July 3, 2009

Sexual Harassment Laws Applicable to Service Providers and their Clients/Patients in California

In 1994, the California legislature enacted Civil Code section 51.9 to address the relationship between providers of professional services and their clients. The statute sets out a non-exclusive list of such providers, which includes physicians, psychiatrists, dentists, attorneys, real estate agents, accountants, bankers, building contractors, executors, trustees, landlords, and teacher; also falling within the statute's reach is sexual harassment in any relationship that is substantially similar to the ones specifically listed. Thus, for instance, a certified nursing assistant's relationship with a patient is either a service or professional relationship with that patient, and would support statutory liability for sexual harassment within this section within a "business, service, or professional" relationship.

Under Cal. Civ. Code section 51.9, the victim must establish not only that a qualifying "relationship" exists, but also that the relationship is one that the claimant cannot easily terminate. The claimant must also show both that the harasser made sexual advances, solicitations, sexual requests, demands for sexual compliance, or engaged in other verbal, visual, or physical conduct of a sexual nature or of a hostile nature based on gender, that were unwelcome and pervasive or severe. The standard for determining whether the conduct is severe and pervasive is similar to the one applicable to the sexual harassment at California workplace.

June 12, 2009

Handling Harassment and Retaliation - Complain in Writing

Under California law, an employer is not liable for harassment or workplace discrimination committed by the victim's worker if the employer did not know or had no reason to know that the unlawful conduct took place. This means that to protect yourself during employment and to make sure that you are able to recover damages for your potential wrongful termination claims, you must complain about the unlawful conduct to your hr department, your supervisor, or your supervisor's manager.

Often, during the litigation of an employment dispute and in an attempt to disprove the claimant's case, the employer will argue that the aggrieved employee never complained about the alleged discrimination and harassment and therefore the same employee does not have a case. This is exactly why it is so important that you complain in writing (e-mail to HR department with CC to the management is advisable) and save your e-mails, as it would be very hard for your employer to seriously dispute the fact that you complained, if you have date-stamped e-mails that contain the description of the wrongful conduct and your request that the conduct be addressed.

June 8, 2009

Negative Performance Reviews and Workplace Retaliation

One of employers' favorite ways of retaliating against employees or creating a paper trail for terminating a worker who complains about harassment or discrimination or who demands to have the opportunity to exercise his disability rights at workplace, is by engaging in a campaign of issuing negative performance reviews. This strategy is "effective" for at least two reasons. First, a review of an employee's performance is an inherently subjective process, which makes it particularly challenging to prove that the review is tainted with pretext and discriminatory / retaliatory motive. After all, any manager or a supervisor can argue that he is entitled to his/her opinion and can find certain flaws in most employees' performance. Secondly, series of negative reviews, especially if these evaluations are not substantiated, are likely to cause the reviewed worker to start feeling unappreciated, frustrated, and as a result lose motivation to work well and start having real performance issues. Arguing later what came first - the bad reviews or the bad performance - is an uphill battle for most employees.

So, what are some of the ways to prove that the negative performance reviews are not "real?"
The first and the most crucial step of attacking the veracity if performance evaluations is by tracing the total history of a worker's performance. If, for instance, you have been working at a company for 10 years, complained about harassment six months ago, and your very first or one of the very first negative performance reviews was issued a month after your complaint, this is likely to be more than a coincidence. Another evidence of retaliation and discriminatory motive is a situation where several workers are engaging in the same misconduct, which is known to their manager, but only one of them is being disciplined and reprimanded.

A manager's inconsistent statements about what the exact performance issues are is yet another possible way to show that all of the "issues" mentioned are bogus and they are not the true reasons for poor performance evaluations or subsequent suspension, transfer, demotion, or employment termination. After all, we tend to remember the truth much better than the lies that people artificially make up in their mind and which do not have a logical connection to reality.

May 27, 2009

Workplace Retaliation Can be a Series of Employers Acts

It is not uncommon for an employer to unlawfully retaliate against an employee not through a single, major act, such as suspension, demotion or termination of employment, but through series of less obvious acts that tend to negatively affect the victim employee's performance, motivation and cause him or her a significant amount of stress and other psychological problems, which also constitutes unlawful workplace retaliation.

The employer who is well aware of the liability imposed by law for unlawful retaliation at workplace realizes the danger of engaging in obvious retaliation such as terminating an employee. Thus, such an employer may try to punish an employee for opposing an unlawful conduct or exercising rights under Fair Employment and Housing Act or other statutory rights by interfering with that employee's job performance through series of intimidating, obstructive actions such as giving unreasonably large amount of work or imposing impossible deadlines, issuing false bad reviews after the employee engaged in a protected activity, spreading false rumors about the employee that tend to tarnish his reputation at workplace, and otherwise make the employee life at workplace harder and more stressful, trying force him out.

