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Looking Back . . . To The Future: An Employment Discrimination Law Retrospective and Forecast GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600 Santa Monica, CA 90401 T: (310) 255-1800 [email protected]

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Page 1: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

Looking Back . . .

To The Future: An

Employment

Discrimination Law

Retrospective and

Forecast

GLA ALA 2015

Employment Law

Forum

January 31, 2015

Presented by

Glen E. Kraemer

Hirschfeld Kraemer LLP

233 Wilshire Blvd., Ste. 600

Santa Monica, CA 90401

T: (310) 255-1800

[email protected]

Page 2: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

Admit it – this thought has crossed your

mind more than once…a day

“Now which one of you is the attorney?”

Page 3: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

WHY ARE YOU HERE? –

TOP FIVE REASONS

1. HEARING STORIES ABOUT THE MISFORTUNES OF OTHER

EMPLOYERS MAKES YOU FEEL BETTER ABOUT YOURSELF

2. COMING TO THE ANNUAL GLA ALA EMPLOYMENT LAW FORUM

IS LIKE ATTENDING FASHION WEEK IN NYC (…everyone looks

so amazing!)

3. YOU NEED TO LEARN TO BE MORE ASSERTIVE ON THE JOB

AND MISUNDERSTOOD OUR COVERAGE OF THE NEW

BULLYING TRAINING REQUIREMENT AS A “HOW-TO”

PROGRAM…

4. IT IS THE ONE DAY ALL YEAR THAT YOU CAN BE NAUGHTY

AND TALK ABOUT SEX WITHOUT GETTING INTO TROUBLE

5. YOU WANT TO OBTAIN PRACTICAL KNOWLEDGE THAT CAN

DIMINISH EXPOSURE WHILE ENHANCING QUALITY AND

PRODUCTIVITY

Page 4: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

AGENDA THEMES

• HOW FAR WE HAVE! (HAVE WE?) COME? A HISTORICAL PERSPECTIVE

ON FEDERAL ANTI-DISCRIMINATION LAW, POLICY AND ENFORCEMENT

• THINK YOU’VE SEEN IT ALL IN CALIFORNIA? AND RELIEVED THAT YOU

ARE, OF COURSE, NON-UNION? THE EEOC AND NLRB ARE MORE THAN

FOUR LETTER WORDS…

• THE “NOTORIOUS RBG” AND THE SUPREMES: WHAT “THE NINE,” AND

THE CALIFORNIA APPELLATE COURTS, HAVE BEEN UP TO…

• ENSURING AN UNDERSTANDING OF THE NEW PAID SICK LEAVE LAW

• A PARTICULARLY IMPORTANT ISSUE FOR LAW FIRMS: UNDERSTANDING

THE NEW REQUIREMENTS TO PREVENT HARASSMENT AND BULLYING

IN THE WORKPLACE

Page 5: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

IT REALLY ISN’T THAT LONG AGO…(a

Title VII retrospective)

Page 6: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

50 Years of EEO Law – History Lesson #1

• This year marked the 50 year anniversary of Title VII of the 1964 Civil

Rights Act, which was signed into law on July 2, 2014.

• In 1964, Ollie’s Barbecue only served white patrons in the restaurant.

It challenged whether the Civil Rights Act was constitutional, claiming

restaurants were not involved in interstate commerce.

• The Supreme Court took review of the case immediately and decided

unanimously in Katzenbach v. McClung that the law was

constitutional. It found that the restaurant engaged in interstate

commerce by purchasing supplies from out of state. But the Court

went even further as it found that there was a “conclusive

presumption” that interstate commerce was directly or indirectly

affected when public establishments discriminated based on

race. The courts later applied that same ruling to Title VII, finding that

Congress had the power to prohibit discrimination in employment.

Page 7: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

DON’T VOLUNTEER!

