I just posted a new video on my YouTube channel about the issues facing employers with the state and local minimum wage increases in 2018 (embedded below). At the end of the first quarter in 2018, it is a good time to review compliance with the state and local minimum wage laws, and to start to prepare for the local minimum wage increased on July 1, 2018. For example, Los Angeles city and county minimum wage rates will increase to $13.25 per hour from the current $12.00 per hour for employers with 26 or more employees on July 1. In addition to my regular blog posts, I’ll be featuring more videos on my channel as well, so please subscribe to both.
Five steps of a Labor Commissioner complaint employers must understand
Employers need to understand their rights and obligations when they receive notice of a complaint through the Labor Commissioner. The process can seem daunting, but with a little preparation it can be managed effectively. This Friday’s Five post sets out a brief explanation of the five steps that most Labor Commissioner proceedings follow:
Step one: Notice of claim
Employers usually become aware of a complaint to the Labor Commissioner when they receive a Notice of Claim and Conference from the Labor Commissioner’s office. Employers are not required to file any paperwork in response to the notice of conference, but the employer or an employer’s representative is required to appear at the conference at the date and time indicated on the notice. The conference is not the actual hearing on the matter, rather the conference is structured as a non-binding settlement conference during which the Labor Commissioner discusses the various allegations, the employer’s response, and will attempt to mediate a resolution between the parties. Here is typical notice of claim that is sent to employers in most cases:
[scribd id=2 key=key-CAgMRleTTvreVffO6mPo mode=scroll]
The Labor Commissioner can only hear disputes for “any action to recover wages, penalties, and other demands for compensation.” Labor Code section 98(a). Therefore, the Labor Commissioner cannot adjudicate any other types of employment claims, such as harassment or discrimination. Likewise, if the employer has a counter claim against the employee, it cannot be heard by the Labor Commissioner, but must be filed in court.
Neither the employee and the employer are required to have an attorney during any stage of the Labor Commissioner process. Whether or not an employer decides to have legal representation during the process depends on how comfortable the employer is with handling these issues and how well they understand the law in order to articulate the appropriate defenses available to them.
Step two: Preparing for the settlement conference
It is important for employers to review the paperwork provided from the Labor Commissioner’s office to ensure that they gather and bring the required paperwork to the settlement conference.
Usually the Labor Commissioner requires the following background information from the employer:
- Completion of the DLSE’s Report of Workers’ Compensation Insurance
- City business license
- Articles of information filed with the Secretary of State
- Any documentation that may be applicable to the employee’s claims: payroll records, time sheets, handbook and applicable policies, correspondence with the employee, etc.…
The employer should also review the employee’s allegations in the notice of claim and prepare an outline of defenses and facts that support their position.
Step three: Settlement conference
Although it is not mandatory, most Labor Commissioner offices will often set the matter for a settlement conference. Employers often misunderstand the purpose of the initial settlement conference. The settlement conference is not the hearing on the matter in which the Labor Commissioner takes sworn testimony and makes a decision. While this step is not the actual hearing that will determine who should prevail, employers should prepare evidence and documents that will be persuasive during the settlement conference to establish defenses to the employee’s claims. It is also good to listen to the employee’s facts and learn what they are claiming, what evidence they may have, and who may be witnesses. It is important to learn this information in the event that the case does not settle and is set for a formal hearing.
Employers should also understand the arguments in support of their defenses so that those can be articulated to the employee and Labor Commissioner. The more persuasive the employer’s case is, the more likely that the case can be resolved for a nominal amount during the settlement conference.
Employers should be prepared to negotiate during the settlement conference and be prepared with a range of how much they would be willing to settle the case. An experienced employment law attorney can help address the strengths and weaknesses of the claims and can help advise on the appropriate settlement offer, if any, that could be made.