The courts recognize the above tactics used by the employers and analyze retaliation claims in "totality of circumstances" considering the actions taken by the employer against an employee collectively, rather than deciding whether each individual actions alone constitutes retaliation. Wideman v. Wal-Mart Stores, Inc. (11th Cir. 1998). A court should look at the context and totality of employer's conduct because "otherwise minor slights, relentlessly compounded may become sufficiently 'adverse' to warrant relief under the statute. Simas v. First Citizens Federal Credit Union (1st Cir. 1999).

May 18, 2009

Lay-offs and Severance - a Better Way to Negotiate

It is a common practice for many employers, especially the larger employers, such as the software companies in San Francisco and Silicon Valley, to offer a severance package to the employees who are about to be laid off due to downsizing or restructuring. The amount of severance depends on several factors, but the main ones usually are: (1) the company's financial condition and it's corresponding ability to make severance payments; and (2) the amount of employees to be laid-off; and (3) the length of service of any particular employee at the company.

It is much harder to negotiate a higher severance than the one offered in a mass lay-off, as the employer will argue (and justifiable so) that you shouldn't be receiving greater severance than all the other employees. However, if you are the only person to be laid off from your department, or one of the few, you should take the opportunity to negotiate a higher severance directly or through an attorney. Like in many other aspects of work (and life), when it comes to negotiation of a severance package, and employee will normally get much more with "honey" than with "vinegar." This means that accusing an employer of wrongfully terminating you, especially without having solid evidence to support your accusations, and threatening with a lawsuit will not help in these negotiations and will likely achieve the opposite effect from the one you desired, antagonizing your employer, which never leads to desire to help and generosity.

You must remember that unless paying out severance is a company's formal rule/policy or one of your stated terms of employment (which is quite rare) such a payment is completely discretionary. Therefore, the right way to negotiate a severance package or a higher severance package is by trying to evoke empathy to your anticipated unemployment and financial hardship and forget about threats and accusations. If you have had a decent relationship with the decision maker during your career at the company, you might just be surprised as to his or her ability to relate to your situation, especially in these hard times, and your manager's desire to actually make a step to help you in getting a higher severance upon lay-off. Like in politics, successful severance negotiation requires diplomacy and civility.

May 13, 2009

Accepting Severance and Signing Release of Claims

It is common for an employer to offer severance to an employee who is being terminated or laid-off. The size of the severance usually depends on the circumstances of the worker's termination and the length of his or her employment. While severance is completely discretionary and there is no law that mandates lump sum payments upon separation of employment, it serves an important purpose for the employer. Every severance payment is conditioned upon signing a document, named "Release" or "General Release" through which the employee promises to never sue the company for any possible employment related claims and violations. Thus, by making a modest payment, the company "buys" a peace of mind - a guarantee that the employee will not bring a lawsuit against the company. This is particularly important for employers, if the circumstances of termination/lay-off are suspicious and may create an impression of unlawful conduct on the side of the employer (whether the termination was wrongful or not).

Regardless if the circumstances of employment separation, it is very important that you have your Release document reviewed by an experienced employment attorney before you sign the same, to make sure it is drafted properly and fairly, that it protects your rights as well as it serves the interest of the employer, and that you are not waiving potentially substantially greater rights than your severance package, if your termination is likely to be wrongful.

You may also consider negotiating a higher severance on your own or through an attorney.

May 6, 2009

Proving Workplace Discrimination in California

The main challenge of proving discrimination and discriminatory discharge at workplace is showing that the reason an employee was discharged is because of his/her belonging to one or more of the protected classes of employees because of his/her gender, sexual orientation, ethnic origin, disability, familial status, political affiliation, etc. It is not hard to show that an employee was terminated, but it's rarely easy to show why the same employee was terminated, especially when that employee's performance, at least in the subjective view of the employer, was less than perfect and could have been grounds for termination.

There is rarely a direct evidence of discrimination, such as blunt discriminatory statements, such as "We are firing you because we don't like blacks/disabled/republicans/married people. For obvious reasons, an employer will also almost never admit discriminatory motive in taking an adverse action against one of its employees. This means that in the vast majority of cases, the discrimination must be proven through circumstantial evidence, from which it is possible to infer that the reason an employee was terminated was discriminatory and thus unlawful.

