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.

Friday, March 4, 2011

WIRTW #167 (the fable-ulous edition)


Earlier this week, the Supreme Court issued what I believe will end up being one the most significant employment decisions of the last decade—Staub v. Proctor Hospital. This case has to ability to gut summary judgment in any discrimination case (except age) in which a supervisor is accused of having a discriminatory animus. (And are there any discrimination cases in which a supervisor does not have some role in the adverse action?) Many of my blogging brethren have chimed in on this case. Here’s a survey of the 10 best I’ve read:

Here’s the rest of what I read this week:

Social Media & Workplace Technology

Labor Law

Discrimination

HR & Employee Relations

Wage & Hour


Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.