university of california san diego lamp program 2014
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University of California San Diego LAMP Program 2014. Employment Law and Practice Presented by: Lonny M. Zilberman, Esq. Wilson Turner Kosmo LLP [email protected] April 29, 2014. What’s on the Menu?. Laws regulating the California Workplace - PowerPoint PPT PresentationTRANSCRIPT
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University of California San Diego
LAMP Program 2014
Employment Law and Practice
Presented by:Lonny M. Zilberman, Esq.
Wilson Turner Kosmo [email protected]
April 29, 2014
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What’s on the Menu?
Laws regulating the California Workplace
Recurring employment risk issues: How to Spot Red Flags
Tips for “Rightful” Termination and Performance Management
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ManagingWithout Fear
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How the Law Changed HR – The Last 70 Years:
1950s – Untamed Wilderness 1960s – Civil Rights Comes to Work 1970s – Sex, Safety & Class Actions 1980s – Layoffs & Individual Rights 1990s – Disability and Family Leave 2000s – Privacy Rights, Drug testing 2010s – Facebook, Twitter, social media
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What’s Happening Out There?
Certain types of claims are on the riseFailure to Investigate or Prevent
HarassmentRetaliation Failure to AccommodateWage and hour mistakes Age Discrimination
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Why Should I Care?
You might be liable: statutes (harassment, retaliation) common law (defamation, invasion of
privacy, interference, fraud) A happier team is a more productive team! The alternatives are not attractive
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A Jury of Your Peers?
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Hot Topic #1: Discrimination and Harassment
Title VII of the Civil Rights Act (1964) Age Discrimination in Employment Act (1967) The Americans with Disabilities Act (1990) California Fair Employment and Housing Act The California Labor Code
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Title VII - Civil Rights Act of 1964
Protected characteristics:RaceNational OriginColorReligionSex
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Title VII - Civil Rights Act of 1964
Prohibits employment discrimination in: Recruitment Hiring Advancement Decisions affecting pay and other terms and
conditions Discipline and termination
Prohibits harassment as well
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California Government Code FEHA (Gov’t Code Sec. 12940)
race, color, sex, national origin, ancestry, disability (mental or physical), sexual orientation, gender identity (including transgender status) medical condition (cancer), pregnancy, childbirth (and related medical condition), religion, and marital status.
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Title VII and Discrimination
2 Types :Direct evidence of discrimination
– Disparate treatmentDisparate impact
“Neutral” policy that discriminates in its application – the numbers tell the story
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Age Discrimination
Prohibits discrimination: 40 or older Protects Applicants and Employees No discrimination in hiring, training,
compensation, discharge and other terms and conditions of employment
Reid v. Google case – Cal. Sup. Crt.
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Americans with Disabilities Act
An employer may not: Limit, segregate or classify
applicants or employees because of disability
Exclude or otherwise deny equal jobs because of disability
Refuse to make reasonable accommodations
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Definition of a “Disability” A physical or mental condition
that substantially limits a major life activity*
A history of such a condition Being regarded as having such a
condition* Under California Law =
“merely” limits a major life activity
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“Major Life Activities”
Talking, walking, seeing, hearing Performing manual tasks Learning Working Interacting with others Concentrating Pro-creation
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Reasonable Accommodation
Employers must make reasonable accommodations to known disabilities of applicants and employees, unless the accommodation would cause “undue hardship”
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The Interactive Process
Employer has an affirmative duty to engage in the interactive process to explore reasonable accommodations
Light Duty?
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Top Disability-Related Mistakes:
Not engaging in the interactive process Demoting employees who take leave Denying an employee’s reasonable
accommodation request Denying that employee has a disability Discontinuing accommodation for no
reason Sandell v. Taylor-Listug, Inc. case
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Harassment: Sex and Other Forms
A form of discrimination 2 Types: QPQ and HWE QPQ examples Personal liability for
harassment
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Who Can be a Harasser?