The Second Appellate District engaged in a very important analysis of the various kinds of circumstantial evidence of discrimination in Johnson v. United Cerebral Palsy (2009). In that case, the court discussed a number of facts sited by an employee in support of her allegations of discriminatory termination and held that while each of the facts individually does not raise a suspicion that the aggrieved employee was discriminated. The court wasn't persuaded that just because the employer lied about the true reasons for termination Johnson, that termination was discriminatory, reminding that while discrimination is unlawful, lying about reasons for termination is not. The court was also not impressed with an employee argument that the mere timing of her termination after taking pregnancy leave shows discriminatory motive in her discharge, as it has been established that timing of termination alone is not sufficient to prove discrimination. The court further refused to interpret the words of employer "we are firing you because of what happened" in a way that the employee subjective understood them (being fired because of her disability claim). The second district found the "because of what happened part" to be far too ambiguous to prove any animus toward the worker because of her pregnancy, and not because, as the employer argued, her substandard performance.

Interestingly enough, the court held that although each of the above facts separately will not constitute substantial evidence of discrimination, when taken together, they do constitute sufficient evidence. The above circumstances, coupled with the fact that Johnson has never received a warning or counseling regarding her performance, in addition to declarations of other employees who stated that they were also terminated while on pregnancy leave was sufficient to allow the employee to have the opportunity to prove that she was terminated because of her pregnancy at jury trial.

May 4, 2009

Overtime Law: Professional Exemption Clarified

Like with many other employment laws in general and wage laws specifically, there is no bright line rule that defines which employees are exempt from overtime, and which workers are entitled to overtime compensation. Below, I will try to make the job of both employers and employee who try to apply professional exemption to their situation easier and more certain.

For the purposes of determining professional exemption, the term "professional" means any employee who: (1) is compensated on a salary or fee basis at a rate of no less than $455 per week (periodically adjusted); (2) whose primary duty is the performance of work (a) requiring knowledge of an advanced type in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction; or (b) requiring invention, imagination, originality or talent in a recognized field of artistic or creative endeavor. 29 C.F.R. 541.300(a).

The phrase "work requiring advanced knowledge" is the key part which is the most commonly litigated and disputed element of the rule. According to regulations, this includes work requiring consistent (although not necessarily constant) exercise of discretion and judgment, as distinguished from routine mental, manual, mechanical or physical work. An employee who performs work requiring the advanced knowledge generally uses the advanced knowledge to analyze, interpret or make deductions from a set of facts. The advanced knowledge required to be exempt as a professional cannot be attained at a high school level.

The above principle is applied to different professions in a way that draws a distinction between workers who must have an advanced degree to qualify for the position held and necessarily use their advanced education in the scope of their work, and those who don't. Thus, CPA's and financial analyst with a degree in finance generally qualify as exempt professionals, while accounting clerks, bookkeepers and other employees who perform routine billing work are not exempt. Dental Hygienist and Physician Assistants are generally exempt as those position require an advanced four-year degree. Chefs, such as executive and sous chefs, who have a degree in culinary arts are generally exempt, while cooks are not. Paralegal and legal assistants are generally not exempt, as a degree in paralegal studies is generally not a prerequisite to holding a paralegal position.

Thus, as the above examples show, one of the key questions that needs to be asked in determining whether a professional exemption applies to a particular employee is whether his job/position requires and advanced degree, and he actually uses the knowledge acquired in the course of obtaining that degree in his day-to-day duties.

April 30, 2009

Leave of Absence as a Reasonable Disability Accommodation

A common question a California employer faces is for how long to provide an unpaid leave of absence as a reasonable accommodation to a disabled employee. Generally, a finite leave of absence may be a reasonable accommodation, if it is likely that the employee will be able to perform his oer her duties at the end of the leave. Under most circumstances, an indefinite leave of absence is not a reasonable accommodation. This makes sense as it would be unfair to expect employers to wait indefinitely wait for a disable employee to return to work.

Some courts have ruled, however, that there is no per se rule that an indefinite leave of absence is not a reasonable accommodation. Thus, extensions of leave of absence may be reasonable under some circumstances. An employer's size and resources may affect its obligation to provide "indefinite" leaves of absence as reasonable accommodations. For example, in the case of a very large employer, with high turnover and fungible employees, the employer may be required to provide an indefinite leave of absence, if the leave would enable an easily replaceable employee to perform the essential functions of the position eventually, and the employer will not incur significant expenses as a result of maintaining the employee in the status of an employee.

