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December 1, 2004
MHTL Monthly Labor, Employment, Benefits
& Governance Alert - December 1, 2004
Mistake Of The Month - The NLRA Bites Another Non-Union Employer
In United Services Automobile Association v. NLRB, 2004
WL 2514343 (D.C.Cir., 11/9/04), the Company did not have a
union in its workplace, and this situation did not involve
any organizing activity either. An employee anonymously distributed
fliers after working hours expressing coworkers' concerns
about the company's layoffs of long?term employees. The company
interrogated her about who was involved. Fearing retaliation,
she was evasive in her responses. When she later admitted
to the general manager of the company that she had distributed
the fliers, she was discharged for lying during the interrogation.
She filed a charge with the National Labor Relations Board
(“Board”).
The Board ruled that the company violated section 8(a)(1)
of the National Labor Relations Act ("Act"), by
interrogating the employee about concerted activity protected
under section 7 of the Act, and by terminating the employee
for engaging in such activity. The company appealed and contended
that the employee's concerted activity was not protected under
section 7 because it violated the company's valid workplace
rules, and that even if the activity was protected, the company
did not violate section 8(a)(1) because it had legitimate
business reasons for questioning the employee about her hours
and work. Further, the company contended that it properly
discharged the employee for lying, irrespective of her concerted
activity.
The Court upheld the Board. The Court ruled that the Company
failed to show that the Board erred in finding that the workplace
rules were invalid because overly broad or not clearly disseminated
to employees. The company also failed to show that the Board
erred in finding that the interrogation was coercive in view
of the company's admissions and the questions asked. The Court
ruled that the employee’s actions were protected by
Section 7 of the Act in that they were both “protected,”
i.e., related to terms and conditions of employment generally,
and were “concerted,” i.e. engaged in for the
benefit of employees generally. Because the Company questioned
the employee about who else was involved in this activity
protected by Section 7 of the Act, the questioning was viewed
as “interrogation,” particularly where the Company
admitted it was trying to find out who else was involved.
Finally, with respect to the Company’s claim that it
lawfully terminated the employee for lying, the Court wrote
that:
The company's contention that it could lawfully terminate
Williams for lying during the interrogation, even if her
discharge was also motivated by retaliation against her
for distributing the fliers, is without merit. . . . There
was substantial evidence in the record to support the Board's
finding that Williams had responded evasively during the
interrogation because she feared retaliation against her
for engaging in protected concerted activity. The Board
was thus warranted in concluding that Williams had no obligation
to respond to the questions in any particular manner and
that her dishonesty about her protected concerted activity
did not constitute a lawful reason to discharge her.
Thus the Court enforced the Board’s order, which
included reinstatement and backpay.
The Harshbarger Report
What
Is Trust Worth?
The costs of not having a climate of integrity should
be unacceptable to corporations. High integrity is good for
business. High levels of corporate integrity will add significant
value to the corporation both by avoiding costs and, more
importantly, by avoiding damaging losses of brand equity,
reputation, and marketplace influence - valuable sources of
competitive advantage. High integrity is good for business.
Unfortunately, without decisive leadership, the loss of credibility
and trust will be with us for a long while. Legislators, regulators,
critics and other external parties will have all the ammunition
they need to impose their own reform agenda on both publicly
owned and non-profit corporations. Without an aggressive program
of internal reform, CEOs, corporate leaders and boards of
directors risk becoming irrelevant to the process.
Thankfully, there is a lot that can be done about corporate
integrity from the inside. It is not a “by the numbers”
issue, but the consequences of not addressing corporate integrity
are tangible, expensive and potentially disastrous. Generating
compliance with new and explicit integrity guidelines is an
important first step. Creating an organizational climate that
will motivate all members of the company to live and act with
integrity is a second. The best test, of course, is whether
the company acts with integrity in a consistent manner, properly
balancing its own interests with the interests of the general
public. No leader could leave a better legacy than this, and
nothing could do more to restore public trust in American
business.
Other Employment Law Headlines
Notice Of Nonrenewal
Not The Equivalent Of A Constructive Discharge
In Cigan v. Chippewa Falls School District, 2004 WL 2483132
(7th Cir., 11/5/04), the Plaintiff physical?education teacher
claimed that she was forced to retire by the school district’s
failure to accommodate her ailments??arthritis, bursitis,
degenerating spinal discs, scoliosis, and spondylitis. Suffering
from these afflictions, Plaintiff had begun to take more time
off and come to school late; she also needed the school's
other teachers to cover her duties or adjust the length of
their own class periods while she rested. For its part, the
school district concluded that Plaintiff either had become
a slacker or had accumulated so many physical problems that
she no longer could do the job even with accommodations; thus
in January 2003 the superintendent notified Plaintiff that
he would recommend that the district not renew her contract.
Plaintiff then gave 6 months notice of her retirement, which
apparently improved her benefits package.
Plaintiff claimed that she was constructively discharged.
Under prior cases, the Court noted that"unendurable working
conditions" are functionally the same as a discharge,
but this was not the Plaintiff’s claim. Basically the
Plaintiff argued a notice of intent to commence a process
leading to discharge may be treated, at the employee's election,
as a completed discharge, even if the employer does not undermine
the employee's position, perquisites, or dignity in the interim.
Both the District Court, and the 7th Circuit Court of Appeals,
rejected this argument. The Court ruled that this approach
would require courts to engage in total speculation about
what might or might not have happened had the discharge process
been allowed to run its course, especially in light of grievance
procedures in collective bargaining agreements, and in light
of the fact that a public employee generally is entitled to
notice and an opportunity to be heard prior to discharge.
Plaintiff also claimed not that she was actually “disabled,”
but that she was regarded as disabled and thus entitled to
a reasonable accommodation. The Court noted that a person
is "regarded as disabled" when the employer, rightly
or wrongly, believes that she has an impairment that substantially
limits one or more major life activities. However, the Court
refused to go so far as to rule, as the Plaintiff suggested,
that because the district made some efforts at accommodation,
it must have regarded her that way. As the Court noted, “[d]ecent
managers try to help employees cope with declining health
without knowing or caring whether they fit the definition
in some federal statute. Managers also may respond to state
laws, local regulations, collective bargaining agreements,
and other norms that go beyond federal law. These may create
legal entitlements or practical expectations without implying
anything about ‘disability’ under the ADA. Cigan
offers no reason to conclude that the principal at her school
knew, supposed, or cared anything about the effect of her
conditions on ‘major life activities’ when providing
breaks, chairs, and other assistance to continue teaching.”
Thus the Court ruled that because “the record would
not permit a reasonable trier of fact to conclude that the
school district regarded Cigan as ‘disabled,’
we need not decide whether the ADA requires an employer to
accommodate the demands of a person who is regarded as disabled
but lacks an actual disability. That is a subject on which
decisions are in conflict.”
