WIRTW #323 (the "why I hate lawyers" edition)

YouTube is filled with examples of lawyers behaving badly. Yet, this example from Above the Law, entitled, “Pro Tip For Lawyers: Don’t Threaten To ‘Anally Rape’ Adversary,” takes the cake. Here’s a small taste:

You pissed off the wrong attorney. You want to beat up women and then play games with the legal system… well then you will get exactly what you deserve. After I get [my client] out of jail I’m going to gather all the relevant evidence and them I’m going to anal rape you so hard your teeth come loose. I tried working with you with respect. Now I’m going to treat you like the pond scum you are. Watch your ass you little [expletive deleted]. I’ve got you in my sights now.

The most astounding part? The lawyer posted this threat on Facebook. Good grief. 

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

Discrimination

• Can Employers Win a Case Where a Single Use of the N-Word Is Alleged? Perhaps — from Dan Schwartz’s Connecticut Employment Law Blog
• Stupid “discrimination” complaints: How should an employer handle? — from Robin Shea’s Employment & Labor Insider
• An ADA accommodation just has to be reasonable—not the employee’s first choice — from Eric Meyer’s The Employer Handbook Blog
• Don’t Lick Your Lips at Me. That’s Harassment! — from California Employment Law
• Disability-Related Inquiries: Don’t Ask! — from Employment Discrimination Report
• Age discrimination or legitimate termination? Firing a 65-year-old can be tricky — from HR Hero Line
• Avoid Accidentally Revealing Your Age with Your Email Address — from Lifehacker
• Pregnant Workers Need More Protection than Walmart’s Giving Them — from Workplace Fairness

Social Media & Workplace Technology

• How to grant employees access to social media at work — from Ragan.com
• O’Brien and the NLRB on Social Media — from Workplace Prof Blog

HR & Employee Relations

• My Boss Called Me Out Of The Delivery Room When My Wife Was In Labor — from Evil Skippy at Work
• Are Your Employees Takers or Givers? — from Molly DiBianca’s Delaware Employment Law Blog
• NPR and Progressive Radio Network on workplace bullying — from Minding the Workplace
• Are U.S. Employees Overworked or Not? — from Families and Work Institute Blog
• Are Employers Adapting to EEOC Guidance on Employment Background Checks? — from employeescreenIQ Blog
• There’s No Place in Your Workplace For Bullying Behavior — from TLNT
• Beyond Flip-Flops: Dress Code Policies for All Seasons — from ERC Insights Blog

Wage & Hour

• Number Of Wage And Hours Cases Increases For 7th Straight Year — from Overtime Lawyer Blog
• Before You Hire Those Summer Interns…. — from The Emplawyerologist
• Department of Labor Sets FLSA Regulation Deadline for November 2014, Final Regulations Unlikely to Arrive Before Spring 2015 — from Wage & Hour Insights

Labor Relations

• Uber, Lyft, & Sidecar Drivers Vote to Form Union in Seattle — from Blogging4Jobs
• Organized labor continues to branch out — from HR Hero Line

Why you should be paying your interns

Unpaid interns have been on the DOL’s hit list since 2010. I’ve warned employers that most unpaid internships have gone the way of the dodo, and you should be paying your interns at least the minimum wage, and overtime, for hours worked in excess of 40 in a week.

Now, we have some meat to put on the bones of this information. In Grant v. Warner Music Group Corp. (S.D.N.Y. 5/13/14), a former student intern for Warner Bros. Records sought a nationwide collective action on behalf of all similarly situated student interns, claiming that the company misclassified him exempt from the FLSA’s minimum wage and overtime requirements. The named plaintiff alleged that he typically worked 50 or more hours in a week performing the same type of work as paid employees, but was not paid and did not receive academic credit.

The FLSA only requires a “modest factual showing” for a court to certify a putative collective action, and authorize opt-in notices be sent to potential class members. In this case, the court concluded that Grant made that showing by putting forth facts that he and others suffered under a common policy or plan that violated the FLSA. Warner Bros. now has a nationwide wage-and-hour lawsuit to defend.

