Reaching the 93%: NLRB launches webpage describing protected concerted activity

When asked the type of law I practice, I always respond with “management-side labor and employment law.” In reality, while I have many successful engagements under my belt in the world of traditional labor law, I am much more of an employment attorney than a labor attorney. And, if you ask 100 management-side labor and employment lawyers whether they identify more with labor law or employment law, at least 95 will tell you employment law. It’s not our fault. It’s just that as union membership has dwindled, so have the opportunities to practice traditional labor law.

Currently, only 7 percent of private sector employees belong to a labor union. Doing the math, that leaves 93 percent of the private sector workforce as non-unionized. Yet, the National Labor Relations Board’s ability to impact the workplace is not limited by unions’ 7 percent reach.

Yesterday, the NLRB launched a webpage dedicated to protected concerted activity, which highlights 12 recent cases litigated by the NLRB involving protected concerted activity. According to the NLRB:

The law we enforce gives employees the right to act together to try to improve their pay and working conditions or fix job-related problems, even if they aren’t in a union. If employees are fired, suspended, or otherwise penalized for taking part in protected group activity, the National Labor Relations Board will fight to restore what was unlawfully taken away (emphasis added).

Trust me, it’s not a coincidence that the phrase “even if they aren’t in a union” prominently appears on this webpage above the fold. It’s a calculated public relations strategy.

According to the NLRB, “Non-union concerted activity accounts for more than 5% of the agency’s recent caseload.” If the agency is being honest, I bet it would want to add a zero after that 5. The NLRB wants to be the go-to agency for employees fired for talking about work. It is in the process of reinventing itself so that it remains relevant, even as labor unions become increasingly irrelevant. Businesses must prepare themselves for increased knowledge by their employees on these issues, along with the increased enforcement efforts by the NLRB.

BREAKING: SCOTUS rules pharmaceutical reps are exempt outside salespeople

Today brings a bonus second post, because the Supreme Court just released its long-awaited ruling in Christopher v. SmithKline Beecham Corp. [pdf] The Supreme Court, by a 5-4 margin, held that pharmaceutical sales representatives are exempt, outside salespeople to whom employers need not pay overtime.

For all of the background on this case you could want, click through the following from my archives:

• Supreme Court to hear case on scope of outside sales exemption (and hopefully scope of DOL’s power)
• 2nd Circuit issues groundbreaking ruling on sales reps and overtime payments
• Do you know? The FLSA’s exemptions for salespeople

In summary, the Court concluded the following:

     1. To be considered a salesperson, one need to actually consummate a transaction. It is sufficient that the promotional work performed by the employee can lead to a sale.

This rationale rebukes the argument of the Department of Labor, which the Court called “quite unpersuasive” and lacking the hallmarks of thorough consideration.”

     2. Non-binding commitments from physicians to prescribe certain drugs qualify as sales under the FLSA’s outside sales exemption.

This rationale applies a common-sense approach to a statute that is often confusing and too rigidly applied.

To me, the following is the million dollar quote from the Court:

Our holding also comports with the apparent purpose of the FLSA’s exemption for outside salesmen. The exemp­tion is premised on the belief that exempt employees “typically earned salaries well above the minimum wage” and enjoyed other benefits that “set them apart from the nonexempt workers entitled to overtime pay.” … It was also thought that exempt employees per­formed a kind of work that “was difficult to standardize to any time frame and could not be easily spread to other workers after 40 hours in a week, making compliance with the overtime provisions difficult and generally precluding the potential job expansion intended by the FLSA’s time­ and-a-half overtime premium.” … Petitioners—each of whom earned an average of more than $70,000 per year and spent between 10 and 20 hours outside normal busi­ness hours each week performing work related to his as­ signed portfolio of drugs in his assigned sales territory—are hardly the kind of employees that the FLSA was intended to protect. And it would be challenging, to say the least, for pharmaceutical companies to compensate detailers for overtime going forward without significantly changing the nature of that position.

I have long argued that the FLSA is an anachronistic maze of rules and regulations that does not well fit within the realities of the 21st century workplace. It seems that at least 5 members of the Supreme Court are inclined to agree with me. This excerpt provides hope for businesses that in the face of an overly-active Department of Labor and an overly confusing statute, courts can provide relief by adopting common sense interpretations.