Arrest For Possession
Of Drug Paraphernalia, And Subsequent Lies About It, Sufficient
To Justify Random Drug Testing
In Relford v. Lexington-Fayette Urban County Government,
2004 WL 2674289 (6th Cir., 11/24/04), the Plaintiff began
work as an electrician with the County in July 1993. He was
arrested and imprisoned on May 29, 1997, on charges of criminal
trespass and possession of drug paraphernalia. As a result
of his incarceration, Plaintiff was unable to report to work
on the following day, and he commissioned a friend to help
him devise an excuse that would innocently explain his absence
from work. Shortly thereafter, this friend apparently contacted
the County and falsely reported that Plaintiff's absence was
due to sickness. Plaintiff’s supervisor subsequently
learned of his arrest and his improper use of sick leave,
and suspended the Plaintiff for a period of five (5) days
and issued him a notification of Reasonable Cause Testing
("RCT"), meaning that the Plaintiff would thereafter
be subject to random drug testing.
Plaintiff refused to submit to random drug testing and the
County began termination proceedings through the state Civil
Service Commission, which ultimately upheld discipline but
reduced Plaintiff’s termination to a thirty (30) day
suspension with a requirement that Plaintiff participate in
the County’s Employee Assistance Program (“EAP”).
Random drug testing was part of the EAP process, and when
Plaintiff was randomly selected, he tested positive for drug
use, whereupon the County recommenced termination proceedings.
Plaintiff then resigned, claiming he had found another job.
He then sued the County, claiming, among other things, that
an arrest for possession of drug paraphernalia did not constitute
reasonable grounds for randomly drug testing a government
employee. The District Court entered judgment as a matter
of law in favor of the County after finding that, under the
circumstances of this case, the County had reasonable suspicion
to support its order requiring Plaintiff to undergo random
drug testing.
On Plaintiff’s appeal to the 6th Circuit Court of Appeals,
that Court affirmed the District Court. The Court found that
the Plaintiff had been arrested for possession of drug paraphernalia,
falsely called in sick, abused sick leave, and falsified a
report. As the Court wrote:
The nature of Relford's employment misconduct, i.e., his dishonesty
to his employer exemplified by his efforts to cover up the
reasons for his work absence, when accompanied by his arrest
for criminal trespass and possession of drug paraphernalia,
reasonably suggests his use of the paraphernalia for the consumption
of illegal narcotics. Whether a mere allegation of possession
of drug paraphernalia, standing alone, would support reasonable
suspicion sufficient to justify employee drug?testing is not
before us. In the present controversy, however, the undisputed
facts sufficiently establish reasonable suspicion that Relford
was probably using controlled substances.
Thus the requirement that the Plaintiff participate in the
drug and alcohol abuse EAP and be subject to random drug testing
did not constitute an unreasonable search for Fourth Amendment
purposes.
Update - Plaintiff
Prevails On First Circuit Remand Case, Reversing Original
Decision
In a case we first reported on in last May’s Newsletter,
Cariglia v. Hertz Equipment Rental, the 1st Circuit Court
of Appeals had ruled that a corporation can be held liable
for discrimination when neutral decision makers, free of any
age-based animus themselves, rely on information that is manipulated
by another employee who harbors age-based discriminatory animus.
The Court remanded the case to determine whether or not the
Plaintiff had shown that his former supervisor withheld crucial
information from the decision-makers.
Judge Lindsay, on November 5, 2004 (2004 WL 2490658 (D.Mass.,
11/5/04)), wrote that “[t]he First Circuit concluded
that if [the Plaintiff’s supervisor] Heard is found
to have withheld the aforementioned exculpatory information
from his superiors, then ‘the subordinate [Heard], by
concealing relevant information from the decisionmaking employee[s]
or feeding false information to [them], is able to influence
the decision.’ . . . Thus, ‘the issue of the booms
as grounds for termination would be impermissibly tainted
with Heard's animus.’ And so it is based on the foregoing
finding. Accordingly, I find HERC liable as to the plaintiff's
claim of age discrimination.”
Thus the Court entered judgment for the Plaintiff in the amount
of approximately $827,000.00 (of which $170,000.00 was for
emotional distress), plus 12% interest per year for each year
since 1996 when the case was filed.
Mass. Appeals
Court Affirms Jury Finding Of “Actual Malice”
In Interference With Employment Claim
In Falcon v. Leger, 62 Mass. App. Ct. 352 (10/29/04),
the Plaintiff was an at-will quality-control employee who
worked for the Defendant wire and cable manufacturer. He claimed
that his supervisor, Leger, wrongfully interfered with his
employment by firing him for his refusal to comply with the
supervisor’s instructions to interfere with a product
inspection process conducted by a private, independent testing
laboratory upon which government inspectors rely to insure
the safety of the public. A jury found in Plaintiff’s
favor, and the Defendant appealed.
On appeal, the Defendant argued that the evidence did not
support a conclusion that his conduct in firing the Plaintiff
from his quality control job constituted "actual malice,"
and that the judge erroneously denied his motions for a directed
verdict and judgment notwithstanding the verdict or in the
alternative for a new trial. He also argued that the evidence
was insufficient to show that he was not acting within the
scope of his privilege to terminate an at?will employee when
he let Plaintiff go, and that Plaintiff had failed to overcome
that privilege with sufficient evidence that Leger acted with
a "spiteful, malignant purpose, unrelated to the legitimate
corporate interest."
The Court disagreed and affirmed the jury verdict for the
Plaintiff. The Court ruled that there was plenty of evidence
that “supported the conclusion that Falcon was discouraged,
both explicitly by Leger and by the implicit threat of discharge,
from reporting suspected UL violations by JM that had the
potential to affect the safety of the population at large.
Falcon's good faith dispute with management over an electrical
product deemed to be unsafe by an independent testing laboratory
concerned much more than just matters internal to JM.”
Thus Leger’s conduct amounted to a violation of a clearly
established public policy grounded in statutes and regulations
designed to minimize potential hazards of fire and shock associated
with poorly insulated electrical wire. Consequently, as Leger's
actions did not comport with any legitimate corporate interest,
the Plaintiff succeeded in establishing that Leger abused
his privilege to fire Falcon. Thus the jury’s verdict
against Leger stands.
Less Than Ideal,
But Not Hostile
In Smith, Gerrero, Weaver, and Reeves v. Northeastern
Illinois University, 2004 WL 2475104 (7th Cir. (Ill.) 11/4/04),
the Plaintiffs were employed by the University’s Public
Safety department. From 1984 through 1997, there were instances
of offensive and derogatory language and other questionable
conduct by police officers and directors at the Department.
After the employees requested an independent investigation
to determine whether there were racially-motivated incidents
and retaliation, the external investigation found that there
were personality clashes but no racial discrimination. Then
the Plaintiff Weaver urged the Department to hire experts
to address racial discrimination, and the experts found that
there was no racial discrimination but there were tensions,
which may have appeared “racial in nature on the surface.”
The employees sued, and claimed that they were victims of
discrimination on account of their race by the Employer creating
and tolerating a hostile work environment. The District Court
had granted summary judgment for two of the employees. The
District Court allowed two other employees to go to trial,
and they lost, whereupon the Court denied their motion for
a new trial.
