Friday, February 25, 2011

WIRTW #166 (the light at the end of the tunnel edition)


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You might not know what the above is a picture of, but to me it’s a picture of me sleeping in my own bed every night, and having my family together for more than a couple of hours in a hospital room every day. It’s the canister into which son’s NG tube feeds, and, if you look really closely, you will see that the goo draining into it is clear. Clear goo means the bilious goo that had been pooling in his stomach has started to go somewhere else—down through his bowel— which means that we are (hopefully) rounding the final turn towards home. We’re not home yet (still maybe as much as another week or more), but we’re the closest we’ve been in the past 16 days.

I cannot put into words how much everyone’s emails and tweets of care and support have meant to me. The compassion of strangers often outweighs that of people we’ve known for years. And for that compassion I will forever owe everyone a debt of gratitude.

Here’s what I read this week:

Social Media & Workplace Technology

Labor Relations

Discrimination

HR & Employee Relations

Wage & Hour

Competition and Trade Secrets


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 24, 2011

Can a boss’s abusive conduct qualify as retaliation?


Title VII does not require that one suffer a job loss to claim retaliation. Instead, Title VII’s anti-retaliation provision protects against any conduct that would dissuade a reasonable worker from engaging in protected activity. Thus, for example, the mere threat of a termination—depending on the circumstances—could constitute an actionable adverse employment action for retaliation purposes.

In denying summary judgment to an employer, the court in EEOC v. Chrysler Group, Inc. (E.D. Wis. 2/17/11), considered not only whether the employer threatened termination, but also how the employer threatened termination:

[T]he manner in which Young delivered his message to each woman matters. If he was screaming and pounding his fists on the table while threatening termination, as Zahn and Hobbs testified, this scenario paints a much more hostile and intimidating atmosphere than if Young delivered his message in a normal tone of voice, as he contends he did.

What does this mean for employers? It could mean nothing. Or it could mean that if courts are examining the tone of threats, courts are beginning to become receptive to notions of bullying as actionable under existing laws.

Because Title VII is not a general civility code for the workplace, it only protects significant, as opposed to trivial, harms. If, however, courts are beginning to recognize threats without any follow-through as actionable, we are not that far of a leap from courts protecting general workplace bullying without any legislative prodding. This possibility should cause employers to be very worried.


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 23, 2011

Repeated calls from supervisor to employee on medical leave violates FMLA


What is the line between checking on a sick employee and harassing a sick employee to return to work early? Terwilliger v. Howard Mem. Hosp. (W.D. Ark. 1/27/2011) draws that line in a case that concluded that the employee was entitled to present her FMLA interference claim to a jury.

Regina Terwilliger worked as a housekeeper for Howard Memorial Hospital. On November 14, 2008, Terwilliger completed and submitted an FMLA request for leave for necessary back surgery. After the hospital approved her request, Terwilliger took her leave, underwent surgery, and returned to work after release by her doctor. During her recovery, and before her return to work, Terwilliger claimed that her supervisor, Kim Howard, contacted her weekly to inquire when she was going to return to work. During one phone call, Terwilliger claimed that she asked Howard if her job was in jeopardy, to which Howard replied that she should return to work as soon as possible. According to Terwilliger, she felt pressured by Howard’s calls to return to work early.

Terwilliger claimed that the hospital interfered with her statutory right to 12 weeks of FMLA leave by pressuring her to return to work after only 11 weeks. The district court agreed that a jury should decide that claim.

Interference includes discouraging an employee from using FMLA leave, … as well as manipulation by a covered employer to avoid responsibilities under FMLA…. To prove interference, an employee must show that the employer denied his or her benefits to which he or she was entitled under the FMLA….

Defendants argue that, because Plaintiff returned to work after her doctor had released her to return to work without any restrictions, she cannot claim that she was denied a benefit that she was entitled to under the FMLA. Defendants, however, are overlooking the fact that an interference claim includes the “chill theory.” … Interference occurs when an employer’s action deters an employee’s exercise of FMLA rights…. Here, Plaintiff had a right not to be discouraged from taking FMLA leave…. [T]he Court finds that a reasonable jury could conclude that Defendants interfered with Plaintiff’s exercise of her FMLA rights by discouraging or chilling her exercise of those rights.