Step four: Hearing
If the case does not settle at the settlement conference, or if there was never a settlement conference set, the Labor Commissioner will set the matter for a hearing pursuant to Labor Code section 98(a). The hearings are often referred to as “Berman” hearings after the name of the legislator who sponsored the bill creating this procedure. The basic idea behind Berman hearings is to provide a relatively fast way to resolve wage disputes. However, with the state budget constraints, the hearings are usually set for about one year from the date that the settlement conference takes place.
The hearing takes place in the Labor Commissioner’s office, and is usually in a conference room. The Labor Commissioner will tape record the hearing, and all witnesses’ testimony is provided under oath, just like it would be if they were testifying in court. The Labor Commissioner can issue subpoenas compelling the attendance of parties at the hearing, as well as compelling parties to produce documents at the hearing.
Generally, employers need to be prepared but flexible for how the hearing will proceed. The Labor Commissioner conducting the hearing has a lot of flexibility on how the parties are to present witnesses and conduct cross-examinations. The rules of evidence are not controlling in the proceeding, but the Labor Commissioner generally has discretion to control the evidence presented during the hearing. The Labor Commissioner can, and usually will, ask questions of their own to get a better understanding of certain issues.
After the hearing, the Labor Commissioner will issue a written order that must be served on all parties. Unless this order is appealed, it is a binding judgment against the parties, and a certified copy of the order is filed with the superior court and judgment is entered.
For some additional tips about preparing for and attending a Labor Commissioner hearing, see my prior post here.
Step five: Potential appeal
Both the employee and the employer have the right to appeal the Labor Commissioner’s order, but there is a very short time period to file an appeal (generally it must be within at least 10 days after it is served). The order must be a written order, and will normally be served on the employer through the mail. If the employer appeals the order, the appeal moves the case to the appropriate superior court. The appeal is a de novo appeal, meaning that the case starts from the beginning in superior court and the Labor Commissioner’s order is given no weight. Employers wishing to appeal the Labor Commissioner’s order must also post a bond in the full amount that was awarded in the order. Given the short 10-day deadline to file an appeal, employer wishing to appeal Labor Commissioner orders must seek counsel immediately once they receive the order from the Labor Commissioner.
Go-to termination practices employers need to consider
Employee terminations and resignations must be planned for in advance to avoid common pitfalls for California employers. I’ve recently written about go-to hiring practices for employers, so I thought it would be appropriate to follow that post up with this list of go-to termination practices. This Friday’s Five focuses on critical management and legal considerations for employers during the separation process:
1. Documentation of the reason for termination
What is the reason for termination? Is there a company policy that was violated? [Note: Is the company policy in writing? Has it been distributed to the employee? Is there a signed acknowledgement of the policy in the employee’s file?] Who was involved in termination decision? Review documentation for termination if “for cause” and ensure this documentation is maintained in personnel file.
2. Final pay and accounting
Employers need to prepare the employee’s final paycheck and ensure that any unused accrued vacation time is also included.
Final wages must be paid within certain time limits, including the following:
- An employee who is discharged must be paid all of his or her wages, including accrued vacation, immediately at the time of termination.
- An employee who gives at least 72 hours prior notice of quitting, and quits on the day given in the notice, must be paid all earned wages, including accrued vacation, at the time of quitting.
- An employee who quits without giving 72 hours prior notice must be paid all wages, including accrued vacation, within 72 hours of quitting.
- An employee who quits without giving 72-hours’ notice can request their final wage payment be mailed to them. The date of mailing is considered the date of payment for purposes of the requirement to provide payment within 72 hours of the notice of quitting.
- Final wage payments for employees who are terminated (or laid off) must be made at the place of termination. For employees who quit without giving 72 hours’ notice and do not request their final wages be mailed to them, is at the office of the employer within the county in which the work was performed.
Employers should also review if commissions, bonuses, or expense reimbursement owed to employee? Obtain all expense reimbursement forms form employee.