The courts may consider the following factors to determine whether leave of absence is a reasonable accommodation with respect to a specific employee. This factors include the following: whether the employee gives any indicates when he or she can return to work; whether the employee's absences from work are erratic and unexplained; whether the employee will be able to perform his duties when he returns; whether the employer hired the employee to perform a specific task; whether a leave poses an undue hardship given the circumstances of the situations.

Employers should remember that "reasonableness" of a request for an extended leave depends on specific circumstances as "each case must be scrutinized on its own facts."

April 29, 2009

When You are Falsely Accused of Violence at Workplace

False accusation of an employee being violent toward another employee are just as common or are even more common than the actual violence at workplace. This include physical violence as well as verbal threats of violence, including implied verbal threats such as "Next time, I don't know what I am going to do to you...," and similar statements.

Accusations of violence at workplace are typically grounds for immediate suspension or termination of employment. It is a hurtful and frustrating experience to be accused of something that you haven't done. It is not uncommon for an employee who has been falsely accused of violence by his co-worker to "lose it" at a deposition or during the testimony at the arbitration, engaging in a heated argument with the opposing side or their attorney, and thus actually demonstrating to the other side and the judge/arbitrator that the employee has a short temper and might have potential for violence at workplace.

However, if you are determined to prove that the accusations against you are meritless prevail in a legal claim against your employer, related to false violence accusations, it is crucial that you prove through your subsequent actions that you are anything but violent. Maintaining calm, rational, reasonable composure throughout your subsequent communications and/or legal proceedings after suspension and termination is a very important part in compelling the employer to doubt the allegations made against you, and revisit the decision to fire you under the risk of being sued for wrongful termination based on defamation. Do not allow lies and fabrications with regard to your violent behavior to emotionally destabilize you and make you come across as a potentially violent person, and this will be of significant help to any legal claims you might be pursuing in court or through a union arbitration.

April 26, 2009

California Overtime Law - Administrative Exemption Clarified

One of the most vague and, as a result, frequently disputed and litigated claims by workers is whether they are entitled to overtime compensation or whether they are properly classified as exempt under administrative exemption as provided in Federal Labor Standards Act (FLSA) and the applicable federal regulations. This article clarifies the administrative exemption standard as it has been recently applied by California courts.

First, it is important to note that exemptions from overtime compensation requirements are narrowly construed against the employer, and their application is limited to those employees who plainly and unmistakably within their terms. Bell v. Farmers Ins. Exchange (2001).

Generally, except satisfying the minimum rate of salary requirement, which is regularly adjusted, exempt administrative work must be (1) non-manual; and (2) related to management policies or general business operations of the employer or the employer's customers; and (3) must involve the customary and regular exercise of discretion and independent judgment.

One key requirement that has been hotly contested and litigated is the meaning of the work being "directly related to management policies and general operations of the employer or the employer's customers" as required by the regulations defining administrative exemption. The California courts rejected the argument often made by employers that "management policies and general operations" must be interpreted broadly and it applies to any employee who exercises minimal discretion in his work.

Under California law, the construction of the above language is much more narrow. The actual test is whether the activities are directly related to management policies or general business operations. This has been interpreted as running of the business and not merely the day to day carrying out of its affairs. Bratt v. County of Los Angeles (1990). The Bratt court considered whether the county probation officers are exempt from overtime under administrative exemption. The court concluded that although probation officers provide recommendations to the courts, these recommendations do not involve advice on the proper way to conduct the business of the court, but merely provide information which the court uses in the course of its daily production activities. Thus, the duties of those employees did not qualify them as exempt administrative employees, even though conceivable some probation officers might be exempt. This is the reason that insurance adjusters have been held to be eligible for overtime compensation by numerous courts in California and not be exempt under administrative exemption.

April 21, 2009

California Employment Law: Discrimination because of Abortion is Illegal

Under PDA (Pregnancy Discrimination Act), it is unlawful for an employer to discriminate against an employee on the basis of pregnancy,childbirth, or related medical conditions; and women affected by pregnancy, childbirth, or related medical conditions shall be treated the same for all employment-related purposes, including receipt of benefits under fringe benefit programs. This law is construed broadly and has been held by courts to include protection against pregnancy discrimination to women who underwent abortion, as abortion is a "medical condition" arising from pregnancy. Doe v. C.A.R.S. Protection Plus, Inc. (2008).

The basic principle of PDA is that women affected by pregnancy and related conditions must be treated the same as other applicants and employees on the basis of their ability or inability to work. The PDA doesn't require that employers treat pregnant employees better than other temporarily disabled workers, but the PDA does require that employers treat pregnant employees no worse than all others.