It should go without saying that employers should not harass employees into returning early from FMLA leaves. But, this case is a good excuse to remind businesses that the FMLA has specific procedures in place to check on employees during FMLA leaves.

  • If the employee’s medical certification indicates that the minimum duration of the serious health condition is more than 30 days, an employer must wait until that minimum duration expires before requesting a recertification.

  • In all cases, an employer may request a recertification of a medical condition once every 6 months, even if the original certification is for a longer period of time.

  • Otherwise, an employer may request recertification no more often than every 30 days, and only in connection with an absence by the employee, unless the employee requests a leave extension, the circumstances described by the previous certification have changed significantly, or the employer receives information that casts doubt upon the employee’s stated reason for the absence or the continuing validity of the certification.

In all cases, employers should avoid personal contact to check on the return-to-work status of an employee on an FMLA leave, and follow these timelines if a recertification of a serious health condition is necessary.

[Hat tip: FMLA Blog and FMLA Insights]


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, February 22, 2011

The Internet is a dangerous place for human resources


The Internet is a fabulous resource for businesses. For example, I could conduct a Google search for “social media policy” and fine some wonderful results, including an online database of 164 real-world examples. Because of the Internet’s easy access to information, it creates a strong temptation for businesses to do-it-themselves when it comes to policies and forms.

Not all websites, however, are created equal. Just because you find something on the Internet does not mean that its legal. Take, for example, Pre Employment Medical Questionnaire, which has at least 8 different questions that violate the ADA:

  • Do you smoke?
  • Do you drink alcohol?
  • Are you under any medication?
  • Are you under any medical supervision?
  • Have you ever suffered from an ailment that resulted in an absence from work?
  • Please indicate the total number of sick days you took out in the past year?
  • Have you ever been admitted in hospital?
  • Do you suffer from any medical condition that could hamper your sight, hearing, coordination or other sensory ability?

(For good measure, it also asks for employees’ dates of birth, which would constitute unlawful age discrimination, and height and weight, which could have a disparate impact based on sex).

The website says, “During the recruitment process most companies require to find out the medical history of all prospective employees.” Trust me, the only companies that ask for this information from prospective employees are those that want to find themselves on the losing end of a disability discrimination lawsuit. When searching the Internet for DIY policies and forms, do yourself and your business a favor and run them by employment counsel before using them. One 15 minute consultation could save you years in court and hundreds of thousands of dollars in legal bills.


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, February 21, 2011

Oh my god, they're really alive!


We found this when we returned to our little guy's room after a walk. We love the peds staff at the Clinic.


Patrice O’Neal on sexual harassment (NSFW)


Today is President’s Day (no, this post is not a dated Bill Clinton joke). The courts are closed. The banks are closed. There’s no mail. And, we’re still in the hospital with our son (who has stabilized), in need of a laugh or two. I saw this over the weekend on Comedy Central. Because the topic fits and it made me laugh really hard, I thought I’d share (with tongue planted firmly in cheek).

The video is definitely NSFW, so if you are working today you might want to wait until you get home tonight to press play. And if you’re easily offended you might just want to to skip the video altogether. Patrice is about as un-PC as they come. You’ve been warned.

Enjoy. I’m back tomorrow with more serious content about the risks of using the Internet as the source for your HR policies and forms.

Jokes.com
Patrice O'Neal - Harassment Discussion
comedians.comedycentral.com
Jokes Joke of the Day Funny Jokes

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, February 18, 2011

WIRTW #165 (the medical update edition)


So we’re on day 9 at the Cleveland Clinic, the only medical facility in the world where it’s actually a good think to say you’re at the Clinic. Our little guy seems to have stabilized. The juices flowing out of his stomach are ever so slightly less in volume and lighter in color, which suggests that the very large hematoma that is blocking one-third, and maybe as much as two-thirds or even all, of his small bowel, is starting to slowly subside. This is not to say that we are headed home anytime soon. He’ll need to be off the NG tube for at least 24 hours, and able to keep drink down without vomiting before they’ll even think about discharging him. It could be anywhere from another week to three weeks before he can again sleep in his Buzz Lightyear bed. In the meantime, we continue to watch his blood counts, which have been low. There was talk of a transfusion the past couple of days, but I think we’ve dodged that bullet. And, if there’s a bright side (which I usually try to find), we’re hoping the nourishment he’s getting through his PICC line will fatten him up some, since he’s a little guy to begin with.

