Posted On: January 30, 2009

Heterosexual Employee Seeks Protection for Sexual Orientation Harassment

The New York City Human Rights law prohibits discrimination based on sexual orientation. This ban includes perceived sexual orientation as well, meaning that an employer may not discriminate against an employee that it simply senses is homosexual. Recently, the Court of Appeals in the United Kingdom found that a man forced to leave his job because of merciless taunting by his colleagues who took him to be a gay, won the right to claim compensation from his employers. In this case, a married man with children alleged that he was tormented by his coworkers because he had attended an all-boys boarding school. His coworkers knew that he was not gay, but taunted him nevertheless because of homophobia and associated stereotypes. In finding that the victim’s claims came within the United Kindom’s regulations, the Court held that the legislature in prohibiting sexual harassment in the workplace could not possibly have intended that a victim be required to declare his sexual orientation in order to establish that harassment was based on sexual orientation.

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Posted On: January 28, 2009

U.S. Supreme Court Provides New Protection for Employment Discrimination Complaints

The U.S. Supreme Court issued a decision on January 26, 2009, which is sure to be the subject of man future blog posts. In Crawford v. Metropolitan Government of Nashville, the plaintiff was a former municipal employee who had been terminated. The company stated that it had fired the employee for “embezzlement.” The employee, however, believed that she was terminated because she participated in an investigation into a sexual harassment complaint asserted by a co-worker. Crawford stated that she was being punished for having confirmed that the complaining employee was actually sexually harassed.

The issue, therefore, was not whether the employee who asserts a claim was protected by workplace retaliation laws – which she would be – but whether an employee who does not herself assert a claim but merely participates in the investigation is also protected.

The Court unanimously agreed that such an employee was protected. Justice Souter wrote that “When an employee communicates to her employer a belief that the employer has engaged in a form of employment discrimination, that communication virtually always constitutes the employee’s opposition to the activity.” The Court recognized, therefore, that just by confirming that sexual harassment occurred, the employee was opposing it.

While this decision has long been the rule in New York, both the district and appellate courts in Crawford had reached the opposite conclusion. We are pleased to see that the U.S. Supreme Court is ensuring that employees who in any way oppose discrimination in the workplace are protected against workplace retaliation.

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Posted On: January 26, 2009

Proposed Federal Laws Address Equal Pay Discrepancies Between Men and Women

In an earlier blog, we discussed two proposed Federal laws which were intended to address the issue of equal pay for both men and women. As could be expected, management and employee attorneys view the passage of this legislation very differently.

Management attorneys argue that equal pay legislation will result in more litigation. Employee attorneys supporting the passage of the proposed legislation believe it is essential legislation, long overdue.

The bill referred to as the Lilly Ledbetter Fair Pay Act, was designed to address the result of a U.S. Supreme Court decision that made it more difficult to seek equal pay between men and women.

The other bill, The Paycheck Fairness Act, would require an employer to more fully validate the reason for any pay difference. Another purpose of the law would be to prevent employees who reveal pay information from being punished.

All of the above represent significant benefits to employees. This fact is quite important because, we trust, it reflects in some manner, the attitude of Congress. For that reason alone, we wait, watch and will report further as the proposed legislation moves forward.

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Posted On: January 23, 2009

U.S. Supreme Court to Address Reverse Discrimination

The U.S. Supreme Court, in Ricci v. DeStefano, will address the question of whether municipalities may decline to certify results of a civil service exam that would make disproportionately more white applicants eligible for promotion than minority applicants, as a result of concerns that certifying the results would lead to charges of racial discrimination.

In a case brought by a group of white firefighters and a Hispanic firefighter in New Haven, CT, the employees argued that they were discriminated against because they were not black. The firefighters believed they would have been promoted for captain and lieutenant positions if the city did not invalidate the test results soon after it had learned that no black candidate scored high enough to be considered for the management positions. When defending its decision, the city argued that it rejected the exam because, if certified, it would create a disparate impact on black candidates and the city would face potential employment discrimination lawsuits.

The federal trial judge upheld the city’s decision and dismissed the case. The United States Court of Appeals for the Second Circuit affirmed the dismissal.

Reverse discrimination cases present highly sensitive issues employers face in an effort to promote diversity in the workplace. Courts may hear more reverse discrimination cases in the future as affirmative action programs become more prevalent.

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Posted On: January 21, 2009

Religious Discrimination in the Workplace

There are various Federal, New York State and New York City laws that protect employees from religious discrimination on the basis of their religious beliefs. Even if a particular employee’s religious beliefs are not entirely compatible with work hours, workplace practices or certain days of the week, employers MUST work with the employee to try and accommodate him/her.

