Judge Posner on "Stray Remarks"

Mattenson v. Baxter Healthcare, No. 04-4270 (7th Cir. Feb. 21, 2006) - In reversing a jury verdict in favor of an ADEA plaintiff on multiple grounds, Judge Posner takes a moment to thoughtfully address the often-misutilized "stray remarks" theory, addressing a common mistake made by attorneys and the courts of appeals of several circuits:

Language in some judicial opinions suggests that prejudi-cial remarks are always to be excluded unless they are madeby someone who had input into the decision to terminate (ortake other challenged adverse employment action against)the plaintiff. E.g., Steger v. General Electric Co., 318 F.3d 1066,1079 (11th Cir. 2003); Wyvill v. United Companies Life Ins. Co.,212 F.3d 296, 304 (5th Cir. 2000). This language should notbe taken literally, however. Hunter v. Allis-Chalmers Corp.,797 F.2d 1417, 1423 (7th Cir. 1986); Brewer v. Quaker State OilRefining Corp., supra, 72 F.3d at 333-34. The admissibility of"stray remarks," as the cases call them, is governed by Rule403 of the evidence rules, which establishes a standardrather than a rule--and a standard that tilts in favor ofadmissibility; the probative value of the evidence must notmerely be outweighed, it must be substantially outweighed,by its negative consequences, to be excludable. And thatwill depend on context--the circumstances in which theremarks were made, such as the number of similar remarks,when they were made, and by whom and to whom theywere made. Cummings v. Standard Register Co., supra, 265F.3d at 63; Ercegovich v. Goodyear Tire & Rubber Co., 154 F.3d344, 356-57 (6th Cir. 1998).

And here is the oral argument in the case.

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Touch that leftover sandwich and I'll spork you!

The Washington Post had a cutting edge story in yesterday's paper about an issue that anyone who has worked in a workplace of any size at all has witnessed at some point: The evil depravity of co-workers stealing one another's lunch items from he company fridge. (Yes, it was apparently a very slow news day.)From a cursory glance at the story, (OK, actually I read every word. It was like juicy office gossip and I liked it. So there!) the problem appears to be particularly acute in lawfirms. And, according to the anecdotal evidence in the article, the culprits are generally attorneys swiping food from their staff. The more interesting part of the article is the recouting of the lengths that workers will go to in order to apprehend or discourage the buffet bandits. Everything from hidden cameras to notes inside of tupperware containers notifying the would-be thief that the owner has already staked a claim on this food....by licking it. Yuck!

Here's the story.

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New week, new name, new look, new web address!

As you can see, the Employment Law Bulletin is now the HR Lawyers' Blog. We think the new name better identifies what we are - employment lawyers that happen to have a blog. (Plus, when we went to set up a dedicated website for the blog, Theemploymentlawbulletin.com just seemed a little long-winded.)So, welcome to the new HR Lawyers' Blog. We hope you like the redesigned site. Feel free to drop me a line and let me know what you think: Chris[at]hrlawyersblog.com.

And don't forget the new link: http://www.hrlawyersblog.com IMPORTANT - PLEASE NOTE: THIS WILL BE THE LAST POST TO GO TO THE OLD ADDRESS, so now would be the absolute best time to update those bookmarks and rss subscriptions with the new link.Click here now and we'll see you at: The HR Lawyers' Blog.

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California Supreme Court takes up Wage/Hour Meal Break Issue

We previously posted here about an open issue in California regarding the treatment of damages in wage/hour meal break cases under California Law. The issue is whether Section 226.7 of the California Labor Code imposes a penalty on employers that fail to ensure that mandated meal breaks are provided to employees or whether the payments should be treated as wages. (Under California law, employers are required to provide a 30-minute meal break to employees who work more than five hours a day and a second 30-minute meal break to those working more than 10 hours a day.)The distinction is an important one under California law. If the disallowed meal breaks are subject to penalties, the applicable statute of limitations is 1 year. If they are wages, employees may seek back payments for the prior 4 years.

As we predicted, the state's Supreme Court has taken on the issue by granting review in Murpy v. Kenneth Cole Productions, 12/2/05 (1st District). Here is the Petition for Review in the Murphy case.Labor & Employment Law Blog points out that the state's Supreme Court's decision to step in and resolve the conflict between the different courts of appeals is even more important in California than it might be in some other states due to California's precedent rules, which do not require California trial courts to follow the rulings of the Courts of Appeal presiding over their districts.