For more on this important SCOTUS ruling, you can read the early reactions of some of my blogging friends (I’m certain more of the employment law blogging illuminati will weigh in today and tomorrow):

• Dan Schwartz’s Connecticut Employment Law Blog
• Phil Miles’s Lawffice Space

Plagiarism (a story with a happy ending)

I made a startling discovery on Friday. In last week’s WIRTW, I gave a shout out to the Meritas Social Media Guide for Lawyers v. 2.0. (In the name of full disclosure, my law firm, Kohrman Jackson & Krantz, is the Cleveland member firm of Meritas, an international alliance of full-service law firms, and its Social Media Guide features my blog.) One of the guide’s authors, Ethan Wall, took to Twitter to thank Daily Legal Law for mentioning the Social Media Guide. The only problem is that Daily Legal Law had plagiarized my column from Friday, reprinting it word for word.

I am all for other websites and blogs being so enamored with my content that they want to run it on their sites. Please, have the kindness to email me first to ask permission (I rarely say no), and then provide proper attribution. Don’t copy and paste my copyrighted content, and exacerbate your evilness by listing someone else as the author.

This story has a happy ending. Five minutes of easy research led me to DailyLegalLaw.com’s web host, HostGator, to whom I sent a takedown letter under the Digital Millennium Copyright Act. Yesterday, I received the following email from HostGator:

HostGator took down the entire website. If you visit DailyLegalLaw.com, this message is all you will find:

If you have employees posting content for your business online, remind them that plagiarism is illegal, that copyrights have meaning, that violating others intellectual property rights has consequences for the company (such as infringement lawsuits, civil fines, and criminal penalties), and that plagiarism is a terminable offense. Build these ideas into your social media, online communication, or similar policy, and re-enforce the concept in the training of your employees on responsible and legal online communications. Also, if you are regularly publishing content, it is wise to monitor the Web to check for stolen content, so that you can act swiftly to protect your IP.

To the proprietors of DailyLegalLaw.com: If you are going to steal copyrighted material, at least have enough common sense not to steal it from the one group certain enough to know how to protect their IP rights—attorneys. DailyLegalLaw.com, you are free to copy this post (and only this post) and paste it, in its entirety, on any of your other websites.

WIRTW #229 (the “turn the world on with her smile” edition)

I’ve never seen a full episode of The Mary Tyler Moore Show. Thus, I did not understand why Workforce ranked it as a number 1 seed in its 90th Anniversary Pop Culture Bracket. I’m a child of the 80s, and Cheers (under-seeded as an 8, by the way) has always made more sense as a workplace comedy. That is, until last night. I walked into my in-laws house and this was on their TV:

Now it all makes sense. And I’m going to start catching up on this lost gem on Hulu.

Here’s the rest of what I read this week (and last week):

Discrimination

• “Discrimination lawsuits double as definition of ‘disability’ expands” — from Walter Olson’s Overlawyered
• TSA Screener May Wear Religious Bracelet While on Duty — from Joe’s HR and Benefits Blog
• Be Careful What You Wish For: Walmart Faces Thousands of Lawsuits as Result of Class Action Victory — from Chris McKinney’s Texas Employment Law Blog
• After partial victory, plaintiff seeks cert in 5th Circuit same-sex harassment case — from Mike Maslanka’s Work Matters
• Customer Created Hostile Work Environments as told through a Homer (Simpson) Like Epic of Naked Golf, Butt Skills & Club House Beatings — from Jason Shinn’s Michigan Employment Law Advisor
• Association Is Not A Protected Category or Is It? — from Mike Haberman’s Omega HR Solutions
• EEOC brews up case — from BostonHerald.com

Social Media & Workplace Technology

• The Social Media Guide for Lawyers v. 2.0 — from Ethan Wall’s Social Media Law & Order
• Employers, Are Your Employees Minding Their Own Business? — from Molly DiBianca’s Delaware Employment Law Blog
• US Social Media by the Numbers – May 2012 — from Jessica Miller-Merrell’s Blogging4Jobs 
• Uses of Social Media for Corporate Counsel - Investigating & Defending Claims — from From the Sidebar
• 7 Essentials of a Social Media Policy That’s Actually Useful — from Radian6
• Is Your Workplace BYOD? Know the Risks! — from Stephanie Thomas’s The Proactive Employer Blog
• BYOD wave sparks big security concerns — from TheAppleBlog