The reasonable accommodation standard under the framework of a religious discrimination claim is somewhat different from that analysis under a disability claim. An employer has an obligation to reasonably accommodate a "sincerely held" religious belief. The difficulty arises in determining what exactly is or is not "sincerely held."

The reasonable accommodation standard is subject to an employer claiming undue hardship, which means that it would conflict with legitimate business interests.

Religious discrimination in the workplace does not happen openly in front of many witnesses. It does, however, still exist and we must work to put an end to it and to celebrate the concept of religious freedom on which our country was founded.

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Posted On: January 19, 2009

Merrill Lynch Settles Employment Discrimination Claim

According to a recent article published in The New York Times, Merrill Lynch paid $1.55 million to settle a lawsuit brought by an analyst who claimed he was terminated because he is an Iranian Muslim. Majid Borumand, a quantitative analyst, claimed that Merrill Lynch discriminated against him on the basis of his religion and national origin when he was terminated and that a less qualified employee was retained and promoted. As an additional obligation under the settlement agreement, Merrill Lynch agreed to improve employee training on employment discrimination.

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Posted On: January 16, 2009

Nascar Settles Race Discrimination and Sexual Harassment Suit

The New York Times recently reported that Nascar has settled a multi-million dollar race discrimination and sexual harassment suit with a former employee. Among the egregious conduct claimed by Mauricia Grant, was that two employees exposed themselves to her and that she was called “Nappy Headed Mo” and “Queen Sheba” by other Nascar employees.

The conduct to which Ms. Grant was subjected is not uncommon. In many workplaces, employment discrimination is something that has not been eradicated. In fact, discrimination in the workplace is showing no signs of slowing down. EEOC statistics from recent years demonstrate this fact. The increase in claims filed for both employment discrimination and workplace retaliation claims confirm our long-standing belief that employment discrimination is a disease that must be eliminated from the workplace.

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Posted On: January 14, 2009

House Passes Laws Against Gender Discrimination

We are encouraged to report that on Friday, January 9, 2009, the U.S. House of Representatives confirmed its support of the need to broaden the ability of our courts to enforce the laws against gender discrimination. A New York Times article published on January 10, 2009 discussed the two related bills passed by the House.

The conduct of the House appears to reflect a significant trend away from the lackluster approach of the present administration to its enforcement of human rights laws. In reaction to the legislation which was being put forward by the House Speaker, Nancy Pelosi stated that, “This is the legislation we are putting forward . . . pay equity, fairness to women in the workplace.”

Also of considerable interest was the reaction of the House to the U.S. Supreme Court decision in 2007, which, in the Ledbetter v. Goodyear Tire Company, Inc. case, unfortunately “enforced” a strict 180 day deadline to file a pay discrimination suit. As a result, the plaintiff, Lilly M. Ledbetter, was denied the relief she judicially requested. The Ledbetter decision had been sharply criticized and, in fact, it was suggested at the time of the U.S. Supreme Court decision that the appropriate method of responding to the High Court was for Congress to do so by legislation. We are pleased that this sentiment was expressed and heard by the House and we sincerely trust that the legislation passed by the House is treated in the same fashion by the Senate as it moves forward.

The reader may recall that in Ledbetter, the finding of the jury was that the employer, Goodyear Tire Company, Inc., paid Ledbetter less than her male coworkers. This, of course, was in violation of Title VII of the Civil Rights Act of 1964. Our recollection is that at the time of the Supreme Court decision, there was a comment in the dissenting opinion that the decision was worth reviewing by the legislature. That appears to be exactly what was done and we are delighted at the result.

One of the Congressmen in support of this new legislation acknowledged that although women had made gains in the workplace, “disparities persisted.” We expect to report on this subject further as additional information becomes available.

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Posted On: January 12, 2009

Two Bills Designed to Control Workplace Gender-Based Pay Discrimination Pass the House

Victims of employment discrimination got a boost when the House passed two related bills on Friday, January 9, 2009, confirming that the new Congress will make human rights a priority. One bill, approved 247 to 171 gives workers more time to file lawsuits claiming employment discrimination. The other bill, entitled the Lilly Ledbetter Fair Pay Act of 2009, would overturn a 2007 decision by the United States Supreme Court, which enforced a strict 180-day deadline for filing suit in an equal pay case, which caused Lilly M. Ledbetter’s case against Goodyear Tire Company to be dismissed. The Lilly Ledbetter Fair Pay Act would ensure that every paycheck or other compensation resulting from an earlier discriminatory pay decision constitutes a violation of the Civil Rights Act. As long as workers file their charges within 180 days of a discriminatory paycheck, their charges would be considered timely. This was the law prior to the Supreme Court’s May 2007 decision in Ledbetter v. Goodyear Tire Company, Inc. The Ledbetter Fair Pay Act is very important to ensuring that employers can be held accountable for discriminatory pay decisions.