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Retaliation - How to turn a mediocre claim golden

Strategic HR Lawyer has a great post today on a topic that has become a near mantra for me. Retaliation is always worse than the original discrimination claim. Ask any employment lawyer and she or he will tell you of all the cases where an employee with not much of a discrimination claim recovered a Big $$ settlement or verdict because an unwise manager retaliated against said employee for voicing a complaint.

The newest development in this arena is the increasing acceptance by the courts of retaliatory harassment as an actionable claim. The increasingly majority view is that actionable retaliation claims may be based not only on so-called "ultimate employment actions" (like termination or demotion) but also on harassment suffered by plaintiffs at the hands of supervisors or even co-workers. Last month, the Third Circuit joined the majority of the circuits by holding such in Jensen v. Potter, No. 04-4078 (3d Cir. Jan. 31, 2006). The Fifth and Eighth Circuits are the only remaining holdouts.

We previously posted about the Jensen case here, regarding the fact that this pro-employee opinion was authored by now-Justice Alito. Given his new position on the Supreme Court, I think we have a pretty clear idea of which way it will swing on this issue once it gets the chance.
Sexual Harassment, Pregnancy Discrimination, Age Discrimination, San Antonio, Employment Lawyer

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Supreme Court: Title VII 15-employee threshold NOT jurisdictional

Issued today: Arbaugh v. Y & H Corp. 546 U.S. ___ (Feb. 22, 2006). Opinion 8-0 with Justice Alito not participating.

Justice Ginsburg wrote the opinion for the Court, reversing the Fifth Circuit and holding that Title VII's numerical threshold does not circumscribe federal-court subject-matter jurisdiction. Instead, the employee-numerosity requirement relates to the substantive adequacy of a plaintiff's Title VII claim, and therefore cannot be raised defensively late in the lawsuit.

Here's the opinion.________________________________Don't forget to listen to our Podcast:The Employment Law Update.Sexual Harassment, Pregnancy Discrimination, Age Discrimination, San Antonio, Employment Lawyer

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Supreme Court Slaps 11th Circuit in the face.

Yesterday in Ash v. Tyson Foods, 546 U.S. ___ (Feb. 21, 2006), the U.S. Supreme Court slapped down the 11th Circuit for (1) still trying to hold on to the ridiculous "stray remarks" doctrine and (2) ruling that comparative qualifications between a plaintiff and there person actually hired or promoted cannot support a finding of pretext unless "the disparity in qualifications is so apparent as virtually to jump off the page and slap you in the face." (Well, isn't that precise.)If the 11th Circuit wanted someone to slap them (and I know we all would like to slap that Circuit sometimes) the Supremes were happy to oblige.

First the facts: Petitioners Anthony Ash and John Hithon were superintendents at a poultry plant owned and operated by respondent Tyson Foods, Inc. Petitioners, who are African-American, sought promotions to fill two open shift manager positions, but two white males were selected instead. Alleging that Tyson had count of race, petitioners sued under 1981 and Title VII. Summary Judgment was denied and the jury found in favor of the Plaintiffs. The trial court then granted the Defendant's motion to dismiss under Rule 50(b). The 11th Circuit affirmed the grant as to one Plaintiff b/c it found no evidence of pretext.

The Supreme Court reversed the 11th Circuit. With regard to stray remarks, the Court disagreed with the 11th Circuit that the word "boy" can never be evidence of discriminatory animus unless it is modified by another word like "black". (No, I'm not kidding. They said this.)With regard to comparative qualifications, the Court found the 11th Circuit's "Jump off the Page" standard less than helpful. Importantly, the Court held that it was sufficient for the Plaintiffs to show that "their qualifications were superior to those of the two successful applicants." The Court then fell over itself to state that this case should not be held out as the "standard" for such cases and that it was not taking this opportunity to set the standard. (Thus rendering this case less than helpful to everyone not directly involved with . . . this case.)It should be noted however that the Court seemed to single out the 9th Circuit's formulation of this particular standard - "qualifications evidence standing alone may establish pretext where the plaintiff's qualifications are "clearly superior' to those of the selected job applicant" - with approval.