Employers with multiple locations need to ensure that the final wages are made available. The place of the final wage payment for employees who are terminated (or laid off) is the place of termination. The place of final wage payment for employees who quit without giving 72 hours prior notice and who do not request that their final wages be mailed to them at a designated address, is at the office of the employer within the county in which the work was performed. Labor Code Section 208.
3. Company property and passwords
Obtain all company property from employee and reset passwords. Also, has employee returned all company provided uniforms? Have all company keys been returned? The company should also develop a list of all passwords employee had access to and ensure the passwords are reset.
4. Final notices
Employers need to ensure that all required notices are provided to the employee. For example, common notices include:
- Notice to Employee as to Change in Relationship (download here)
- For your Benefit (Form 2320) (download here)
- COBRA and Cal-COBRA Notices from insurance provider
- Notify insurance provider
- Health Insurance Premium (HIPP) Notice (download here)
5. Retention of employee files
Employers need to take measures to secure and save employee’s file, wage, and time records. For more information, see my prior post, Five best document storage and retention practices for California employers.
Don’t forget about makeup time
Makeup time is one of the rare occurrences under California law that employees have flexibility to adjust their work schedule to accommodate for important life events that come up from time to time. Makeup time allows employees to take time off and then make it up later in the same workweek, without triggering the obligation for the employer to pay overtime. This Friday’s Five covers five issues employers should keep in mind about makeup time:
- An employee may work no more than 11 hours on another workday, and not more than 40 hours in the workweek to make up for the time off;
- The time missed must be made up within the same workweek;
- The employee needs to provide a signed written request to the employer for each occasion that they want to makeup time (and if employers permit makeup time, they should have a carefully drafted policy on makeup time and a system to document employee requests);
- Employers cannot solicit or encourage employees to request makeup time, but employers may inform employees of this option; and
- Remember, if these requirements are not met, time and a half overtime is due for (1) time over eight hours in one day or (2) over 40 hours in one week or (3) the first eight hours worked on the seventh consecutive day worked in a single workweek; and double time is due for (1) time over 12 hours in one day and (2) hours worked beyond eight on the seventh consecutive day in a single workweek. The DLSE provides a good overview of the overtime requirements and calculating overtime payments here.
Happy Friday!
Learn about best employment law practices for 2018
My firm is hosting a seminar for business owners, in-house counsel, human resource professionals, and managers to learn about and how to implement best practices at the start of 2018. Plus, get to see the newly renovated Proud Bird and enjoy some light food and drinks during the mixer.
Our attorneys will be speaking about:
- New case law developments facing California employers in 2018
- Minimum wage increases on state local levels in Southern California and how to plan for the year
- New hiring prohibitions – employers cannot ask about prior salary and new restrictions on conducting background checks, so what can employers still ask?
- New immigration requirements facing employers under California’s Immigrant Worker Protection Act
- New case law developments on the enforceability of arbitration agreements
Space is limited, so register early to reserve your spot.
Thursday, February 15, 2018 4:00 PM – 5:00 PM (presentation); 5:00 PM – 6:00 PM (mixer)
The Proud Bird
11022 Aviation Blvd.
Los Angeles, CA 90045
Seminar Program: 4:00 – 5:00 pm
Mixer: 5:00 – 6:00 pm
Cost: Free for firm clients/friends of the firm (if you are a subscriber to the blog, the fee will be waived)
No charge for parking.
To register, visit: www.zallerlaw.com/seminar
Go-to hiring practices employers need to consider
The hiring process cannot be underestimate, both from a managerial and legal perspective. This Friday’s Five focuses on critical management and legal considerations for employers during the hiring process:
1. Ignore the applicant’s resume during the interview.
Nolan Bushnell, the inventor of Atari and Chuck E. Cheese, and the first person to hire Steve Jobs, provides some great examples of how to conduct an interview to determine if the applicant is a good fit for the company in his book, Finding the Next Steve Jobs. He recommends asking applicants about their top ten favorite books, listening to how they describe their life (“the passionless tend to be blamers”), and asking questions that have no right answers. This allows the interviewer to understand how the applicant analyzes a problem. The book is a must read for leaders in companies that require creative thought leaders working in their establishment.