Thank you everyone for your thoughts and prayers this past week. It means more than I can communicate.

Here’s what I read this week (trust me, I’ve had a lot of downtime staring at the hospital room walls):

Social Media & Workplace Technology

Discrimination

Wage & Hour

Labor Relations

HR and 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, February 17, 2011

Out of work? Out of luck. EEOC hold meeting on use of employment status as screening tool


As I reported yesterday, the EEOC held its public meeting on the use of the exclusion of unemployed persons from applicant pools, a practice which it calls "emerging." As I expected, the EEOC is using this meeting to explore whether the use of employment status has a disparate impact on certain racial and ethnic minorities, such as African-Americans, Hispanics, and Native Americans.

According to the testimony of Algernon Austin, Director of the Program on Race, Ethnicity, and the Economy of the Economic Policy Institute, "any practice which disadvantages currently unemployed workers relative to similar employed workers will likely have a disproportionate negative impact on people of color." The Commission also heard testimony from Colorado School of Law Profession Helen Norton, who considered various defenses employers could raise under the anti-discrimination laws to a claim of disparate impact. Professor Norton considered possible claims of job-relatedness and business necessity, such as current employment as a signal of job performance, current employment as a proxy for relevant experience, and as a tool to reduce the number of applications received. With little explanation, she rejected each possible defense.

The EEOC did take testimony from two advocates for employers, James Urban, an attorney with Jones Day, and Fernan Cepero, Vice President for Human Resources The YMCA of Greater Rochester and representative of the Society for Human Resource Management. Mr. Urban relied on his experience to cast doubt on the legitimacy of this issue as a real problem:
At end, under the widespread practice that I have seen employers follow, the simple fact that the applicant is or was unemployed does not operate to disqualify the applicant. The reason the employer may decline to hire the applicant will be the underlying reason the applicant became unemployed, and typically it is job-related. In sum, it is my experience and belief that there is not a widespread practice among employers to disqualify applicants on the basis of unemployment. I submit to you that the anecdotal examples contained in a media reports over the past year or so regarding such circumstances are, when viewed in the broad scope, isolated incidents.
Mr. Cepero elaborated further, challenging that the blanket exclusion of the unemployed is not a good HR practice, and runs contrary to the best interest of companies that simply look to fill jobs with the best people available:
Employers, in SHRM’s experience, whether operating in the currently challenging economy or in more robust times, are focused on finding the right people for the job, regardless of whether or not they are currently employed. Our members recognize that any type of blanket exclusion raises concerns under Title VII. What’s more exclusionary policies are poor business practices because they prevent organizations from accessing some of the best available knowledge, skills and abilities in a given labor force.
This public meeting was fascinating. The EEOC is looking for systemic discrimination in new and unique places. Just because something might be bad business, however, does not mean it is discriminatory. Nevertheless, employers who use blanket screening tools such as employment status should be aware that the EEOC may be watching. Employers would be wise to document the job-relatedness and business necessity for all screening tools to be prepared if the EEOC appears on your doorstep.

For more information about yesterday's meeting, the EEOC has published the bios and written testimony of each of its presenters.

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 16, 2011

EEOC to examine the treatment of unemployed job seekers


Later this morning, the EEOC will hold a public meeting to examine employers’ practices of excluding currently unemployed persons from applicant pools. Presumably, the EEOC is considering whether using current unemployment status as an applicant screening tool has a disparate impact based on race.

As a management-side attorney, my natural inclination is to write this story off as the EEOC looking for another way to hamstring the ability of companies to use their best judgment in making personnel decisions. Then, I considered the following data, provided by the Center for Economic and Policy Research:

jobs-ge-2010-09

If the unemployment rate for blacks is nearly double that for whites, and Hispanics nearly 50% higher, can one argue in good faith that a disparate impact does not exist? I am not a statistician, but the impact of this data looks significant to me. Is the real question, then, not whether unemployment status has a disparate impact, but whether using current employment status is job-related for the position in question and consistent with business necessity? I can envision lots of legitimate uses for employment status as a screening factor for lots of types of jobs.