________________________________Don't forget to listen to our Podcast:The Employment Law Update.Sexual Harassment, Pregnancy Discrimination, Age Discrimination, San Antonio, Employment Lawyer

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Walmart CEO discusses issues with managers in "Lee's Garage"

Workers Comp Insider has a post today about a really interesting article in today's New York Times about a [no longer] confidential website used by Wal-mart CEO H. Lee Scott to communicate with the company's managers. As a part of the website,which is called "Lee's Grarage," company managers can ask the CEO questions. Recently, one manager asked why "the largest company on the planet cannot offer some type of medical retirement benefits?" Doesn't seem like a terribly out of line question given the PR basting that Wal-mart has taken over the last year or so over this issue.
Here is CEO Scott's response:

"Quite honestly, this environment isn't for everyone. There are people who would say, 'I'm sorry, but you should take the risk and take billions of dollars out of earnings and put this in retiree health benefits and let's see what happens to the company.' If you feel that way, then you as a manager should look for a company where you can do those kinds of things."

Translation: You'd better hope this website is anonymous buddy.
Last year, Mr. Scott received more than $17 million in compensation (including medical benefits).
________________________________Don't forget to listen to our Podcast:The Employment Law Update.Sexual Harassment, Pregnancy Discrimination, Age Discrimination, San Antonio, Employment Lawyer

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Supreme Court to decide if an employer's alleged conspiracy with recruiter to hire illegal workers can be addressed under RICO.

Employers who hire illegal immigrants have something new to fear: employees who use racketeering laws to take them to court. A law originally conceived to go after organized crim-RICO--is now being used against employers at chicken-plucking plants, apple orchards and janitorial firms. In April, the U.S. Supreme Court is expected to hear a Georgia racketeering case involving carpet giant Mohawk Industries. The plaintiffs in the Georgia case - four women who are suing as a class - argue that Mohawk conspired with outside labor recruiters to artificially and illegally depress wages by hiring illegal immigrants.
Here's the story from the Dallas Morning News.
Here is another story on the case from Law.com.

The National Federation of Independent Business Legal Foundation, the Society for Human Resource Management and the U.S. Chamber of Commerce have all voiced their support for Mohawk. Personally, I am not so sure this is a pollitically wise move on their part; a large percentage of conservatives are very strong opponents of illegal immigration and would be in favor of using whatever means necessary to stop companies' use of surrogates to hire illegals.

And here is a copy of the 11th Circuit opinion being appealed.

________________________________Don't forget to listen to our Podcast:The Employment Law Update.Sexual Harassment, Pregnancy Discrimination, Age Discrimination, San Antonio, Employment Lawyer

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More on Implant Chips for Employees

The Chicago Tribune has picked up the story regarding security chips being implanted in employees' bodies. From the story:

That Orwellian-sounding idea [of chip implants] is exactly what an Ohio security firm's boss has done with two of his workers and himself."We wanted a way to say, `Hey, we are a little different in the way we take our security,'" explained Sean Darks, chief executive of CityWatcher.com in Cincinnati, who also is carrying a chip. "I wouldn't have my employees do something, if I didn't do it myself," he added.

His glee is not shared by workplace and privacy experts, who shudder at the idea that corporate America might decide to brand employees with the technology, known as radio frequency identification.

Link to the story.________________________________Don't forget to listen to our Podcast:The Employment Law Update.Sexual Harassment, Pregnancy Discrimination, Age Discrimination, San Antonio, Employment Lawyer

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In the future, work may get under your skin...literally.

Cincinnati video surveillance company CityWatcher.com now requires employees to use VeriChip human implantable microchips to enter a secure data center. The VeriChip is a glass encapsulated RFID tag that is injected into the flesh of the triceps area of the arm to uniquely number and identify individuals. The tag can be read through a person's clothing, silently and invisibly, by radio waves from a few inches away. The device is being marketed as a way to access secure areas, link to medical records, and serve as a payment instrument when associated with a credit card.

Here is a link to VeriChip's explanation for how the system works. And while the company apparently does not require its employees to take an implant to keep their jobs, they won't get in the data center without it. (And yes, that does seem like a contradiction to me as well.)To be honest, I am not sure what to think about this yet. How much personal freedom should we be willing to give up for "security" . . . or, as in this case, our employer's security? How about using the chip to monitor our location when at work? [Bill, the computer chip says you were outside smoking for 16 minutes this morning during your 15-minute coffee break.]Hat tip to RFiD blog for putting us on to the story.

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Schools of the World: Stop accusing little kids of sexual harassment.

Here's another story of an over-zealous and less then brilliant school administration accusing a six-year-old of sexual harassment. The Brockton Massachusetts first-grader was suspended from school for three days for sexual harassment after he put two fingers inside a classmate's waistband. The boy told his mother he only touched the girl's shirt after the girl touched him.

