White Powder

by Matt Reynolds

Former employee Kristinna Grotz can advance claims that Kaiser Hospital fired her after she complained about an alleged drug-using boss, a federal judge ruled.

As reported by Courthouse News, Grotz had nearly 10 years on the job with Kaiser Foundation Hospitals and the Permanente Group when she allegedly saw a manager using what appeared to be methamphetamine. Grotz says she saw admitting department manager Debbie Taylor with a rolled-up bill in her nose, “snorting a white powdery substance,” on the job.

Kaiser launched what Grotz claimed was a bogus investigation against Taylor, and in late 2010, Taylor allegedly retaliated against Grotz by falsely accusing her of time card fraud. Representatives with Grotz’s union, SEIU-United Healthcare Workers West, then told Grotz to sign a “last chance” agreement with false information about the time card allegations, according to the complaint. Grotz says she was fired on July 7, 2011, after she refused.

She sued Kaiser Foundation Hospitals, the Permanente Medical Group and SEIU-United Healthcare Workers West almost exactly one year later under the Labor Management Relations Act.

Kaiser and the union had tried to argue that the claims for wrongful termination and breach of duty of fair representation were time-barred, or that Grotz had failed to state a claim.
U.S. District Judge Edward Chen in San Francisco disagreed, finding that Grotz had filed her claim within the statute of limitations. ”As Ms. Grotz, the plaintiff in the case at bar, filed her suit within six months of the date she was notified that the union was abandoning her grievance, her claim was timely as to all alleged breaches that relate to her grievance,” the 17-page order states. “The grievance appealed her termination, which she alleges was retaliatory and based on false accusations of timecard fraud. … Accordingly, any alleged breach related to the UHW’s [United Healthcare Workers] representation of plaintiff with regards to the allegations of timecard fraud is related to her grievance and thus timely.”

Grotz’s fair representation claim alleges that the union failed to examine the time card records for tampering, never raised the possibility that retaliation could be in play, and pushed the inaccurate “last chance” agreement. ”Plaintiff has alleged for purposes of this motion to dismiss sufficient facts to make a claim that the UHW’s investigation of her grievance was merely perfunctory, indeed virtually nonexistent, and that its action evinced a ‘reckless disregard’ of plaintiff’s rights,” Chen wrote.

Kaiser faired better in its challenge to Grotz’s emotional distress claims. In addition to dismissing Grotz’s negligent infliction of emotional distress claim, the judge also struck parts of the claim for intentional infliction of emotional distress.

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Fired for Taking Family Medical Leave

In 2010, Kathryn Sheppard filed a “wrongful discharge” complaint (under Oregon law) in federal district court against her former employer, David Evans and Associates, an architecture and engineering firm with offices across the US. Prior to her termination, Sheppard requested Family Medical Leave for a serious illness. She qualified for both Oregon Family Medical Leave and federal Family Medical Leave. Sheppard was terminated immediately after she scheduled the surgery for which she requested Family Medical Leave. Sheppard claims that her attempt to use Family Medical Leave was a substantial motivating factor for her termination, and was therefore a wrongful act in violation of public policy under Oregon law. Sheppard also claims that as a result of her termination, she lost and continues to lose wages and benefits, and suffered and continues to suffer emotional pain and a sense of degradation.

The district court dismissed Sheppard’s complaint for failure to state a claim. Sheppard then filed an amended complaint alleging the same causes of action and adding some factual details. The district court again dismissed Sheppard’s amended complaint, concluding she had “failed to plead any cause of action with sufficient factual detail to state a claim.”

Under Oregon law, an employee may bring a claim for wrongful discharge “when the discharge is for exercising a job-related right that reflects an important public policy.” Examples of “exercising a job-related right that reflects an important public policy,” include an employee filing for workers compensation, or an employee taking leave under the Oregon Family Leave Act. On September 12, 2012, the Ninth Circuit reversed the district court’s dismissal of Sheppard’s amended complaint, holding that her “allegations are sufficient to state a claim for wrongful discharge.”

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Thank You, Jimmie!

Jimmie Allison was a civilian employee of Boeing Laser Technical Services, a federal contractor located on Kirtland Air Force Base. Kirtland Air Force Base is a “federal enclave”: it is located on land that New Mexico ceded to the federal government in 1952 and 1954. Since that time the federal government has exercised exclusive jurisdiction within the boundaries of the Base.

Allison was terminated by Boeing on December 31, 2007. He filed suit in state court, alleging that Boeing discharged him in retaliation for reporting corporate fraud to the Air Force. His claims were all based on state law theories—wrongful discharge, breach of implied contract, breach of covenant of good faith and fair dealing, retaliatory discharge, tort, and defamation.