The burden for a court to certify a collective action under the FLSA is low, yet the risks are high. Many issues under the FLSA are fact-specific and rest on razor-thin distinctions. Unpaid interns, however, are the low-hanging fruit of the wage-and-hour laws. The money you will spend defending a wage-and-hour collective lawsuit will dwarf the money you would save by classifying your interns as “unpaid.” If you use the services of interns pay them, unless they are students, receiving academic credit for the internship, and the work they are performing for you is bona fide training and instruction to them. Otherwise, you are taking a huge gamble that is difficult to win.

NLRB judge gives booby prize to Hooters' workplace policies

In Hooters of Ontario Mills [pdf], an NLRB Administrative Law Judge found that a California franchisee of Hooters unlawfully fired a waitress for complaining about a bikini contest that she perceived as fixed. In the same decision, the ALJ also concluded that the restaurant maintained numerous illegal polices in its employee handbook.

Alexis Hanson, a Hooter Girl in an Ontario, California, outpost of the beer-and-wings establishment, complained to management that she believed that bar’s annual bikini contest was rigged. After the contest, she was terminated for “cursing at” the winner and the store’s Marketing Director. When she protested that she hadn’t cursed at anyone, the manager changed her tune and told Hanson, “Okay. Well, then you are being terminated for your negative social media posts.”

The ALJ concluded that Hanson’s discharge was unlawfully motivated by her protected concerted activity (i.e., her complaints to the manager about the bikini contest). The ALJ was persuaded by the fact that the employer had failed to conduct an investigation before firing Hanson, and also by its shifting reasons for her termination. 

The ALJ also concluded that a variety of policies in the restaurant’s employee handbook were overly broad violations of employees’ rights to engage in protected concerted activity:

• NEVER discuss tips with other employees or guests. Employees who do so are subject to discipline up to and including termination.
• Insubordination to a manager or lack of respect and cooperation with fellow employees or guests may result in discipline up to and including termination.
• Disrespect to our guests including discussing tips, profanity or negative comments or actions may result in discipline up to and including termination.
• The unauthorized dispersal of sensitive Company operating materials or information to any unauthorized person or party may result in discipline up to and including termination. This includes, but is not limited to, recipes, policies, procedures, financial information, manuals or any other information in part or in whole as contained in any Company records.
• Be respectful to the Company, other employees, customers, partners, and competitors. Refrain from posting offensive language or pictures that can be viewed by coworkers and clients. Refrain from posting negative comments about Hooters or coworkers. In all cases, NEVER publish any information regarding a coworker or customer.
• Any other action or activity that the Company reasonably believes represents a threat to the smooth operation, goodwill or profitability of its business may result in discipline up to and including termination.

What are the takeaways from this case?

1. These employees were non-union. This case serves as a reminder that the NLRA’s protected-concerted-activity rules apply to union and non-union shops.
2. It’s debatable whether complaints about a workplace bikini contest constitute protected concerted activity. In this case, however, the ALJ appeared to be more persuaded by what the manager did not do in response to the complaints, as opposed to what the employee complained about. The manager did not investigate, and did not maintain a consistent reason for the termination. In other words, the reasons given for the terminated seemed to be a pretext to cover up something else—retaliation for Hanson’s protected concerted activity. The moral of this story? No matter the situation, thorough investigations and maintain a consistent story will save your bacon in many workplace lawsuits.
3. As often happens in theses cases, the termination served as an entre for the NLRB to review (and overturn) workplace policies as overly broad. If you don’t want the NLRB to see your policies, don’t fire employees for protected concerted activity. Most of these cases get to the Board because someone was fired, not because someone just decided, out of the blue, to challenge a handbook.

Prejudice vs. Racism: Please don't confuse the two

Last week, Inc. interviewed the billionaire, entrepreneur owner of the Dallas Mavericks, Mark Cuban. In light of Donald Sterling, racism was one of the topics covered. Mr. Cuban’s candid and honest response has sparked a wave of controversy:

If I see a black kid in a hoodie and it’s late at night, I’m walking to the other side of the street. And if on that side of the street, there’s a guy that has tattoos all over his face—white guy, bald head, tattoos everywhere—I’m walking back to the other side of the street. 

