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The NLRB and Labor Take Aim at Employee Handbooks:
Wednesday, October 10, 2012
What Employers Need to Know to Avoid Costly Mistakes
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p r e s e n t e d b y
Jennifer L. Mora Attorney
Littler Mendelson, P.C. Los Angeles
(310) 772-7243 [email protected]
Alan I. Model Attorney
Littler Mendelson, P.C. Newark
(973) 848-4740 [email protected]
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Agenda The Latest in D.C. Handbook Provisions
Under Attack The Next Targets What Employers Can
Do to Prepare
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What’s Happening in D.C.?
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The National Labor Relations Board
Five members appointed by the President
NLRB Acting General Counsel Lafe Solomon
Recent NLRB Agenda – Save private sector unions
– Increase union power without regard to employee rights and legitimate management interests
– Proposed election rule changes
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Employer Poster Requirement
Effective Date? – Employer to display poster advising
employees of rights under National Labor Relations Act
– Would apply to all private sector employers covered by the NLRA
– Similar in form and content to the notice the Department of Labor recently approved for use by federal contractors
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“Quickie Election” Rule – Deprives Employees of Right to Know
June 21, 2011: NLRB published rules governing elections
December 21, 2011: NLRB issued its final rule to accelerate elections; set for implementation on April 30, 2012.
May 14, 2012: Rules struck down in Chamber of Commerce v. NLRB, D.D.C., No. 11-cv-2282
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Understanding the Basics
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The National Labor Relations Act
Applies to union and non-union workforces – “Employees shall have the right . . . to engage in
other concerted activities for the purpose of collective bargaining or other mutual aid or protection . . . . and shall also have the right to refrain, from any or all of such activities.”
– “It shall be an unfair labor practice for an employer to interfere with, restrain, or coerce employees in the exercise of the rights guaranteed in Section 7.”
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Interference: Common Management Mistakes
Surveillance of concerted activities
Asking employees questions about concerted activities
Threats based on concerted activities
Promising employees benefits if they agree not to engage in protected activities
Two employees complaining about the holiday schedule
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Interference: Common Management Mistakes
Prohibiting concerted activities
Discriminating against concerted activity
Inconsistently enforcing lawful rules and policies
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Employee Handbooks Under Attack
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Handbook Provisions Violate the NLRA if . . .
They actually interfere with Section 7 activities
They have been applied to interfere with Section 7 activities
They were promulgated in response to union activity
They could be construed to interfere with Section 7 activities
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Confidentiality: Internal Investigations
Banner Health System (July 30, 2012) – “Interview of Complainant Form” included
a general instruction that employees making internal complaints not discuss their complaints with coworkers during the investigation.
– Unlawful, unless the employer can identify a specific need to:
Protect witnesses
Avoid spoliation of evidence or fabrication of testimony
Prevent a cover-up
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Confidentiality: Wage and Benefits
“We honor confidentiality. We recognize and protect the confidentiality of any information concerning the company, its business plans, its partners [i.e., employees], new business efforts, customers, accounting and financial matters.”
Cintas Corp. (2005)
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Harassment Policies
“Making false, vicious, profane or malicious statements toward or concerning the [Employer] or any of its employees.” Lafayette Park Hotel (1998)
“Abusive or threatening language to anyone on Company premises.” Adtranz ABB Daimler-Benz Transp. (2000)
Lutheran Heritage Village-Livonia (2004) – “abusive or profane” language
– “harassment”
– “verbal, mental and physical abuse”
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Social Media
Heightened interest in employers restricting social media activities – Three General Counsel Operations Memos
– All social media cases must be submitted to the Division of Advice
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Social Media
Costco Wholesale, Corp. (Sept. 7, 2012) – Company’s electronic posting rule prohibiting
statements that “damage the Company . . . or damage any person’s reputation” was overly broad because it encompassed complaints about the company’s treatment of its employees.
