“Pretextual investigation” dooms employer’s defense to ex-employee’s retaliation claim

An employee, Joseph Canada, uses his cell phone to solicit sex from prostitutes during work hours. His employer, Samuel Grossi & Sons, discovers the text messages and terminates the employee for violating its policies against "[u]nlawful conduct which adversely affects the employee's relationship on his/her job, fellow employees, supervisor and/or damages the Company's property, reputation or goodwill in the community" and "[i]mmoral or indecent conduct."

The employee then sues for retaliation, claiming that the termination was in retaliation for filing another lawsuit the month prior claiming discrimination and FMLA violations.

The district court dismissed the retaliation claim, stating that "[n]o reasonable jury could conclude that defendant's proffered nondiscriminatory and nonretaliatory reason for terminating plaintiff's employment was pretextual."

On appeal, however, the 3rd Circuit concluded that the reason for the termination is irrelevant if the investigation that leads to the discovery of the evidence that causes the termination was pretexual in and of itself.

The 11th nominee for the “Worst Employer of 2022” is … the cable guy

When 83-year-old Betty Jo Thomas missed her family's Christmas dinner in December 2019, they went to her home to check up on her. They found her stabbed to death on her living room floor. Footage from Thomas' Ring doorbell revealed that the last person to enter her home was Roy Holden, a (now former) Charter Spectrum field technician.

Holden had performed a service call in Ms. Thomas' home. The next day Holden returned, allegedly off-duty but in his company-issued and branded van, to again help Thomas. While in her home, Thomas caught Holden stealing credit cards from her purse. In response, Holden brutally stabbed her with his Charter Spectrum utility knife and went on a spending spree with her stolen credit cards.

Holden has since been convicted of the murder and is now serving out a life prison sentence.

Thomas' family sued Charter Spectrum over its responsibility for her murder. After a mere two hours of deliberations, a jury recently returned a $7.3375 billion verdict ($337.5 million in compensatory damages and $7 billion in punitive damages). That's more than half of the company's entire quarterly revenue.

Employers, repeat after me: “Tips belong to employees, not employers.”

$1,351,253.34. That's the amount a federal judge has ordered the Empire Diner, its owner, Ihsan Gunaydin, and its manager Engin Gunaydin to pay a group of 107 servers and kitchen workers based on an illegal tip scheme.

What rendered the restaurant's tip scheme illegal? It required servers to turn over 10 to 15 percent of their total tips received on any given shift to pay the bussers' wages. That's a clear violation of the Fair Labor Standards Act.

The NLRB is inching towards Weingarten Rights for all employees

In NLRB v. J. Weingarten, Inc., the U.S. Supreme Court held that employees covered by a collective bargaining agreement are entitled to request the presence of a union representative during an investigatory interview that the employee reasonably believes may result in disciplinary action. 

In the 47 years post-Weingarten, however, the Board has vacillated on the issue of whether those rights also extend to non-union employees. For example, in 2000, in Epilepsy Foundation of Northeast Ohio, the Clinton-era Board found that employees in non-union settings have Weingarten rights to a coworker representative during investigatory interviews. More recently, however, the Bush-era Board, in IBM Corp., concluded the exact opposite, that, in light of certain policy considerations, the Board would no longer find that employees in non-union workplaces have the right to a coworker representative. Finally, in 2017, an Obama-era Board Advice Memo called for the Board to flip again and hold Weingarten rights extend to employees in non-union workplaces.

Which brings us to last week's Board decision in Troy Grove. 

WIRTW #642: the “get off our backs” edition

Can you please get off our backs? By "our," I mean management-side labor lawyers. 

Let me explain.

I just finished listening to the latest episode of the 43-15 Podcast discussing the first group of Petco employees to attempt to organize into a labor union. The hosts were all over the "union busting lawyer" Petco hired to represent it and challenge the employees' organizing. His major sin: "Counseling many companies on labor strategy, union avoidance, and responding to union backed corporate campaigns." Heavens to Betsy, a lawyer doing … wait for it … his job.