Boeing removed the case to federal court and moved for summary judgment, asserting that these causes of action (except for defamation) are not available for conduct occurring on Kirtland Air Force Base under the “federal enclave” doctrine. The district court granted partial summary judgment in favor of Boeing on all of Allison’s employment claims on the ground that those causes of action were not recognized by New Mexico courts prior to 1954. The defamation claim was dismissed, the district court entered final judgment in favor of Boeing, and the Tenth Circuit later affirmed.

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The Trials of Dr. Grubb

On November 1, 2012, the Viriginia Supreme Court ruled that an employee may sue her manager or supervisor — in addition to her employer — on a state law claim of wrongful discharge in violation of public policy.

Angela VanBuren was employed as a nurse by Virginia Highlands Orthopedic Spine Center from December 2003 to March 2008. Soon after she joined Virginia Highlands, VanBuren was subjected to sexual harassment by her supervisor, Virginia Highlands’ owner Dr. Stephen Grubb. He would “hug her, rub her back, waist, breast and other inappropriate areas, and attempt to kiss her.” Although VanBuren told Dr. Grubb that his sexual advances were “offensive” and “unwelcome,” he continued to pursue her. In May 2006, while the two were travelling for business, Dr. Grubb went to VanBuren’s hotel room and “began rubbing her back, waist, breast and hair while stating that he loved her.” VanBuren broke free of his embrace and told him that “she was not going to have sex with him,” that “he was a married man,” and that “he needed to leave.”

Dr. Grubb’s sexual harassment continued after VanBuren’s marriage in 2007. Dr. Grubb tried to “console” VanBuren regarding her subsequent marital problems. His “consoling” entailed “encouraging [her] to leave her husband and then proceeding to hug, kiss, and grope her.” VanBuren “continued to insist that [Dr. Grubb's] advice and sexual advances were unwelcomed and offensive.”In March 2008, Dr. Grubb again suggested during a closed-door meeting that VanBuren leave her husband so that she “could accept his love for what it was and what it could be.” A few days later, Dr. Grubb called VanBuren into his office and asked whether she planned to stay with her husband. When she responded in the affirmative, he fired her. He then offered her roughly a month’s severance pay to remain silent about the sexual harassment. Dr. Grubb gave no other explanation for terminating VanBuren’s employment with Virginia Highlands.

In March 2010, VanBuren filed 1) a gender discrimination claim against Virginia Highlands under Title VII of the Civil Rights Act of 1964 and 2) a wrongful discharge claim against Virginia Highlands and Dr. Grubb. As to the wrongful discharge claim, she alleged that she had been discharged from Virginia Highlands because she had refused to engage in criminal conduct — specifically, a) adultery and b) open and gross lewdness and lasciviousness. Accordingly, she contended that her discharge violated public policy.

The Virginia Supreme Court had never squarely addressed whether a wrongful discharge claim can be brought against an individual employee — as opposed to an employer — but the issue was certified to the Court by the United States Court of Appeals for the Fourth Circuit (VanBuren had initially filed suit in federal court). Here, VanBuren was fired because she would not give in to Grubb’s unlawful demands. As Grubb was her supervisor and owner of the company, the Court concluded that, if her allegations are proven, he too should be subject to liability, just as he would be had he engaged in any other tortious conduct.

In an opinion by Justice Leroy F. Millette, Jr., the Virginia Supreme Court stated that “the purpose of the wrongful discharge tort — namely, the deterrence of discharge in violation of public policy — is best served if individual employees in a position of power are held personally liable for their tortious conduct. Employer-only liability would be insufficient to deter wrongful discharges, as this case clearly demonstrates.” Further, the Court concluded that “Virginia recognizes a common law tort claim of wrongful discharge in violation of established public policy against an individual who was not the plaintiff’s actual employer but who was the actor in violation of public policy and who participated in the wrongful firing of the plaintiff, such as a supervisor or manager.”

In response to the suit, Grubb left Virginia Highlands, the medical practice he himself started, and joined another healthcare provider. “If the Court does not recognize individual liability in such cases, there may be nothing to prevent other business owners from following this model in an attempt to avoid liability.”

Nevertheless, the Court “recognize[d] the concern that supervisors will be hesitant to rightfully discharge at-will employees for fear of suit. We believe, however, that the extremely narrow nature of wrongful discharge actions, and the requirement that the defendant employees’ personal actions be shown to have violated the relevant public policy, provides sufficient protection from the overuse of wrongful discharge claims.”

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The Labor Law Reform We Need

by Rand Wilson

When the next opportunity for labor law reform arrives, union membership will be smaller and our political clout even more diminished. If we are to succeed, future reform proposals must be wrapped in a broader mantle that will appeal to all workers.

