Supreme Court Filing in Coca-Cola vs. EEOC
We continue to follow the progress of this "Cat's Paw" theory case through the Supreme Court. This past week the Petitioner in BCI Coca-Cola Bottling Co. v. EEOC filed its brief on the merits. As we have previously noted, the issue in this case involves the question of whether an employer is liable for discrimination in a discharge case where the decision-maker making the discharge decision had no discriminatory animus, but the discharged employee's direct supervisor (who provided information acted on by the decision-maker) arguably did. Thomas Goldstein with my former firm, Akin Gump Strauss Hauer & Feld, is co-counsel for the Petitioner with E. Todd Presnell of Miller & Martin in Nashville. Oral argument is scheduled for April 18th.
More:10th Circuit Opinion Below: Equal Employment Opportunity Commission v. BCI Coca-Cola Bottling Co (10th Cir 2006).
Do you really need an employee handbook?
Although there is no law that requires employers to have employee handbooks or personnel manuals, they are one of the best tools for communicating information to employees about your company's policies, their performance standards, and employment benefits. By having written policies in place, an employer is also able to develop uniform standards within the workplace that can help promote fairness and the consistent treatment of its employees. Handbooks are therefore a must in terms of an employer's ability to comply with their legal obligations to their employees.
An employer that does not have written guidelines in place is much more likely to encounter problems arising from ignorance of its policies, inconsistent or unfair application of those policies, conflicting policies, and resulting confusion among its employees. This can lead to internal problems such as employee dissatisfaction and discrimination charges filed by employees who feel they have been treated unfairly.
Jacqueline McManus has an excellent article in the Monterey Herald describing all of the reasons why an employee handbook is really a necessity for even relatively small employers. I reccomend it to you for your consideration.
Alternative Billing - Clients Want It - Big Law Firms Hate It
Despite criticisms of the hourly billing format, its use continues to grow. In 2005, 87.1 percent of companies said they used standard or discount hourly rates, compared with 81.2 percent in 2004 and 81 percent in 2003.While 62 percent of respondents are open to alternative fee arrangements -- including fixed, blended hourly rate, contingency and retainer -- they say that 90 percent of outside counsel resist the suggestion. (Emphasis added).
Ninety Percent? So why are big law firms resistant to change? The answer is simple. Hourly billing is often nothing short of an acceptable form of overbilling. Work on a project is open-ended, set objectives are often as vague as "win the case" and there often is no billing budget set out at all. Combine these ingredients with the incredible pressure large firms place on their associates to bill hours and the pressures partners face in earning enough to cover their gigantic overhead plus a more than attractive PPP and you have a recipe for an unbelievable amount of over...er... hourly billing.
With these kind of economics at work, its no wonder that large firms treat alternative billing as some type of odd-ball granola alternative lifestyle. "As if traditional (hourly) billing came over on the Mayflower."This problem is often no more apparent than in the employment law context. How frustrating must it be for general counsels to see case after case cost $50K, $75K, $100K or more to litigate through the summary judgment phase only to then settle for $50K or less. Ridiculous. And just as strange, some large firms still don't offer flat rates for everyday types of services such as employment handbooks or EEOC Charge responses. I agree with Jay that I don't think corporate counsels are going to allow themselves to be ignored forever on these issues. It may take more of an effort on their part to shop around for local firms that truly believe in providing real customer service and sensible billing models but eventually they will decide its worth it.
For more on alternative billing, read:
Rule 68 Offers of Judgment
We were interested in learning why Rule 68 is not a more prominent feature of civil rights and employment discrimination litigation. Why is it not used more frequently in the very types of cases in which defendants have the greatest economic incentive to make offers and plaintiffs have the most to lose if they refuse them? We harbor no illusion that Rule 68 is a panacea for dispute resolution. But it is one tool for ratcheting up the pressures for an early settlement with a measure of legal compulsion. Our interest in Rule 68 is not driven by the belief that too many cases go to trial. Indeed, it appears that the civil trial has become a notable rarity - by one respected account, more than 98% of federal civil litigation is resolved by means other than trials. Nevertheless, Rule 68 may harbor the potential to speed up the settlement process and thereby produce significant economic savings to the parties, with correlative savings to the courts and the taxpayers who fund them.Our contribution to the policy discussion is to report the views of experienced practicing attorneys who decide on a daily basis whether to make or accept offers of judgment. We conducted in-person, in-depth interviews with sixty-four experienced litigators who prosecute and defend civil rights and employment discrimination claims. This is the first such nationwide empirical inquiry into the incidence of practitioner use of Rule 68 in the federal fee-authorization cases where, after Marek, one would expect its use to be most common.
Part II describes the methodology we used in constructing this study. Part III discusses the technical aspects of Rule 68 and how they might contribute to use or non-use of offers of judgment. Part IV confirms the anecdotal evidence that Rule 68 plays little role in civil rights or employment discrimination litigation throughout most of the nation's federal courts. However, there are a few districts where Rule 68 has become a more than occasional part of evaluating and processing civil rights, although not employment discrimination, cases. Part IV also summarizes the primary reasons advanced by experienced attorneys for the infrequent use of Rule 68. Part V reports on the reactions of these attorneys to various proposals for reform.
Here is a link to the full article.