Bridgeport Continuing Education Conference on Labor and Employment Litigation Trends in Harassment Law Presented by Thomas H. Petrides September 14, 2005 3:30 p.m. 4:30 p.m. www.klng.com Program Overview AB 1825 Harassment Training Recent Court Decisions Claims Focusing on Company s Response to Complaints of Harassment 2 Assembly Bill 1825 Passed in 2004 Became effective January 1, 2005 Mandates training for all supervisors on payroll after July 1, 2005 3 Who Does Law Apply To? Employers with 50 or more employees - Full-time, part-time and temporary - Includes contractors and leased employees - Includes employees outside of California 4 What does the law require? By 1/1/06, two hours of interactive training to all supervisory employees on payroll as of 7/1/05 - Exception: Not required if training provided after 1/1/03 Two hours of such training within 6 months to all new supervisory employees Two hours of training once every two years after 1/1/06 5 DFEH Definition of Supervisor Any individual having the authority to hire, transfer, suspend, layoff, recall, promote, discharge, assign, reward or discipline other employees, or the responsibility to direct them, or to adjust their grievances, or effectively to recommend that action if the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment. 6 What do these requirements mean? 7 What is interactive? Giving employees reading material is not enough Needs to be classroom, or other effective interactive training On-line web based training that is interactive should be sufficient 8 What are the required contents of the training? 9 Required Contents Definitions of Title VII and FEHA prohibited conduct Prevention and correction of sexual harassment Remedies available to victims Give practical examples of what harassment, discrimination, and retaliation might look like in the workplace 10 Additional Provisions Presented by trainers with knowledge and expertise in the prevention of harassment, discrimination and retaliation Compliance does not insulate employer from sexual harassment liability Failure to comply does not in and of itself result in claim by employee FEHC shall issue order requiring employer to comply 11 Recent Court Decisions 12 Recent Cases Yanowitz v. L Oreal USA, Inc., Aug. 11, 2005, CA Supreme Court Miller, et al. v. Dept. of Corrections, July 18, 2005, CA Supreme Court Pennsylvania State Police v. Suder, 542 U.S. 129 (2004) E.E.O.C. v. National Education Association of Alaska, 2005 WL 2106164 (9th Cir. 2005) 13 Yanowitz v. L Oreal Employee refused order of manager - Race discrimination termination Employee did not state reason why Thereafter written up, onerous performance standards imposed Employee was not fired, went out on leave, filed a retaliation claim 14 Two Key Determinations by Yanowitz Court: Court held employer should have known why manager s order was refused ( the Psychic factor ) Employee need not be fired or severely disciplined to sue for retaliation 15 Miller v. Dept. of Corrections Male supervisor had consensual affairs with several female subordinates Consensual partners received preferential treatment Subordinate females who were not romantically involved were less favorably treated 16 Key Determination from Miller: Subordinate employees, both male and female, who were less favorably treated could maintain action for hostile work environment sexual harassment 17 Penn. State Police v. Suder Plaintiff complained after sexually harassed by supervisors 2 days later, supervisors arrested plaintiff for theft of documents her own tests Plaintiff resigned while under interrogation following the arrest 18 Key Determinations by Supreme Court Court recognized claim for constructive discharge based on severe hostile work environment - Must be intolerable Company defense if effective policy for reporting and resolving complaints and employee failed to utilize - But no defense for adverse employment action such as cut in pay 19 EEOC v. NEA of Alaska 4 women subjected to hostile work environment by male supervisor - Yelled, swore, threatening gestures Incidents with both men and women - Not sex specific He was a jerk to everybody! 20 Key Determinations by 9th Circuit Fact that he treated men and women alike not determinative of hostile work environment sexual harassment Must apply reasonable woman standard to determine differences in subjective effects on the sexes Raised triable issue of fact and reversed summary judgment for employer 21 Cases Under California Supreme Court Review Carter v. Calif. Dept. of Veterans Affairs (2004) Lyle v. Warner Brothers (2004) 22 Carter Case Whether January 1, 2004 amendments to FEHA making employers liable for sexual harassment of third parties applies to cases pending prior to that date 23 Lyle Case Writer for Friends Claimed that conduct during writing meetings constituted sexual harassment even though not directed at her Question for Court is whether creative necessity defense has merit sufficient to grant summary judgment 24 Current Trends Claims based more on how company handles complaint and investigation process rather than underlying claim of harassment itself 25 The Complaint Process Explain process in policy When, to whom, how to report What happens after employee reports it - Conduct by complaining employee - Conduct by alleged harasser - Conduct by Company 26 The Investigation Process Confidentiality vs. discreet investigation Who conducts the investigation Who is interviewed and the circumstances Control of the rumor mill/remaining productive Sensitive to privacy, emotions of those involved 27 When the Investigation Ends Conclusions drawn Written report Who gets to learn of conclusions? What happens to the harasser and the victim? 28 Retaliation Subsequent termination Changes in performance reviews, assignment, accounts Ostracism/isolation 29 Personal Liability of Individuals in Sexual Harassment Claims Who can be held liable? Whether and when company can refuse to defend/indemnify Obtaining separate defense counsel 30 Questions & Answers 31