Huge MCAD Award Sends Another Message to Employers on Workplace Bias

Employers who have yet to realize the dangers of even subtle discrimination in the workforce should take note of a recent MCAD decision that awarded huge damages to a gender discrimination victim. Late last month, the Commission awarded her more than $540,000 in back pay, another $650,000 for front pay, about $80,000 in lost benefits, $300,000 in emotional distress damages, plus the 12% interest and legal fees that accompany all MCAD damages awards.

The size of the judgment is not the only thing worth noting. The former employee, Janice Switzer, appears to have presented little direct evidence that she was let go because she is female. Instead, she submitted circumstantial data and attacks on the business practices and measuring tools of her former employer, Office Max. The Commission rejected the employer’s claim that Ms. Switzer was chosen for layoff over her male counterparts because her quota attainment was lower than theirs. While that fact was established, quota setting mechanics were questioned. Other job performance criteria that favored Ms. Switzer were ignored because, the Commission wrote, the quota excuse “served as a neat and convenient justification for termination of Complainant’s employment.” Among the factors ignored were the female employee’s superior business development and customer retention. The MCAD also cited Office Max’s practices of excluding Ms. Switzer from golf outings, luncheons, and other networking events that men attended, then criticizing her because no one knew who she was.

Whether the decision in Switzer v. Office Max is a harbinger of things to come at the MCAD remains to be seen. What is clear is that, even if rare in terms of size, the case should warn employers that they not only must avoid overt workplace discrimination but seek out and eliminate subtle biases that may permeate society as a whole. Doing so will not be easy, particularly for larger companies with established workforce structures that have traditionally been dominated by men. Still, the process should be seen as worthwhile. Office Max, after all, not only suffered a cash loss that could approach $3 million in damages, interest and the legal fees incurred by both parties, it almost certianly damaged its reputation and undermined its own workforce. It fired a superior employee because, the MCAD concluded, she is a woman, thereby, perhaps, sacrificing its own profits in the name of an old boys network whose perpetuation likely does not serve its business interests on a number of levels.

Arbitration Clauses Can Shorten Filing Deadlines, Alter Procedural Rules

Employers may have a new weapon to help them combat discrimination suits by disgruntled employees — craftily drafted arbitration clauses. That view will certainly carry the day if a recent superior court decision stands up on review. In a case that once again challenged the enforceability of an arbitration clause in the employment context, the court found that, despite a drastic reduction in the time frame for filing a discrimination suit under Massachusetts General Laws chapter 151B along with unliateral controls of procedural terms by the employer, the clause was enforceable. [Read more...]

Massachusetts to Grant Work Leave Rights to Domestic Violence Victims?

By an overwhelming vote of 34-0, the Massachusetts State Senate voted on January 12 to grant victims of domestic violence up to 15 days of annual leave. The bill is not yet law as it must be approved by the state’s house of representatives and then signed by Governor Deval Patrick. Given the lack of dissent in the Senate, however – one brave Senator did vote “present” in apparent protest, a move that suggests opposition in the House will be hard to come by — the law seems likely to be enacted sometime soon. [Read more...]

MCAD Exempts Itself from from Bankruptcy Stay Rule

In a decision many employment lawyers may find surprising, the Massachusetts Commission Against Discrimination refused in June to stay proceedings in an age and sex bias case despite the employer’s filing of a bankruptcy petition. The MCAD instead proceeded to hearing and entered a judgment of nearly $250,000 for the employee, concluding that the bankrupt respondent “has chosen to default rather than present a defense.”

The decision is contrary to language from the United States Bankruptcy Code, which requires that civil proceedings — including administrative processes like those at the MCAD — be stayed as to any party that files for bankruptcy protection. The idea that an agency like the MCAD could somehow be exempt from this federal law, which generally trumps any conflicting statute at the state level, is itself surprising. The ruling, however, is supported by a 1999 Bankruptcy Court decision. It permitted the Commission to enter injunctive and monetary relieve under an exception to the Code’s stay requirement that appears to apply to the continued exercise of “police and regulatory power” in chemical weapons proceedings.

While the ultimate effect of the stay decision itself is a matter for the case’s parties alone, the ruling delivers a plain message from the MCAD to employees and employers alike: think carefully as you weigh whether and how to proceed at the Commission. Regardless what the law may appear to require, the MCAD possesses broad regulatory authority that may be used in suprising ways as the Commission pursues its goal of remediating illegal discrimination.

Employers Liable for Retaliation Against Former Employees

It’s always been clear that taking negative action against an employee because he/she filed a discrmination complaint or supported another employee who did so is illegal under Massachusetts law. Now, the state’s highest court has made clear that employees are protected from retaliation even when the supposed misconduct occurs years after employment ends.

The May 2011 decsion by the Massachusetts Supreme Judicial Court (SJC) may take even seasoned employment lawyers by surprise. Indeed, few employee  complaints  even relate to post-employment conduct, and analyses of potential cases has consequently focused on events that occurred while a worker was employed. That approach, however, is suddently outdated by strong SJC language: “a person need not be an employee to enjoy” the protection of the anti-retaliation provisions of Massachusetts’ primary anti-discrimination statute, Mass. Gen. L. ch. 151B. [Read more...]

Sometimes, It Takes Only A Word

There are a few words in the English language that most of us won’t utter in any venue, let alone at work. They are so highly charged and potentially offensive that any use of them, in almost any context, utterly fails any version of risk/reward analysis.