The four-year drive for the Employee Free Choice Act was the single largest union-backed campaign in decades and it succeeded in uniting the labor movement as never before. I doubt there was a steward in the country who wasn’t familiar with EFCA and why we needed it.

The proposed law, which so many members fought for between 2006 and 2010, would have made it faster and easier for workers to gain union recognition through card check, created stiffer penalties for employers who violate labor laws, and helped workers win difficult first contracts through binding arbitration.

Many union leaders believed EFCA to be labor’s last opportunity to address the obstacles to recruiting new members and a rebirth of the labor movement.

While campaigning for EFCA was easy among union members, once we ventured beyond our ranks it was a much harder sell.

With faith in democracy deeply ingrained in the national psyche, it was almost impossible to convince the general public that card check was as democratic as a secret ballot election. Every time the opposition yelled, “Union bosses want to take away your right to vote,” we were put on the defensive and our allies floundered.

The changes in the labor movement, the economy, and politics since the first issue of Labor Notes came out in February 1979 have been profound.

For our 400th issue, Labor Notes asked several activists to address what happened to labor—and what we should do given the spot we’re in.

So while EFCA appealed to union members and a small population of workers who imagined they might one day like to join a union, it appeared to the public as a narrow “special-interest” labor bill.

The demise of EFCA closely resembled the fate of other reform bills backed by the labor movement: one against permanent striker replacement (1993); a bill for speedier elections, greater union access during organizing drives, and relief for illegally fired workers (1978); and repeal of Taft-Hartley (1966), where we could not stop a filibuster in the Senate.

Past reforms led by the labor movement have won minimum wage, health and safety regulations, child labor laws, and prohibitions against discrimination. And whenever the labor movement was on the offensive fighting for all workers, union membership grew.

What’s left to achieve that might inspire all workers—union and non-union alike?

“Employment security” could be the remaining frontier. A campaign to pass state laws requiring “just cause” before a worker is fired could also spur union growth, since one of the top reasons workers are afraid of organizing is the knowledge they are likely to be terminated.

Our existing laws have not diminished workers’ fears because the procedures are too uncertain and lengthy (two to three years at the Labor Board and another two years in the courts) to provide any assurance. Winning state “just cause” laws that allow cases to be decided quickly by arbitrators might give workers more confidence.

As described in Clyde Summers’s important 1976 Virginia Law Review article on the topic, the United States is alone among industrialized countries in allowing at-will employees to be terminated for arbitrary reasons. Because of union protests and aggressive legal action, Germany, France, Japan, Sweden, the United Kingdom, and South Africa require employers to have a just cause to dismiss non-probationary employees.

One state has also passed such a law. The Montana Wrongful Discharge from Employment Act was passed in 1987. Applicable to non-union non-probationary employees, it prohibits discharges without good cause, allows workers to sue for up to four years of back pay, and provides a way for workers to recover attorneys’ fees.

Despite fear-mongering by opponents, the Big Sky state’s robust economic growth has not been affected. Statutes in Puerto Rico and the Virgin Islands also prohibit termination without “good cause.”

Winning “just cause” legislation will certainly not be easy. But building a movement on a similar scale to the effort put behind EFCA would offer union activists an opportunity to champion an issue that would benefit all workers and also help union growth.

A “just cause” campaign could potentially engage working people at many levels. Short of state or federal legislation, local unions, central labor councils, and worker centers could seek to enforce a just cause standard through workers’ rights boards and community pressure.

Communities could declare certain areas “Just Cause Zones” and fight to enforce just cause as a community standard—like living wage laws, but potentially much wider. Political activists could use the proposed legislation as a litmus test for candidates. We could hold hearings on the need for just cause and lobby state legislatures.

If just cause campaigns succeed, workers will have more security to participate in organizing drives. Montana’s unionization rate reflects its mix of industries and history of militant struggles, but it’s hard not to notice that the state, at 14.6 percent, has a healthier percentage of union members than the national average. Neighboring Idaho has less than half the rate of unionized workers.

Even if campaigns for just cause do not succeed, they would be an opportunity to educate millions of not-yet-union workers about the concept (especially if the campaign used ballot referendums) and the increased job security it could bring to their lives.

By popularizing the just cause concept and raising expectations, more workers may respond by thinking, “If we can’t get this protection through the legislature, let’s get it by forming a union!”


Rand Wilson is organizing director for Service Employees Local 888 in Boston.

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Former Santander Female Employee Filed Multi-Million Sexual Harassment Wrongful Termination Case

By Bill Singer

In a Financial Industry Regulatory Authority (“FINRA”) Arbitration Statement of Claim filed in May 2011, Claimant Rosales asserted among other causes of action: sexual discrimination and harassment, hostile work environment, and unjust termination. Claimant sought at least $4 million in compensatory damages, $2 million in punitive damages, an expungement of her Form U5, costs, and fees. In the Matter of the FINRA Arbitration Between Jeannette Rosales, Claimant, vs. Santander Securities, Respondent (FINRA Arbitration  11-02033, August 30, 2012).