Like any other attorney, management-side labor lawyers have a job to do and an ethical obligation to represent their clients zealously. Union organizing and recognition is a decided in an election, in which a majority of employees need to choose to unionize. What are employers supposed to do, roll over and let the union walk in unimpeded? As their lawyers we are simply playing our roll in this process. That's all. Is it adversarial? Sure. Does it sometimes get heated? Of course. But management is entitled to be represented just as do the employees seeking to unionize.

Don't hate the player, hate the game. That's all I'm saying.

Here's what I read and listened to this past week that I think you should be reading and listening to, too.

Pre-employment pregnancy testing?

I was tagged on Twitter to address this situation.

My friend did a drug test for a part time job for the local school district. When she got her results, she found out that the district also did a pregnancy test. Besides ethical issues, this seems like a legal red flag given she wasn't told this would be done.

The OP added that her friend's spouse (male) did the same screening for the same employer, but no pregnancy test.

If it looks illegal, and it smells illegal, then it's illegal. Let's examine why.

Lyfting independent contractor status

If I asked you to identify Lyft's business, how would you answer? 

"They're a transportation company," you'd say. There's no other correct answer … unless you ask Lyft. 

Lyft will tell you that it's a tech company, not a provider of transportation.

The 10th nominee for the “Worst Employer of 2022” is … the sex offender supervisor

The most disturbing case I ever handled involved a company that hired a registered sex offender as a supervisor, who then raped a female subordinate.

Today’s “Worst Employer” nominee is very much in that tragic and devastating vein.

Vice provides the details, which it confirmed with Claire, he co-workers, court records, and even Starbucks itself.

Spotting the employment law issues in “She-Hulk"

Donny Blaze was a former student of Kamar-Taj, having dropped out after failing to adhere to their strict teachings. He left, however, with a souvenir, a sling ring, which sorcerers use to open mystic portals. Blaze then uses the sling ring, along with what he learned during his time at Kamar-Taj, to spice up his otherwise very pedestrian cabaret magic act.

Wong, the Sorcerer Supreme, seeks your legal counsel to file suit against Blaze to enjoin his use of Kamar-Taj's mystic arts. 

What are the potential claims? Let's explore.

WIRTW #641: the “slim shady” edition

Guess who's back, back again…

After a semi-intentional summer break, The Norah and Dad Show — the podcast I host and produce along with my 16-year-old daughter — is back for Season 2. You find us everywhere podcasts are available, including Apple, Spotify, Google, Overcast, Amazon, Stitcher, and via our website. If you're new to the show, please make sure you go back and check out all of Season 1.

While I'm talking about Norah, she has some gigs coming up over the next several weeks: this Sunday, Sept. 11, at the Berea Arts Festival (from 2–3p); Sept. 23 at Baxter's Speakeasy in Akron supporting Chanilla and Sad Harris (8p); and September 30 at The Olde Wine Cellar (starting at 6p). All shows are free, although Baxter's does have a one-drink minimum. Please stop and say hello. 

Here's what I read and listened to this past week that I think you should be reading and hearing, too.

How broad is potential liability for retaliation? THIS broad.

In 2016, Tom Pettay sued his former employer, DeVry University, for age discrimination. The trial court dismissed Pettay's lawsuit on summary judgment. Following that dismissal, the employer filed a motion asking the trial court to award them $4,004.39 for the cost of deposition transcripts used in support of the summary judgment motion. While Pettay's appeal of the court's award of costs was pending, the Ohio Supreme Court held that a prevailing party cannot recover the costs of deposition transcripts. 

As a result, Pettay again sued DeVry (or, more accurately, its successor in interest, Cogswell Education), claiming that it retaliated against him by pursuing a frivolous motion for the costs of the deposition transcripts. 