While we all have our prejudices and bigotries, we have to learn that it’s an issue that we have to control, that it’s part of my responsibility as an entrepreneur to try to solve it, not just to kick the problem down the road.…

Mr. Cuban has been wrongly crucified for his candor. Prejudice is human nature; it’s not bigotry or racism. We all hold prejudices. Bigotry and racism, however, imply intentional hatred. Crossing the street late at night because you see someone in a hoodie coming towards you does not mean you hate that person because you assume he’s black. Instead, it means you’ve been influenced by what you’ve seen, heard, or experienced, and that influence is causing a reaction.

Here’s the difference, from a Title VII perspective. If you learn of race-based comments or action in the workplace, you have an obligation to investigate and take appropriate corrective action reasonably to ensure that it doesn’t happen again. If you are dealing with racism, no corrective action will halt the behavior, and the only likely response is termination. If, however, you are dealing with unconscious prejudices, you can use the incident as a learning tool to open a dialogue with your employees about race.

In managing employees, it is unrealistic to expect them to hold no prejudices. Recognizing this fact is the first step to managing race in our workplaces.

WIRTW #322 (the “indestructible butterflies” edition)

One of the benefits of writing this blog is that, every once in a while, I get the opportunity to very publicly brag about one of my kids doing something awesome. Today is one of those days.

Last weekend, my 7-year-old, Norah, killed on stage, performing with her band for Strongsville’s School of Rock. The setlist:

• Twist and Shout — The Isley Brothers / The Beatles
• Time Warp — Rocky Horror Picture Show*
• Question — Old 97’s**
• Fortunate Son — Creedence Clearwater Revival

*For the record, even though, as you’ll see in the video, the Time Warp was my daughter’s add to the setlist, she’s never seen the movie. What kind of dad do you think I am? She learned the song from playing Just Dance 4.

**If you’re in the Cleveland area, the Old 97’s are playing the Beachland Ballroom on June 5. I’ll be there (with my wife and daughter). Please say hi if you’re there too.

Here’s the video of Saturday’s performance by Psycho Sister vs. The Indestructible Butterflies (yes, that’s the band’s name):

 

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

Discrimination

• Two-Undecillion-Dollar Demand Spells Trouble for Au Bon Pain — from Lowering the Bar
• Accommodation of Pregnancy Complications Under the ADA and FMLA — from Minnesota Employer
• Has IBM Found a Way Around the OWBPA and Should Others Follow? — from Dan Schwartz’s Connecticut Employment Law Blog
• Employment Litigation Lottery: IBM steps away — from Robin Shea’s Employment & Labor Insider
• Should A “Racist Tax” Or Fines Be Levied To Stop Racial Harassment? — from Employment Discrimination Report
• How Much Is Too Much to Settle a Sexual Harassment or Wage and Hour Case? — from Employment Lawyer Blog
• Three employees fired for posing at work in KKK garb and makeshift crosses claim discrimination. Yep. — from Eric Meyer’s The Employer Handbook Blog

Social Media & Workplace Technology

• Employers, If You Fire for a Facebook Post, Please, Get a Copy of It First! — from Molly DiBianca’s Delaware Employment Law Blog
• You won’t be able to stop reading this Twitter account that sends out random bits of overheard conversations in NYC — from Boy Genius Report

HR & Employee Relations

• Fired for What!? - Jay-Z v. Solange Fight Tape — from Phil Miles’s Lawffice Space
• What to Do When 20 Percent of Your Staff Is Pregnant — from Evil HR Lady, Suzanne Lucas
• Work-Life Balance: It’s About Choices and the Life You Really Want — from TLNT
• When MERS attacks! Are you ready? — from Mike Haberman’s Omega HR Solutions

Wage & Hour

• How to Avoid Intern Lawsuits this Summer Season — from In House
• The Use of Unpaid Interns: Is It Worth the Risk? — from The Employment Brief
• My Exempt Employee Has No PTO but Needs Time Off — from HR Daily Advisor
• I Don’t Always Round Time Entries, But When I Do...I Follow the FLSA Regs — from Wage & Hour Insights
• The Wage and Hour Litigation Epidemic Continues — from The Wage and Hour Litigation Blog
• Can an Employer Require a Doctor’s Note for Each Intermittent FMLA Absence? — from Jeff Nowak’s EMLA Insights

Labor Relations

• NLRB Continues to Increase Use of Section 10(J) Injunctions — from Management Memo
• NLRB Invites Briefs on Northwestern Case — from Labor Relations Institute
• Board ALJ Nixes Hooters Work Rules — from Labor Relations Today

Apparently, an employee doesn’t need to sign a noncompete for an employer to enforce it

I’ve always thought that for an employer to enforce a non-competition agreement against an employee, the employee actually had to sign the agreement. Two recent cases, however, suggest otherwise.

