Friday, February 27, 2009

WIRTW #68


The Department of Labor and the IRS have published the various information and forms necessary to carry out the new COBRA subsidy. The Pennsylvania Labor & Employment Lawyer Blog and World of Work has the details.

The Connecticut Employment Law Blog has information on whistleblower protection provisions of the economic stimulus law.

The Delaware Employment Law Blog reports on the various ways employers are using social networking sites.

The Business of Management draws a connection between falling girl scout cookie sales and prospects for the Employee Free Choice Act.

The Death By Email Blog gives some good examples on how not to quit a job.

Law.com, on the legal risks associated with mandatory furloughs to cut costs.

BLR’s HR Daily Advisor, on the importance on proactive wage & hour audits.


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, February 26, 2009

EEOC to issue proposed GINA regulations


By week’s end the EEOC will issue proposed regulations implementing the employment provisions of the Genetic Information Non-Discrimination Act (GINA). The EEOC announced the regulations at a public meeting yesterday. Once the regulations are published, a 60-day period will begin in which the EEOC will accept public comment on the regulations.

Generally, the regulations provide guidance on GINA’s employment provisions, which prohibit employers from discharging, refusing to hire, or otherwise discriminating on the basis of genetic information, bar employers from intentionally acquiring genetic information about applicants and employees, and (3) impose confidentiality requirements on the handling of genetic information if it is acquired.

The Washington Labor & Employment Wire received an advance copy of the regulations, and gives some of the highlights:

  • “Employee” is defined to cover current and former employees, and also applicants.

  • Drug and alcohol tests are not considered “genetic tests” covered by the Act.

  • Each of the six exceptions to the statutory sections prohibiting employers from acquiring genetic information are explained. Those exceptions are: (1) inadvertently obtained genetic information; (2) where the employer offers qualifying health or genetic services, such as a voluntary wellness program; (3) FMLA medical certifications; (4) commercially and publicly available documents; (5) monitoring of the effects of toxic substances in the workplace; and (6) DNA analyses for law enforcement purposes.

Notably, the EEOC is specifically asking for public comment on two issues that should be of particular interest to employers:

  1. What constitutes “voluntary” with respect to an employer-sponsored wellness program? For example, if an employer ties smoking cessation therapy to lower employee health insurance costs, is the program voluntary? What if an employee enters drug treatment after a positive drug test?

  2. What should be included in the “commercially and publicly available” exception, particularly with respect to blogs and social networking sites? Under this exception, an employer cannot research medical databases or court records for the purpose of obtaining genetic information. However, what if an employee undergoing cancer treatment writes a personal blog on the topic. Or, imagine a parent who belongs to a support group on Facebook for a child’s genetic condition. If an employer happens upon this information accidentally,it would seem unfair to penalize the employer for obtaining the information. It seems that the issue should hinge on what the employer does with the information after it is learned. Is it kept confidential? Is it used in making an employment decision about the employee?

Expect much more to be written about these regulations in the coming months as they are published and digested.

[Hat tip: Connecticut Employment Law Blog]


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, February 25, 2009

6th Circuit decides that the closeness of a relationship does not matter in “associational discrimination” claims


Last year, in Thompson v. North Am. Stainless the 6th Circuit recognized a claim under Title VII’s anti-retaliation provision for associational retaliation: “Title VII prohibit[s] employers from taking retaliatory action against employees not directly involved in protected activity, but who are so closely related to or associated with” employees who engage in protected activity(emphasis added). I remain critical of this standard for leaving open the issue of how close is close enough.

This week, in Barrett v. Whirlpool Corp. (6th Cir. 2/23/09), the same court was faced with another issue concerning the relationships between protected and unprotected employees. In Barrett, the Court decided that in claims of associational discrimination – that is, where one employee claims discrimination because of a relationship with protected employees – the degree of closeness between the employees simply does not matter. The only relevant issue is whether the employee is discriminated against because of his or her race:

If a plaintiff shows that 1) she was discriminated against at work 2) because she associated with members of a protected class, then the degree of the association is irrelevant…. The absence of a relationship outside of work should not immunize the conduct of harassers who target an employee because she associates with African-American co-workers. While one might expect the degree of an association to correlate with the likelihood of severe or pervasive discrimination on the basis of that association—for example, a nonprotected employee who is married to a protected individual may be more likely to experience associational harassment than one who is merely friends with a protected individual—that goes to the question of whether the plaintiff has established a hostile work environment, not whether he is eligible for the protections of Title VII in the first place.