2. Leaders need to be involved in the hiring process.
This is simply something too important for a company to leave to other people. Sam Altman, of Y Combinator, wrote:
The vast majority of founders don’t spend nearly enough time hiring. After you figure out your vision and get product-market fit, you should probably be spending between a third and a half of your time hiring. It sounds crazy, and there will always be a ton of other work, but it’s the highest-leverage thing you can do, and great companies always, always have great people. You can’t outsource this—you need to be spending time identifying people, getting potential candidates to want to work at your company, and meeting every person that comes to interview. Keith Rabois believes the CEO/founders should interview every candidate until the company is at least 500 employees.
Founders interviewing employee number 1 to 500 sets to tone for the company in many ways in addition to the value mentioned by Sam. First, meeting all new hires illustrates that the employees are valued. Second, it shows that the founders are approachable and should the employee have any complaints they could discuss the issues with the founders. Granted once the company passes the 50 employee mark, it becomes more difficult to have a personal relationship with everyone in the company, but at least the founders are meeting everyone working at the company. This proves to the employees that they are valued. Usually the company’s open door policy states that if the employee has any complaints, they are free to discuss it with their supervisor, and if appropriate their concerns can be escalated to the founders/CEO. Meeting with employee during the hiring process can give teeth to the open door policy, and promote the practice of speaking with the founders if any employees have concerns about work.
3. Try working with the applicant first.
I don’t care how many interviews someone has conducted, no one can determine if an applicant will be a good fit in a company over an interview at lunch. No matter how good you believe your interview questions are at finding out the applicant’s true values, work ethic, and knowledge base, anyone with an internet can study-up on how to handle almost any type of interview scenario and look amazing during the interview. How does a company get past this problem? Sam Altman again has some great advice and recommends hiring the applicant as an independent contractor and giving her a day or two of work on a noncritical project. I recommend that companies may take it one step further, and depending on the circumstances, it may even be appropriate to hire the applicant as an employee with the idea that they are to only work on one short project during the nights or weekends. There is nothing in the law that prevents a company from hiring employees for a day or two to see how they would work, that is the idea behind at-will employment.
4. Find the applicant’s true ambition.
Gary Vaynerchuk has a great take on what interviewers should be striving to determine during the interview:
When I interview you, the main thing I want to know is where you want your career to go. “What do you want to be when you grow up?” I want to get into the psychology of what their ambition is. And I spend most of the interview trying to get that person comfortable enough to tell me the truth to that question. Because I don’t care if you want to be the CEO of VaynerMedia, or if you just want to move a couple levels up and have great work life balance. I don’t even care if you want to come work for me for two years, suck up all my IP, and then go somewhere to start your own agency. I really don’t care. Truly. Whatever your agenda is, I’m fine with it. I just want to know what it is, so I can help us get there. You and me.
5. Make a checklist of legal hiring compliance issues.
As always, it is good to periodically review hiring materials, questions and processes to insure compliance with local, city, and state laws, such as:
- Are applications seeking appropriate information?
- For example: Be careful about ban the box regulations.
- Are new hires provided with required policies and notices?
- Are new hires provided and acknowledge recommended policies?
- For example: meal period waivers for shifts less than six hours
- Are hiring managers trained about the correct questions to ask during the interview?
- Does the company provide new hires (and existing employees) with arbitration agreements?
Five statements smart employers never say
California employment law is a mind field that carries huge exposure for employers not proactively monitoring legal developments and potential legal issues. There are some statements employers in California should never make, and this Friday’s Five reviews misaligned statements that can create significant liability for an employer.