On appeal to the 7th Circuit Court of Appeals, the Court affirmed
the rulings of the District Court. The Court first addressed
the hostile work environment claim and how a plaintiff must
show “(1) he was subject to unwelcome harassment; (2)
the harassment was based on his race; (3) the harassment was
severe or pervasive so as to alter the conditions of the employee’s
work environment by creating a hostile or abusive situation;
and (4) there is a basis for employer liability.” The
Court noted that in order to satisfy the “severe or
pervasive” prong, the plaintiff must show that the work
environment was both subjectively and objectively offensive,
which is a reasonable person standard. The Court agreed with
the District Court that these Plaintiffs had not satisfied
this prong because the work environment was not objectively
hostile within the meaning of Title VII. That is, “[o]ne
utterance alone does not create an objectively hostile work
environment”; especially in this situation where the
harassment was not directed at the complaining party.
Next, the Court addressed the plaintiffs’ claim that
the defendants retaliated against them by creating and tolerating
a hostile work environment after they complained about the
alleged unfair treatment. The Court explained that the plaintiffs
must prove that they “(1) engaged in statutorily protected
activity; (2) suffered an adverse employment action taken
by the employer; and (3) a causal connection between the two.”
Here, the court held that alleged events such as intimidation
during a car ride, an anonymous letter, and a comment directed
at one of the plaintiffs stating “those two will be
losing their homes,” did not create an abusive environment
that would change one’s employment for one of the two
plaintiffs alleging retaliation. Additionally, for the other
plaintiff alleging retaliation, the court ruled that the plaintiff
did not establish that the actions she complained of made
it harder to do her job.
Bad Attitude Versus
Race Discrimination
In Herron v. Daimler-Chrysler Corporation, 2004
WL 2453755 (7th Cir., 11/3/04), the Plaintiff, an African-American
male, became a supervisor in 1994. From 1994 to 2000, however,
he was continually disciplined due to his difficultly interacting
with his subordinates, peers, and superiors. Plaintiff also
made two complaints to the Workforce Diversity group during
his employment. Both times subsequent investigation resulted
in a finding of no discrimination. Plaintiff then resigned,
claiming that his work environment was so hostile that he
was constructively discharged, and sued the Company claiming
race discrimination, harassment, and retaliation. The District
Court entered summary judgment on behalf of the Company.
The Plaintiff appealed to the 7th Circuit Court of Appeals,
which affirmed the holdings of the District Court. The Court
found that Plaintiff had a “confrontational and disrespectful
attitude” at the work place. The court systematically
analyzed each of the Plaintiff’s allegations. First,
race discrimination, the Court found that Plaintiff failed
to establish a prima facie case because he did not show that
he was meeting the Company’s legitimate expectations
of job performance or that any similarly situated employee
was treated more favorably. Second, the court held that Plaintiff
failed to establish a retaliation claim; this claim, based
on such actions as a two-month delay in payment of overtime
or transfers to different departments and shifts, the Court
ruled constituted “minor annoyances” and not adverse
employment actions. Moreover, Plaintiff failed to prove that
the causal connection between the statutorily protected activity
and the retaliation due to inconsistencies in timing.
The Court also found that Plaintiff’s racial harassment
allegation based upon a hostile work environment failed because
Plaintiff offered no evidence that the alleged harassment
was based on his race. Rather, the court stated that “[h]is
problems were not related to his race—they were related
to him.” The court further explained that the allegations
of transfers, late overtime payment, and difficulties with
managers was “neither severe nor pervasive enough to
constitute harassment,” but was “normal workplace
friction.”
Legislative/Regulatory Actions
Of Note
IRS “Clarifies”
Employment Tax Treatment Of Payments Made For Signing Or Cancelling
Employment Contract
On November 23, 2004, the Treasury Department and the
IRS published two revenue rulings clarifying that payments
by employers to employees made in connection with employment
contracts are to be treated as wages for purposes of FICA,
FUTA and Federal income tax withholding.
The first ruling, Revenue Ruling 2004-109, clarifies that
employment taxes must be paid – and income taxes withheld
– on bonuses paid for signing of an employment contract.
The ruling addresses situations such as signing bonuses paid
in connection with the first contract between a baseball club
and a baseball player and payments made upon ratification
of a collective bargaining agreement. The bottom line is such
payments are treated as wages for purposes of employment taxes
and income tax withholding.
The second ruling, Revenue Ruling 2004-110, concerns payments
made in connection with the cancellation or termination of
an employment contract. The ruling clarifies that, if an employment
contract is cancelled before its agreed-upon end and a payment
is made in lieu of the remaining period of employment, the
payment is treated as wages for purposes of employment taxes
and income tax withholding. Both Revenue Rulings can be found
at www.treas.gov/press/releases/js2114.htm.
Because these rulings revoke or modify prior rulings, the
IRS states that the new rulings will not apply to certain
payments made before January 12, 2005, such as signing bonuses,
sign-on fees or other amounts paid in connection with an employee's
initial employment or payments made or agreed to on the cancellation
of an employment contract. This relief applies only where
the facts and circumstances relating to the payments are substantially
the same as the revoked or modified rulings.
H-1B Relief, Sort
Of
The budget bill approved by the Senate and House on November
20, 2004 (and probably signed by President Bush by the time
you read this), contains several provisions relating to the
H-1B employment-based visa program for highly skilled workers.
As we reported in October, the annual 65,000 cap on new H-1B
visas was exhausted even before the 2005 fiscal year began
on October 1. The new legislation provides for another 20,000
available visas for FY 2005, but has a few strings attached.
These visas are available only for foreign master’s
and doctoral degree candidates who are currently enrolled
in an American college. The $1,000 filing fee for employers
is raised to $1,500, and has added to that a new $500 “fraud”
fee. Another change is that the employer must pay 100% of
the Department of Labor prevailing rate, rather than the current
95%.
OFCCP Proposes
Pay Bias Standards And Self-Evaluation Guide
In the November 16, 2004, Federal Register, the Office
of Federal Contract Compliance Programs (“OFCCP”)
published two items of interest to federal contractors and
their subcontractors. The first is “guidance”
on compliance with OFCCP’s regulatory requirement under
Executive Order 11246 (basically subjecting federal contractors
and their subcontractors to non-discrimination in employment)
that employers routinely review their compensation programs
to determine whether there are any gender, race or ethnicity-based
disparities. As OFCCP notes, one problem in these self-evaluations
is that they can, at least arguably, be used in litigation
against the employer. On the other hand, there also arguably
is a “self-evaluation” privilege, so maybe those
self-evaluations cannot be used in litigation. OFCCP provides
a set of standards which, if complied with, will satisfy the
requirement to do an appropriate self-evaluation. OFCCP also
states that an employer may “certify” that such
a self-evaluation was done, rather than provide the self-evaluation
to OFCCP and thus maybe destroy any privilege that might apply.
But of course OFCCP then will take their own look at the employer’s
compensation practices without regard for the analysis or
results of the self-evaluation. So you’re really darned
if you do and darned if you don’t.
