A Year in Review of Attendanc… · ADA: Attendance as Essential Function EEOC v. AT&T Corp., 2013...
Transcript of A Year in Review of Attendanc… · ADA: Attendance as Essential Function EEOC v. AT&T Corp., 2013...
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A Year in Review:
Key U.S. Employment Law Developments
in 2013 and What to Expect in 2014
Thursday, January 16, 2014
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PRESENTERS
Moderator
Stephen J. Hirschfeld, CEO, Employment
Law Alliance; Partner, Hirschfeld Kraemer
LLP, San Francisco, CA
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Speakers
Leonard Court, Director, Crowe & Dunlevy,
Oklahoma City, OK
Robert N. Holtzman, Partner, Kramer, Levin,
Naftalis & Frankel LLP, New York, NY
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Speakers
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Carl Crosby Lehmann, Principal,
Gray Plant Mooty, Minneapolis, MN
Susan T. Spradley, Shareholder,
GrayRobinson, P.A., Orlando, FL
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Speakers
Susan E. Stahlfeld, Partner,
Miller Nash LLP, Seattle, WA
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Recent NLRB Developments
Leonard Court, Crowe & Dunlevy
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What Will 2014 Do for 2012?
• In 2012, the NLRB issued several
controversial decisions expanding
the involvement of the NLRB Section
7 rights into the non-union sector.
• However, the majority of the five-
member Board was serving by
recess appointment.
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What Will 2014 Do for 2012?
• The business community, led by the
U.S. Chamber of Commerce,
challenged the legality of these
recess appointments.
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2012 Expansive Board Decision
• Social media
• Asking an employee not to discuss
an ongoing investigation
• Requiring agreements, including a
waiver of rights to file a class action
• At-will language in employee
handbooks
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2012 Expansive Regulatory Action
• “Quickie” election rules
• NLRB poster requirement
• Newer remedial requirements
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Why 2014 Is Critical to the 2012
NLRB Actions
• Noel Canning – Oral argument held
January 13, 2014
– Court of Appeals held that the 2012
recess appointments were invalid.
– Five new members were confirmed in
fall 2013
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Why 2014 Is Critical to the 2012
NLRB Actions
• New General Counsel – Richard
Griffin
– Directs enforcement of the Act
– One of the January 2012, recess
appointees
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Judicial Treatment of 2011- 2012
Board Actions
• Fifth Circuit overturns D R Horton
decision concerning class action
waivers – December 2013
• NLRB dismisses appeal of ruling
invalidating the election rule changes –
December 2013
• NLRB did not appeal court appellate
court decisions invalidating poster
regulations – January 2, 2014
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What to expect if the
U.S. Supreme Court affirms
NOEL CANNING
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The Most Important
New State Laws
Affecting Employers in 2014
Stephen Hirschfeld, Hirschfeld Kramer
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New State Laws
• Wage and hour
• EEO
• Background checks
• Leaves
• Legalization of marijuana
• Miscellaneous
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The Latest
Discrimination Decisions
and
Update on Key EEOC Enforcement
Priorities and Efforts
Susan T. Spradley, Gray-Robinson
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EEOC’s FY 2013 Performance and
Accountability Report
• $372.1m record award amount from
private employers
− $6.7m increase over 2012
• $39m resolved lawsuits
• Enforcement and litigation statistics
for FY 2013 available in early 2014
• www.eeoc.gov
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Retaliation – Supreme Court
University of Texas Southwestern Medical
Center vs. Nassar, 133 S.Ct. 2517 (2013)
• Holding: A plaintiff making a claim for
Title VII retaliation must prove that
his/her protected activity was a but-
for cause of the employer’s alleged
adverse employment action.
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Retaliation – Supreme Court
University of Texas Southwestern Medical
Center vs. Nassar, 133 S.Ct. 2517 (2013)
• What it means: heightened standard
− Positive decision for employers as
the “but-for” standard is more
stringent for an employee to meet
than the “motivating factor” standard.
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Title VII: Supervisor – Supreme Court
Vance v. Ball State University et al.,
133 S.Ct. 2434 (2013)
• Answers who is supervisor for Title
VII
• “Supervisor” for purposes of vicarious
liability under Title VII if empowered
by the employer to take tangible
employment actions against an
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Hot Topic: Title VII - Supervisor
Vance v. Ball State University et al.,
133 S.Ct. 2434 (2013)
• Why is definition important?