HR & Employee Relations

• Do Noncompetes Kill Creativity? — from Phil Miles’s Lawffice Space
• Valid Arguments on Both Sides Re: Use of Credit Reports for Employment Screening — from Nick Fishman’s employeescreenIQ Blog
• No flush, but two of a kind win in a workplace toilet dispute — from Eric Meyer’s The Employer Handbook Blog
• Office love contract policy: What does this mean to you? — from Employment Law Bits
• Should couples work for the same company? — from Suzanne Lucas (Evil HR Lady) at CBS Money Watch
• You’re Damned if You Fire an Employee At Will for No Reason — from damnedif
• Some Hiring Managers Rate the Attractiveness of Your Spouse… — from The HR Capitalist, Kris Dunn
• Mastering the Finer Points of American Slang — from Alina Dizik at The Wall Street Journal

Wage & Hour

• How Is 2012 Like 1947? — from Wage and Hour Laws Blog
• Myles v. Prosperity Mortgage: Dukes Inapplicable to FLSA Certification — from Impact Litigation Journal
• Can Your Boss Fire You For Taking Vacation? — from by Donna Ballman’s Screw You Guys, I’m Going Home

Labor Relations

• Guest Post: NLRB Acting General Counsel Addresses At-Will Disclaimers and More at CBA Annual Meeting — from Dan Schwartz’s Connecticut Employment Law Blog
• The NLRB Acting General Counsel’s third memo on social media: Not so fast — from John Holmquist’s Michigan Employment Law Connection
• Workers Win Facebook Fight Against Huge Supermarket Chain — from Workplace Fairness
• Who Can It Be Now: Employers Told to Know Who Their Supervisors Are — from Employment Essentials
• NLRB Returns for Round Two in Fight for “Ambush” Elections — from LaborPains.org
• Are Unions Necessary? Great Post from The Atlantic — from Labor Relations Institute
• Duke Study Suggests That “Unions Are Better For Your Health” — from TLNT

25 million reasons to tell a good story

Trying an employment case to a jury is an art. You are limited by a jury’s attention span (which, by the way, is getting worse as a result of 1,000 channel cable systems and 140 character tweets) to convey your message as quickly and as simply as possible. Complex legal arguments are out; creative storytelling built around a unified theme is in.

The allegations of racial harassment in Turley v. ISG Lackawanna Inc. are horrible. They involve graffiti about King Kong and the KKK, a toy monkey with a noose around its neck tied to the plaintiff’s car, and death threats. For the full flavor, I recommend reading the court’s opinion denying (in part) the employer’s motion for summary judgment.

Yesterday, the jury returned a $25 million verdict in favor of Mr. Turley on his claims of racial harassment and intentional infliction of emotional distress. According to the Buffalo News, one of the employer’s themes at trial was that “much of what happened at the steel plant is the kind of ‘trash-talking’ that’s common in manufacturing facilities.”

I once handled a case with similarly egregious allegations of racial harassment (KKK graffiti, liberal n-bombs, threats to drag the plaintiff tied to a truck, and a fistfight with his allegedly racist supervisor). The case settled on the eve of trial for several decimal points less than $25 million.

At trial, I was not planning on debasing the plaintiff’s allegations by challenging their veracity (there were too many witnesses that would verify most of them), or by portraying the events as something they were not—such as horseplay or trash-talking. Instead, I built my case around the fact that the plaintiff had resigned in the face of these allegations and voluntarily chose to return to the same workplace a few months later. He only sued (I would argue) out of embarrassment after losing a fight. In other words, I was planning to try the case by challenging the plaintiff’s perception of the workplace and the harm it caused him, not the racial motivation of his co-workers.

I know nothing about Turley v. ISG Lackawanna other than what I’ve read in the above-linked opinion and news story. But, it strikes me that likening KKK graffiti and a toy monkey with a noose around its neck as common “trash talking” is a recipe for a disaster, even if $25 million strikes me as excessive.