The treatment of two different plaintiffs in this case illustrate how this standard works.

Lynette Barrett, Caucasian, was friends with African-American employees. Those African-American employees were targeted with what can only be described as offensive and inappropriate misconduct by other white employees – the n-word and other racial epithets, threats of violence, and racist jokes and graffiti. Barrett claimed that other white employees shunned her at work because of her friendship with African-American employees. She sued Whirlpool for harassment. Ultimately, Barrett lost on the merits of her claim. None of the offensive conduct was directed at her, and general snubbing does not support a harassment claim.

Treva Nickens, also Caucasian, was also friends with African-American employees and also witnessed offensive racial conduct at work. Unlike Barrett, however, Nickens had conduct directed specifically at her. After she complained to a supervisor, she was threatened with physical violence. She was also told on more than on occasion by different employees that she needed to stay with her own kind and was called a “nigger lover.” Like Barrett, the racist comments and jokes not directed at her did not support Nickens’s discrimination claim. However, more than Barrett, Nickens was the victim of direct harassment resulting from her associations with black employees - she received a threat of physical violence for reporting racist language and was subjected to a regular stream of offensive comments about her relationship with an African-American co-worker.

The Barrett case is a common sense application of the general rule in discrimination cases – was the individual treated differently because of his or [fill in the protected class]? Unlike Thompson, which went beyond the limits of the statute to create a claim, Barrett falls well within the bounds of what Title VII and the other employment discrimination statutes clearly protect. Moreover, the differing outcomes between Barrett and Nickens shows that this standard has teeth, and something more than a mere association is required to prove discrimination.

Tuesday, February 24, 2009

Maybe Microsoft is reading the blog


Yesterday I reported on Microsoft’s gaffe in overpaying severance to laid-off employees. Caught in a potential public relations maelstrom, Microsoft has relented. It issued the following statement yesterday:

Last week, 25 former Microsoft employees were informed that they were overpaid as a part of their severance payments from the company. This was a mistake on our part. We should have handled this situation in a more thoughtful manner. We are reaching out to those impacted to relay that we will not seek any payment from those individuals.

Cnet has the rest of the details.

Do you know? Continued health benefits under COBRA


Last week, the federal government mandated a 65% employer-sponsored subsidy of employees’ health insurance premiums under COBRA for those employees involuntarily severed from employment between September 1, 2008, and December 31, 2009.

Do you know? What is COBRA, who and what does it cover, and what does it require?

“COBRA” stands for the Consolidated Omnibus Budget Reconciliation Act of 1986. It covers employer-sponsored group health plans of businesses that employed at least 20 employees (both full-time and part-time) on more than 50% of its typical business days in the previous calendar year. COBRA only applies to group health plans. It does not cover other type of employer-sponsored plans, such as disability or life insurance plans.

It requires employers to offer continuation coverage to covered employees, their spouses, their former spouses, and their dependent children when group health coverage would otherwise be lost due to certain specific events. The following chart summarizes the various qualifying events under COBRA, which beneficiaries are eligible for continuation coverage, and for how long:

QUALIFYING EVENT QUALIFIED BENEFICIARIES MAX. PERIOD OF CONTINUATION COVERAGE
Termination for reasons other than gross misconduct) or reduction of hours of employment Employee
Spouse
Dependent Child
18 months
Employee enrollment in Medicare Spouse
Dependent Child
36 months
Divorce or legal separation Spouse
Dependent Child
36 months
Death of employee Spouse
Dependent Child
36 months
Loss of “dependent child” status under the plan Dependent Child 36 months

 

Employers may require individuals who elect continuation coverage to pay the full cost of the coverage, plus a 2% administrative charge.

When a qualifying event occurs, employers must provide the employee or other beneficiary a notice describing their rights under COBRA and a form under which they can elect whether to continue group health coverage under COBRA.

Note that Ohio has its own mini-COBRA law, which requires the extension of COBRA benefits for 6 months to employers of as few as 10 employees.