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Posted On: January 9, 2009

Employment Discrimination and World of Warcraft

Warcraft warriors beware! A recent online discussion among recruiters identifies that certain hiring managers are specifically instructing recruiters to weed out candidates who play World of Warcraft. The rationale given to these recruiters is that Warcraft players cannot give 100% of their focus to their jobs since they are simultaneously concerned with their online personas and their sleep patterns are irregular due to playing the game at night.

It remains to be seen whether this discussion bears any truth. What is clear, however, is that employees who play Warcraft are NOT protected under the employment discrimination laws. The laws, which specifically mention the categories that they protect (ie., age, gender, race), do not include playing Warcraft or any other video game. Even a Hunter at Level 80 is not protected against a boss as evil as Gruul the Dragon Killer.

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Posted On: January 7, 2009

Disability Discrimination Laws Broadened

In a recent disability discrimination case, Brady v. Wal-Mart Stores 531 F.3d 127 (2nd Cir., 2008), the Second Circuit Court of Appeals broadened the requirement of an employer to reasonably accommodate a disabled employee.

Our courts have previously held that it is the individual disabled employee’s responsibility to request that an accommodation be granted. This disability discrimination case, which was brought under the Americans with Disabilities Act, is significant in that the court held the following:

“an employer has a duty to reasonably accommodate an employee's disability if the disability is obvious - which is to say, if the employer knew or reasonably should have known that the employee was disabled.”

In Brady, the plaintiff suffered from cerebral palsy and there was evidence in the record that his disability was readily apparent. The Plaintiff never requested an accommodation because he didn’t know one was required.

The Second Circuit, in discussing this broadening of its approach, commented that it “is consistent with the statutory and regulatory language, which speaks of accommodating ‘known’ disabilities, not just disabilities for which an accommodation has been requested.”

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Posted On: January 6, 2009

Obama May Relax Statute of Limitations Concerning Employment Discrimination Laws

A New York Times article published on January 4, 2009 discussed the possibility that President-elect Barack Obama may move quickly to revive legislation that would negate the Supreme Court’s decision in Ledbetter v. Goodyear Tire Company, Inc. 550U.S. 618, 127 S.C. 2162 (2007), in which the Supreme Court ruled that discriminatory acts triggering the time limits for filing an Equal Employment Opportunity Commission charge could only be unique discriminatory pay decisions, and not later pay decisions perpetuating the earlier discriminatory acts. In this case, Lilly M. Ledbetter argued that she had been discriminated against on the basis of her gender when she was given discriminatory performance evaluations that resulted in lower pay than her male co-workers, and that each discriminatory paycheck she received thereafter was a discrete violation of the law. The Court, however, ruled that “A new violation does not occur, and a new charging period does not commence, upon the occurrence of subsequent nondiscriminatory acts that entail adverse effects resulting from past discrimination.” (Ledbetter at 2164).

Justice Ginsberg was joined by three other dissenting judges who argued that the Court’s decision reflected a “cramped interpretation of Title VII, incompatible with the statute’s broad remedial purpose.” (Ledbetter at 2188). The bill that Mr. Obama co-sponsored would have remedied any such interpretation by stipulating that each time a person receives a paycheck resulting from a decision motivated by a discriminatory bias (e.g., gender), that is a violation under the civil rights laws. Although the bill passed in the House, it was just short of enough supporting votes in the Senate. Mr. Obama and the Democratic supporters of the bill are confident that the bill would now pass in the Senate, and thus, victims of employment discrimination may be able to revive claims that otherwise would have been considered untimely. Schwartz & Perry LLP views this as a positive change and much more in line with the broad remedial purposes of civil rights laws aimed at eliminating employment discrimination.

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Posted On: January 5, 2009

Job Offers and Fraudulent Inducement in New York

In New York, an employee has a legal claim against an employer who induces him or her to accept a job based on fraudulent misrepresentations. Such a claim, known as fraudulent inducement, exists only where the employee can demonstrate that the employer lied about facts that existed at the time of the offer. Promises of things that have yet to occur, or hopes about what will occur, are not actionable.

Recently, in the case of Herzfeld v. JPMorgan Chase Bank, a federal judge in New York City dismissed an employee’s claim of fraudulent inducement where the company promised the employee a “brighter future” and that, “over time,” he would be better compensated at the new job. The court found that these expressions of hope were not “present facts,” meaning that they were not lies that could form the basis of a fraudulent inducement claim.

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