The second publication offers OFCCP’s interpretation
of EO 11246's non-discrimination requirements, which apparently
is the first time the agency has issued anything in writing
on this issue. Essentially OFCCP provides that it will interpret
the Executive Order as banning systemic discrimination in
employment compensation “involving dissimilar treatment
of individuals who are similarly situated, based on similarity
in work performed, skills and qualifications involved in the
job, and responsibility levels.” The document is lengthy
and federal contractors and their subcontractors should review
it carefully.
The latter document can be found at http://frwebgate3.access.gpo.gov/cgi?bin/waisgate.cgi?WAISdocID=3169866748+0+0+0&WAISaction=retrieve;
the former document can be found at
http://frwebgate3.access.gpo.gov/cgi?bin/waisgate.cgi?WAISdocID=3169866748+2+0+0&WAISaction=retrieve.
FLSA/FMLA Cases
A Reasonable
Employee Would Have Attempted To Resolve Things Before Quitting
And Suing
In Haley v. Alliance Compressor, 2004 WL 2608271 (5th
Cir., 11/17/04), Plaintiff was employed in the Company’s
Human Resources department. After a couple of years of good
evaluations, an employee survey was critical of Plaintiff
and her subsequent evaluations raised performance issues.
After a meeting with her supervisor at which he raised performance
deficiencies, Plaintiff completed a temporary disability claim
form; the next day she saw her physician who diagnosed a stress/anxiety
disorder, which Plaintiff claimed arose from her employment.
Her doctor recommended that she take a leave of absence from
work, and she took FMLA leave. While on leave she received
a merit wage increase. While on leave there apparently was
some discussion about terminating Plaintiff’s position,
and when she returned she was put on a performance improvement
plan. Plaintiff claimed that subsequently her performance
was constantly monitored and she was micromanaged, and she
resigned shortly thereafter.
She then sued the Company, claiming she had been constructively
discharged and alleging that the Company had violated the
Family Medical Leave Act (“FMLA”), by (1) denying
or interfering with her protected FMLA right to be restored
to her pre?leave job and (2) retaliating against her for using
approved leave under the FMLA. Specifically the Plaintiff
alleged that the Company fabricated deficiencies in her work
performance and set an overly strict performance plan for
her; threatened to fire her if she did not meet her teamwork
goals; micromanaged her; excluded her from HR Department meetings;
and ridiculed her in front of her coworkers. Thus, Plaintiff
reasoned, the Company interfered with her working conditions
upon her return from leave and retaliated against her for
taking such leave, which compelled her to resign. The District
Court granted summary judgment for the Company because it
found Plaintiff did not provide material evidence of a constructive
discharge; that is, by an objective person standard, a reasonable
person in the Plaintiff’s shoes would not have felt
compelled to resign, and thus evidence of the Company’s
intent was not relevant.
On appeal to the 5th Circuit Court of Appeals, the Court determined
that while the District Court applied the wrong standard,
even under the correct standard the Plaintiff still had not
proven her case. The Court first noted that evidence of the
Company’s intent was relevant in applying the “reasonable
person” standard. Thus, the Court ruled that “the
correct question to ask here is whether a reasonable employee
who received similar information of what events had transpired
while she was on leave, including the excluded evidence construed
as showing employer intent, and otherwise experienced what
Haley did after her return to work at Alliance would have
felt compelled to quit.”
Still, the answer was “no.” As the Court wrote:
Haley's situation is analogous to those cases where this Court
has affirmed summary judgment for the employer on constructive
discharge. Haley contends she faced humiliation and ostracization
from her peers, in addition to an overly severe performance
plan and micromanagement by her superiors. She also produced
evidence, which the district court incorrectly excluded, tending
to show her superiors' intent to remove her from her job while
she was on leave. However, upon her actual return from FMLA
leave, Haley (1) was not demoted; (2) received a three percent
merit salary increase approved while she was on leave; (3)
had similar, more focused job responsibilities; (4) was not
assigned menial or degrading work; (5) was reassigned to Hokky
and Anderson because Risinger had resigned; and (6) was favorably
accommodated when Alliance changed her schedule to 40?hour
work weeks. Therefore, the only factor Haley can rely on to
meet the reasonable employee test is "badgering, harassment,
or humiliation by the employer calculated to encourage the
employee's resignation."
The Court then determined that the treatment alleged by the
Plaintiff “does not constitute the type of badgering
or harassment designed to encourage the employee's resignation
that is required for constructive discharge. Also, having
one's work micromanaged may be unpleasant but does not constitute
a ‘greater degree of harassment than that required by
a hostile environment claim.’ . . . Plus, a reasonable
employee who genuinely felt these working conditions were
upsetting to the point of intolerable would have attempted
resolution of these concerns before choosing to quit after
just over two weeks back on the job.”
Thus the Court affirmed the District Court’s grant of
summary judgment in favor of the Company.
Restoration
Position Was Substantially Similar Despite Minor Changes In
Duties
In Mitchell v. Dutchmen Manufacturing, Inc.,
2004 WL 2660639 (7th Cir., 11/23/04), the Plaintiff worked
on a recreational vehicle assembly line where vehicles were
finalized and prepared for sale. Her job consisted of various
cleaning tasks, such as sweeping, wiping, and applying sticker
decals and putty to the vehicles. During a FMLA leave for
treatment of depression and anxiety, the Company consolidated
two of its production lines and reassigned personnel to different
tasks and departments; before consolidation, there were five
cleaning positions; after consolidation, only two.
Upon her return from FMLA leave, Plaintiff was assigned to
her former department and retained the same pay and benefits,
but some of the tasks expected of her had changed. She was
now required to use certain small hand tools, including an
electric screw gun, a screwdriver, and a seal (caulking) gun.
She was expected, for each vehicle, to apply caulk, crimp
four wires, and install six or seven screws, two with a screwdriver
and four or five with a screw gun. Aside from these new tasks
requiring her to use the tools, the Plaintiff continued to
perform the same cleaning duties as before her leave. A week
after her return, Plaintiff, using a screw gun for the first
time, injured her wrist. Eventually Plaintiff returned to
work after visiting a physician and told her supervisor of
certain restrictions, so he excused her from using the screw
gun but informed her that she should continue to use the seal
gun, using her left hand if necessary. As soon as her supervisor
advised her to continue using the seal gun, Mitchell walked
off the job and did not return. The Company’s Director
of Human Resources then mailed a letter to Plaintiff offering
to "accommodate" her new work restrictions and informed
her that her failure to return to work would be considered
a voluntary resignation. Plaintiff did not communicate further
with the Company.
She sued, claiming that the Company failed to restore her
to the duties she held before leave, and that the Company
constructively discharged her in retaliation for taking the
leave. The Company moved for and was granted summary judgment
by the District Court, which essentially found that Plaintiff’s
duties before and after her leave were equivalent, and thus
she had been restored to the same or a substantially similar
position.
The 7th Circuit Court of Appeals affirmed the District Court’s
judgment. The Plaintiff argued that her “new duties”
created at least a factual question as to the equivalency
of her jobs before and after taking leave and thus she was
entitled to a trial. The Court disagreed, and wrote that:
Not only did she retain the same pay and benefits after taking
leave, but her duties remained substantially similar. For
each vehicle, Mitchell estimates spending between a half an
hour and an hour to complete her tasks after taking leave.