Monday, February 23, 2009

Microsoft gaffe illustrates importance of administration of severance programs


For today’s worker, there is perhaps nothing more terrifying than being told that you are being laid off. The companies that can soften the blow with severance often do so. Imagine, though, that you have just been laid off, and receive in the mail from your former employer a letter telling you that your severance pay was miscalculated and that you have to return some of it. That is exactly what happened last week to a group of employees recently laid off by Microsoft.

The letters advise of the administrative error and the severance overpayment, and request repayment of the overage within 14 days. The letter does not spell out what consequences one could suffer by ignoring the request and keeping the extra cash. The legal fees in brining a lawsuit to collect each overpayment probably outweigh the amounts of the overpayments by several times, thus making legal action against the individuals unlikely. But, one never knows.

What a nightmare for Microsoft. It is unknown how many of the 1,400 laid-off employee were overpaid. Assume, however, that every employee was overpaid two weeks at an average salary of $1,000 per week. That mistakes would equal a potential $2.8M nut. The question for Microsoft is whether that amount of money (whatever it is) is worth the awful publicity that is being generated by the appearance of kicking these employees when they are down.

So, what lessons can other employers learn from Microsoft’s mistake?

  1. Layoffs are time and paper intensive. They are often put together quickly under tremendous time constraints. They are also paperwork intensive. Decisions need to be made who to lay off, how and when to communicate the layoff, whether the layoff appears discriminatory by the demographics of the included employees, and whether to pay severance and if so how much. If releases are sought they must be drafted, and, very importantly, for workers over 40, OWBPA disclosures must also be drafted. In other words, layoffs are prone to mistakes. Take the time to make sure they are done properly in every aspect. It is much easier to do a layoff correctly than undo it when a mistake is made.

  2. Especially in 2009, layoffs are very sensitive for employees. They must be delicately handled. How employees are told the news goes a long way in determining whether they will sign a release or go talk to a lawyer.

  3. If a mistake is made, equal care should be taken in how to communicate that mistake to employees. If you ask for reimbursement of an overpayment, it is not a bad idea to actually show how the overpayment was calculated. Think about it. Are you more likely to send a check in response to a letter that simply says we overpaid you, or explains with detail how the overpayment happened?

My advice to Microsoft would be simple – you made the mistake, and you asked for the money back. Even if nary and employee reimburses you, I would chalk this mistake up to a lesson learned in how to handle layoffs and drop the issue.

[Hat tip: The Boy Genius Report]

Friday, February 20, 2009

WIRTW #67


Fellow blogger Teri Rasmussen, at her Ohio Practical Business Law blog, has compiled an exhaustive list of every Ohio-based legal blog. Thank you, Teri, for considering my little project one of the top 3 legal blogs in our state. The compliment is appreciated.

To follow up my post from yesterday on employers’ federal court successes in discrimination cases, the California Employment Law Report wonders if this trend will lead to the filing of more wage and hour cases, where employees enjoy better success.

Along the same vein, Gruntled Employees gives employers the lowdown on how to lose a wage and hour case.

Meanwhile, the Connecticut Employment Law Blog gives some suggestions on how to limit liability risks from layoffs.

The Delaware Employment Law Blog examines layoffs from the perspective of pregnant employees.

The Business of Management tries to put a cost on smoking cessation programs.

The Trade Secrets Blog discusses how many dollars trade secret misappropriations cost businesses last year.

Today’s Workplace talks about workplace harassment of teenagers.

Washington D.C. Employment Lawyer Update provides information on the Family-Friendly Workplace Act, which would amend the Fair Labor Standards Act to allow private employers to award comp time in lieu of overtime. For more on this issue under the current wage and hour laws, see Do you know? “Comp” time in lieu of overtime.

Finally, Death by Email offers some pointers on how to use Facebook and other social networking sites. The advice – consider the following three questions before posting something on Facebook: “Would you be upset if your mother saw it? Would you be upset if the most nefarious person you ever heard about saw it? Would you be upset if it was on the front page of USA TODAY?” This advice hold true for anything you write, whether it’s posted online, in an email, or in an internal document. If you wouldn’t want it read by a judge, read to a jury, or printed on the front page of the newspaper, don’t commit it to writing.