1. My company has employment practices liability insurance, so there cannot be much exposure from employment lawsuits.
In California, it is very common for insurance companies to exclude wage and hour claims from the employment practices liability (EPLI) coverage. This applies to single plaintiff and class action claims and representative claims under California’s Private Attorney General Act (PAGA). This is a significant area of potential exposure for employers, and therefore, the costs and benefit analysis of an EPLI policy must take these considerations into account.
Moreover, under California law an insured cannot buy insurance to cover willful acts. See Insurance Code section 533. Therefore, if the employment lawsuit alleges willful acts, it is also likely not going to be covered by insurance.
Employers should seek coverage counsel to assist in reviewing the exclusions and limitations of any EPLI policies prior to purchasing in order to completely understand the coverage that is being purchased for the cost of the policy.
2. I’m busy right now, can you tell me about your workplace complaint tomorrow?
California employers have a legal obligation to conduct workplace investigations. California Government Code section 12940(j) provides that it is “unlawful if the entity, or its agents or supervisors, knows or should have known of this conduct and fails to take immediate and appropriate corrective action.” The law also provides that employers are liable if they “fail to take all reasonable steps necessary to prevent discrimination and harassment from occurring.” Gov. Code section 12940(k). If the employer fails to take the preventative measures, they can be held liable for the harassment between co-workers. If the harassment occurs by a manager, the company is strictly liable for the harassment. If the harassment occurred by a non-management employee, the employer is only liable if it does not take immediate and appropriate corrective action to stop the harassment once it learns about the harassment. Investigations must follow certain parameters in order to be deemed adequate under the law. Click here for more information about conducting adequate investigations.
3. There is no need for our company to record meal breaks, all of the employees know that they can take breaks whenever they want.
Meal breaks taken by the employees must be recorded by the employer. However, there is no requirement for employers to record 10-mintute rest breaks. For more information about meal and rest break obligations, see my previous article.
4. Our company’s handbook is current, it was updated four years ago.
Any California employer can attest, the employment legal landscape changes on a yearly (if not more often basis). Employers should have someone well versed on employment law reviewing the employee handbook on at least a yearly basis.
5. I’m sure my payroll company is issuing compliant pay stubs.
Employers are cautioned not to rely on their payroll companies for compliant itemized wage statements, as these companies often times do not understand the legal requirements of the Labor Code. Ensuring the required information is properly listed on the itemized wage statements is an item that employers should review at least twice a year for compliance.
Labor Code Section 226(a) requires the following information to be listed on employees’ pay stubs:
- Gross wages earned
- Total hours worked (not required for salaried exempt employees)
- The number of piece-rate units earned and any applicable piece rate if the employee is paid on a piece rate basis
- All deductions (all deductions made on written orders of the employee may be aggregated and shown as one item)
- Net wages earned
- The inclusive dates of the period for which the employee is paid
- The name of the employee and the last four digits of his or her social security number or an employee identification number other than a social security number
- The name and address of the legal entity that is the employer
- All applicable hourly rates in effect during the pay period, and the corresponding number of hours worked at each hourly rate by the employee
Here is an example of an itemized wage statement published by the DLSE.
Also, do not forget that under California’s paid sick leave law that went into effect on July 1, 2015 employers have additional reporting information regarding employees’ accrued paid sick leave and usage. Employers must show how many days of sick leave an employee has available on the employee’s pay stub or a document issued the same day as a paycheck.
Companies are ultimately liable for these violations, so it is best to double check your payroll company’s work to ensure compliance.
Resources
Click here to subscribe to the blog. In addition, subscribers to the blog are invited to attend seminars and seminars I periodically host throughout the year.
ebook: “The Ten Best Human Resources Practices For California Employers” (please email me for a free copy).
TERMINATION CHECKLIST CONSIDERATIONS
This termination checklist provides an outline of termination considerations employers should consider:
- documenting reasons for termination
- final pay and accounting issues
- company property and passwords
- severance agreement considerations
- final notices required under the law
BEST PRACTICES WHEN CONDUCTING EMPLOYEE DISCIPLINE AND TERMINATIONS
This white paper discusses some of misconceptions and myths about employee discipline, when severance pay and severance agreements should be used, and other end-of-employment considerations employers should consider.