Supervisors Co-Workers Customers Vendors and
Contractors
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Hostile Work Environment Unwelcome Conduct, speech or action Of a sexual nature Touching the workplace So “severe or pervasive” That it affects the job or
creates HWE
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Harassment is Broadly Defined
Same sex Sexual
orientation Sexual
“stereotyping” Disability
Religion Race National Origin Age
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Harassment Prevention
Duty to prevent - Gov’t §12940(h)(i)
Individual liability Prompt and reasonable
investigation The benefits of a good job: Cotran Training obligations Applies to third parties & vendors
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Avoiding Harassment Claims
Set an example Intervene early -- be proactive Don’t punish the messenger Impose/support decisive corrective
action
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6 Steps To Avoid Harassment Liability:
Train employees and managers regarding all forms of potential harassment – not just “sexual”Take all complaints of harassment seriously – even those involving “name calling” or “teasing”Conduct prompt and thorough investigationsState and restate policies at every opportunityDiscipline those who do not complyDocument the process!
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Jury Verdicts: Believe It or Not! De La Cruz v. Cal-Pac Group, Inc. (2010): $2,500,000• Female minimum wage card dealer alleged her manager sexually harassed
her. She reported his unwanted advances to HR, but no investigation was conducted. She was terminated one week after the Casino learned she hired an attorney. Manager accused of telling plaintiff she had a nice “rack,” rating other women in discussions with plaintiff and bringing in an erectile dysfunction drug pen and showing her how the pen “grew” in length when a button was pushed.
Kell v. AutoZone, Inc. (2010): $1,468,675• Plaintiff was a District Manager and was terminated five months after
complaining of harassment. Kell reported to Division HR Director that local store managers were referring to employees and customers as “retards” and “lazy N-word.” At trial, Plaintiff relied on numerous witnesses who testified that HR Director failed to investigate harassment complaints and that Plaintiff complained of harassment by various store managers. AutoZone confronted Plaintiff with false resume he prepared post-termination claiming that he exaggerated his military rank and medical history because he falsely claimed that he was awarded a purple heart.
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Wages & Hours: Hot Topic #2
3 Biggest Mistakes Managers Make and How to Avoid Them
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California’s Wage & Hour Laws
Meal periods Breaks Overtime
Off The Clock Time
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The Rule: Meal Periods
Employee MUST take a 30 minute meal period for shifts more than 5 hours long;
Employee MUST take a 2nd 30 minute meal period for shifts longer than ten hours
Need not be paid Doesn’t count as “hours worked”
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Restrictions on Meal Periods
Must be “duty-free” Employee free to leave work station Employee free to leave work premises
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Meal Period Exceptions 6 hours or less, if voluntarily waived 12 hours or less, if 1st not waived “on duty” meal period, if required by
the nature of the job
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Watch Out!
Don’t be too nice Most employees cannot waive
“duty-free” meal period Waivers must be voluntary Waiver restrictions
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The Rule: Rest Periods Employee must be AUTHORIZED AND
PERMITTED to take a 10 minute break for every 4 hours of work
In middle of each work period “Duty-free” but can prohibit leaving Must be paid
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Penalties & Other Costs
1 hour pay for EACH meal & rest period missed
Overtime “domino” effect $$$ Attorney’s fees
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Recent Case Examples:
Wren v. RGIS Inventory Specialists: $27,000,000 Plaintiffs claimed they often performed duties while not “clocked-in” and managers knew that they were not compensated. Also claimed unpaid overtime, missed meal and rest breaks and inaccurate itemized wage statements and late payment of wages.
Counsel received $5,400,000 (20% of settlement)
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More Recent Wage and Hour Class Action Settlements:
Lane v. Stewart Title (Sales Reps.) $10.8 million settlement for alleged OT
Williams v. Sun Microsystems (IT Writers) $5 million settlement for alleged OT (152)
Keefe v. Polo Ralph Lauren (Mgrs.) $4.5 million settlement for alleged OT
Burnham v. Kendal Floral Supply (Merch.) $3.6 million settlement for alleged OT (371)
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West v. U.S. Foodservice (Sales Reps.) $14.5 million settlement for unpaid business
related mileage and cellular phone bills (687) Brunner v. Aon Insurance (Sales Reps.)
