Casino Fires “Teflon” Employee By Myra Creighton (Atlanta) Employers frequently believe that they cannot discipline or adversely affect the employment of employees who have complained about violations of various state or federal laws or who have played the role of whistleblower. Worse, there are employees who believe their employment is “untouchable” if they complain or blow the whistle. In a recent case one such employee got a rude awakening. Imbornone v. Treasure Chest Casino. Timing Looked Bad, But... Sylvia Imbornone had worked as a surveillance agent for Treasure Chest Casino for seven years when the casino fired her. In 2002 she complained that a female co-worker was sexually harassing her. After an investigation the casino terminated Ms. Imbornone’s harasser. Additionally, the company met with the entire surveillance department and reviewed its harassment policy, which indicated the Company could terminate employees who violated the policy. Approximately three and one half months later, a male surveillance agent complained that Ms. Imbornone had sexually harassed him. Although Ms. Imbornone admitted the inappropriate behavior alleged, she contended the man reciprocated her conduct. The company suspended Ms. Imbornone pending additional investigation. During Imbornone’s suspension her attorney sent the casino a letter with a signed statement in which Imbornone admitted that she had engaged in the inappropriate conduct but which also complained that her co-workers were sexually harassing her. The company then terminated Ms. Imbornone for violating its sexual harassment policy. She subsequently filed a lawsuit in federal court against the company alleging that it terminated her for complaining about sexual harassment. GIVE ME ONE ORDER OF HARASSMENT, WITH A SIDE OF FAILURE TO REMEDY Continued from page 2 to accomplish most activities on her own. But “lurking” disabilities, particularly in the context of what the EEOC calls “intellectual disabilities,” create a significant hazard for employers. While it will usually be obvious whether harassment may be based on a protected class (such as race, sex or national origin), the same may not be true if a person does not present obvious indicators of a disability. For that reason, your policy against harassment should prohibit all types of offensive behavior, not just that based on a protected class. Train your supervisors to intervene whenever employee conduct may be offensive, even in cases of “horseplay.” Part of the necessary intervention includes investigations of employee complaints. You may determine that complained-of harassment does not affect an employee’s rights. And your investigation will go a long way toward protecting the company if a court later finds that you were wrong. ...Timing Isn’t Everything The district court determined that Ms. Imbornone did not present any evidence that her complaint and termination were related and granted judgment to the casino. In its holding, the court noted that Ms. Imbornone’s first complaint had led to the termination of a co-worker’s employment, that Ms. Imbornone had attended training, which indicated that termination was a possible consequence of violating the harassment policy, and that she had admitted engaging in inappropriate conduct. Thus, Ms. Imbornone failed to show that the company’s decision to terminate her employment was a pretext for retaliation. Lay The Groundwork Early The key questions then are when is an employer most at risk for retaliation claims and how do you avoid them. First, adverse actions on the heels of an employee’s complaint (even one made during the disciplinary process) can make adverse action seem too risky because the timing could lead a person to infer that there is a causal connection between the complaint and the action. The federal appellate courts currently are split on whether a temporal nexus standing alone is sufficient to give rise to an inference of retaliation. Nevertheless, if the basis for the decision is well-documented then an employee’s chances of prevailing drop considerably – especially if the decision was made before the protected activity took place. One crucial point is to document decisions as they are made and not just after they are communicated. For example, if you decide to terminate an employee but want to wait until after the holidays or after a project is complete, and the employee complains in the interim, the employee’s case looks viable because communication of the decision was delayed. But if the decision and basis for delay has been memorialized, then the documentation can help negate the nexus between the complaint and the decision. Documentation can take some of the shine off a teflon employee. For more information contact the author at 404.231.1400 or mcreighton@laborlawyers.com. attorneys at law www.laborlawyers.com Atlanta Charlotte Chicago Columbia Dallas Fort Lauderdale Irvine Kansas City Las Vegas New Jersey New Orleans Oakland Orlando Portland San Diego For more information contact the author at 702.252.3131 or shaley@laborlawyers.com. 4 FISHER & PHILLIPS LLP Tampa © 2006 Fisher & Phillips LLP © 2006 