Video: California’s Ban on asking about job applicant’s salary effective January 1, 2018
Subscribe to the California Employment Law Report YouTube Channel here.
Obesity can qualify as a disability under CA law – Cornell v. Berkeley Tennis Club
Plaintiff Ketryn Cornell began working part-time for the Berkeley Tennis Club as a lifeguard and pool manager in 1997, while attending college at UC Berkeley. She was employed as a night manager and continued to work at the Club after graduating from college in 2001. In 2011, she took on additional duties and began working as a night manager, day manager, and tennis court washer. She received positive reviews, merit bonuses, and raises throughout this period.
The Club employed a new general manager in 2012. The new manager implemented a uniform policy. While mandating the staff to wear uniform shirts, the largest sized ordered by the club did not fit Cornell. Cornell was obese, at five feet, five inches tall, she weighed over 350 pounds. Cornell explained to the general manager that she needed a bigger size, and he reported that he would work on providing an appropriate uniform. However, it is unclear if he attempted to find shirt Cornell could fit. Taking upon herself, Cornell ordered shirts from a specialty shop at her own expense and had them embroidered with the Club logo.
Cornell filed a lawsuit in May 2014, asserting causes of action for various Labor Code violations and the eight causes of action that were at issue on the appeal, which included disability discrimination/failure to accommodate under the Fair Employment and Housing Act (FEHA), wrongful discharge in violation of public policy based on the disability discrimination, disability harassment under the FEHA, and retaliation under the FEHA. This Friday’s Five reviews five takeaways for California employers arising from this disability discrimination decision:
1. Obesity can qualify as a physical disability under the Fair Employment and Housing Act.
Under FEHA, it is unlawful to discriminate against an employee on the basis of “physical disability.” (Gov. Code, § 12940, subd. (a).) In addition to making it illegal to discriminate on the basis of disability, the FEHA makes it unlawful “to fail to make reasonable accommodation for the known physical . . . disability of an . . . employee.” (§ 12940, subd. (m)(1).) Finally, the FEHA prohibits an employer from harassing an employee “because of . . . physical disability.” (§ 12940, subd. (j)(1).)
The Club moved for summary adjudication of the discrimination/failure to accommodate claim and the harassment claim on the basis that Cornell’s obesity is not a physical disability under FEHA. The Club also argued that even if Cornell has a condition protected by the FEHA, she did not require an accommodation and was not terminated for a discriminatory reason, and the Club’s actions were not severe or pervasive enough to constitute harassment.
Cornell argued that her obesity qualified as an actual physical disability because it is a “physiological disease, disorder, condition, cosmetic disfigurement, or anatomical loss that does both of the following: [¶] (A) Affects one or more of the following body systems: neurological, immunological, musculoskeletal, special sense organs, respiratory, including speech organs, cardiovascular, reproductive, digestive, genitourinary, hemic and lymphatic, skin, and endocrine. [¶] (B) Limits a major life activity.” (Government Code § 12926, subd. (m)(1).)
In Cassista v. Community Foods, Inc. (1993) 5 Cal.4th 1050 (Cassista), the California Supreme Court held “that weight may qualify as a protected `handicap’ or `disability’ within the meaning of the FEHA if medical evidence demonstrates that it results from a physiological condition affecting one or more of the basic bodily systems and limits a major life activity.” (Id. at p. 1052.) Interpreting the same statutory language as currently found in section 12926, subdivision (m)(1)(A), and relying on federal antidiscrimination law for guidance, the Court concluded that “an individual who asserts a violation of the FEHA on the basis of his or her weight must adduce evidence of a physiological, systemic basis for the condition.” (Cassista, at pp. 1063-1065.)