− Different rules apply in cases in
which the harasser is a supervisor,
as opposed to a co-worker
• Lesson: define supervisor in policies
and train supervisors on policies
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ADA – Fitness For Duty
Owusu-Ansah v. Coca-Cola,
715 F.3d 1306 (11th 2013)
− Confirms an employer can require
an employee to take a Fitness for
Duty Evaluation where the
evaluation is “job related and
consistent with business necessity”
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ADA: Attendance as Essential Function
Allen v. Babcock & Wilcox Technical
Services Pantex, LLC, 2013 WL
5570192 (N.D. Texas Oct. 9, 2013)
• Supports the position that Courts
should defer to an employer’s
judgment in determining whether
attendance is an essential function
of the job
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ADA: Attendance as Essential Function
EEOC v. AT&T Corp., 2013 WL 6154563
(S.D. Indiana Nov. 20, 2013)
• Court refused to determine as a matter
of law whether regular attendance was
an essential function of the job
• Appears that employer’s job description
not stating that attendance was an
essential function of the job played a
major role in the Court’s decision
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ADA: Attendance as Essential Function
EEOC v. AT&T Corp., 2013 WL 6154563
(S.D. Indiana Nov. 20, 2013)
• Lesson: If employer considers
attendance an essential function of
the job, have a provision in
handbook as well as job description
stating so
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Employer Push Back: EEOC Tactics
New Holland v. EEOC, 1:13-cv-01176 (D.C.
D.C. Aug. 1, 2013)
• Suit against EEOC for sending out a
mass email to employees, including
managers, regarding a potential
class action against the company
− Asserted: search and seizure of
property
• EEOC moved to dismiss
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Employer Push Back:
EEOC Guidance – Convictions
EEOC v. PeopleMark, Inc., 732 F.3d 584
(6th Cir. Oct. 7, 2013) – on appeal
• EEOC - knowing that the employer had
no policy categorically rejecting felony
applicants - continued to litigate on that
basis and drove up defendant’s costs
• Affirmed district court order directing
EEOC to pay $750,000 + of company’s
fees and costs
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Employer Push Back:
EEOC Guidance – Convictions
State of Texas vs. EEOC, Case 5:13-cv-
00255-C (N.D. Texas filed Nov. 4, 2013)
• Challenge by Texas AG to EEOC
conviction guidance’s categorical ban
on employer’s right to refuse to hire a
convicted felon
• EEOC response due January 27, 2014
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Employer Push Back: Credit Checks
EEOC v. Kaplan Higher Learning
Educ. Corp., 2013 WL 322116
(N. D. Ohio Jan. 28, 2013)
• EEOC accused employer of discriminating
against African Americans by using credit
checks to screen job applicants
• EEOC could not prove use of credit checks
had disparate impact on African Americans
− EEOC’s own background check
− Case is on appeal to the Sixth Circuit 30
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Employer Push Back: EEOC Subpoena
EEOC v. Home Nurse, Inc., 1:13-cv-02927
(N.D. GA Sept. 9, 2013)
• Charge filed but CP: not disabled,
under 40, no preexisting generic
condition, Caucasian
• EEOC/subpoena/raid
• Court quashed 4th subpoena
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Trend: Gender/Same-Sex Stereotyping
EEOC v. Boh Brothers Construction
Co, LLC (5th Cir. 2013)
• “Same-sex/gender-stereotyping” as
form of discrimination prohibited by
Title VII
• EEOC could rely on gender-
stereotyping evidence to show same-
sex harassment was “because of sex”
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Yours, Mine, and Ours:
Evolving “Joint Employer" Law
Susan E. Stahlfeld, Miller Nash
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Risks of Being a Joint Employer
• Wage and hour law
• FMLA
• Affordable Care Act
• NLRA
• WARN Act
• Harassment and discrimination
• Accommodating disability 34
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Determining Joint Employer Status?
• Economic realities of the relationship
• Key is “control”
• Courts balance totality of the
circumstances
• Technically different but effectively
similar tests in each jurisdiction
• Protect legitimate outsourcing/
independent contractor/subcontractor
relationships 35
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Primary Factors Affecting
Joint Employer Status
• Power to hire and fire
• Power to set rate of pay and method
of payment
• Maintain employment records
• Supervise and control
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Power to Hire and Fire
• Formally and functionally
• May include power/authority to
discipline
• Requests to transfer workers
• Quality control, safety, security:
– Background and drug tests
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Rate and Method of Payment
• Expansive definition: all types of
compensation, benefits, etc.
• Courts acknowledge that payment is
always influenced by what is paid to
direct employer
• Question is degree of control over
pay
• Does the contract speak to payment?
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Employment Records
• Records for safety and quality control
purposes
• Courts look to purpose of the
records: beyond quality control?