I am very curious to the read the speakers’ comments from today’s EEOC meeting to understand their thoughts on the legitimacy of using this criterion as a screening factor. I am sure I will have more to share tomorrow after digesting the notes from today’s EEOC meeting.


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, February 15, 2011

New York Times on workplace smoking bans


Last week, the New York Times reported on a growing trend in the medical profession: hospitals and other health care providers that refuse to hire smokers:

More hospitals and medical businesses in many states are adopting strict policies that make smoking a reason to turn away job applicants, saying they want to increase worker productivity, reduce health care costs and encourage healthier living. The policies reflect a frustration that softer efforts—like banning smoking on company grounds, offering cessation programs and increasing health care premiums for smokers have not been powerful-enough incentives to quit.

The Cleveland Clinic, for example, will not hire any smokers. Its website also offers a good example of a nonsmoking hiring policy [pdf]. It also has banned the sale of any non-diet sodas anywhere on its campus. It has no problem, though, selling McDonalds, doughnuts, and hubcap sized cookies (which are delicious) in its cafeteria, so explain that logic to me.

For her part, the Evil HR Lady believes that these policies make for bad human resources:

Companies should focus on offering incentives for quitting. Smokers should have to pay higher health insurance premiums. But, if they ban people who smoke entirely, they are missing out on some great people, who made a big mistake at 13.

As for me, I’m ambivalent as to whether it is good policy or bad policy to screen out smokers from your hiring pool. I’m against these policies for another reason—they may constitute unlawful disability discrimination. As I wrote more than a year ago:

[T]he “regarded as” prong of the new ADA is sufficiently broad to possibly encompass actions taken against employees pursuant to employer anti-smoking policies.... Employees can claim that anti-smoking policies violate the ADA. Addiction is a protected disability. Diseases related to or caused by smoking (cancers, lung diseases, asthma, and other respiratory conditions, for example) are also protected disabilities. Employees will claim that an adverse action taken pursuant to an anti-smoking policy is being taken because the employer regards the employee as disabled. Adverse actions taken against employees because of smoking should now be viewed as high risk, at least until courts begin weighing in on this controversial issue.

So, readers, I turn the floor over to you. A poll in Crains New York is running 54% to 46% against smoker discrimination. Does your workplace have an anti-smoking policy? Are you for them or against them, and why?


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, February 14, 2011

A special circle of hell is reserved for lawyers that don’t extend professional courtesies


I write this post to vent, not to indict. I therefore withhold the names of the guilty.

For those that do not follow me on twitter, I’ve been dealing with an ill child for the past few days. What started as a routine endoscopy turned into an extended stay at the Cleveland Clinic after he developed a hematoma of the small bowel as a rare, but possible, side effect of the biopsy. After the scariest four days of my and my wife’s lives, he appears to be on the mend, although we have another couple of weeks before he is fully healed and home. From the bottom of my heart, I thank everyone for the well wishes these past days.

I was supposed to be in court this morning on a show cause hearing in what has been a very contentious case. On Friday, I left messages for all three opposing lawyers to explain that because of a family medical emergency I could not make the hearing, and to ask for their consent to a continuance. No matter how hard-fought the case, I would never dream that any attorney could refuse such a request under these circumstances. None of them even had the common courtesy to return my call.

I’ve long believed that Dante saved a special circle of hell for lawyers that do not extend common professional courtesies. Last Friday’s experience confirmed this suspicion.

Friday, February 11, 2011

WIRTW #164 (the you give love a bad name edition)


In honor of Valentine’s Day, Vault.com published the results of its annual office romance survey. The highlights:

  • 59% have participated in an office romance
  • 11% think office romances are never acceptable
  • 20% think any office romance is acceptable
  • 34% think employees of different levels should not engage in office romances
  • 26% have dated a subordinate, while 18% have dated a superior
  • 33% have had a tryst in the office, while only 4% admit to having been caught in the act (those poor 4%)

For more on the risks and dangers of office romances, I recommend Employers: Think Your Competition is Tough? Watch Out for the Valentine’s Day Card (from Daniel Schwartz’s Connecticut Employment Law Blog) and Do You Love Love Contracts? (from Manpower Employment Blawg).