The court set forth the definition of “physiological”:
Rather, the pertinent question is whether a genetic cause qualifies as a “physiological cause.” “Physiological” means “relating to the functioning of living organisms.” (Oxford English Dict. Online (3d ed. Mar. 2006) [as of Dec. 21, 2017 [physiological].) This term encompasses genetics, and the Club does not argue otherwise. We therefore reject the implication that Cornell cannot establish her claim by proving that her obesity has a genetic cause.
The Court found that Cornell’s testimony that other doctors hand determined that her obesity was caused by genetics, and the fact that those doctors were not deposed, was enough evidence for Cornell to overcome the employer’s motion for summary judgment and proceed to trial on this claim.
2. Even if others were involved in decision to terminate, plaintiff can still maintain a discrimination cause of action if person alleged to have discriminated against plaintiff was involved in the termination decision.
The employer in this case argued that the general manager who was alleged to have discriminated against Cornell was not the only person involved in the decision to terminate her, but that other supervisors were involved, and therefore the decision could not have been discriminatory. The court rejected this argument in holding:
“[S]howing that a significant participant in an employment decision exhibited discriminatory animus is enough to raise an inference that the employment decision itself was discriminatory, even absent evidence that others in the process harbored such animus.” (DeJung v. Superior Court (2008) 169 Cal.App.4th 533, 551.) There is evidence that [General Manager] Headley made several comments suggesting he held a discriminatory animus toward Cornell. Although the extent to which he participated with Gurganus and Miller in the decision to fire Cornell is unclear, there is plenty of evidence that he participated in some way….
3. While sporadic comments are not enough to create a hostile work environment, courts may look to the context of all of the actions taken against the employee in determining if a hostile work environment existed.
The Club argued that even if Cornell is otherwise entitled to protection under the FEHA, summary adjudication of her disability harassment claim was proper because she was not subject to sufficiently severe or pervasive harassment. The appellate court disagreed:
Here, Cornell was able to present enough evidence to at least continue to trial with her harassment cause of action because of the statements made by the General Manager in regards to obtaining a uniform shirt that fit Cornell, the General Manager’s comments about Cornell having weight-loss surgery, and his comments to kitchen staff not to give Cornell extra food because “she doesn’t need it.” The Court recognized that these types of comments on four occasions do not create a hostile work environment, “Four comments over several months does not establish a pattern of routine harassment creating a hostile work environment, particularly given that the comments were not extreme.” (“Actionable harassment consists of more than “annoying or `merely offensive’ comments in the workplace,” and it cannot be “occasional, isolated, sporadic, or trivial; rather, the employee must show a concerted pattern of harassment of a repeated, routine, or a generalized nature.” (Lyle v. Warner Brothers Television Productions (2006) 38 Cal.4th 264, 283.)”)
However, the Court found that the employer’s conduct must be viewed in context of the General Manager’s other actions, “including his ordering of shirts that were significantly too small for her and reporting to the Personnel Committee that she was resisting the uniform policy by not wearing appropriate shirts, as well paying her less than another employee and denying her extra hours and internal job openings.” This evidence was enough to prevent the employer from dismissing Cornell’s harassment claims prior to trial.
4. Requests for reasonable accommodations are protected activities under the law.
In 2015 the Legislature amended section 12940 to add subdivision (m)(2), which now makes it unlawful for an employer to “retaliate or otherwise discriminate against a person for requesting accommodation under this subdivision, regardless of whether the request was granted.” (Stats. 2015, ch. 122, § 2.)
5. Primary takeaway for employers: treat all employees with respect.
While certain conduct that is rude, unfair, and unethical may not raise to the level of being unlawful discrimination, harassment or retaliation under the law, this type of conduct will inevitably lead to higher litigation costs and employee turnover. I’ve written about how most companies cannot afford to have managers like Steve Jobs, and this case is another example. While the employer had arguments that the manager’s actions in this case were not illegal under the law, even if the employer prevails at trial in this case, the costs associated with the litigation are substantial. Unprofessional comments by co-workers, managers and supervisors in the workplace should be stopped by employers, as while sometimes they may not be illegal, it drives litigation from employees who felt that they were not treated fairly.