• May consider payroll, insurance,
taxes, and other records
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Supervision and Control
• Production line v. service industry
• Work that is “integral” to a company’s
business
• Work performed on premises
• Work performed during regular
business hours
• Setting work schedules
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Supervision and Control
• Owning and providing equipment/
tools/supplies
• Replacing subcontractors without
material change to the contracts
• Working exclusively or predominately
for one company
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Supervision and Control
• Quality control and compliance-
monitoring v. affecting the terms and
conditions of employment
• Communicating with supervisors v.
communicating directly with workers
• Periodic observance
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The Future of Wage and
Hour Claims
Carl Lehmann, Gray Plant Mooty
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General Overview
• Whether the worker is an employee
− Independent contractors
− Unpaid internships
• Paying for all time worked
– Connectivity overtime
– Donning and doffing
• Avoiding class actions with arbitration
agreements
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Contractors vs. Employees
• Continues to be source of claims
– Large class actions
– Department of Labor
“Misclassification Initiative”
• Payroll Fraud Prevention Act
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Contractors vs. Employees
• Action items
– Review the “economic realities” of
existing contractor relationships
– Analyze pros and cons of converting
to employees
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Unpaid Interns vs. Employees
• Attention is new / law remains same
– Provides training similar to an educational
environment
– Experience is for the benefit of the intern
– Internship does not displace employees
– Employer derives no immediate gain (may
actually cost)
– No expectation of leading to a job
– Clear understanding that internship is
unpaid
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Unpaid Interns vs. Employees
• Action items
– Keep tabs on employees using
interns
– Implement a policy for approval and
oversight
– Consider whether paying interns
saves in the end
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Connectivity Overtime
• Must pay for all time “suffered or
permitted to work”
• What to do with non-exempt
employees who never unplug?
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Connectivity Overtime
• Action items
– Give clear, consistent, and written
instructions
– Train employees on policy – and
enforce it
– Consider pros and cons of technical
fixes
– Discipline in ways other than pay
docking
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Sandifer v. U.S. Steel
• Pending before Supreme Court
• FLSA provision on “changing clothes”
in union setting
• Action items
– Stay tuned for any broad FLSA
decision
– Keep on eye on employee non-
compensable time at work 51
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Class Actions – Arbitration Agreements
• Court’s rejecting NLRB’s D.R. Horton
decision
• More courts accepting of waivers of
FLSA collective action claims
• Action items
– Review state of law in your jurisdiction
– Consider arbitration agreements as
potential strategy for avoiding class
actions
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Is it Finally Time for Employers to
Implement an Arbitration
Program?
Robert N. Holtzman, Kramer Levin Naftalis & Frankel
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Arbitration and Class Certification
• Is it finally time for employers to
implement an arbitration program?
• The Supreme Court takes another
step in making it more difficult to
certify class actions
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In the Beginning (of 2013)
• Despite years of precedent favoring
arbitration, the use of arbitration in the
employment context has been
subjected to ongoing attacks
– Certain states, notably California, raised
substantial impediments.
– Confusion arose regarding how class
claims and collective claims under the
FLSA would be impacted by arbitration
agreements
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Supreme Court Fends Off Attacks on
Arbitration – Again
• In 2013, the Supreme Court returned its
focus to the parameters of class action
litigation in three important decisions:
– American Express Co. v. Italian Colors
Restaurant, 133 S. Ct. 2304 (2013)
– Oxford Health Plans LLC v. Sutter, 133 S.
Ct. 2064 (2013)
– Comcast Corp. v. Behrend, 133 S. Ct. 1426
(2013)
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Arbitration Basics
• Alternative method of dispute resolution
– Third party neutral issues a binding
decision resolving the dispute
– Essentially no right of appeal or other
review, except for fraud or bias
– Reduced discovery and modified rules of
evidence
– Often allows for faster resolution of claims
• Arbitration is a creature of contract – rights
and obligations derive from the parties’
arbitration agreement
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American Express Co. v.
Italian Colors Restaurant
• Plaintiffs asserted class claims for
violations of federal antitrust laws, claiming
that AmEx used its monopoly power in
charge card market to force merchants to
pay exorbitantly high fees
• Relying on an arbitration clause in the
parties’ agreement barring arbitration “on a
class action basis,” AmEx moved to
compel individual arbitration of the claims 58
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American Express Co. v.