The majority of that time was spent on tasks she had performed
before her leave: she spent approximately "five to ten
minutes" vacuuming, "thirty minutes" wiping,
and "five to six minutes" applying decals. For the
rest of the time, Mitchell performed the new tasks using small,
not physically taxing, hand tools. The tasks using the tools
took only a limited time??she applied caulk for "two
to ten" and "four to five" minutes, cut wires
for "a couple of minutes," used a screwdriver for
"a few minutes," and a screw gun for "a couple
of seconds." According to Mitchell's estimates, she spent
approximately 40 to 45 minutes on the same tasks that she
had performed before her leave, and only 10 to 23 minutes
on the new tasks. Given that the new tasks were neither overly
time consuming nor physically demanding, we agree with the
district court's assessment that Mitchell's duties before
and after her leave were substantially similar.
On The Employee Benefits Front
Employer Ordered
To Continue Health Benefits For Retirees
In McCoy v. Meridian Automotive Systems, 2004 WL 2624677
(6th Cir., 11/19/04),
Plaintiffs are a class of former employees who retired after
August 1, 1994. Several agreements between the plant's owners
and the employees' union purported to govern the health benefits
for employees and retirees, one of which specifically tied
the health insurance to receipt of pension benefits. On the
other hand, the Summary Plan Descriptions (“SPD”)
stated that health insurance benefits would terminate when
the collective bargaining agreement (“CBA”) did.
The Company closed the plant and terminated the CBA and retiree
health insurance benefits.
The District Court entered a preliminary injunction ordering
the Company to maintain the retiree health insurance, at least
pending resolution of the litigation. The Court concluded
that language in a supplemental agreement to the CBA equated
eligibility for retiree health benefits with eligibility for
a pension, which thus established a likelihood that the Plaintiffs
would prevail on their claim that the health benefits vested
upon retirement. "[W]hen this factor is combined with
the certain irreparable harm that may be suffered by individual
retirees during [the] pendency of this litigation," the
District Court reasoned, "an injunction must issue."
The Company appealed this issuance of a preliminary injunction.
On appeal, the 6th Circuit Court of Appeals upheld the preliminary
injunction. The Court first noted that parties to a collective
bargaining agreement may contract for benefits that continue
beyond the life of the agreement. Thus basic principles of
contract interpretation determine whether benefits survive
the expiration of an agreement. The Court also noted that
while prior cases had recognized an inference that "status"
benefits, including retiree benefits, continue as long as
the status is maintained, they also recognized that such benefits
are not necessarily interminable and no federal labor policy
establishes a presumption of vesting.
Here, the Court ruled that because the supplemental agreement
tied eligibility for retirement?health benefits to eligibility
for a pension, that the retiree health benefits had vested
and could not be terminated at all - at least, if the CBA
incorporated the supplemental agreement, which was a much
closer question. On that issue the Court ultimately ruled
that “while the ambiguities in [the agreements] permit
argument until one is ‘blue in the face,’ . .
. the district court correctly concluded??at least at this
stage of the litigation??that the collective bargaining agreements
incorporated the Supplemental Agreement.”
OK To Charge
For Retroactive COBRA Payments
In Chaganti v. Sun Microsystems, 2004 WL 2677169 (N.D.Cal.,
11/23/04), the Plaintiff was laid off from the Defendant Company
in 2001. The Defendant’s claims administrator sent Plaintiff
his COBRA notice to the wrong address, so Plaintiff never
received it. Plaintiff learned of his COBRA rights in 2001
and contacted the administrator. In June 2002, the administrator
invoiced Plaintiff for approximately $2,200 for retroactive
coverage from November 2001 through June 2002. Plaintiff paid
the amount under protest because he believed he was not obligated
to pay for premiums for a period in which he did not have
any benefits.
When Plaintiff failed to pay premiums in July 2002, the administrator
terminated his COBRA coverage. Plaintiff then sued, arguing
a COBRA violation by the Defendant’s failing to provide
him with notice of his right to continued coverage and then
by terminating his coverage in July 2002.
The District Court found that the Defendant violated COBRA
by failing to give Plaintiff timely and proper notice of his
COBRA rights. The Court ordered the Defendant to pay a penalty
of $12 per day, for a total of $2,292. The Court ruled that
even if the Defendant did not act in bad faith, the Plaintiff
still suffered some prejudice because of the lack of notice.
However, the Court rejected Plaintiff’s claim that the
Defendant violated COBRA by terminating his benefits in July
2002 after he failed to make premium payments. Plaintiff’s
claim was that the lump-sum payment he made in June 2002 covering
his retroactive premiums should have been applied to future
months because it was unlawful for Sun to charge him retroactive
premiums. The Court held, however, that “COBRA coverage
begins immediately on the date of the qualifying event, here,
Chaganti's termination." Thus the Court found that the
Defendant acted in compliance with COBRA by charging Plaintiff
retroactive premiums. The Court also suggested that the Plaintiff
here seemed a bit piggish:
Chaganti ... seeks to be placed in a better position than
if he had been properly notified of his COBRA rights in the
first place; if he had been so notified he would have had
to pay for coverage beginning with the date of his termination
regardless of whether he incurred any medical expenses during
that period of coverage. No court has held that a plan is
required to permit a former employee to commence COBRA continuation
coverage several months after the event that qualified the
employee for such coverage.
On The Public Sector Front
Replacement
Overtime Costs Not “Undue Disruption” Sufficient
To Deny Use Of Comp Time
In a compensatory time case involving police, Beck v.
City of Cleveland, 2004 WL 2566068 (6th Cir., 11/12/04), past
and present Cleveland Police Officers sued the City claiming
that the City unlawfully denied them use of their comp time.
The Plaintiffs contended that under the “undue disruption”
rule in Section 207(o)(5) of the Fair Labor Standards Act
(“FLSA”), a municipality cannot refuse to honor
a police officer's timely leave request solely to avoid payment
of overtime to substitute police officers. The City in turn
contended that its compensatory leave system did not violate
Section 207(o)(5) because Congress amended the FLSA to reduce
its financial burdens upon governmental entities; that under
Section 207(o)(5), the City can deny compensatory leave where
the payment of overtime to substitute police officers would
impose a financial burden upon the City; and that granting
the officers' leave requests would result in undue disruption
of the City's police services within the meaning Section 207(o)(5).
The District Court granted the City’s motion for summary
judgment, and the Plaintiffs appealed.