Fisher & Phillips LLP Hospitality Solutions at Work® LABOR LETTER September 2006 “That’s Not Harassment – We Just Have A ‘Sexually Charged’ Atmosphere” By Christian Zinn (Las Vegas) The California Supreme Court recently unanimously held that sexual antics and sexual language by the writers for the television show “Friends” was not severe or pervasive enough to create a hostile work environment in violation of California State law. Amaani Lyle, the female writers’ assistant who sued Warner Brothers Television Productions, interviewed for her job with the television show “Friends” in June of 1999. Lyle’s duties included attending all of the writers meetings, taking notes of the discussions held, and transcribing any jokes or dialog that might be used for the script. At the time of her interview, the producers and writers of the show warned her that writers often discuss sex and tell sexual jokes during the creative writing sessions. She accepted the job anyway. Lyle was fired after just four months, purportedly because of problems with her typing and transcription. Lyle v. Warner Brothers Television Productions. “Let’s Just Be Friends” Lyle, who is African American, sued Warner Brothers – and a slew of others including the producers and writers of the show – alleging race and sex discrimination, racial and sexual harassment, and retaliation for opposing race discrimination against African Americans in the casting of the show. Lyle testified at her deposition that nobody on the show ever said anything sexually offensive directly to her, or that they even sexually propositioned her. However, she stated that the writers regularly discussed their sexual preferences, experiences, and fantasies in her presence. She also alleged that the writers drew sexual pictures, wrote sexually explicit words on scripts and a calendar, made masturbatory gestures, talked about how one of them missed an opportunity to have sex with one of the show’s actresses, and made demeaning comments about the sexual ability and fertility of another actress. The producers and writers of the show testified that writers used sexually coarse and vulgar language during their meetings before and after Lyle was hired. They also testified that both men and women were present during all these meetings, and that both men and women discussed their sexual experiences for the purpose of generating material for the show. The Los Angeles County Superior Court held that the defendants could not be liable because they were either not Lyle’s employer or because she could not prove her claims. The California Court of Appeals affirmed the summary judgment on all but one count. It held that the employee’s claims of racial and sexual harassment against Warner Brothers, and other individuals including the producers and writers, was viable. The Appeals Court rejected the argument that sexually coarse and vulgar language is necessary for the creative process. The California Supreme Court agreed to review only the sexual harassment claim. Harassment Must Be Because Of Sex An employee claiming sexual harassment based on a hostile work environment must show that the conduct was unwelcome, that it was because of sex, that it was sufficiently severe or pervasive to alter the conditions of employment so as to create a hostile or abusive work environment, and that the conduct was imputable to the employer. The standard is to be judged from the perspective of a reasonable person in the plaintiff’s position considering all the circumstances. The California Supreme Court emphasized that the disparate treatment of an employee on the basis of their sex, not the mere discussion of sex or use of vulgar language, is the essence of a sexual harassment claim. Continued on page 3 Give Me One Order Of Harassment, With A Side Of Failure To Remedy By Shaun Haley (Las Vegas) Houston-based restaurant chain Luby’s, Inc. recently agreed with the EEOC to pay a former employee $90,000 to settle her claims that she was harassed based on her disability. The settlement followed closely on the heels of a federal district court’s decision to allow the employee’s case to be presented to a jury. Though the case itself does not create new law, it does highlight the critical importance of investigating employee complaints of disability-based harassment. EEOC v. Luby’s Inc. FISHER & PHILLIPS LLP attorneys at law ATLANTA 1500 Resurgens Plaza 945 East Paces Ferry Road Atlanta, GA 30326 404.231.1400 CHARLOTTE Suite 2020 227 West Trade Street Charlotte, NC 28202 704.334.4565 CHICAGO 1000 Marquette Building 140 South Dearborn Street Chicago, IL 60603 312.346.8061 COLUMBIA 1901 Main Street Suite 1400 Columbia, SC 29201 803.255.0000 DALLAS Thanksgiving Tower Suite 4343 1601 Elm Street Dallas, TX 75201 214.220.9100 FORT LAUDERDALE 450 East Las Olas Boulevard Suite 800 Fort Lauderdale, FL 33301 954.525.4800 IRVINE 18400 Von Karman Avenue Suite 400 Irvine, CA 92612 949.851.2424 The Hospitality Labor Letter is a periodic publication of Fisher & Phillips LLP and should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general information purposes only, and you are urged to