The EEOC and NLRB are looking for new

recruits among employers (to serve as

defendants/respondents)

Page 8: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

LABOR RELATIONS = EMPLOYEE RELATIONS: THE

NEW FRONTIER FOR THE “NON-UNION” H.R.

PROFESSIONAL

• Employer email: the Purple

Communications decision

• Joint-Employer Status issues: the

McDonald’s complaints and Browning-

Ferris Industries of California

• “Ambush” elections and other Guerilla

Tactics

Page 9: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

NLRB Urges Employers Not to Be So

Positive?

Hills and Dales General Hospital and Danielle Corlis,

Case No. 07–CA–053556

• Employer hospital instituted a set of conduct rules that included

these three provisions:

• employees will not make “negative comments about fellow team

members” (“team members” included coworkers and managers);

• employees “will not engage in or listen to negativity or gossip”; and

• employees will “represent [the employer] in the community in a

positive and professional manner in every opportunity.”

• NLRB struck down all three

Page 10: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

NLRB Urges Employers Not to Be

So Positive?

Hills and Dales General Hospital (Con’t)

• First two related to negativity, not surprising, but employers can’t tell

employees to behave positively???

• Decision focused on a few factors: the use of the phrase “in the community”

led the NLRB to conclude that the rule could be reasonably construed as

applying to non-work settings. In addition, the NLRB found a difference

between “positive and professional” behavior (found unlawful here) and

“positive and ethical” behavior (language held by the NLRB to be lawful in

another decision).

• AVOID CHILLING EFFECT: Review policies to make sure that the

aforementioned language deemed to be overbroad and overreaching is

absent from your communications.

Page 11: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

NLRB – Employers Must Watch How

They Limit Communications

Register Guard, 357 NLRB No. 27

• Employer who punished union president for sending two-non-

business emails to union members through the employer’s email

system violated NLRA because it did not punish other employees for

sending non-business emails.

Triple Play Sports Bar, Case No. 34-CA-012926

• Employer who interrogated, threatened and discharged an

employee who clicked the “like” button on a colleague’s Facebook

post that contained complaints about employer’s compensation

policies violated the NLRA. Clicking “like” was deemed

“sufficiently meaningful” participation!

Page 12: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

More examples of why Title VII

was a tidal change…

Page 13: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

50 Years of EEO Law - History Lesson #2

In 1972, the Law Expands and the EEOC Enters

Litigation as a Party

Title VII of the Civil Rights Act of 1964 broke new ground but there was

an immediate need to expand its scope and authority. Congress passed

the Equal Employment Opportunity Act of 1972, which amended the law

in several key ways.

• The amendment gave the EEOC the power to litigate cases as a party

(except against government entities). The EEOC could enforce the law

directly by stepping into the shoes of the aggrieved party and bring the

weight of the federal government into the dispute as the plaintiff.

• As a consequence of this change, the EEOC started to bring lawsuits

against high profile employers and when discriminatory pattern and

practices were identified.

Page 14: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

Half-Way Through the EEOC’S 4 YEAR

Strategic Enforcement Plan (SEP)

1. Protecting immigrant, migrant and other vulnerable workers

2. Enforcing equal pay laws

3. Addressing emerging and developing issues, including ADA

accommodation and undue hardship issues and coverage of

LGBT individuals under sex discrimination provisions

4. Eliminating barriers in recruitment and hiring, including focus on

exclusionary policies, restrictive application processes, screening

tools

5. Preserving access to the legal system – targeting policies that

impede EEOC’s investigation or enforcement efforts

6. Preventing Harassment Through Systemic Enforcement and

Targeted Outreach

Page 15: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

EEOC Enforcement: What Can We Glean

from the Stats, Case Law and Charges Filed

In FY 2014 Performance and Accountability Report (Nov. 2014), EEOC

reported:

133 Merits lawsuits (17 systemic) [cf. w/131 in ‘13, 261 in ‘12)

228 Cases on docket (57 re systemic discrimination)

Focusing resources on systemic, not on individual, smaller cases even

if meritorious

Systemic discrimination cases address bias that has “a broad

impact on a region, industry or entire class of employees or job

applicants.”