On appeal, the 6th Circuit Court of Appeals reversed the District
Court's judgment and remanded the case for additional factual
findings. The Court found that the statutory phrase "unduly
disrupt" in Section 207(o)(5) is ambiguous, and thus
concluded that judicial deference was owed to federal Department
of Labor opinions that the payment of overtime to honor an
officer's request for compensatory time does not qualify as
unduly disruptive under Section 207(o)(5). Hence, the City
could not deny a timely compensatory leave request solely
for financial reasons. In addition, on the record before the
Court, it concluded that the City had not proved that granting
the Plaintiffs’' otherwise timely requests for compensatory
leave would result in an unreasonable financial burden and
thereby cause an undue disruption of its operations. Absent
a clear showing by the City of undue disruption of its police
services, due to severe financial constraints to pay overtime
to substitute officers, the City's denials of the Plaintiffs’
timely requests for accrued compensation leave must be held
to violate Section 207(o)(5).
Thus the Court remanded the case to the District Court to
flesh out the factual record on whether or not police services
would be unduly disrupted by the Plaintiffs’ use of
comp time apart from the payment of overtime to substitute
officers issue.
Liability For
Unlawful “Comp Time” Program Did Not Include Comp
Time Already Taken
In Lupien v. City of Marlborough, 2004 WL 2415088 (1st
Cir., 10/28/04), the City and its police union had a collective
bargaining agreement (“CBA”) providing for the
payment of “comp time.” Before trial, the City
conceded that the comp time plan was in violation of the Fair
Labor Standards Act (“FLSA”) and admitted liability
(despite the union having lost an arbitration on this issue
- one good reminder that the provisions of the FLSA generally
trump a public sector CBA). On the issue of damages, it argued
that any remedy should take into account the fact that almost
all of the comp time had been given to the officers in the
form of paid time off rather than cash payment. The Plaintiffs'
theory was that damages should equal the dollar value of the
total amount of FLSA overtime accrued in the relevant liability
period, regardless of whether any such overtime was paid out
in the form of comp time. The District Court rejected the
plaintiffs' theory, holding that, for remedial purposes, the
plaintiffs' compensatory damages under the FLSA were limited
to the dollar value of "banked" or unused comp time
then existing.
On appeal, the Plaintiffs argued that "back wages [should]
be calculated ... using a cash only system and allowing no
offset for compensatory time taken outside the individual
seven?day workweek in which the overtime compensation is due."
The City, in turn, argued that "[t]he statutory and regulatory
scheme obviously contemplates that the accrual of comp time
at a rate of 1 1/2 hours for each hour of overtime worked,
and then the subsequent use of the comp time for paid time
off, is the equivalent of being paid the overtime in the first
place." The City argued that although the comp time scheme
in this case was unlawful, the officers, when they took paid
time off, were paid according to the principle in the statutory
scheme. As a result, the proper measure of damages is the
amount of unused comp time which remained banked by the plaintiffs
(amounting to approximately $13,535.41). The City also noted
that following the plaintiffs' theory of damages would give
the plaintiffs a "gigantic windfall."
The First Circuit Court of Appeals agreed with the District
Court and affirmed its judgment. The Court wrote that the
District Court “correctly held that in computing the
plaintiffs' compensatory damages, the City's liability under
the FLSA could be offset by the used comp time hours. On this
record, the sum of $13,535.41 in unused, banked comp time
is not contested by the plaintiffs, and it is the correct
measure for compensatory damages. . . . The City's liability
(all hours for which comp time credits were granted but not
used within the same week during the relevant damages period)
minus offset for comp time paid out equals compensatory damages.”
The Court also noted that “[t]his is not a case in which
the employer forced employees to work overtime for free. Although
there may have been some detriment caused by the rules and
practices governing when officers could use the comp time
. . . . it is uncontested that the plaintiffs received banked
comp time for their overtime hours, which they could choose
to use later, subject to the restrictions in the CBA.”
Arbitrator’s
Reduction Of Termination For Failing To Report Assault On
Detainee Upheld By Appeals Court
In Sheriff of Suffolk County v. Jail Officers and
Employees of Suffolk County, 62 Mass. App. Ct. 915 (11/5/04),
a pretrial detainee was assaulted by two jail officers, Donnelly
and Benson, while housed at the medical unit of the Suffolk
County jail. A hearing officer of the sheriff's department
of Suffolk County rejected the two officers' contention that
the detainee’s wounds were self?inflicted and found
that subsequent to a verbal altercation with the detainee,
the two officers entered his cell and assaulted him. The sheriff's
investigation of the incident alleged that a third jail officer,
Upton, witnessed some aspects of the events, failed to report
the matter to his superior officer, and lied to investigators
in an attempt to cover up the malfeasance. For these violations,
Upton was terminated by the sheriff. The termination was grieved
by the officer’s union, which claimed that Upton's termination
violated the just cause provisions of the collective bargaining
agreement.
After a hearing, the arbitrator found that the detainee had
been assaulted, that Upton had witnessed it, that Upton had
failed to file a proper report and maintain a proper log,
and that Upton had not cooperated with the investigation.
The arbitrator thus found that there was just cause for the
imposition of discipline against Upton, but revoked his discharge,
ordering him "suspended for six months with no pay or
benefits and without accumulation of seniority" from
the original date of discharge. Upton was ordered to "be
reinstated [at the end of six months] with full back pay and
benefits, less any outside earnings and/or unemployment compensation."
The Sheriff sought to vacate the arbitration award, arguing
that it exceeded the arbitrator's authority and was contrary
to public policy. On cross motions for summary judgment, a
Superior Court judge denied the sheriff's motion and allowed
the union's motion, and confirmed the award. The Sheriff appealed.
The Appeals Court wrote that “in light of the Supreme
Judicial Court's narrow view of what conduct might violate
public policy. . . . we affirm the judgment.” Largely
referencing a prior case that concerned the submission of
a false report and the filing of false criminal charges by
a police officer, the Court wrote that “[i]n both cases,
the final element necessary to a proper finding that an arbitrator's
award was contrary to public policy was lacking, i.e., ‘the
conduct at issue cannot simply be “disfavored conduct,
in the abstract, ... [but must instead be] disfavored conduct
which is integral to the performance of employment duties”’
(emphasis omitted). While the result may be unpalatable for
the reasons stated, it also appears to be compelled.”
Thus the Court upheld the arbitrator’s award.
Promises, Promises
In Saxonis v. City of Lynn, 2004 WL 2481308 (Mass. App.
Ct., 11/8/04), the Plaintiff alleged that she closed her beauty
salon business of twenty?three years in December, 1996, in order
to act as a permanent substitute for a cosmetology teacher at
Lynn Vocational Technical Institute, in reliance on the assurances
of the school's principal and others that the cosmetology teacher,
then on indefinite leave, would be retiring at the end of the
school year and that he would hire Plaintiff to replace her.
Plaintiff further alleged that the cosmetology teacher did retire
but that the principal hired someone else instead. These were
the central allegations of the Plaintiffs' twenty?one count
complaint against the twenty?six named defendants. A judge of
the Superior Court granted summary judgment in favor of the
Defendants on all of the Plaintiffs' claims.
On the Plaintiff’s appeal to the Massachusetts Appeals
Court, the Court wrote that
as to the principal’s promises to keep Plaintiff in service
as a permanent substitute, “they cannot be enforced because
they run counter to the express legislative policy that made
her, as matter of law, an at?will employee. . . . Moreover,
Saxonis was presumed to know that these representations were
contrary to law and that she could not rely on them.
