Don’t Ignore Harassment and Discrimination Complaints!

Making sure that your managers are properly trained on how to handle any employee complaint of harassment or discrimination is very important for a business.    The EEOC received a record 99,947 charges of discrimination in fiscal year 2011, the highest number of charges in the agency’s 46-year history and awarded more than $364.6 million in monetary benefits for victims of workplace discrimination.

The Law Office of Laura L. Ergood, LLC is passionate about helping employers and business owners to comply with federal and state employment laws in order to avoid costly, disruptive and damaging lawsuits and/or government audits. If your company has employees, chances are you will need guidance on employment law matters. Contact Employment Lawyer Laura L. Ergood for assistance navigating the many employment laws in existence today.

Is Your Business Compliant?

I have a passion for seeing businesses succeed.  When businesses succeed, owners, shareholders, employees, families, consumers, other businesses and communities will benefit.  A successful business is good for our economy.

One of the goals of the Law Office of Laura L. Ergood, LLC is to provide businesses with employment law advice and guidance that will help businesses profit by keeping employees happy and productive, while decreasing reliance on more expensive law firms.  Compliance with the many state and federal employment laws that exist today is challenging for business owners, not to mention the myriad of different employee situations and fact patterns that managers and business owners are confronted with daily.  Let the Law Office of Laura L. Ergood, assist your business with its employment law needs.

The Law Office of Laura L. Ergood can serve as your Human Resource office or in-house counsel without actually having to add in-house counsel to your pay-roll.  We can also serve as outside counsel to your company’s in-house counsel or HR Department for all of your employment law needs at a lower cost than big law firms may charge.

While previously serving as General Counsel to a local mortgage company, I dealt first hand with all of the Company’s employment law issues.  The issues ranged from proper classification of employees for overtime pay, to overtime calculations for commissioned employees to investigating and handling sexual harassment and discrimination claims.[1]  I also provided sexual harassment and discrimination training to managers, employees and new hires.  I continually revised the employee handbook as laws were amended, managed and properly documented Family Leave and successfully assisted when the NJ Department of Labor audited the company due to an employee wage and hour complaint.

I  recently assisted a local business through a difficult Federal Department of Labor audit.  I was able to provide this company with valuable information during this difficult time.  I also located an error with their overtime calculations that was being done by a national payroll company which was making the erroneous calculation.  Had the company sought out my services prior to the audit, I would have been able to protect against much of the high costs associated with the audit.  This can happen to any company.  The audit may be random or spurred on by a disgruntled employee.  The risk of liability associated with government audits or employee lawsuits can be staggering.

I can be available to your company when you need me.  Here is a list of some of the services that I can provide to assist with seeing that your company is compliant with federal and state employment laws and regulations, which will ultimately help protect your bottom line against protracted litigation, unhappy employees, and fines and penalties imposed by government entities and keep your business running smoothly.

  • Employer/Employee Handbooks – preparation, review and revisions.
  • Examine employee classifications based upon job responsibilities – important to avoid overtime issues and back-pay.
  • Examine independent contractor classifications – a hot area that the government departments are cracking down on.
  • Provide harassment and discrimination training to managers and employees.
  • Provide independent discrimination and harassment investigations for objective findings and to protect privacy of those involved.
  • Provide advice on employee issues and terminations as they arise.
  • Conduct audits of overtime pay records to assure they are correct.
  • Assess whether all required federal and state poster are posted properly.
  • Assist, advise and represent during government audits.
  • Advise of updates in the laws and regulations.
  • Provide guidance and audits with regard to tipping policies and “tip-pooling” for restaurant clients.
  • Draft job descriptions.
  • Review and negotiate severance agreements.
  • Represent before the EEOC and other state and federal agencies.
  • Prepare position papers in response to employee complaints filed with the EEOC and other state and federal agencies.
  • Assist with disability reasonable accommodations requests pursuant to the ADAAA.
  • Assist with FMLA and NJ FLA leave of absence requests – this can be very tricky sometimes.

And the list goes on…

If you are interested in learning more about these valuable services and how they may benefit your business, please call me at 856.266.9525 and we can talk on the phone or meet in person. I welcome the opportunity to assist your business to be as compliant with the employment laws as it can be.


[1] The EEOC received a record 99,947 charges of discrimination in fiscal year 2011, which ended Sept. 30, the highest number of charges in the agency’s 46-year history. EEOC staff also delivered historic relief through administrative enforcement—more than $364.6 million in monetary benefits for victims of workplace discrimination. Source- EEOC 11-15-11 Press Release.

CRACKER BARREL TO PAY $2 MILLION FOR RACE AND SEXUAL HARASSMENT AT THREE ILLINOIS RESTAURANTS

This was pretty painful punishment for this employer for violating Title VII. What was even more painful for the company though was  learning that its insurance carrier was denying coverage of this $2million award to the plaintiff’s who were employees of the company. Cracker Barrel had an EPL policy. This type of policy is an Employer Practices Liability Policy. The purpose of the policy is to insure the company for exactly the reason Cracker Barrel was sued by its employees which was poor employer practices- harassment and discrimination in violation of the Federal Statute Title VII.