Systemic cases bring attention and public awareness, driving

positive change on industry-wide levels.

Page 16: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

Two Additional EEOC-Related Trends

1. Pushing the existing boundaries of substantive

protections – scope of law

a. Discrimination against transgender employees

b. Provide accommodations to pregnant employees

c. Review of wellness programs, expansion of

accommodations

2. Overcoming Procedural Roadblocks – enforcement

issues

a. Challenges to the EEOC’s pre-suit obligations and

methods

b. Mach Mining, LLC v. EEOC

Page 17: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

Extending Title VII Protection to

Transgender Employees

• In September, EEOC filed first-ever lawsuits over alleged sex

discrimination against transgender individuals

Two separate suits claiming employers terminated workers for

not conforming to “gender-based expectations”

• Three years ago, in the Macy case, EEOC found that discrimination

against transgender individuals constitutes sex discrimination

And recently, Obama issued exec order making it illegal for

federal contractors to discriminate on basis of sexual orientation

or gender identity

End-run around ENDA failure…

• But the “Notorious RBG” is worried: where does U.S. Supreme Court’s

recent decision in Burwell v. Hobby Lobby enter into these situations?

Will it open the door for private for-profit corporations to opt out of

fed law on basis of religious freedom?

Page 18: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

EEOC and Pregnancy Discrimination

• On July 14, 2014, EEOC issued guidance on the interpretation and

application of the Pregnancy Discrimination Act

Controversial – supported by only three of the five commissioners, b/c

issued without public comment period, and before Supreme Court

decision in Young v. UPS

Young case goes to central issue of what PDA requires

AND = those two dissenters troubled by pregnant worker being entitled

to accommodation under the ADA (“no federal Court of Appeals has

adopted this position.”)

• Guidance states that all employers must provide accommodations to

pregnant employees including those with no medical issues,

experiencing normal, healthy pregnancies

Compare – ADA coverage is for individuals with substantially limiting

(materially restricting) physical (or mental) impairment

Page 19: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

Key Takeaways From the Pregnancy

Discrimination Act Guidance

• EEOC will question whether employer was aware of pregnancy even if

employee did not directly inform (office gossip, etc.)

• Prohibits discrimination on the basis of past pregnancy, current pregnancy

and intended pregnancy

• If there is evidence of pregnancy-related animus motivating employers

denial of light duty, not necessary for plaintiff to show another employee

was treated more favorably – but can offer light duty on same terms

• Cannot engage in alleged “benevolent” acts based on pregnancy – i.e.,

many not compel employee to take leave even if believed to be acting in

employee’s best interest

• Reminder re disparate impact – i.e., a facially neutral policy that has a

disproportionate adverse effect on women affected by pregnancy and

related medical conditions

E.g., weight lifting requirements, light duty limitations, restrictive leave

policies

Page 20: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

EEOC and Wellness Programs

EEOC has shown a willingness to sue employers over their wellness

plans

• EEOC v. Orion Energy Systems Inc., case number 1:14-cv-01019 (filed

August 20, 2014)

• Employer’s wellness program required employees to, among other things,

disclose their medical history, submit to blood tests and do certain exercises on

a range-of-motion machine in the company’s fitness room.

• Employee was forced to pick up the full amount of her employee health care

premiums, and later fired, after she objected to medical exams and disability-

related questions as part of employer’s wellness program.

• EEOC is arguing those consequences meant the program was no longer

voluntary as required by the Americans With Disabilities Act

Page 21: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

EEOC and Wellness Programs

• Equal Employment Opportunity Commission v. Flambeau Inc., case

number 3:14-cv-00638 (Oct. 1, 2014)

• EEOC claims employer canceled employee's medical insurance and shifted the

entire premium cost to him, after employee failed to complete a “voluntary”

health assessment and testing required under a company wellness plan.