But not everyone, of course, understands this rather obvious point, and those who don’t have a penchant for landing their employers in extremely hot legal waters. Take, for example, the supervisor who calls his subordinate a “fucking nigger.” Though racially offensive language uttered only once would not  normally constitute illegal discrimination, a word like “nigger” is different, as the state’s Court of Appeals recently concluded. “That term inflicts such cruel injury by its very utterance. It is degrading, it is humiliating, and it is freighted with a long and shameful history of humiliation, the ugly effects of whcih continue to haunt us all. The words have no legitimate place in the working environment — indeed, they have no legitimate place — and there is no conceivable justification for their use by a workplace supervisor,” the court wrote ealier this month.

The court suggested that, although it may be among the most offensive words in the English language, “nigger” is not be the only one that, once uttered, might expose employers to substantial liability. Similar words are readily identifiable by all. Employers should make certain that all employees, particularly their supervisors, are aware that none of them may be used in the workplace under penalty of severe discipline. These and related race and sex issues should be part of the thorough anti-discrmination and anti-sexual harassment training programs that all employers are wise to implement.

White-on-White Race Harassment Declared Illegal

In an unusual case before the Massachusetts Commission Against Discrimination, harassment by one white male employee of another has been found to violate state law. The Commission concluded that the harassment, which focused on the victim’s interracial relationship and included the use of terms such as “porch monkey lover” and others, targeted the victim because of his association with a black woman. The Commission found the conduct frequent and pervasive enough to justify an award of $60,000 in damages and fines.

The uniqueness of the facts of this case notwithstanding, its lessons for other businesses remain debatable. The Respondent in Grzych v. Amercian Reclamation Corp., et. al. was not represented by an attorney. He opted to try the case at the MCAD himself and apparently offered no testimony, a decision that may have made it easier for the MCAD to decide against him.  Whatever the respondent’s reasons for not retaining counsel, he likely regrets the decision now. The fact is that discrimination law is far too complex and the workings of the MCAD are far too idiosyncratic to be handled without an experienced employment lawyer.

New Law Limits Employer Inquiries on Criminal Records

Refusing to hire job applicants with criminal records just got a little trickier. As of November 2010, most employers are no longer permitted to ask criminal history questions on written job applications. The practice of reviewing such information and screening out former criminals from interviews has thus been rendered illegal. Because it is unclear whether the statutory amendments to the Criminal Offender Record Information law (CORI) also limit criminal history inquiries at the interview stage, it makes sense to avoid such questions, at least for the time being. Employers can still obtain criminal histories later on and reject applicants based on those histories.

The law’s changes will likely add costs to employers who prefer not to hire convicted felons or other persons with criminal backgrounds. In addition to forcing them to interview candidates blindly, as it were, the CORI law amendments restrict available information to felony records open during the prior 10 years and misdemeanors in the prior 5. When such records are obtained from the CORI system, employers now must show them to prospective employees before an adverse decision is made. Employees can hold employers to this obligation via new rights to obtain their own list of employers who made inquiries about them.

Employers who regularly obtain CORI records must also create policies regarding them. The policies must provide for notifying applicants, giving a copy of CORI records to subjects, and instructing subjects on how to correct any errors in those records. Policies should also provide for the destruction of CORI records within 10 years.

MCAD Authority Undercut by Court

The Massachusetts Commission Against Discrimination (MCAD) has been dealt a blow by the state’s Supreme Judicial Court (SJC). In an August 2010 decision, the Court held that the MCAD’s written guidelines on the Massachusetts Maternity Leave Act are not binding. The ruling calls into question a slew of MCAD ’rules’ that previously were believed to carry the force of law, such as one granting maternity leave rights to men under state law.

The case involved a woman who was granted maternity leave beyond the eight weeks provided by Mass. Gen. L. ch. 149, 105D (Massachusetts Maternity Leave Act) and was not expressly informed by her employer that the statute’s job protection rights would not protect her during the extended leave period. She sued, claiming that written MCAD guidance on maternity leave required that such notice be given, and won a jury verdict of about $2.3 million. The SJC found that the MCAD’s guidance did not carry the force of law. Because neither the Maternity Leave Act nor any properly created MCAD regulation required employers to notify employees about benefits that might apply after eight weeks of leave were taken, the Act was not violated and the jury verdict was invalid. Because, however, no timely appeal of the verdict was filed, it was not overturned; the case  focused on whether counsel negligently failed to file a timely appeal. [Read more...]

Discrimination at Work: Don’t Even Joke About It!

The Massachusetts Commission Against Discrimination has made clear yet again the risks employers face when they tolerate even seemingly innocent forms of workplace discrimination. This time, it awarded nearly $400,000 in back wages and emotional damages to a woman who was the brunt of jokes about her age and disability.

 The illegal conduct apparently began with the company’s owner, who referred to the victim as the “old cripple.” The employee had experienced remarks like that at a prior job in which she’d worked with the owner, so it appears the comments themselves were not considered offensive. Still, the MCAD found, the owner opened the door to other, more insidious forms of discrimination. An office manager referred to the victim as an “old bag,” and younger women in the office delighted in embarrassing her by discussing their sexual escapades and viewing pornography at work. Eventually, those younger women decided they did not want to work with the victim, whom they considered too old and prudish, and she suffered from hostility that included effort to persuade her to retire.

 The lesson here is one all Massachusetts employers should have long ago learned: when it comes to age, gender, race, etc., not even jokes at work are okay, even if those participating seem to do so willingly. No such conduct should be tolerated, and managers must be trained to understand basic discrimination issues, identify potentially improper conduct, and address issues effectively.