Cracker Barrel was forced to sue its insurance carrier for coverage of this $2million damages award so that Cracker Barrel didn’t have to pay the damages out of the Company’s assets. Unfortunately, Cracker Barrel lost in federal court. The court found that the plain language of the policy said that the  policy covered “a civil, administrative or arbitration proceeding commenced by the service of a complaint or charge, which is brought by any past, present or prospective employee.” In the case against Cracker Barrel, the insurance company argued and the court agreed that the EEOC brought the lawsuit against Cracker Barrel and NOT an employee even though the employee initiated the complaint with the EEOC and the EEOC filed the lawsuit on behalf of the employees of Cracker Barrel. So Buyer Beware!

Companies with employees can learn several very important lessons from the Cracker Barrel lawsuits. The first lesson is to make sure the Company has a written anti-harassment and discrimination policy that is being followed and enforced at all levels of your operation. The second lesson is to make sure that all employees (including managers and owners) are trained regularly on the policy so that they know what type of behavior is prohibited and the procedure to follow if such behavior occurs or is reported. The third lesson to learn here is if your company purchases an  EPL insurance policy, read it and have it reviewed by an employment law attorney, especially  in light of this decision.

Burlington Coat Factory – Federal Class Action Lawsuit

A federal lawsuit was just filed against Burlington Coat Factory. Assistant managers nationwide claim they weren’t really exempt employees and entitled to back overtime pay. They allege the company violated the Fair Labor Standards Act. If this can happen to large companies, it can certainly happen to medium and small companies. I love to help small & med. sized businesses stay compliant with the FLSA, thus protecting them from possible huge monetary awards for noncompliance.

EEOC – Verizon pays 20 million

On July 6, 2011, the EEOC issued a press release stating that Verizon agreed to pay $20 million to resolve a disability discrimination class action filed by the EEOC. The EEOC is focusing on disability discrimination. Employers should discuss their leave policies with an experienced employment attorney.

EEOC PRESS RELEASE- HARASSMENT SUIT AGAINST WALMART

 

Walmart to Pay $440,000 to Settle EEOC Suit for Harassment of Latinos

Mexican-American Subjected Other Hispanic Employees to Ethnic Slurs at Fresno Sam’s Club, Federal Agency Charged

FRESNO, Calif. – Sam’s Club, the wholesale chain store owned and operated by Walmart, will pay $440,000 and furnish other relief to settle a national origin harassment lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today.

The EEOC contends that at least nine employees of Mexican descent at the Sam’s Club in Fresno, along with one who was married to a Mexican, endured ethnic slurs and derogatory remarks by a fellow co-worker who is Mexican-American. Since late 2005, the victims were barraged with near-daily insults about Mexicans such as “f—-n’ wetbacks,” and references to Mexicans only being good for cleaning the harasser’s home, according to the EEOC. The harasser even threatened to report three of the victims to immigration authorities despite their legal status. The victims and harasser – all female – worked in the demonstration department, serving food samples to customers.

The victims complained about the hostile work environment to management as early as April 2006 to no avail. Instead, the complaints only intensified the harassment and led to intimidation, said the EEOC. Another employee also began deriding a victim for her inability to speak English. It was not until after an official EEOC charge of discrimination was filed in October 2006 that Sam’s Club finally discharged the harasser in December 2006.

In May 2009, the EEOC filed its lawsuit in U.S. District Court, Eastern District of California (EEOC v. Walmart Stores, Inc. dba Sam’s Club, et al., Case No. 09-CV-00804), claiming that the harassment, and Walmart’s failure to appropriately address it, were in direct violation of Title VII of the Civil Rights Act of 1964. Aside from the monetary relief, the parties entered into a three-year consent decree which requires Walmart to comply with the following at its Sam’s Club locations in Fresno and/or Bakersfield, Calif.:

  • review and make available its policies against and complaint procedures for national origin discrimination, harassment and retaliation;
  • provide training to non-management employees in the Fresno location regarding anti-discrimination laws, including national origin discrimination and harassment;
  • provide separate training to management employees in the Fresno and Bakersfield locations which will including training on how to receive, investigate, or report to designated officials complaints of national origin discrimination, harassment and retaliation;
  • set up a record-keeping procedure for the Fresno location that provides for the centralized tracking system for such complaints;
  • report the handling of such complaints and compliance with the decree to the EEOC; and
  • provide neutral references for the victims upon inquiry.

“We commend Walmart for taking the issues of national origin harassment seriously and implementing preventative measures,” said Anna Y. Park, regional attorney for the EEOC’s Los Angeles District Office, which includes Fresno in its jurisdiction. “A work environment that is free of harassment ensures a more productive and vibrant workplace for all.”

Melissa Barrios, director of the EEOC’s Fresno Local Office, added, “National origin discrimination remains a serious problem in this region, and it is important to remember that harassment can manifest even within the same ethnic group. Employers failing to take immediate action send a message that such behavior is tolerated, giving license for others to do the same.”

According to company information, Walmart Stores, Inc. is an Arkansas-based international retailer, operating more than 8,300 stores worldwide, including Sam’s Club warehouses.

The EEOC is the federal agency that enforces federal laws prohibiting employment discrimination. Further information about the EEOC is available on the agency’s web site at www.eeoc.gov