Italian Colors Restaurant
• Plaintiffs argued that requiring individual
arbitration was prohibitively expensive
because the cost of the expert analysis
required to prove an antitrust claim would
far exceed any possible recovery
• The Supreme Court reversed the Second
Circuit, finding that the bar on class action
procedures did not preclude the effective
vindication of plaintiffs’ rights
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American Express Applies to
Employment Disputes
• Sutherland v. Ernst & Young LLP, 726
F.3d 290 (2d Cir. 2013), applies the
holding of American Express to
employment disputes arising under the
FLSA, a reversal of the Second Circuit’s
prior reticence to enforce class action
waivers in the employment context
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American Express Applies to
Employment Disputes
• The Second Circuit found that American
Express and the Supreme Court’s earlier
decision in AT&T Mobility v. Concepcion
“inexorably lead to the conclusion that the
waiver of collective action claims is
permissible in the FLSA context”
• The Eighth Circuit held similarly in Owen v.
Bristol Care, Inc., 702 F.3d 1050 (8th Cir.
2013)
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Oxford Health Plans LLC v. Sutter
• Arose in an unusual procedural context,
which led to an anomalous result
• Key takeaway is that arbitration awards
are reviewable only under an extremely
deferential standard that renders them
essentially unreviewable.
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Oxford Health Plans LLC v. Sutter
• Key rulings:
– “[T]he sole question . . . is whether the
arbitrator (even arguably) interpreted the
parties’ contract, not whether he got its
meaning right or wrong.” An arbitral decision
“must stand, regardless of a court’s view of its
(de)merits” as long as the arbitrator is “even
arguably construing or applying the contract.”
– The arbitrator “provided an interpretation of the
contract . . . His interpretation went against
Oxford, maybe mistakenly so. But still, Oxford
does not get to rerun the matter in a court.” 63
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The Contrary View of the NLRB
• Employers considering the use of
arbitration agreements that contain
class action waivers must be aware of
the NLRB’s decision in D.R. Horton, Inc.
and Michael Cuda, Case 12-CA-25764,
357 NLRB No. 184 (Jan. 3, 2012)
– An employer violates the NLRA by
requiring employees to sign an
arbitration agreement containing a class
or collective action waiver
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The Contrary View of the NLRB
• The Fifth Circuit reversed in a decision
filed December 3, 2013
• Every Circuit Court that has addressed
the issue has rejected the NLRA’s
rationale and held arbitration
agreements containing class waivers
enforceable
• Nonetheless, the NLRB continues to
adhere to D.R. Horton
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To Arbitrate or Not to Arbitrate –
Potential Benefits
• Potential elimination of class and
collective claims
• Generally more expeditious than litigation
• Generally reduced litigation costs and
discovery
• Not a public forum; greater confidentiality
• Reduced risks of a runaway jury verdict 66
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To Arbitrate or Not to Arbitrate –
Potential Negatives
• Tendency to do “equity” can result in
awards on legally deficient claims
• Very limited grounds for review/appeal
• Hostility to dispositive motions
• Tendency to “split the baby”
• Increased fees for use of arbitration forum
and arbitrators compared to court litigation
• Uncertainty of NLRB enforcement in light
of D.R. Horton 67
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Key Elements of an
Arbitration Program
• Draft arbitration clauses that explicitly
state that arbitration may be maintained
only on an individual basis and that
class, collective or other types of
representative arbitrations are not
permitted
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Key Elements of an
Arbitration Program
• Consider making clear that the
agreement to arbitrate does not
preclude the filing of an unfair labor
practice charge with the NLRB or the
filing of a charge of discrimination with
the EEOC
• Fees typically covered in large part by
employer
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Class Certification Gets More
Challenging: Comcast Corp. v. Behrend
• Plaintiffs alleged that Comcast violated
anti-trust laws
• The Supreme Court reaffirmed that
courts must “rigorous[ly]” analyze
whether the requirements of Rule 23
have been met
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Class Certification Gets More
Challenging: Comcast Corp. v. Behrend
• Rule 23(b)(3) cannot be satisfied where
“[q]uestions of individual damage
calculations will inevitably overwhelm
questions common to the class”
• Here, plaintiffs failed to establish that
damages could be calculated on a class-
wide basis and therefore could not satisfy
the predominance requirement of Rule
23(b)(3)
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Application of
Comcast Corp. v. Behrend
• We are still in the early days of
Comcast, and courts applying its
teachings have articulated inconsistent
views as to when the existence of
individualized damages will preclude
class certification
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Application of
Comcast Corp. v. Behrend
• The Second Circuit has agreed to hear “in
tandem” two wage and hour appeals
addressing the application of Comcast –
one in which certification was denied and
one in which certification was granted as
to liability only, with damages bifurcated
• The Sixth and Seventh Circuits have
upheld classes certified only as to liability
where damages were found to be
individualized
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