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

Discrimination

Social Media & Workplace Technology

Labor Law

HR & Employee Relations

Competition & Trade Secrets


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 10, 2011

The asshole defense to harassment claims


Fortunately or unfortunately, not all upsetting or even mean-spirited conduct in the workplace is actionable. In the absence of an employee’s membership in a protected class, participation in a protected activity, or a clear public policy that prohibits the employer’s conduct, an employee cannot maintain a claim for harassment merely because his employment has become unpleasant or undesirable.

In other words, as an Ohio appellate court recently pointed out in Kimmel v. Lowe’s Inc. (quoted above), there is no law against general incivility in the workplace. Merely because the law does not provide a remedy against someone for being an asshole does not mean that you, as an employer, need to tolerate it. That decision, though, is an organizational one, not a legal one.


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.

Would you rather?


Career Overview’s list of the 25 most difficult jobs in the world caught my eye. So, to you, my readers, I pose the following question: Would you rather clean sewers in Calcutta (#6), or work as a porn theater janitor (#24)?

I love being an attorney. Even though it’s hard work, I am grateful everyday that I am able to earn a living this way.


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 9, 2011

Avoid “kitchen sink” pleading to maintain credibility


Ramadan v. MetroHealth Med. Ctr. (Ohio Ct. App. 1/13/11) is a medical malpractice case, which is an odd fit for a blog about employment law. It teaches, though, a universal lesson about the importance of selective pleading, and not merely throwing everything against the wall and seeing what sticks.

Briefly, Mai Ramadan’s husband died in the operating room during surgery for injuries he suffered while setting his wife on fire. She then sued for the hospital for medical malpractice and loss of consortium. On appeal, she argued that the trial court wrongly admitted evidence about the arson. The court of appeals ruled that because she brought a claim for loss of consortium, the jury was entitled to hear evidence about the quality of her marriage and the events that led to the injuries:

In the instant case, plaintiff argues that evidence of the circumstances that caused the fire and resulting injuries is irrelevant to plaintiff’s medical malpractice claim…. [P]laintiff did not limit her case to a claim of medical negligence. Plaintiff chose to also pursue a claim for loss of consortium, which required proof of damages.... Accordingly, evidence regarding plaintiff’s relationship with Ramadan is relevant to rebut her claim for loss of his “companionship, cooperation, aid, and affection.” Tragically, this evidence included that Ramadan abused plaintiff, ultimately setting her on fire.

To bring this full circle to the world in which we live – employment law – consider these words of caution from Moore v. Avon Prods. (N.D. Calif. No. C 06-03425 10/4/07) about how scattershot litigation undermines one’s credibility:

Simply put, Moore has failed to come forward with any evidence that Avon’s stated reasons for firing him are pretextual. Indeed, Moore’s kitchen-sink approach to his discrimination claims only serves to highlight the extent to which his claims are mutually inconsistent and unsupported by the facts. Was he discriminated against because he was disabled? Because of his age? Because of his sex? Because of his race? Or because of his religion? While Moore urges the Court to answer “all of the above,” on the basis of the evidence before the Court, it appears the correct answer is “none of the above.”

Many take the approach that when litigation in concerned, the more the merrier. As these examples show, sometimes what you don’t argue is more important than what you do argue.


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, February 8, 2011

Despite yesterday’s NLRB settlement, employees do not get a free pass on social media posts


The NLRB announced yesterday that it has reached a settlement in a case involving a Connecticut employee fired for posting negative comments about a supervisor on her Facebook page. According to the NLRB’s press release [pdf]:

Under the terms of the settlement approved today by Hartford Regional Director Jonathan Kreisberg, the company agreed to revise its overly-broad rules to ensure that they do not improperly restrict employees from discussing their wages, hours and working conditions with co-workers and others while not at work, and that they would not discipline or discharge employees for engaging in such discussions.