• Employee couldn't complete the tests as scheduled by employer because he

was on leave and being treated for cardiomyopathy and congestive heart failure,

according to the suit, filed in Wisconsin federal court.

Take away – Make Sure Your Wellness Programs Are Voluntary in

Policy AND Practice!!!

Page 22: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

EEOC – Telecommuting as

Reasonable Accommodation?

EEOC v. Ford Motor Company, 2014 U.S. App. LEXIS 7502 (6th Cir. April 22,

2014):

• EEOC brought discrimination and retaliation claims on behalf of disabled

employee who had requested permission to telework 4 days a week as an

accommodation, but was denied and subsequently terminated

• District Court deferred to Ford’s “business judgment” that teleworking was

not reasonable because the position required in-person interaction.

• On April 22, 2014, Sixth Circuit reversed trial court’s ruling:

“As technology has advanced in the intervening decades . . . and an

ever-greater number of employers and employers utilize remote work

arrangements, attendance at the workplace can no longer be

assumed to mean attendance at the employer’s physical location.”

Page 23: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

AND…the EEOC is also Pushing

Procedural Parameters

• EEOC’s pre-litigation tactics are being questioned and attacked

• Biggest Example: Mach Mining v. EEOC

What are the pre-suit obligations of the EEOC?

Must it engage in a good faith conciliation process prior to

filing a civil suit?

- Seventh Circuit, in split with other appellate courts, did not

find anything under Title VII authorizing an affirmative

defense for “failure to conciliate” – ruled that “conciliation

was an informal process entrusted solely to the EEOC’s

expert judgment…”

• U.S. Supreme Court will resolve

Page 24: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

And One More Area of Concern – EEOC’s

Focus on Severance Agreements

EEOC v. CVS Pharmacy, Inc., – Questionable Provisions

• A cooperation clause requiring the employee to “promptly notify the Company’s General Counsel by telephone

and in writing” of contacts relating to legal proceedings including an “administrative investigation” by “any

investigator, attorney or any other third party....” (Emphasis in lawsuit but not Agreement).

• A non-disparagement clause prohibiting the employee from making any disparaging statements about the

Company and its officers, directors and employees.

• A non-disclosure of confidential information provision prohibiting disclosure to any third party of confidential

employee and other information without prior written permission of the Company’s chief human resources officer.

• A general release of claims that included a release of all “causes of action, lawsuits, proceedings,

complaints, charges, debts contracts, judgments, damages, claims, and attorney fees,” including “any claim of

unlawful discrimination of any kind....” (Emphasis in lawsuit but not Agreement).

• A no pending actions; covenant not to sue clause where the employee represents the employee has no

pending “complaint, claim, action or lawsuit” of any kind “in any deferral, state, or local court, or agency”. The

clause prohibits filing of “any action, lawsuit, complaint or proceeding” asserting the released claims, and requires

the employee to promptly reimburse “any legal fees that the Company incurs” for breach of the covenant

• A breach by employee clause, stating that in the event of the employee’s material breach of the Employee

Covenants section of the agreement, the Company could obtain injunctive and other relief, including attorney fees.

Page 25: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

EEOC and its Attack on Severance

Agreements

Equal Employment Opportunity Commission v. CVS Pharmacy, Inc., Case No. 14-

cv-863 (N.D. Ill., February 7, 2014) (con’t)

• EEOC alleges in the lawsuit that the above-identified restrictions are limited only by a

“single qualifying sentence” in the covenant not to sue and “not repeated anywhere

else in the Agreement.” However, that sentence clearly stated that nothing in the

covenant not to sue was “intended to or shall interfere with Employee’s right to

participate in a proceeding with …agency…”

• Despite that provision, the EEOC claims that the terms of the Company’s

standard Agreement, which was given to over 650 employees, constituted a

pattern and practice of denying employees full exercise of their Title VII rights,

including limiting their rights to file charges and cooperate with the EEOC and

FEPAs in investigating charges of discrimination.