On the other hand, the principal was “vested by law with
the authority, subject to approval by Lynn's superintendent
of schools, to hire Saxonis as Lazaris's replacement . . . .
although he would not have been required to retain her for the
ninety?day period necessary under G.L. c. 71, § 42, to
give her rudimentary rights to notice and a hearing prior to
dismissal.” But the promise to hire her permanently that
was within the principal’s authority “may form the
basis for a detrimental reliance claim. . . . A jury could reasonably
conclude that, based on Malagrifa's promises and Saxonis's detrimental
reliance thereon, a contract was formed to hire Saxonis as Lazaris's
replacement (on an at?will basis), and that Saxonis could recover
reliance damages (primarily from closing her business) for the
breach.”
Thus the Court ruled that summary judgment should not have been
allowed on this part of the case, and remanded the case back
to the Superior Court for a trial on this claim.
FMLA Applies To
County Auditor’s Office Of Only 12 Employees
In Fain v. Wayne County Auditor’s Office, 388 F.3d
257 (7th Cir., 10/27/04), the Plaintiff, an employee of the
county auditor’s office, alleged miscellaneous Family
Medical Leave Act (“FMLA”) violations. The District
Court granted summary judgment to the Auditor's Office, holding
that the Plaintiff was not an eligible employee under the FMLA.
The court's decision was based upon the number of persons employed
by the Auditor's Office. The undisputed evidence was that the
Auditor's Office never employed more than 12 employees at one
time. Plaintiff appealed, and the 7th Circuit Court of Appeals
reversed the District Court and remanded the case.
As the Court wrote:
The FMLA generally applies only to employers with 50 or more
employees, but the statute treats public agencies differently.
The FMLA specifies that public agencies are "employers"
under the statute regardless of the number of employees. .
. . That numerical limitation, however, is resurrected elsewhere
in the FMLA, which limits eligibility for FMLA protections
to "eligible employees.”. . . The term "eligible
employee" in the FMLA includes "any employee of
an employer who is employed at a worksite at which such employer
employs less than 50 employees if the total number of employees
employed by that employer within 75 miles of that worksite
is less than 50.” . . . The regulations make clear that
this provision applies to public agencies, stating "employees
of public agencies must meet all of the requirements of eligibility,
including the requirement that the employer (e.g.State) employed
50 employees at the worksite or within 75 miles.”. .
. . Therefore, even though public agencies fall within the
FMLA regardless of the number of employees, those employees
cannot seek FMLA benefits unless the agency employed at least
50 employees within a 75 mile area.
As for what is a “public agency,” the Court noted
that the federal Department of Labor regulations dealt with
that issue. The regulations provide that “[a] state
or a political subdivision of the state constitutes a single
public agency, and, therefore, a single employer for purposes
of determining employee eligibility. For example, a state
is a single employer; a county is a single employer; a city
or town is a single employer. Where there is any question
about whether a public entity is a public agency, as distinguished
from a part of another public agency, the U.S. Bureau of the
Census' ‘Census of Governments’ will be determinative.
. . “
Here, the Plaintiff asserted that the Census of Governments
("Census") established that the Auditor's Office
is a part of the County and not a distinct public agency in
itself. The County, while conceding that the Census, if consulted,
would defeat their position, asserted that the Census controlled
only if state law does not already provide the answer. Thus
where state law clearly reflects that the Auditor's Office
is a distinct public agency, there is no question and therefore
no need to resort to the Census.
The Court ruled that even if the County was correct that one
looks first to state law, state law here was not conclusive,
so resort had to be to the Census anyway. There was no authoritative
state law source indicating that the Auditor’s office
was separate from the County government. In fact, the Auditor's
office is located in the County building along with other
County departments, Plaintiff’s paycheck is issued by
the County government, not by the Auditor's Office, and the
Auditor in this case relied on the County personnel department
to handle the administration of Plaintiff’s leave. Furthermore,
the duties of the Auditor's Office are closely tied to County
government. Even the County acknowledged that the Auditor
provides services to the county, county executive, and county
fiscal body. One of the primary functions of the Auditor's
Office under Indiana state law was to act in a secretarial
capacity for the County. Other duties included providing notice
of County meetings, preparing the budget for the County Council,
and engaging in other responsibilities that "impact the
financial well?being of county government," which interweave
the auditor's position with the County government as a whole.
Thus, the Court ruled, there was at least a question about
whether or not the Auditor’s office was or was not part
of the County, and thus the Census resolved the question against
the County.
On The Labor Front
Flip-Flop, Flippity-Flop
- Again
In a 2000 case, Sturgis, Inc., 331 NLRB No. 173 (2000),
the National Labor Relations Board (“Board”) changed
the law and held that the consent of all the employers involved
was not required for leased employees and regular employees
to be combined in a single bargaining unit. Previously the
Board’s theory was that all employers had to consent,
a theory which itself had only been around about 10 years.
As you might infer, the Board has yo-yoed considerably on
this issue over the last 35 years or so.
Anyway, in Sturgis the Board held that even a joint employer
is an “employer” under the National Labor Relations
Act (“Act”), and thus the consent of the other
joint employer(s) is not necessary for there to be effective
collective bargaining between the union and only one of the
joint employer, somewhat thin reasoning we think. The Board
contrasted that situation with what it termed true “multiemployer”
bargaining status, in which two or more companies, usually
in the same industry and each with their own employees, decide
to join forces to bargain with a union via a united front
in negotiations. There, none of the employers is also a joint
employer of the other’s employees. Sturgis was a very
controversial decision four years ago.
Guess what? Forgetaboutit. In Oakwood Care Center, 343 NLRB
No. 76 (11/19/04), the Board changed its mind again, and returned
to pre-Sturgis law, or at least the law as it stood immediately
prior to the Sturgis decision. That is, as this Board wrote:
we conclude that permitting a combined unit of solely and
jointly employed employees, as the Board did in Sturgis, contravenes
Section 9(b) [of the Act] by requiring different employers
to bargain together regarding employees in the same unit.
We hold that combined units of solely and jointly employed
employees are multiemployer units and are statutorily permissible
only with the parties' consent.
Work Rules Barring
Profane Language And Harassment Upheld By Board
In Martin Luther Memorial Home, Inc., 343 NLRB
No. 75 (11/19/04), the Employer maintained workplace rules
prohibiting "abusive and profane language," "harassment,"
and "verbal, mental and physical abuse." The General
Counsel of the National Labor Relations Board (“Board”)
argued that the mere maintenance of these rules violated Section
8(a)(1) of the National Labor Relations Act (“Act”)
because the rules reasonably tended to chill employees in
the exercise of their Section 7 rights.
The Administrative Law Judge (“ALJ”) ruled that
these rules were lawful, and the Board affirmed. As the Board
noted, it will find a Section 8(a)(1) violation where an employer
maintains a work rule that reasonably tends to chill employees
in the exercise of their Section 7 rights. In determining
whether a challenged rule is unlawful, the Board must, however,
give the rule a reasonable reading. It must refrain from reading
particular phrases in isolation, and it must not presume improper
interference with employee rights. Thus the first question
is whether the rule explicitly restricts activities protected
by Section 7. If it does, we will find the rule unlawful.