Respondent Santander generally denied the allegations and asserted various affirmative defenses.

Decision: The FINRA Arbitration Panel concluded that the cumulative testimony “did not indicate a serious violation of company policy warranting termination for cause; nor was a warning given as required by the Policy Manual. Accordingly, Respondent is liable for violation of Puerto Rico Act 80 and shall pay to Claimant compensatory damages in the amount of $46,146.48, pre-judgment interest specifically excluded.”

Side Bar: “Puerto Rico Act 80 is the ‘Wrongful Termination Law,” which provides, among other things, that covered employees who are discharged without just cause are entitled to statutory remedies.  Such remedies may include up to two months salary for the first five years of employment; three months salary thereafter up to 15 years of employment; and, thereafter,  six months salary.  Additional compensation of one week, two weeks, and three weeks salary for each year of service up to 5, 15, and in excess of 15 respectively is provided.

Having found evidence of defamation, the FINRA Arbitration Panel recommended the expungement of the Termination Explanation from Section 3 of Claimant’s Form U5, filed on June 7, 2010, to “Without Just Cause” but that the Reason For Termination will remain as “Discharged.”

Read more here:  http://www.forbes.com/sites/billsinger/2012/09/05/former-santander-female-employee-filed-multi-million-dollar-sexual-harassment-wrongful-termination-case/

 

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Expressing Political Views At Work Might Be Risky

By Rebecca Bentz

As the 2012 political races heat up, just about everyone seems willing to share their opinions on the candidates and issues – whether they’re asked to or not.

For many of the nation’s workers, this can lead to uncomfortable situations or outright arguments while on the job. Responding with a personal opinion might seem like second nature, but it might also be risky, career-wise.

Employers generally have the right to limit employees’ political commentary during work time, and many of them choose to do so, given the often heated nature of the subject. Workers should always use common sense when deciding whether to discuss political issues at work, but there are some situations in which employees should definitely steer clear of such talk:

1. When the business owner or boss is vocal about his or her own beliefs.

In many states, private employers may fire workers for their political beliefs. Under the at-will employment doctrine, in the absence of a contract, employers can terminate employment at any time and for any reason not prohibited by law. Every state except Montana subscribes to the at-will doctrine. Under this principle, organizations don’t need “just cause” to fire someone. If local or state law doesn’t prohibit it, private employers generally may terminate an individual because of his or her political beliefs. The First Amendment, however, restricts public employers from engaging in this practice.

Most private employers won’t typically terminate employees for their political beliefs. The bad publicity from such actions usually outweighs any perceived benefits.

Some states, such as Wisconsin, prohibit employers from taking action on employees’ legal activities, such as running for office or voting. If the discussions are union related, they might also be protected.

Yet, employees should still be cautious. A business owner or manager who is strongly invested in his or her political beliefs could discipline or terminate others with opposing viewpoints.

2. When it wastes time.

Many employers recognize that restricting all non-work-related conversations can have a detrimental effect on morale, but if employees are spending large amounts of time debating the pros and cons of particular candidates when they should be working, an employer is going to take notice and likely take action.

Employers generally have control over what employees may and may not do on company property and on work time.

3. When discriminatory language is involved.

Employers have a duty to prevent and address discrimination in the workplace. If employees are holding inappropriate discussions about a candidate’s sex, age, race, religion, ethnicity or other protected traits, the employer will likely want to take action.

A business may be held liable for fostering a hostile work environment if it does not halt such conduct.

Because of the legal ramifications, most employers take discrimination in the workplace seriously and will respond accordingly.

4. When representing the company.

If an employee is passing himself or herself off as a company representative, or even sporting company logos (on a shirt, hat, etc.) while giving a personal interview, an employer likely has the right to act. Such actions could give customers and others the impression that the employee’s beliefs are those of the company.

So all employees, and employers, should think before speaking.

When faced with a workplace situation involving political debate, it can be hard to consider the effects of statements prior to making them. But taking a moment to think about the consequences of certain political discussions might be the best way for employees to safeguard their jobs.

Employees and employers should consider the career risks of bringing politics to work.

Rebecca Bentz is a human resources subject matter expert and associate editor at J.J. Keller & Associates Inc., a Wisconsin-based company that provides guidance to businesses regarding government regulations.

 

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The aim of this organizational website is to provide current information on litigation and legislation efforts in the arena of “just cause” employment reform. Please contact us with your updates!

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