Page 26: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

Practical Considerations in response to

EEOC v. CVS Pharmacy

• Employers should take note of the EEOC’s new position

toward release agreements, review their standard

separation agreements.

Review every separation agreement form to consider whether to

strengthen existing provisions preserving the employee’s right to

file administrative charges and participate in agency

investigations.

Consider setting off a statement of the protected rights in a

separate paragraph of a separation agreement, perhaps in bold.

Consider the length and complexity of your separation

agreements. Employers need to draft separation agreements that

employees can understand.

Page 27: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

And Just In Case It Wasn’t Clear…

Page 28: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

50 Years of EEO Law – History Lesson #3

The Americans With Disabilities Act Becomes Law In 1990

• The Americans with Disabilities Act was born from a grass roots

movement. On Monday, March 12, 1990, disability activists descended on

the U.S. Capitol Building, rallying for equal rights for Americans with

disabilities.

• The rally ended with a remarkable show of strength and determination by

over 60 activists who shed their wheelchairs, crutches and other supports,

and began to work their way up the nearly 100 steep, stone steps of the

capitol building. The rally became known as the Capitol Crawl.

• President George H. W. Bush signed the law on July 26, 1990.

• The ADA, originally expected to cover between 36 and 43 million individuals

with disabilities, has since been expanded – very controversially – far

beyond that originally envisioned by the drafters and legislators.

Page 29: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

50 Years of EEO Law - History Lesson #4

The FMLA Becomes Law In 1993

• Before the Family and Medical Leave Act became law in 1993, if an

employer declined to allow the employee to take medical leave, employees

were forced to choose between keeping their job and caring for themselves

or their family.

• Each year from 1984 to 1993, the FMLA was introduced in Congress, only to

be blocked. During President Clinton’s first term, however, he made the

FMLA one of his first priorities. In 1993, with bipartisan support, President

Clinton signed the FMLA into law.

• Twenty years since its enactment, research shows that FMLA leave has

been used nearly 100 million times. It is likely that most employees will

exercise FMLA leave at some point in their career. Various states have

enacted their own family leave acts that are more expansive than the FMLA.

Page 30: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

Important EEO-Related Cases and

Statutes 2014 - 2015

Page 31: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

Paid Sick Leave Is Now The Law In CA

The Healthy Workplaces,

Healthy Families Act

(aka Pretend You Are Sick And Get Paid For It Act)

Page 32: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

Paid Sick Leave In California

What Employees Qualify?

Any employee who: (1) has worked in California

for 30 or more days in a year; and (2) has

completed 90 days of employment with that

employer. There are special rules for

employers under a CBA.

Page 33: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

Paid Sick Leave In California

What Employers Qualify?

All employers in California are covered by the

Act. That includes employers with one

employee and not-for-profit employers

Page 34: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

Paid Sick Leave In California

How Much Paid Sick Leave Will

Employers Be Required To Provide?

• Accrue 1 hr. of paid sick leave for every 30

hours worked.

• Exempt employees work 40 hrs/week

Page 35: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

Paid Sick Leave In California

Do Employees Accrue Sick Leave?

Yes. Any unused but accrued paid sick leave

must carry over to the following year, but an

employer can cap an employee’s accrual at 48

hours or 6 days of paid sick leave.

Page 36: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

Paid Sick Leave In California

How Much Paid Sick Leave Will

Employees Be Allowed To Use?

Employers can have a paid sick leave or PTO

policy which provides no less than 24 hours or 3

days of paid sick leave for each year of

employment or for every 12 months. Employers

can require employees to use paid sick leave in

two hour increments.

Page 37: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

Paid Sick Leave In California

What Can Paid Sick Leave Be Used For?

• An employee’s own illness

• Care of an immediate family member, a

spouse or domestic partner, a sibling, a

grandparent or a grandchild.

Page 38: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

Paid Sick Leave In California

Who Determines If Sick Leave Is

Appropriate?

