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.

New Rules on Personnel Actions for Massachusetts Employers

The process for adverse personnel actions is getting tougher and, perhaps, quite a bit more confusing in Massachusetts. That’s because the legislature recently tightened the rules on what goes into employee personnel files by requiring employers to notify workers when any information that’s placed in  their personnel files was or could be used to “negatively affect” promotions, pay, or other employment benefits.

Under the newly amended personnel file statute, employers must give the notice within 10 days of adding anything negative to an employee’s file. Since it’s hard to draw parameters around what’s covered, employers will need to err on the side of caution in giving notices. Documents such as performance reviews, regardless of content, and written warnings are the most likely targets of the new law, since they are often relied upon by employers to make promotional and wage decisions. Still, the best practice may be to implement standard procedures for sending notices to workers when anything other than run-of-the-mill hiring information is placed in personnel files. That way, employers can be sure they don’t transgress the new rules.

The personnel statute still permits employees to inspect and receive a copy of their personnel files on written request. The amendments also added a provision restricting the application of these rights to twice annually. Employees may not, however, be charged with one of their two annual inspections when a review is prompted by a notice of negative information being placed in a personnel file.

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.

Legislature Considers Bill to Manage Non-Competition Agreements

Following the failure of a 2009 initiative to ban the enforcement of non-competition agreements, the Massachusetts legislature is now considering a bill to limit their applicability. The bill now winding its way through the legislative process would require, among other things, that non-compete agreemetns:

1.  Be written in a stand-alone format that both employer and employee sign. If non-competition is a condition of employment, the requirement must be disclosed to a new employee at least seven days prior to his/her starting work;

2.  If entered after an employee begins work, be supported by something valued at 10% or more of an employee’s annual salary. Notice of at least 2 weeks must also be provided to employees. This provision would ban the employer practice of requiring workers to enter a non-competition agreements immediately, under threat of job loss (this principle of law is already in effect under interpretative decisions of Massachusetts courts); [Read more...]

UPS Hit Hard by MCAD Again

The Massachusetts Commission Against Discrimination has hit United Parcel Service with a second substantial judgment for discriminating against a Massachusetts employee. This time, the complaint was for handicap bias by UPS in Springfield, Massachusetts. After a trial at the MCAD, UPS was ordered to pay almost $750,000 in lost wages and another $125,000 in emotional distress.

The case of William Anderson, Jr. v. UPS was decided in March 2010. It involved a handicapped man who sought a reasonable accommodation but was denied by UPS, which refused to engage in a required interactive discussion with Mr. Anderson, made unreasonable demands, and, according to the Commission, placed form over substance as it violated Massachusetts anti-discrimination law. “Respondent’s approach to the reasonable accommodation process was long on formality, short on meaningful communication,” the Commission wrote. UPS took unauthorized photos that made demonstrated Mr. Anderson’s condition but still claimed to be uninformed about it. UPS was ”rigid and unyielding” in its approach to Mr. Anderson and refused to engage in a flexible dialogue toward a mutually acceptable accommodation of his disabilities, the commission concluded. With interest and legal fees, the award could exceed $1 million. [Read more...]

Take Care with Arbitrator Selection

Sometimes litigants learn the hard way that the judicial system doesn’t always dispense justice as well as it merely settles disputes. With arbitration, that lesson can be particularly harsh, since arbitrators aren’t required to follow the same rules as judges and, in almost every case, their decisions cannot be appealed. For this reason, the choice of an arbitrator to decide your lawsuit requires extreme care.

The pitfalls of a bad arbitrator selection process can be substantial. Virtually unfettered authority leaves arbitrators free to exercise biases that should play no role in the legal process. They can unjustly inflate awards, find excuses for denying them, and make arbitrary and capricious decisions like changing their minds in mid-stream about applicable law or refusing to award interest on judgments they do issue. Even when a litigant suspects something untoward has occurred — as I now do in a recent arbitration in which I was involved — there’s normally no way to address the problem once an arbitrator is selected and renders a decision. [Read more...]

UPS Hit Hard in Discrimination Lawsuit

United Parcel Service has been hit hard in a sexual harassment lawsuit. After years of refusing to address multiple allegations that its Shrewsbury, Massachusetts warehouse is run amok with abusive supervisors who lack even a fundamental understanding of discrimination laws, the company will now pay dearly. It was not only ordered to pay $50,000 in damages to Thomas Sobocinski — a figure that ballooned to more than $125,000 with interest and legal fees — but now must train hundreds of supervisors across Massachusetts on the basics of sexual harassment and discrimination law. The training order alone will likely cost UPS hundreds of thousands of dollars.

To those familiar with UPS’s approach to manager/employee relations, the Massachusetts Commission Against Discrimination judgment is no suprise. UPS is reputed to run roughshod over its workers and punish those who dare to complain. Its Shrewsbury, Massachusetts warehouse, where Mr. Sobocinski works, is rife with abusive and sexually explicit language, as described by UPS managers themselves. Despite broad training on internal UPS systems, managers there are not taught about discrimination laws or held accountable for violating them. The result is broad anecdotal evidence of abuse by management that may have persisted for decades.   [Read more...]

Health Insurance Subsidy for Employees Expands

The federal government has extended the subsidy for health insurance expenses for employees who are involuntarily separated from their jobs. The law, which was enacted in February 2009 as part of President Obama’s Recovery Act, now requires employers to pay 65% of health insurance continuation costs for employees they terminate prior to February 28, 2010. It  provides up to 15 months worth of this benefit, an expansion of the 9 months provided by the bill in early 2009.

The bill still is aimed solely at helping workers and does not require employers to foot any additional health insurance expense. Though businesses may initially lay out the 65% subsidy, they quickly recoup it via a credit against their payroll tax filings. The original statute provided the health insurance subsidy only to workers who were fired prior to December 31, 2009. Information on the law, which is administered by the U.S. Department of Labor, is available at http://www.dol.gov/ebsa/cobra.html.