In Newell Rubbermaid Inc.v. Storm (3/27/14), a Delaware Chancery Court enforced a “clickwrap agreement”—that is, the employee only received an electronic copy of an equity compensation agreement, which included a non-competition agreement buried within. Instead of signing the agreement, she clicked an “Accept” button on a pop-up on her computer monitor. According to the court:

Newell’s method of seeking Storm’s agreement to the post-employment restrictive covenants, although certainly not the model of transparency and openness with its employees,  was not an improper form of contract formation…. Storm admits that she clicked the checkbox next to which were the words “I have read and agree to the terms of the Grant Agreement.” This functions as an admission that she had the opportunity to review the agreement (even if she now states she did not read it despite her representation that she did) upon which Newell was entitled to rely. Her actions of clicking the checkbox and “Accept” button were manifestations of assent…. It is not determinative that the 2013 Agreements were part of a lengthy scrolling pop-up. Storm’s failure to review fully the terms (on a 10-page readily accessible agreement) to which she assented also does not invalidate her assent.

In PharMerica Corp. v. McElyea (5/19/14), an Ohio federal court went one step further, and enforced a non-competition agreement that the employee had never signed at all. Shortly before resigning to work for a direct competitor, McElyae, a salesperson, copied all of her PharMerica files—including client lists, pricing information, and contracts—from her PharMerica-owned computer to a thumb drive. Under those circumstances, the court had no problem enjoining the employee from working for the competitor, even though she had never signed the non-competition agreement PharMerica presented to her.

Defendants also argued that unless Plaintiff can prove a non-compete agreement exists, the Court may not enter an injunction unless McElyea has already disclosed trade secrets. But some Ohio courts do permit injunctions in the absence of a non-compete agreement and without a prior instance of disclosure when “the former employee possessed timely, sensitive, strategic, and/or technical information that, if it was proved, posed a serious threat to his former employer’s business or a specific segment thereof.” The Court finds that PharMerica has shown its confidential information, if disclosed, would pose a serious threat to its business.

Often, non-compete cases are more about the equities than the law—did the employee act in a way that makes it unfair for he or she to compete against a former employer. As these cases illustrate, when an employee acts egregiously (takes a whole bunch of stock as consideration for a non-compete, or steals a whole bunch of documents on her way out the door), courts are willing to overlook things like as whether a non-compete was conventionally, or even actually, signed.

Two cups, one termination

Cause for a termination is often in the eye of beholder. Or, to put it another way, what might seem trivial to one can be a big enough deal to another for a termination.

Case in point? Stine v. Central Ohio Gaming Ventures (Ohio Ct. App. 5/20/14) [pdf], in which the court concluded that an employee caught stealing two inexpensive plastic cups was fired for cause, and therefore not entitled to collect unemployment. 

Stan Stine worked for one of Ohio’s new casinos. During his employee orientation, he was given an inexpensive plastic drinking cup (with lid and straw!), bearing the casino’s logo. When his cup broke, he asked an employee in the HR department for a replacement. After HR advised Stine that it’s policy is one cup per new hire, he took matters into his own hands. He removed two cups from the training room and stashed them in his locker. Security discovered the theft, and the casino terminated him following an investigation.

The casino, and the court, relied on the following policy to support the termination:

Theft (unauthorized removal) or misappropriation (unauthorized storage, transfer, or utilization) of the property of guests, Team Members or Hollywood Casino Columbus.… Any unauthorized property found in a Team Member’s possession will be considered theft and grounds for immediate separation.

You might think that the taking of few plastic cups is trivial. To this employer, a casino, I can assure you it is not. To a casino, a no-theft rule is its lifeblood. This employer cannot set a precedent that it is acceptable to take anything without permission, no matter how small. If a casino is going to overlook this offense, how can it enforce a no-theft rule when a dealer pockets a $1 chip? What work rules do you have that are specific or unique to your business? Think about it next time you are considering firing someone. What’s trivial to someone else might be life-or-death to your business.