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.

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...]

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...]

Court Clarifies Punitive Damages Guidelines

In a ruling that may be useful to Massachusetts employers, the Supreme Judicial Court in October made clear that puntive damages can only be awarded to discrimination plaintiffs when their employer’s conduct is “outrageous or egregious.” Punitive damages are, after all, available only to punish bad actors, not to permit windfall awards to discrimination victims who are generally entitled only to recover what they lost in wages and what they suffered from proven emotional injuries.

Apparently recognizing the subjective natures of the terms “outrageous” and “egregious” — who, after all can define either with more than a modicum of confidence — the court did what it often does. It created a list of factors that should be considered by judges and juries when evaluating whether to issue punitive damage awards. As always, the list is intended as a guideline only. Other factors that are relevant in particular cases can always be considered. The five punitive damages factors created by the SJC are: [Read more...]

Massachusetts Employment Law: Wrongful Termination Video

Massachusetts Wrongful Termination Video by Massachusetts employment laywer, Attorney Jack Merriill

Massachusetts employment lawyer, Attorney Jack Merrill provides legal services to employees, employers and businesses throughout the Boston metro west and Worcester County region including Ashland, Dedham, Framingham, Franklin, Hopkinton, Maynard, Marlborough, Milford, Natick, Needham, Newton, Shrewsbury, Sudbury, Waltham, and Worcester, Massachusetts.

Court Rulings Pose Risks For Employers

Massachusetts courts have been busy in the employment arena lately. In Summer 2009, they issued at least three substantive decisions that may force employers to take quick action on policy manuals, arbitration agreements and wage payment policies.

Though none of the decisions change the law outright, each is employee friendly and stretches employer duties to new lengths. The cases make it easer for workers to use employment manuals as binding contracts, harder for employers to force arbitration in discrimination cases, and more likely that employees will win big damage awards plus legal fees in disputed wage cases.

Employment Manuals In a June 2009 opinion, the district court’s appellate decision affirmed a $42,000 jury verdict for a worker who claimed his company’s employment manual was breached when he was fired. The court relied heavily on the worker’s testimony that he regarded the manual as binding and honored a non-compete clause contained within it. The court also cited to the employer’s request that the employee acknowledge receiving it. [Read more...]

SJC Makes Arbitration of Discrimination Lawsuits Tougher

In a surprising decision, Massachusetts’ highest court ruled in July that not all arbitration agreements are created equally and, consequently, only some of them are enforceable by employers. When it comes to suits under the state’s anti-discrimination law (Chapter 151B), the language in a workplace arbitration clause must be clear and unequivocal. Unless it demonstrates that an employee specifically bargained away the right to sue at the Commission Against Discrimination or in state court, the worker’s lawsuit for sexual harassment, age or race bias, failure to reasonably accommodate, or other discrimination issues may escape arbitration. That means employers will face the far more difficult and expensive task of defending themselves in front of a jury or at the MCAD or its federal counterpart, the Equal Employment Opportunity Commission (EEOC).

The message for employers is clear: review any and all arbitration agreements you entered with your employees and, if you still believe arbitration of discrimination claims is in the company’s best interest, make sure Chapter 151B is specifically referenced. For many employers, [Read more...]