Employees may determine how much paid sick

leave they need to use. But, they are required

to provide reasonable advance notice if the

need is foreseeable.

Page 39: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

Paid Sick Leave In California

What Is The Rate Of Pay For Paid Sick

Leave?

Employees must be paid at their regular, hourly

rate of pay. Sick leave is not paid out at

termination.

Page 40: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

Paid Sick Leave In California

What Are The Recordkeeping

Requirements?

• Display an 8.5 x 11” poster (use the DLSE

form)

• Written notice of accrual of paid sick leave

on paystub

Page 41: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

Paid Sick Leave In California

How Are Retaliation Claims Treated?

Aggressively. There is a presumption of

retaliation if an adverse action is taken within 30

days of an employee’s election to take leave.

That means you have to prove you did not

retaliate.

Page 42: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

“Honest Belief” Defense…Still Uncertain

(Richey v. Autonation, Cal S. Ct. 1/29/15)

• App. Ct. had held “honest belief” of employer concerning

abuse of medical leave not enough for CFRA defense

- Vacated arbitration award in favor of Plaintiff

• Richey v. AutoNation, Inc. – California Supreme Court

publishes decision on 1/29/15, avoids ruling on whether

“honest belief” defense to state-law discrimination claims

• Cal. Supreme Ct. found even if arbitrator’s decision was

wrong, not sufficient basis to overturn arbitrator’s award

Still uncertain as to whether an employer’s “honest but mistaken” belief about employee misconduct can be defense to CFRA/FEHA claims

What IS certain is that arbitrator’s decisions will rarely be overturned – so confirm your arb agreements don’t allow for greater judicial review

Page 43: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

Salas v. Sierra Chemical Co., 59 Cal. 4th 407

(2014): After-Acquired Evidence Defense

Salas v. Sierra Chemical Co., 59 Cal. 4th 407 (2014)

• At time of hire, Vicente Salas provided a false Social Security number and a

resident alien card and falsified the federal Immigration and Naturalization

Form I-9 and IRS Form W-4 with the same information. The Company did

not know of these falsifications.

• Following lay off, he sued for disability discrimination, claiming termination

was pretextual, and actually related to medical condition.

• Discovery revealed he was not authorized to work in the United States and

had repeatedly provided false documentation

• The trial court granted Sierra’s msj on basis of after-acquired evidence and

unclean hands, and the Court of Appeal affirmed.

Page 44: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

Salas v. Sierra Chemical Co.,

59 Cal. 4th 407 (2014) (continued)

California Supreme Court reversed:

• Addressing the doctrine of after-acquired evidence, the Court ruled the

after-acquired evidence doctrine did not bar liability for the employee’s

claim, but limited an employee’s damages, precluding back pay for the

period after the employer’s discovery of the employee’s misconduct,

and reinstatement or promotion. However, the Court permitted the recovery

of back pay for the period from the termination through the date on which the

employer discovered the employee’s misconduct.

• Likewise, the Court rejected the argument that the doctrine of unclean hands

served as a complete bar to liability in FEHA actions. Rather, the Court

stated that “equitable considerations” should guide trial courts in fashioning

relief.

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Harassment – Franchisor Not Liable for Franchisee’s Actions

Patterson v. Domino’s Pizza, LLC, 2014 WL 4236175

(Cal. S. Ct. 2014)

• Franchisee’s employee alleged she was harassed by her supervisor, sued Domino’s

as her employer.

• Domino’s msj disclaimed “any relationship with [Franchisee’s] employees” and

assumed “no rights, duties, or responsibilities” as to their employment. Summary

judgment granted, but Ct. of Appeal rev’d

• Cal Supreme Ct. held in favor of Domino’s: Domino’s did not exercise the “control”

necessary to find an agency relationship, and was not an “employer” of plaintiff

imposition and enforcement of a uniform marketing and operational plan

cannot automatically saddle the franchisor with responsibility for employees of

the franchisee who injure each other on the job.