$6.8 million settlement for unpaid business related expenses associated with mileage (100)
Failure to Pay Business Expenses:
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Spotting The Problem Busy, high-stress workplace Employees eating at their work areas Traveling employees No break area Laid back timekeeping system
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The Problem: “Off The Clock” Time
Pre-work activities Work from home On-call Travel time Key: difficult to disprove
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What is “work time” anyway?
“Suffered or permitted to work” Employer control If employer knows or has reason to
know
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Review wage statements State and restate policies Discipline those who do not comply
(and Document this!) Provide complaint mechanism
Steps You Can Take To Protect The Company
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Wage & Hour FAQ No. 1: Question:
If the employee chooses to work through both of his rest periods, is the employer required to let him leave work 20 minutes early?
Answer: No, working through a rest period does not entitle an employee to leave work early or arrive late.
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Wage & Hour FAQ No. 2:
Question: Are employers required to keep records of employee breaks?
Answer: No, because the break time is time that the employee is required to be compensated.
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Wage & Hour FAQ No. 3:
Question: When an employee needs to use the toilet facilities during his work period does that time count towards his ten (10) minute rest break?
Answer: No, Allowing employees to use toilet facilities during working hours does not meet the employer’s obligation to provide rest periods as required by the IWC’s wage orders.
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Wage & Hour FAQ No. 4:
Question: Can an employee choose to work through her meal period so that she can leave work 30 minutes early?
Answer: Yes, so long as the employee is relieved of all duty and may take a lunch break if she wants.
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Wage & Hour FAQ No. 5:
Question: Can an employee combine his meal break with his rest period breaks?
Answer: No, meal and rest period time cannot be combined.
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Wage & Hour FAQ No. 6: Question:
Once a month we provide a training session for our employees during lunch where we provide them with food and drinks. Do we have to pay these employees for that time?
Answer: Yes, the DLSE has concluded that this is an on-duty meal period that must be paid at the employee’s regular rate of pay.
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Wage & Hour FAQ No. 7:
Question: Are employers required to keep a record of employee meal periods, and if so, for how long?
Answer: Yes, section 7 in each of the IWC’s Wage Orders requires that these records be maintained for at least three (3) years.
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Wage & Hour FAQ No. 8:
Question: If an employee works unauthorized overtime is the employer obligated to pay for it?
Answer: Yes, California law requires that employers pay overtime, whether authorized or not. An employer can, however, discipline an employee if he violates the company’s policy of working overtime without the required authorization.
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Wage & Hour FAQ No. 9:
Question: Can an employee waive her right to overtime compensation?
Answer: No, California law requires that an employee be paid all overtime compensation notwithstanding any agreement to work for a lesser wage.
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Performance Reviews
Issues of performance are almost always central to a discrimination or termination claim
Usually “Exhibit A” to the complaint Don’t “sugar coat” the review; it will
come back to haunt you Remember -- Juries hold companies
to what they say in the reviews
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Effective Performance Management
Communicate goals and expectations clearly
Don’t wait for formal “reviews” Be fair, honest, and consistent Fair criticism takes time and thought
• Praise the good and criticize the bad• Don’t just criticize -- provide the tools and the
time to foster improvement
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Wrongful Termination: 4 Types
Refusing to violate a statute Performing a statutory obligation Exercising a statutory right or privilege Reporting an alleged violation of a
statute of public importance
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Tips for “Rightful” Termination:
Termination should never be a surprise Never act hastily Always get both sides of the story Always document the basis for the decision Always take steps to preserve dignity Always strive for consistency Always involve HR
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Current Trends
With new interest in corporate transparency, more “whistleblower” laws will get attention like SOX.
Class discrimination claims increasing, e.g. gender, age and disability (Dukes v. Wal-Mart)
More class action claims—failure to pay OT, misclassification and meal and rest period claims
Managers sued individually, along with Company Cost of defense is significant – more arbitration
agreements and alternative dispute resolution
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► Perceived or actual lack of due process► Company didn’t follow it’s own policies► Company was not consistent in disciplining► No “good reason” for decision► Two words: “No Documentation”► Employer perceived as untruthful or unfair
6 Reasons Why Juries Award Big $:
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Thank You!
Lonny Zilberman, Esq. Wilson Turner Kosmo LLP
550 West C Street, Suite 1050San Diego, California 92101
Tel: (619) [email protected]