Vague complaint dooms employee’s retaliation lawsuit

Susanne Pintagro worked for Sagamore Hills Township as an administrative assistant. When a newly hired intern made her feel “uncomfortable and concerned for [her] safety” she took her concerns to the township’s trustees. The trustees determined that because Ms. Pintagro and the intern had to work the same schedule, and gave her the choice of resignation or termination. After Ms. Pintagro resigned, she sued, claiming, among other things, that the township retaliated against her for reporting the intern’s workplace harassment.

In Pintagro v. Sagamore Hills Twp. (Ohio Ct. App. 5/23/12), the court of appeals affirmed the dismissal of her retaliation claim. It concluded that Ms. Pintagro had not engaged in protected activity sufficient to raise the protections of Ohio’s anti-retaliation statute:

It was Ms. Pintagro’s burden … to establish that she engaged in a protected activity, that is, to demonstrate that she “opposed an unlawful discriminatory practice” such as harassment because of her “race, color, religion, sex, military status, national origin, disability, age, or ancestry.” …

Ms. Pintagro also has not presented any authority for her argument that a court should infer discriminatory intent when an employer fails to investigate a claim of workplace harassment…. Even assuming that [the] actions constituted harassment, it is as likely that his conduct was motivated by a personality conflict or other non-discriminatory reasons as it is that it was motivated by prejudice.

In other words, because Ms. Pintagro could not prove that she complained about unlawful harassment, her retaliation claim failed.

Repeat after me:

We will not do what Sagamore Hills Township did in this case.

When an employee comes to you with a complaint about a co-worker, do not ignore it, do not fail to investigate it, and do not fire the employee (or force her to resign). Yes, you might successfully defend a subsequent retaliation lawsuit based on the vagueness of the complaint. But, you might also step in a huge pile. This court refused to interpret a woman’s complaint than a man made her “uncomfortable and concerned for [her] safety” as a complaint about sexual harassment. Another court, however, could just as easily conclude that a jury should have the final say in interpreting that complaint.

Constructive discharges cannot exist in a vacuum of illegality

A constructive discharge occurs when an employer’s actions make an employee’s working conditions so intolerable that a reasonable person under the circumstances would feel compelled to resign. Usually, a constructive discharge arises in the context of a discrimination lawsuit, satisfying the “adverse action” necessary to support the claim.

What happens, though, when there is no connection between the resignation and the law alleged to have been violated. Can an employee claim that a constructive discharge occurred in this vacuum? Kemper v. Springfield Twp. (Ohio Ct. App. 6/6/12), says no.

Patrick Kemper worked as a patrolman for the Springfield Township police department. The department had a formal policy requiring employees to submit a written request, and receive written permission, before engaging in outside work. Kemper planned to start a side security business. He discussed the idea with his supervisor, Chief David Heimpold, who told him that there would have to be precautions to prevent any conflict with police business. A few months later, Kemper submitted a letter to the department misstating that Heimpold had given permission to operate the business. When the township administrator, Michael Hinnenkamp, confronted Kemper with his lie, and with the prospect of an internal investigation, likely termination, and the loss of his pension and benefits, he resigned.

Kemper sued, claiming a constructive discharge related to an FMLA leave he was taking at the time. The jury awarded Kemper $491,000. The court of appeals agreed that the township had constructively discharged Kemper:

Hinnenkamp let it be known that any disciplinary proceeding would in all likelihood end in termination and that Kemper would lose his pension and other benefits…. Kemper had reasonably believed termination to be a foregone conclusion….

The court concluded, however, that the constructive discharge was lawful: 

But our inquiry does not end with the conclusion that Kemper produced sufficient evidence with respect to the alleged constructive discharge. A plaintiff must also establish a connection between the exercise of FMLA rights and the adverse employment action…. All of the evidence demonstrated that Kemper’s acknowledged dishonesty was the basis for the challenged discharge. There was no threat of discipline prior to the letter submitted to Heimpold and no indication in the record that Kemper's absences—or the conditions that led to those absences—bore any relationship to the adverse employment action.

Employees resign all the time, sometimes for reasons related to poor treatment by their employers. As this case makes clear, unless that poor treatment is connected to protections provided by the law, the resignation cannot form the basis for a lawsuit.