Cf. with NLRB’s position in the McDonald’s and Browning-Ferris cases!

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EEOC v. Abercrombie & Fitch Stores, Inc.

(currently pending w/Supreme Court)

• EEOC sued Abercrombie for religious discrimination after it refused to hire

an applicant because she wore a headscarf that violated the employer’s

“Looks Policy.” Abercrombie argued that the applicant did not inform it that

she wore her headscarf for religious reasons and would need an

accommodation for it.

Tenth Circuit found in favor of Abercrombie, holding that in order to

establish a Title VII religion-accommodation theory, plaintiffs must

establish that they initially informed the employer that they engage in a

particular practice for religious reasons and they need an

accommodation.

• On October 2, 2014, the Supreme Court said it would hear the case. A

ruling is expected by the end of June 2015.

• Not the first time Abercrombie has been in trouble over alleged

discrimination. In 2013, a judge ruled that it had discriminated against an

employee after it fired her b/c hijab did not conform to the allowed fashion

detailed in its “look book.”

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Disability Discrimination – ADHD Not a Protected Disability

Weaving v. City of Hillsboro, 2014 WL 3973411 (9th Cir. 2014)

• Employee terminated due to “severe interpersonal problems” between him

and other employees of the police department. Weaving contended that his

interpersonal problems resulted from his attention deficit hyperactivity

disorder (“ADHD”) and that his termination violated the ADA.

• After the case went to a jury, which found in employee’s favor, the City filed

a motion for judgment as a matter of law based on insufficient evidence to

support the verdict.

• The district court denied the City’s motion, but the United States Court of

Appeals for the Ninth Circuit reversed, holding that a jury could not

reasonably have concluded that Weaving’s ADHD substantially limited his

ability to work or interact with others and, therefore, he was not disabled

within the meaning of the ADA.

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Further Employer Empowerment: Kao v. University

of San Francisco (Cal. Ct. App. 9/2/14) and Curley v. City

of North Las Vegas (No. 12-16228 9th Cir., 2014)

Kao: Professor’s troubling behavior included expressions of rage and

confrontational, threatening behavior

• Post-investigation, expert recommendation was to require FFD

• Kao refused, placed on leave and eventually terminated; sued for disability

discrimination

Court held:

(1) No interactive process needed as FFD not an “accommodation”;

(2) and unless a disability is obvious, it is the employee’s obligation to

initiate the interactive process;

(3) FFD was job-related and consistent with business necessity

Curley: Hearing impaired plaintiff argued City’s reasons for firing him were

pretextual, pointed to favorable fitness-for-duty evaluation to return to work

• 9th Cir. upheld summary judgment, citing (1) City claimed it fired Curley b/c

of past threats, not danger of future violence, and (2) Curley failed to rebut

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Interns: Unpaid But Not Unprotected

A.B. 1443

• Extends California anti-discrimination and anti-harassment

protections to unpaid interns.

• Employers prohibited from discrimination based on protected

characteristics in the “selection, termination, training or other terms”

of unpaid interns.

• Employers liable for sexual harassment of unpaid interns by

non-employees if an employer knew or should have known of

the conduct and failed to take action.

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And…speaking of supervisors and the

associated liabilities…

And Steve realized his trusty list of “What Not to Wear to Court” was incomplete after all

Page 51: GLA ALA 2015 Employment Law Forum Back to the...GLA ALA 2015 Employment Law Forum January 31, 2015 Presented by Glen E. Kraemer Hirschfeld Kraemer LLP 233 Wilshire Blvd., Ste. 600

50 Years of EEO Law – Our Fifth and Final

History Lesson

Individuals Cannot Be Liable For Title VII Violations

• Title VII is defined to include “agents” of an employer as an employer itself,

and it was that statutory ambiguity which led individual managers to believe

that they were potentially liable for discrimination or harassment under the

law. But in the 1990’s, nearly every court to consider the issue found that

Title VII did not create individual liability.