You can read my earlier thoughts on the filing of this charge for more background. Seth Borden’s Labor Relations Today also has details on yesterday’s settlement, including news of another charge on the horizon that may lead the NLRB to resolve this issue.

What troubles me about this story is how it is being portrayed by the news media. Our local NBC affiliate teased this story with the following: “Tune in at 11 to find out what you’re allowed to say about your boss on Facebook.” Neither this case, nor any other case, will give employees carte blanche to trash their employers on Facebook, Twitter, in the press, or at a Saturday night cocktail party. Employees have the right to discuss their wages, hours, and working conditions; they do not have a license to defame, disparage, or otherwise trash their company, management, product, or co-workers.

Don’t read too much into this recent foray by the Board into the brave new world of social media. Until the NLRB says otherwise, employers shouldn’t treat social media any differently than any other form of employee communications.

For more coverage in the blogosphere, I recommend Daniel Schwartz’s Connecticut Employment Law Blog, Philip Miles’s Lawffice Space, Eric Meyer’s The Employer’s Handbook, Defending the Digital Workplace, Workplace Prof Blog, Kashmir Hill’s The Not-So Private Parts, Hawaii Labor and Employment Law, and Wisconsin Labor & 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.

Monday, February 7, 2011

The most significant penny in the history of American jurisprudence? 6th Circuit remands case over one cent


What caused the court in Freeland v. Liberty Mutual Fire Insurance Co. (6th Cir. 2/4/11) [pdf] to write so eloquently about the fate of the penny?  

The penny is easily the most neglected piece of U.S. currency. Pennies tend to sit at the bottom of change jars or vanish into the cracks between couch cushions. Vending machines and parking meters will not accept them. Many people refuse to bend down to pick up a penny off the ground, deeming the reward not worth the effort. And a member of Congress even introduced legislation that would effectively eliminate the penny by requiring merchants to round their prices to the nearest nickel. See Currency Overhaul for an Industrious Nation (COIN) Act, H.R. 5818, 109th Cong. § 3(a) (2006). In this case, however, the penny gets a rare moment in the spotlight. The amount in controversy in this declaratory judgment action is exactly one penny short of the jurisdictional minimum of the federal courts.

A civil case arrives in federal court in one of two ways: the plaintiff files it, or the defendant removes it from state court. Either way, the federal court must have subject matter jurisdiction over the case—that is, the case either must arise under a federal statute, or all plaintiffs must hail from different states than all defendants and the amount at stake must exceed $75,000.

Make no mistake, these courts take their 3446286184_bdf555237f_mlimited jurisdiction seriously. Need proof? Freeland v. Liberty Mutual Fire Insurance Co. dismissed a case over one cent. The case involved a $100,000 insurance policy, over which the parties did not dispute the first $25,000 in coverage. Therefore, the court concluded that the amount in controversy was $75,000, not $100,000, which fell one penny short of the key necessary to open the gates to the federal courthouse. 

Imagine litigating a case for more than two years, only to learn that the entire case was litigated in the wrong court. The court was sympathetic (to a point), but remanded the case nevertheless:

The Court recognizes that vacating the district court’s judgment and remanding this case is painfully inefficient. This is especially so in light of the substantial resources that been spent litigating the merits of this case and the infinitesimal amount by which the amount in controversy falls short. But the Court simply has no choice in the matter.… The district court lacked the authority to grant Liberty Mutual’s motion for summary judgment. The only proper course is to remand this case back to state court for lack of federal jurisdiction.

In litigation, the little things really do matter.


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, February 4, 2011

WIRTW #163 (the all good things must come to and end edition)


I’m sorry to leave you all alone
you’re sitting silent by the phone
but we’d always known there would come a day
the bus is warm and softly lit
and a hundred people ride in it
I guess I’m just another running away 
I’m gonna pick it up
I’m gonna pick it up today
I’m bound pack it up
I’m bound pack it up and go away 
—I’m Bound to Pack It Up, The White Stripes
Don’t get scared. This blog lives on. But, from this point forward, February 2nd will no longer be know as Groundhog Day, but as the day The White Stripes broke up.