Brockton school officials have not commented beyond a statement from Superintendent Basan Nembirkow that said sexual harassment charges are always investigated and officials are trained to deal with them. The Brockton School Committee defines sexual harassment among students, in part, as "uninvited physical contact such as touching, hugging, patting or pinching."Apparently, the "officials" need more training. Here is a big fat bulletin for Superintendent Nembirkow: Six-year-old boys are not sexually interested in anything. If a student is acting innapropriately by "touching, hugging, patting or pinching" then discipline the child. But please stop slapping little kids with stigma-charged labels like sex harasser.By the way, if you would like to email the members of the Brockton School Committee to let them know your thoughts on this or any other topic, you may do so here.

Hat tip to Strategic HR Lawyer for finding the story.

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Tech Note - PDF For Lawyers

Time for another of our periodic Tech Notes here at the Bulletin. PDF for Lawyers is a blog that you really should visit, if you haven't already. A joint effort by Ernest Svenson and Ernest Svenson, two of the best legal tech minds in the country, it covers all issues relating to paperless office, .pdf file conversion, e-filing and document scanning.

As more and more courts move to e-filing (90% of my filing is now via e-filing), scanning and pdf conversion is not just an interesting tech sideline but an important everyday practice issue. And PDF for Lawyers is definitely the best way to keep up with this fast-changing area of technology.

Currently on their front page, the blog covers: Reported issues with Adobe's Acrobat 7 Reader and reasons you may want to stay away for now, Email practice management strategies, a portable scanner recommendation discussing one of my favorite office tools, the Fujitsu ScanSnap, an update on federal court e-filing, and a discussion of whether examining document metadata might be an ethics violation.

This is a blog you can't be without!________________________________Don't forget to listen to our weekly Podcast:The Week in Employment Law.Sexual Harassment, Pregnancy Discrimination, Age Discrimination, San Antonio, Employment Lawyer

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Podcast takes FMLA Leave

Our Podcast, The Week in Employment Law is out on sick leave this week. We have already sent out our letter notifying it that the time off is counting against its 12-week FMLA allotment so no worries there.

We have been receiving quite a lot of email from everyone about the podcast. It's a great help so keep it coming. Let us know what you like, what you don't, and what you think we should be covering each week. If you come across a case or article that is important enough or strange enough that we just need to be covering it, let us know.

________________________________Don't forget to listen to our weekly Podcast:The Week in Employment Law.Sexual Harassment, Pregnancy Discrimination, Age Discrimination, San Antonio, Employment Lawyer

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Detecting and Addressing Hidden Bias

"Every man has reminiscences which he would not tell to everyone but only his friends. He has other matters in his mind which he would not reveal even to his friends, but only to himself, and that in secret. But there are other things which a man is afraid to tell even to himself, and every decent man has a number of such things stored away in his mind."

-- Fyodor DostoyevskySHRM Online (Society of Human Resources Management) has an excellent article this month on detecting and addressing hidden bias in the workplace. SHRM describes hidden bias this way:

Two people--one a nattily dressed young white man, the other a middle-aged black woman who is slightly overweight--apply for a job with your organization. They seem equally qualified, but the hiring manager has an inexplicable and slightly negative reaction to the woman. "I just can't put my finger on it," he tells you, "but I don't think she'll be a good fit." You agree, admitting you just have a feeling the male applicant would be a better performer.

Are you, or is your hiring manager, harboring a bias against this female applicant--perhaps one based on age, sex, race or physical appearance? If so, is that bias unduly influencing your collective hiring decision?

According to the article, some argue that greater societal and legal attention has driven overt bias underground, turning it into a hidden bias that's tougher to recognize and rectify.
People don't overtly say, "We don't hire African-Americans or women or disabled people." Instead, they use more cloaked language, "and that's oftentimes harder to capture and respond to."Such discrimination "is just as illegal, hurtful and destructive as overt discrimination," notes the article. "And ... enforcement agencies like the EEOC and lawyers out there see it as such."Indeed.

The article has several links to interesting related items, such as an Implicit Association Test designed by researchers at Harvard University as a tool to gain greater awareness about individuals' own unconscious preferences and beliefs. In a nutshell, the test looks for hidden bias in the test taker. I took one of the example tests and it determined that I have a "moderate" unconscious bias in favor of light skinned people over dark skinned people. Not all that surprising, as most people tend to have a bias in favor of people that look more like themselves. It could be a useful tool for HR professionals and other managers to take to show them that such bias exists and that they should be aware of it when making employment-related decisions.