Like herpes, the NLRB’s efforts to liberalize its joint employer standard just won’t go away

Joint employment under the NLRA has a tortured history over the past seven years. 

Yesterday, the NLRB released a Notice of Proposed Rulemaking (NPRM) to rewrite the standard for determining joint-employer status under the National Labor Relations Act.

Under the current joint employer standard — to which the NLRB adhered until the Browning-Ferris decision in Aug. 2015, and to which it formally reverted in Apr. 2020 — one employer is only a joint employer with another employer if it possesses and exercises "substantial direct and immediate control" over the terms and conditions of employment of another employer's employees.

Joint employment matters … a lot … because if you're a joint employer over the employees of another employer you are jointly and severally liable for the legal wrongs committed by the primary employer. Under the NLRA you also would share collective bargaining responsibility.

WIRTW #640: the “Wickens Workshop” edition

When you take over a practice group and are tasked with building it, you naturally have to think of ways to market and grow it. Presenting semi-regular seminars for clients, prospective clients, and referral sources was low hanging fruit. I can talk about employment law all day long. Just give me a topic, a microphone, and an audience, wind me up, and let me go to work. Thankfully, my cohorts in our Employment & Labor Practice Group feel the same way. 

Thus, Wickens Workshops were born. (Full credit to Matt Danese for the alliterative branding.) Our next event, discussing employee leave of absence issues, will take place on Oct. 20 from 8–10 am.

While imitation is always the sincerest form of flattery, sharing this idea with my co-workers is hardly imitation. It's just smart business. Thus, the Wickens Workshops branding has expanded to include our Business Restructuring & Bankruptcy and Intellectual Property practice groups, which will hold events on the mornings of Nov. 15 and Jan. 18, 2023, respectively. We now have a full-blown series of panel discussions covering a variety of legal areas and topics. 

I hope you can join us. Stay tuned for registration information for each of these events.

Also, if you'd like to hear me speak before our Oct. 20th Workshop, tune in to Lunch Conversations with Randy & Teddy on Wednesday, Sept. 7, from noon to 1 pm, when I'll be discussing all things labor and employment law.

Here's what I read this past week that I think you should be reading, too.

Checking the pulse of the American worker on labor unions as we enter Labor Day Weekend

The following stats should be eye-opening for any business owner, CEO, or board of directors.

• 71 percent of Americans "approve" of labor unions, the highest reported approval rating since 1965.
• 70 percent of non-union employees say that they would consider joining a union, up 141% in just three years.
• Unions win approximately 75 percent of all representation elections.

What does all of these stats mean? If a union organizer starts talking to your employees about unionizing, the odds are high that your business will end up unionized. 

Pizza shop closure is a teachable lesson on union avoidance

We are truly heartbroken to announce that we've made the difficult decision to permanently close both Knead Slice Shop and Knead Market effective immediately (August 23, 2022), regardless of the outcome or the occurrence of the requested union election.

We respect the right of workers to organize under the National Labor Relations Act or other appropriate laws. We hope our workers will recognize our related right as an employer, especially a small employer, during these extremely difficult operational times, to close our entire business operation.

We continue to wish our employees well. 

That's what a pizza shop posted to its Instagram last week, announcing its decision to shutter all of its operations, permanently.

NLRB re-writes law on employees displaying union logos at work

Tesla's General Assembly plant maintained the following dress code: "It is mandatory that all Production Associates and Leads wear the assigned team wear." For production associates, "team wear" consists of a black cotton shirt with the Tesla's logo and black cotton pants with no buttons, rivets, or exposed zippers, all which Tesla provides.

In the Spring of 2017, however, certain production associates started wearing black t-shirts with the phrase, "Driving a Fair Future at Tesla," along with the logo for the United Auto Workers.

Tesla banned the UAW shirts under its "Team Wear" policy, claiming that the ban limited the risk of alternative clothing damaging vehicles on the production line and made it easier to keep track of employees on the shop floor.