The White Stripes
As for me, I’ll always have the memory of the first time I heard the opening chords of Dead Leaves and the Dirty Ground, and was hooked for life.
Here’s the rest of what I read this week:

Discrimination
Social Media & Technology
Labor Law
Employee Relations & HR
Wage & Hour
Litigation
Non-Compete Agreements

Thursday, February 3, 2011

Are you searching employees’ work computers as part of litigation?


If you’re not searching a plaintiff’s work computer during litigation, this story may cause you to reconsider.

Tim Marcum is the head coach of the Arena Football League’s Tampa Bay Storm. He’s the most successful coach in the league’s history, winning 7 Arena Bowls. He’s now trying to win a different kind of fight, having sued the team’s former owner for unpaid salary. As part of the lawsuit, the defendant examined Marcum’s work computer, which revealed various displays of pornography and racist emails. For example:

  • Videos of women having sex with horses.
  • A video of two naked women using a funnel and fish to commit an unnatural sex act.
  • A picture of Air Force One as Watermelon One.
  • An email comparing Michelle Obama to a chimpanzee.
  • Frequent use of the “N” word in other parodies and email.

For his part, Marcum does not deny that he received or re-forwarded the offensive emails, pictures, and videos. Instead, he maintains that they would only be considered inappropriate if someone else accessed his email. and that they should not be an issue because he only shared them with friends. Tampa Bay news station WTSP shares excerpts from Marcum’s videotaped deposition:

Proper computer searches that forensically preserve the evidence for trial can be expensive. However, you do not know what you will find until you do the examination. Workplace pornographic and racist emails will be relevant in most employment lawsuits. After acquired evidence, theft of time, and proving a work environment is not subjectively hostile are but a few examples of their possible use. Between social media, emails, and other technology, there are fewer and fewer secrets between parties in litigation. The trick for businesses is to hire attorneys that know how to harness these tools for your benefit and properly advise you of the risks and dangers inherent in your own technology.


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 2, 2011

One is the loneliest number – unless you’ve filed an unfair labor practice charge


Lots of employers have lots of policies that they think are legal, but in fact are not. One perfect example is policies that prohibit employees from discussing their wages. Under the National Labor Relations Act, employees, whether unionized or not, have the right to engage in protected concerted activity. Because discussions of wages and other terms and conditions of employment qualifies as protected concerted activities, retaliation for the exercise of that right violates federal labor laws.

Protected concerted activity presupposes that more than one employee is engaged in the conduct. What happens, however, if an employer discovers that an employee is going to engage in protected concerted activity and preemptively terminates the employee before he or she has the chance.

In Parexcel International (1/28/11) [pdf], the NLRB concluded that a preemptive termination—that is, one that attacks an employee who intends to complain about wages—violates federal labor laws, even though the employee has not yet engaged in any concerted activity. As the NLRB explained;

That conclusion is supported not only by the plain text of Section 8(a)(1), by the policies underlying Sections 7 and 8(a)(1), and by the authorities cited, but it is consistent with other lines of Board precedent holding that, under certain circumstances, employees who have engaged in no concerted activity at all are protected from adverse action. For example, an adverse action taken against an employee based on the employer’s belief that the employee engaged in protected concerted activity is unlawful even if the belief was mistaken and the employee did not in fact engage in such activity. Similarly, a mass discharge undertaken without concern for whether individual employees were engaged in concerted activity—where “some white sheep suffer along with the black”—violates the Act. What is critical in those cases is not what the employee did, but rather the employer’s intent to suppress protected concerted activity.

Some commentators are already commending the NLRB for its expansion of employee workplace rights:

Professor Richard Bales, at the Workplace Prof Blog:

It seems to me that the Board is expanding the definition of protected-concerted activity a bit more then it's admitting.  Now, every time an employee complains and is subsequently fired, the employee can file an unfair labor practice charge, and it's a fact issue as to whether the employer was motivated by a desire to nip the complaint in the bud or by something else.