Related Links: Detecting Hidden Bias - Resources for Employees Hidden Bias - A Primer (from Tolerance.org at the Southern Poverty Law Center)________________________________Don't forget to listen to our weekly Podcast:This Week in Employment Law.Sexual Harassment, Pregnancy Discrimination, Age Discrimination, San Antonio, Employment Lawyer

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Alito: Retaliation claim may be based on hostile work environment.

In what is perhaps Justice Alito's final opinion as a judge on the Third Circuit Court of Appeals, he writes for the majority in holding that a Title VII retaliation claim may be predicated upon a hostile work environment.

Alito writes:

[W]hen a woman who complains about sexual harassment is ... subjected to harassment based on [a previous] complaint, a claim that the harassment constituted sex discrimination (because a man who made such a complaint would not have been subjected to similar harassment) will almost always present a question that must be presented to the trier of fact. In such a situation, the evidence will almost always be sufficient to give rise to a reasonable inference that the harassment would not have occurred if the person making the complaint were a man. The difficult task of determining whether to draw such an inference in a particular case is best left to trial.

Here is the opinion: Jensen v. Potter, No. 04-4078 (3d Cir., Jan. 31, 2006).

The Third Circuit joins the majority of circuits in its holding with regards to harassment forming a cognizable retaliation claim. A minority of the circuits have taken the position that such claim exists only when the employer took an ultimate employment action, such as a firing.

The Jensen opinion may give some indication of how Justice Alito will rule in White v. Burlington Northern & Santa Fe Railway Co., which the Supreme Court agreed to hear last month. The case, out of the Sixth Circuit, presents a similar question. We wrote previously about White here.

________________________________Don't forget to listen to our weekly Podcast:This Week in Employment Law.Sexual Harassment, Pregnancy Discrimination, Age Discrimination, San Antonio, Employment Lawyer

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American Workers' Wages Go Down in 2005

There is an AP story today discussing the recently published employment conpensation index used to track employee wages nationwide. Unfortunately, the numbers for 2005 weren't good. For the year, workers achieved a 3.1% increase in total compensation. Wages and salaries (excluding benefits) only rose 2.6%.

When the rate of inflation is incorporated into the calculation, employee's total compensation actually fell 0.3%. According to the article, this is the worst showing in 10 years.

The good news for companies: their efforts to cut back on benefits to employees is saving the corporation money. Items such as health insurance and pensions - which rose 6.9% in 2004, only increased 4.5% last year. And executives were rewarded for their cost cutting. According to Strategic HR Lawyer.com, executive compensation rose 12% in 2005. (This is actually a modest increase compared to the numbers if limited to CEOs. In 2004 (I haven't found numbers for '05 yet.) the heads of America's 500 largest companies received an aggregate 54% pay raise. Strategic HR Lawyer goes on to intimate how unsurprising it is that there is friction between employees and management. We couldn't agree more. Until corporate management begins showing real leadership, instead of real greed, employment lawyers will continue to have plenty of work.

Here are some related links:State by State wage analysis from the Economic Policy Institute.________________________________Don't forget to listen to our weekly Podcast:This Week in Employment Law.Sexual Harassment, Pregnancy Discrimination, Age Discrimination, San Antonio, Employment Lawyer

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Wage/Hour Meal Break Issue Up for Grabs in California

The wage/hour meal break issue of how to catagorize damages in such cases is really hitting the fan in California this month.

The issue is whether Section 226.7 of the California Labor Code imposes a penalty on employers that fail to ensure mandated meal breaks are provided to employees or whether the payments should be treated as wages. Under California law, employees are required to provide a 30-minute meal break to employees who work more than five hours a day and a second 30-minute meal break to those working more than 10 hours a day.

The distinction is an important one under California law. If the disallowed meal breaks are subject to penalties, the applicable statute of limitations is 1 year. If they are wages, employees may seek back payments for the prior 4 years.

Two cases from two different appellate districts within a week of each other this month have created a clear split among the California appeals courts:Mills v. LA Superior Court, 1/27/06 (2nd District) - Holds they are penalties.National Steel and Shipbuilding v. Superior Court, 1/20/06 (4th District) - Says they are wages.

Hopefully, the California Supreme Court will take up the issue soon and resolve the issue. If they do so, it would likely be in Murpy v. Kenneth Cole Productions, 12/2/05 (1st District) - also holding the provision to be a penalty provision. A petition for review was filed in that case was filed on 1/11/06.

________________________________Don't forget to listen to our weekly Podcast:This Week in Employment Law.Sexual Harassment, Pregnancy Discrimination, the Age Discrimination, San Antonio, Employment Lawyer

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