• State courts interpreting state laws generally reached the same holdings. In

California, for example, the courts found that individual employees – whether

managers or otherwise – are not liable for discrimination or retaliation under

its discrimination law.

• Of course, under CA law, individuals can be found liable for

harassment. Courts in New Jersey and Massachusetts have also opened

the door to individual liability for harassment claims.

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And Now…Our Final Topic…

“What do you mean ‘professional courtesy’? He was just an associate.”

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A Practical Exercise of Legislative Power: Expanding

Our Understanding of “Hostile Environment”

A.B. 2053

• Amends Section 12950.1 of the Government Code related to mandatory sexual

harassment training in California to include training on “abusive conduct”

• California employers with 50 or more employees must train supervisors on “abusive

conduct” in workplace as part of their two-hour mandatory sexual harassment training

• Applies to all employers that conduct business in California that have 50 or more

employees or contractors working each day in any 20 consecutive weeks in the

current calendar year or preceding calendar year. The employees/contractors are not

required to work at the same location, nor are they all required to work or reside in

California

• New supervisors must be trained within six months of being promoted or hired into a

supervisory position and, thereafter, every two years

• Effective now, and applies to Dec. 31, 2015, training deadline

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Why “Practical”? The Scope Of The

“Bullying” Problem

According to The Workplace Bullying Institute:

• 50% of American workers have experienced first-hand, or witnessed,

“bullying” (35% first-hand)

• 13.7 Million adult Americans are currently being bullied

• The majority of bullying (68%) is same-gender

• 54% of bullying takes place out in the open, in front of others

• 68% of bullies operate alone

• Bullying is 4 times more prevalent than illegal, discriminatory harassment

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The Scope Of The “Bullying” Problem

Who Are The Bullies?

• Bosses (73%)

• Peers (18%)

• Subordinates (9%)

• Men (62%); Women (38%)

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What Victims Say about Bullying

45% of American workers say they have worked for an

abusive boss. They define bullying as:

• Physical threats (11%)

• Inappropriate physical contact (17%)

• A manager raising his or her voice (55%)

• Criticizing co-workers in front of others (59%)

• Interrupting the employee in a rude manner (58%)

• Giving an employee dirty looks (56%)

• Issuing personal insults (50%)

• Spreading rumors or sharing confidential information (40%)

• Making sarcastic jokes or teasing remarks (60%)

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“Abusive Conduct” Prevention Training –

Legal Definitions

A.B. 2053

• “Abusive conduct” defined as conduct of an employer or employee in the

workplace, with malice, that a reasonable person would find hostile,

offensive, and unrelated to an employer’s legitimate business interests.

• May include:

(1) infliction of verbal abuse, such as the use of derogatory remarks

(2) insults

(3) epithets

(4) verbal or physical conduct that a reasonable person would find

threatening, intimidating, or humiliating

(5) gratuitous sabotage or undermining of a person’s work performance.

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What Is “Bullying”: The Continuum Of

Negative Interpersonal Behavior

Onset of Stress

Health Impact

Abusive Conduct Identity Threat

Despair, Suicide

Physical Violence Injury, Death

Incivility

Disrespect

Mild Bullying

Moderate to Severe Bullying

Battery

Inappropriateness Homicide

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To End on A Humorous Note…

“Daughter’s Facebook Boast Kills Dad’s Age Bias Deal” (2/28/14)

• Patrick Snay thought he was in good shape following his $80k age

bias settlement

• Snay and former employer Gulliver Schools settled with standard

confidentiality provision

• Snay told daughter

• Later that day, Daughter’s Facebook post read

“Mama and Papa Snay won the case against Gulliver.

Gulliver is now officially paying for my vacation to Europe

this summer. SUCK IT, Gulliver!”

Teaching Point: send kid to remote Amazon

jungle for vacation BEFORE ink is dry!!!