If the rule does not explicitly restrict activity protected
by Section 7, the violation is dependent upon a showing of
one of the following: (1) employees would reasonably construe
the language to prohibit Section 7 activity; (2) the rule
was promulgated in response to union activity; or (3) the
rule has been applied to restrict the exercise of Section
7 rights.
Here, the Board agreed with the ALJ that rules barring “abusive
and profane” language, and harassment, are not unlawful
on their face. As the Board wrote, “employers have a
legitimate right to establish a ‘civil and decent work
place.’" The Board also recognized that employers
have a legitimate right to adopt prophylactic rules banning
such language because employers are subject to civil liability
under federal and state law should they fail to maintain "a
workplace free of racial, sexual, and other harassment"
and "abusive language can constitute verbal harassment
triggering liability under state or federal law." In
addition, the Board agreed with the ALJ that there was no
basis for a finding that a reasonable employee would interpret
a rule prohibiting such language as prohibiting Section 7
activity.
Hospitals
Unlawfully Refused To Hire Another Hospital’s Striking
Employees
In Allina Health System, 343 NLRB No. 67 (10/29/04),
a group of hospitals entered into a coordinated bargaining
agreement preparatory to negotiations with the Minnesota Nurses
Association (“MNA”). The agreement provided that
if the MNA struck one hospital, the others would refuse to
hire striking nurses as per diems during the strike. The union
and General Counsel claimed that the agreement violated the
nurses’ Section 8(a)(1) rights in that the other hospitals
were denying employment based on union membership or protected
activities under the National Labor Relations Act (“Act”).
The hospitals defended on the basis that the refusal to hire
strikers was akin to a lockout - and a lockout is a legitimate
economic weapon to use in an impasse-strike situation.
The Board rejected the hospitals’ position, stating
that “[t]he only purpose of the Respondents' refusal
to hire the striking [] nurses at that point was to influence
the outcome of the ongoing dispute between [the struck hospital]
and the Union. In effect, the Respondents expanded this bilateral
labor dispute by introducing a new front of economic warfare.
This conduct cannot be reconciled with the Act's objective
of encouraging collective bargaining to reduce industrial
strife. Respondent was seeking to intrude in a labor dispute
not its own, involving a union other than the one with which
it was then in an untroubled relationship, for the reason
that a settlement of the labor dispute favorable to that union
could have an economic effect upon it. To allow this collateral
or indirect interest in a labor dispute to be deemed a legitimate
business interest sufficient to serve as justification for
a lockout of Respondent's own employees is to arrive at a
far-reaching result never intended” under the Act.”
Was ULP Not To
Grant Negotiator-Employees Unpaid Release Time For Negotiations
In Ceridian Corp., 343 NLRB No. 70 (11/12/04), the National
Labor Relations Board’s General Counsel alleged that
the Company, during negotiations for a first contract, unlawfully
refused to grant unpaid leave to employee members of the Union's
bargaining committee for the purpose of attending bargaining
sessions, and by insisting that employee members of the Union's
negotiating committee must use their paid time off for time
spent at negotiations, while the Company refused to meet at
times when employee members of the Union's bargaining committee
were not scheduled to work. The Company admitted that employee
members of the Union's bargaining committee were subject to
its personal days off (PDO) policy, as were all other employees,
and that it declined to accord employee members of the Union's
collective?bargaining committee preferential treatment, as
compared to other employees, with respect to its PDO policy.
The Board, adopting the Administrative Law Judge’s opinion,
ruled that it is a violation of the National Labor Relations
Act for an employer to insist that bargaining taking place
during the working day while at the same time refusing to
allow employee union negotiating committee members to take
"uncompensated leave" or "unpaid time off"
to negotiate. The Company's assertion that it never denied
employee?members of the Union's negotiating committee time
for negotiations was correct, but that did not, in the Board’s
view, address the ramifications of the Company's actions for
the employees on the Union's committee. What the Company's
actions amounted to basically was a requirement that the employee?members
utilize their vacation time just to be able to participate
in negotiations. Similarly, the Company's position that the
employees are free to participate in negotiations but may
lawfully suffer a penalty for doing so may technically be
correct, but what the Company may not lawfully do is unfairly
penalize the employee?members of the Union's negotiating committee
by requiring them to utilize their personal/vacation time
to participate in negotiations. As the ALJ wrote, “[t]o
allow the Company to force the employee?members to utilize
their personal/vacation leave time for negotiations is dictating
who will make up the Union's committee. Some employees who
might otherwise be willing to participate may nonetheless
not be willing to surrender their vacation time to do so.”
Thus the Board found a violation of the Act.
No “Waiver”
Of Union Right To Bargain In General “Policies”
Contract Article
In Enloe Medical Center, 2004 WL 2461349 (10/29/04),
the Medical Center was a hospital that provides acute inpatient
and outpatient medical care with a Women Center’s that
consists of labor and delivery departments. The Women’s
Center adopted a mandatory on-call policy that required nurses
to take one mandatory four-hour on-call shift every four weeks
in addition to their regular shift. The Employer implemented
this change in working conditions without notifying or bargaining
first with the Union representing its registered nurses. The
Union filed a charge alleging, among other things, that the
Medical Center was obligated to bargain over the decision
to have a mandatory on-call policy, and to bargain over the
effects of that policy.
The Administrative Law Judge (“ALJ”), affirmed
by the National Labor Relations Board (“Board”),
ruled that the Employer violated Section 8(a)(5) of the National
Labor Relations Act (“Act”) when it refused to
bargain over the effects of the new on-call policy. The ALJ
had found that the Medical Center was not obligated to bargain
over the decision to implement the new on-call policy, but
the ALJ found that since the Union did not waive its rights
over bargaining about the effects of the policy in the parties’
contract, that the Medical Center violated Section 8(a)(5).
The ALJ noted that the contract’s provision about the
implementation of personnel policies contained only a generalized
right to promulgate and implement new policies, and did not
constitute a waiver of the Union’s right to bargain
over the effects of specific policies, especially brand new
ones.
Did You Know . . .
That the Molecule of the Month is Maleimide-Polyethylene
Glycol (known as MPEG for short)? This is a molecule created
by artificially modifying human hemoglobin. It can be used
as a substitute for blood, and so has applications in medical
operations and transfusions.
That December’s flower is the Narcissus or the Pointsettia,
and its birthstone is the Turquoise or the Blue Topaz?
That December is, among other things, Walnut Month, Seasonal
Depression Awareness Month, National Drunk and Drugged Driving
Prevention Month, Safe Toys and Celebrations Month, Smart
Client Month, International Sharps Injury Prevention Awareness
Month, and Taxi Aware Month?
That December 3 is Worldwide Day of No Pesticides Use, December
5 is International Volunteer Day, December 12 is Poinsettia
Day, and December 26th is Boxing Day? (No, that’s nothing
to do with the boxing ring.)
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