Randy Enochs at the Wisconsin Employment & Labor Law Blog:

This is a major victory for employees across the land and could lead to an increase in litigation but it's not exactly easy to prove that an employer terminated an employee to "nip-it-in-the-bud" or feared the employee would subsequently engage in protected activity making it harder to terminate them. Hopefully the end result is employers perhaps taking the time to ease employee concerns over working conditions instead of simply terminating the cause of stir.

Indeed, it certainly appears that Parexcel expands employee rights by creating a colorable unfair labor practice any time an employee suffers an adverse action after complaining about anything.

Let me take a different approach from the perspective of an employers’ advocate. If the NLRA covers any adverse action taken against any employee who complains about a term or condition of the workplace, why doesn’t the NLRA preempt any state law claim raising the same issue? For example, recently the 6th Circuit used a broad interpretation of federal preemption to dismiss a state law wrongful termination claim. Is it possible that by attempting to expand employee rights, the NLRB actually contracted them? I don’t profess to know the answer to this question, and we will have to wait for some bold employer to litigate the issue. I’m merely tossing it out there as a possible silver lining in an otherwise anti-business decision by the NLRB.

[Hat tip: LaborRelated]


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, February 1, 2011

Updating 20th century laws for the 21st century


At his Connecticut Employment Law Blog, Daniel Schwartz argues that it’s time to start modernizing our workplace laws. As an example, Daniel argues that federal labor laws should be updated to account for technologies such as emails and social media. I highly recommend reading Daniel’s full thoughts published in this week’s Connecticut Law Tribune.

For my own thoughts, I recommend two posts I wrote in 2007 and 2008, which discuss the need to modernize federal wage and hour laws:

We operate our businesses under laws drafted to address the workplace needs of the 1930s. To say that times have changed is an oversimplification of a much deeper problem. Until our legislatures modernize these laws, our businesses will remain saddled with the expensive and time-consuming problem of defending lawsuits over issues such as whether a non-exempt employee who spends a few minutes each night checking emails on his PDA should be compensated for that time. I suggest that we join Daniel’s call for our legislators to start discussing these issues so that we can work towards a meaningful modernization of stagnant 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.

Monday, January 31, 2011

Not every employee needs a noncompete


Noncompetition agreements are fabulous tools. They protect employer’s trade secrets and other confidential and proprietary information, customers, goodwill, and special training and skills your employees acquire at your expense. But, not every employee is worthy of locking down with such an agreement.

For example, consider Mark Philips Salon & Spa v. Blessing (Ohio Ct. App. 1/28/11) [pdf]. The salon hired Blessing as a hair stylist. Blessing signed a noncompetition agreement on her first day of employment. When she resigned to accept a position at a competing salon less than five miles away, she got sued. Even though Blessing admitted that she violated the agreement by soliciting former customers, the court of appeals concluded that it was unreasonable for the salon to enforce the agreement against her:

Blessing testified that she was an experienced hair dresser and had worked for two other salons previous to her employment with MPS. Blessing brought approximately thirty clients with her to MPS, and while there she acquired approximately twenty more. Blessing testified that virtually all of her clients are obtained through referrals from other clients, and there is no evidence that MPS did anything that benefitted Blessing in obtaining any of her clients. Blessing also testified that MPS gave her no particular training or skill that she uses…. Blessing testified that after she left MPS she created a list of all her former clients “from my brain, from my knowledge.” There is no evidence that she obtained that information from a database or list maintained by MPS.

By engaging in competition with MPS as she has, and especially by mailing solicitations to clients she obtained while employed by MPS, Blessing violated her agreement with MPS in those respects. However, on this record there is nothing in the competition with MPS in which Blessing has engaged that makes it unfair. Blessing uses no trade secrets or competitive advantages she obtained from MPS. The competition MPS seeks to prevent is merely ordinary competition. Therefore, the covenant not to compete cannot be enforced.

What lessons can employers learn from this case? Noncompetition agreements are wonderful tools that all employers should have in their shed. Employers, however, should use narrowly drafted noncompetition agreements that only reach those legitimate interests worthy of protection. And, if there is no such interest, consider foregoing an agreement at all. Otherwise, you might end up spending lots of money in court in a vain attempt to enforce an unenforceable contract.


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.