In a split 3-2 decision, the NLRB held that Tesla unlawfully prohibited its employees from wearing shirts with the UAW's logo. 

The 9th nominee for the “Worst Employer of 2022” is … the active shooter

“This is it. I’m done.”

That’s how one elderly employee described to police her recent experience in an active shooter drill conducted by her employer, Catholic Charities of Omaha, that went as planned but also went very, VERY wrong.

The employer hired John Channels to stage the exercise. It did not tell its employees: (1) that the drill was planned or happening; (2) that Channels would be using a real assault rifle loaded with blanks; (3) or that Channels would stage victims (actors covered in fake blood) around the building for added realism. It also failed to inform the local authorities of the drill, who responded as if it was a real and legitimate active shooter situation.

WIRTW #639: the “Gr8” edition

How does your organization help build collegiality among employees?

At my kids' school they do it in the Lower and Middle School with Family Groups, and in the Upper School with Houses (just like in Harry Potter, complete with a year-long House Cup competition). 

Each Family Group or House is comprised of a cross-grade mix of students. The goal is to build school spirit, classmate and faculty camaraderie, and student leadership skills.

One of the Middle School's best traditions is Community Building Days, two days of non-academic activities shortly after the start of the school year to help everyone get to know one another better. It always takes place on the Thursday and Friday of the second week of school (yesterday and today), and the entire Middle School sleeps over at school on Thursday night.

One additional rite of passage for the middle schoolers is what's known as "Gr8 Night." They sleep over at school for one additional night, the Wednesday night leading into Community Building Days, to further build their leadership skills and to decorate the Middle School in preparation for the arrival of the 6th and 7th graders the next day.

Yesterday morning, the 8th graders welcomed everyone driving onto campus (that's Donovan, in yellow on the left). He looked excited and happy, (relatively) well rested, and ready to tackle what the faculty has to throw at him over the next two days. I can't wait to hear all about it.

Employers, what are you doing to help build camaraderie and collegiality among your employees? The past two and a half pandemic years have been rough on workplace morale and teamwork. I'm curious to learn what you're doing to help bring back some of the sense of "team" that the pandemic and remote work stole from us? Drop a note in the comments below and I'll share some the best or more interesting ideas in a future post.

Here's what I read and listened to this past week that I think you should be reading and hearing, too.

The wage and hour implications of employee electronic surveillance

Every now and again I come across a story that make me question how any in-house counsel blessed a workplace policy or practice.

The following story, taken from yesterday's episode of The Daily on the rise of workplace surveillance, is one of those stories.

Carol works as a Vice President for a bank. Like many white-collar employees these days, she's working remotely from her home. Pretty early on in her employment, she begins to notice that her paychecks are light. Then she figures out why.

Every 10 minutes at random points the company took a screenshot of her computer monitor and a photo of her face. The company was using that information to pay Carol (and every other worker) only for the minutes when they appeared be active according to the photos. If, for example, the photo happened to capture Carol during a moment of inactivity (for example, a 30-second interval when she went to get a cup of coffee), it would dock her for the entire 10-minute span. As you can imagine, the digital tracking actually missed a lot of Carol's work, including any work she did offline. She's working, but the company thinks she's not working, and it's going to dock for that any perceived increments of inactivity. 

There are two HUGE Fair Labor Standards Act red flags here.

Pro athletes should never get a pass on harassment

Kenny Lofton is one of the most beloved players in history of the Cleveland Guardians, née Indians. He spent the best years of 17-year career anchoring center field for the Cleveland teams that won six AL Central titles and earned two World Series berths. 

Post-baseball, Lofton founded Centerblock Asset Management LLC, an investment firm and NFT workplace. In addition to his corporate gig, it also appears that Lofton allegedly spends his time messaging women pictures of his Li'l Kenny on Instagram and firing employees to take issue with it.