The appellate court’s decision, Cornell v. Berkeley Tennis Club, can be found here.
California is ground-zero for immigration battle and employers are stuck in the middle
California’s Immigrant Worker Protection Act became effective January 1, 2018. The law, set forth in AB 450, requires, among other items, employers to verify that immigration officials have a judicial warrant or subpoena prior to entering the workplace and for employers to provide notice to employees if there has been a request to review the employer’s immigration documents, such as Form I-9s. The new law puts employers in a difficult situation of having to comply with federal immigration law obligations on one hand and state law requirements on the other, with large penalties that could result for violations of either law. This Fox News report sets out the impending conflict between the Federal government and California:
Now with the fight on immigration issues between the Federal government and California, employers should start reviewing their obligations if Federal immigration officials audit their workplace. This Friday’s Five discusses five issues employers need to understand about the obligations created by AB 450.
1. Employers may not voluntary consent to an immigration enforcement agent to enter any nonpublic areas of “a place of labor” without a subpoena or judicial warrant.
The new law provides that employers cannot provide voluntary consent to an immigration enforcement agent to “access, review, or obtain the employer’s employee records without a subpoena or judicial warrant.” This prohibition does not apply to I-9 Employment Eligibility Verification form and “other documents for which a Notice of Inspection has been provided to the employer.”
2. Employers must give notice to employees of any immigration review of employment records.
Employers are required to post information about any inspections of I-9 Employment Eligibility Verification forms or other employment records conducted by an immigration agency within 72 hours of receiving notice of the inspection. The notice must be posted in the language the employer normally uses to communicate employment-related information to the employee. In addition, the notice must include the following information:
(A) The name of the immigration agency conducting the inspections of I-9 Employment Eligibility Verification forms or other employment records.
(B) The date that the employer received notice of the inspection.
(C) The nature of the inspection to the extent known.
(D) A copy of the Notice of Inspection of I-9 Employment Eligibility Verification forms for the inspection to be conducted.
The Labor Commissioner is required to publish a template for employers to use by July 1, 2018.
3. An employer, upon reasonable request, shall provide an “affected employee” a copy of the Notice of Inspection of I-9 Employment Eligibility Verification forms.
An “affected employee” is an employee identified by the immigration agency inspection results to be “an employee who may lack work authorization, or an employee whose work authorization documents have been identified by the immigration agency inspection to have deficiencies.”
The employer is required to provide the affected employee a copy of the written immigration agency notice that provides the results inspection within 72 hours of after receipt of the notice. In addition, the employer shall also provide written notice of the obligations of the employer and the affected employee arising from the results of the records investigation. The notice needs to relate to the affected employee only and shall be delivered by hand at the workplace if possible and, if hand delivery is not possible, by mail and email, if the email address of the employee is known.
4. Except as otherwise required by federal law, employers cannot reverify the employment eligibility of a current employee at a time or in a manner not required by federal law
Violations of this provision can result in civil penalties up to $10,000. In addition, penalties for failure to provide the notices required under the new law are $2,000 up to $5,000 for a first violation and $5,000 up to $10,000 for each subsequent violation. The penalties will be recovered by the Labor Commissioner.
5. Start planning now.
Employers should review their current policies and practices to ensure compliance with Federal immigration requirements, including all I-9 requirements. In addition, employers should train and designate one executive to ensure that the tight notice requirements set forth in the Immigrant Worker Protection Act are met should the Federal government ask to enter the workplace or seek review of employment records.
AB 450 adds Sections 7285.1, 7285.2, and 7285.3 to the Government Code, and to add Sections 90.2 and 1019.2 to the Labor Code.