Knauz BMW (Sept. 28, 2012) – Company’s rule that “no one should be disrespectful
or use profanity or any other language which injures the image or reputation of the dealership” was overly broad because it encompassed employee complaints.
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Social Media: Common Pitfalls
Inappropriate discussions
Defamation
Disparagement
Privacy
Logo
Photographs
Confidentiality
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Social Media: Key Takeaways
What is the subject matter of the post?
Who is participating in the discussion?
Is the employee expressing only an individual gripe?
Are employees acting collectively?
Are the posts a direct outgrowth of group discussion?
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Talking to the Media
Trump Marina Associates (2009) – “It is the policy of Trump
Hotels & Casino Resorts that only the following employees, Chief Executive officer, the respective property’s Chief Operating Officer, General Manager or Public Relations Director/Manager is authorized to speak with the media.”
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Solicitation and Distribution Rules
Solicitation – Can solicit in working areas
– Exception: retail sales employees
Distribution – Employers cannot prohibit the distribution of literature
in non-working areas during non-working time
Avoid discriminatory enforcement of a valid policy
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Uniform or “Button” Rules
Wearing union buttons or other insignia is protected under Section 7 of the Act unless the employer can establish special circumstances to justify a ban – Being in a customer-facing position or wearing a uniform are not
necessarily a special circumstance
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Uniform or “Button” Rules
Examples of “special circumstances” – Exacerbate employee dissension
– Employee safety or damage to equipment
– Mocks employer’s business or policies
– Unreasonably interferes with public image
Starbucks: Baristas and Buttons
Discriminatory enforcement
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Off-Duty Access Rules
Policy will be upheld only if it: – limits access solely with respect to the interior of the
facility and other working areas;
– is clearly disseminated to all employees; and
– applies to off-duty employees seeking access to the facility for any purpose and not just to those engaging in union activities.
St. John’s Health Center (Dec. 30, 2011)
Sodexo America LLC (July 3, 2012)
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Internal Complaints
Unlawful if employees reasonably would interpret them as prohibiting employees from going outside the management structure with their work-place problems – Guardsmark, LLC (2005)
– U-Haul Co. (2006)
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Walking Off the Job
Restraints against permissible labor actions – Heartland Catfish Co. (Sept. 11, 2012)
Rules directed at employees leaving their workstations during work time. The Board determined that the rules reasonably read to prohibit unauthorized leaves or breaks were permissible. However, the rules prohibiting employees from “walking off the job” or from “willfully restricting production” were unlawful because they prohibited participating in a protected strike.
– Ambassador Services, Inc. (Sept. 14, 2012)
The Board struck down a work rule prohibiting “walking off the job and/or leaving the premises during working hours without permission” as violating Section 8(a)(1) because it would reasonably be construed as prohibiting Section 7 activity.
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Looking Toward the Future
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At-Will Handbook Provisions?
American Red Cross Arizona – “AGREEMENT AND ACKNOWLEDGEMENT OF
RECEIPT OF EMPLOYEE HANDBOOK. I further agree that the at-will employment relationship cannot be amended, modified or altered in any way.”
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Union Access to Company E-mail?
Roundy’s Inc., 30-CA-017185 (Filed 2005) – The Board is expected to revisit Register Guard to determine
whether an employer may prohibit employees from using its work email system for non-work related purposes
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The Best Defense Is a Good Offense
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What Does This Mean for Employers?
Notice to Employees – 60 days
Jurys Boston (Mar. 28, 2011) – Overturn an election
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Now What?
Privileged review of handbook provisions
Consider a properly-worded disclaimer
Positive employee relations training
Know the signs of union organizing
Develop a plan for responding to union organizing
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Jennifer L. Mora Attorney
Littler Mendelson, P.C. Los Angeles
(310) 772-7243 [email protected]
Alan I. Model Attorney
Littler Mendelson, P.C. Newark
(973) 848-4740 [email protected]
t h a n k y o u !