Lou Michels and Rod Satterwhite are partners in the Labor & Employment group at McGuireWoods LLP. Both handle employment litigation on behalf of employers, and advise companies on employment issues regularly.

May 2007 - Posts

Workplace Relationships--Part II

This could be an interesting religious practice to accommodate in your local cubicle farm: the Islamic head of the "Teachings of the Prophet Mohammed" department at a prestigious university in Egypt recently issued a religious edict-a "fatwa"-giving his blessing to adult men breast-feeding from female coworkers as a way of accommodating Islamic rules prohibiting unrelated men and women from being alone together at work. Under Islamic law, breast-feeding can establish a type of maternal relationship between a child and a woman, even when the woman is not the child's natural mother. The cleric, Ezzat Attiya, determined after lengthy study (of what I can only guess) that the same rule would apply to adults. Accordingly, following his logic, a man nursing from a female coworker would have a family bond with the woman and they would be able to work side by side without raising suspicion of an illicit sexual liaison. 

Right.  Professor Attiya is now facing a disciplinary panel at the university, this kind of legal creativity not being appreciated in certain, high level circles.

The article is here. Thanks to the Wall Street OpinionJournal.

Zealous Negotiation

    It's not uncommon to see litigants in employment or labor law cases lose it over what happened to them at work.  For many people, their job is inexorably tied to their self-image -- damaging one usually means damaging the other.  I frequently define employment law as family law in a corporate setting.
    But it's unusual to see the lawyers lose it and go after each other.  That's apparently what happened during contract negotiations between the Teamsters and a bakery in Cleveland.  According to a recent complaint filed by a Teamsters attorney, negotiations went from verbal to physical when the bakery's counsel punched and choked the union lawyer before being collared by a union official.  The lawsuit, which seeks damages for permanent injuries, medical expenses, loss of income and emotional distress (there's always emotional distress in there somewhere), alleges that the bakery's law firm was responsible for the lawyer's actions because the firm allegedly trained its lawyers to be aggressive and intimidating.  As it was so eloquently put in the complaint, "It was common, expected, encouraged, and authorized business practice of defendants to harass, curse, intimidate, provoke, taunt and abuse opposing counsel and parties."  Or, as they say in the business, the firm wanted its lawyers to have a lot of crust.
    Bolstering the union attorney's case, the bakery attorney pleaded no contest to reduced charges of disorderly conduct and intoxication and paid a $100 fine over the incident in criminal court.
    Intoxication?  At a collective bargaining agreement negotiating session?  Apparently, someone took being a member of the "bar" too literally.  But at least no one will accuse him of being a cream puff in his representation of the bakery's interest.
 

Contractor Woes

    Some of my clients believe that the easiest way to avoid employment litigation and related labor concerns is simply to not have employees.  That's a great plan until you need to have some bodies around to handle the heavy lifting.  A number of companies solve this dilemma by using, or simply designating workers as, independent contractors.  As we all know, independent contractors are not employees, cannot file claims against the companies for which they work, can be let go at the end of their contract periods, or even sooner if the agreements are drafted properly, aren't subject to all that messy income tax withholding stuff, and don't cause your workers compensation and unemployment compensation insurance rates to rise.

     Of course, there is this small problem that people working for you full time, under your direction, and in your facilities, might not really be "independent contractors."  In fact, in many cases they are not, notwithstanding the fervent beliefs of their employers.  This practice has always been a problem for the IRS and any number of state agencies, and now, apparently, it has become a sufficiently large problem that the good folks in Washington are making it a priority.  On May 12, 2007, the IRS advised an ABA committee meeting that it was undertaking major audits in conjunction several state workforce agencies to increase employer compliance with tax requirements.  The chief of the IRS Employment Tax Division is quoted as saying that employers could expect to see "a nice increase" in employer tax compliance efforts in fiscal year 2008, in the form of additional audits.  There are substantial penalties for employers that fail these audits, although an employer can escape the penalties if it can meet the IRS requirements, a major one of which is having a reasonable basis for not treating the worker as an employee.

     It's that "reasonable basis" that will prove to be the sticking point, in my experience.  If you have a large number of independent contractors working for you, you might casually look through their work records, and make sure that you can jump through the IRS hoops that are coming to an audit near you.

Who's Laughing Now?

I've made a reference before concerning direct evidence of discrimination that sometimes arises in employment cases, but I've also noted that these cases are rare enough that they deserve to be pointed out. Business education being what it is these days, you just don't see hiring managers making flat out statements that they don't want old people, black people, women, or the disabled working for them because they are old, black, female, or disabled.

But apparently the Funny Bone Comedy Club in Omaha could not find the cash for that particular human resources training program, at least at the time the facts in this case (Perkins, et al. v.  The Funny Bone Comedy Club of Omaha, Inc., No.  8:06 CV44)  arose. Having shut down one of its restaurants, the Bone began interviewing to staff a new club and hiring waitstaff and others for the positions. A number of the former female waitstaff applied for positions at the new club, but only one of the women, who were all over 40, was actually interviewed and she ultimately was not hired. Four of the former waitstaff sued, alleging age discrimination.

Over the course of the depositions in this case, the club manager admitted stating in the presence of one of the plaintiffs that she intended to hire only "cute 20 year olds with perky breasts and nice butts because that's what people want to see." She also did not deny such statements as "if we did not have a bunch of old moms as waitresses," perhaps younger people would come to the club; and that the club owner stated that he was not going to hire any of the old waitstaff who had sagging breasts. There were several other comments alleged, but I think you get the picture.

For its part, the Bone tried to argue that some of these comments were made only in jest and that they were the kind of "stray remarks" that courts typically disregard when not made by decision-maker.

Uh, no. Once senior management starts tossing around words like "perky" in an anatomical context, you've got age discrimination problems. The court easily spotted this as direct evidence, at least in terms of the summary judgment proceeding, and went on to note that even if it wasn't direct evidence, it provided indirect proof sufficient to get the case to a jury. Anyone doubt what a jury would do with this kind of evidence? Safety tip here-leave the old people jokes to the performers, not to your hiring managers.

More Alice in San Francisco

Just when I think things can't get any sillier in San Francisco (see my earlier post concerning its family leave policy, for example) a story like this comes along: it seems that the city has paid $156,000 in damages and attorney's fees to a former Director of the city's Department of Building Inspection after she sued for sexual and pregnancy harassment.

So who was the cad that would sexually harass a pregnant woman? Which part of the San Francisco city management team didn't get the memo on equal treatment and respecting senior management? It turns out that that the harassment was not even accomplished by a city employee, but by a citizen at a public hearing concerning the director's qualifications for the job.

Like many places, San Francisco requires a confirmation hearing where interested members of the public are allowed to present their objections to city appointments. At the Director's hearing, some members of the Residential Builders Association, an industry group, claimed that the Director did not have sufficient experience to replace the current director, who happened to be male. Someone reportedly said something to the effect of why are you replacing this man with "pregnancy brain?"

Notwithstanding the ugly comment, the female candidate was hired and worked in the job for several years. But she sued, claiming that city officials should have stopped the insults, and prevented the confirmation hearing from being rebroadcast on the city's cable TV channel, which she claimed was further harassment.

How the city Board of Supervisors was supposed to stop people engaged in their First Amendment rights was not explained. You would expect someone who is accepting a job in which they have to go through a confirmation hearing would know that people might say unkind things about you during the hearing. That's especially true after what happened to Robert Bork and Clarence Thomas, but perhaps no one in San Francisco saw those hearings.