consult counsel concerning your own situation and any specific legal questions you may have. Fisher & Phillips LLP lawyers are available for presentations on a wide variety of labor and employment topics. LAS VEGAS 3993 Howard Hughes Parkway Suite 650 Las Vegas, NV 89169 702.252.3131 ORLANDO 1250 Lincoln Plaza 300 South Orange Avenue Orlando, FL 32801 407.541.0888 NEW JERSEY Corporate Park III 580 Howard Avenue Somerset, NJ 08873 732.560.7100 PORTLAND 111 SW Fifth Avenue Suite 1250 Portland, Oregon 97204 503.242.4262 OAKLAND 501-14th Street Suite 200, City Center Oakland, CA 94612 510.763.4411 TAMPA 2525 SunTrust Financial Centre 401 E. Jackson Street Tampa, FL 33602 813.769.7500 NEW ORLEANS 201 St. Charles Avenue Suite 3710 New Orleans, LA 70170 504.522.3303 SAN DIEGO 4225 Executive Square Suite 950 La Jolla, CA 92037 858.597.9600 KANSAS CITY 104 West 9th Street Suite 400 Kansas City, MO 64105 816.842.8770 Fisher & Phillips LLP represents employers nationwide in the areas of labor, employment, civil rights, employee benefits and immigration law. We’re interested in your opinion. If you have any suggestions about how we can improve the Hospitality Labor Letter (or its sister publication the Labor Letter), let us know by contacting your Fisher & Phillips attorney or email the editor at mmitchell@laborlawyers.com. 2 Case’s Case Sally Case, who claims that she suffers from a developmental disability and possesses an I.Q. of less than 70, was employed as a floor attendant at one of Luby’s Phoenix restaurants beginning in 1998. In 2000, Case filed a charge of discrimination with the EEOC, alleging that the restaurant’s general manager told her to “shut up” on several occasions, called her a “retard,” and even slapped her on the face. Case also reported that Luby’s employees intentionally hid her bicycle in the men’s room, blocked her way out of the kitchen when she tried to pass, barked like a dog at her when she entered a room, and threatened to cut her arm with a bread slicer. Case claimed that she resigned her position because Luby’s management failed to respond to her complaints about this treatment. The EEOC then sued the restaurant on Case’s behalf under the ADA, alleging that Luby’s subjected her to a hostile working environment. Did Luby’s Know? Asking for a summary judgment, Luby’s presented its defense, including that Case was not actually disabled under the ADA, and even if she were, that Luby’s did not actually know that she was. Lacking any knowledge of a disability, Luby’s argued it could not have harassed Case “based on a disability.” The district court disagreed and found that the evidence could lead a jury to determine that the restaurant was given notice of Case’s disability. Why? Case’s sister met with the general manager approximately twenty times to discuss the alleged harassment, and told the general manager that Case was a “special” girl who required more patience on the part of her supervisors. Also, Case’s sister asserted that she reported the alleged harassment to the company’s employee complaint hotline at least twice. Finally, there was evidence that a state social worker had visited with the general manager to discuss Case’s employment. If The Kitchen Is Burning, Put Out The Fire After the district court denied Luby’s request for summary judgment, the company entered into a settlement agreeing to pay Case $90,000 in compensatory damages and an additional $60,000 in attorney’s fees and costs. As a third condition of settlement, Luby’s agreed to do something that could have helped the restaurant avoid any liability in this matter: train its employees to ensure that disabled workers are accommodated and not harassed. One interesting question raised by the district court was whether a harassment claim can even arise out of the ADA. The U.S. Court of Appeals for the Ninth Circuit (which has jurisdiction over Arizona and eight other Western States) has yet to specifically address the issue. But in every circuit that has addressed it, the theory has survived. You can pretty much take it as a given that a hostile environment theory under the ADA will eventually gain universal acceptance. Consequently, employers should understand that they have a legal obligation to prevent and promptly correct any harassment. Dishing Up The Answers It could very well have been that Luby’s did not know that Ms. Case was disabled – she adequately performed all of her job responsibilities without an accommodation, and the evidence indicated that she was able “THAT’S NOT HARASSMENT – WE JUST HAVE A ‘SEXUALLY CHARGED’ ATMOSPHERE” Continued from page 1 The California Supreme Court found that the evidence showed the sexual antics and sexual discussions during the writers meetings did not involve, nor were they aimed at, Lyle or any other female employee present. The Court also found that the conduct took place in group sessions where both male and female writers were present, and where both male and female writers participated in discussions of their sexual experiences to generate materials for the television show. The Court found that the comments made during these meetings were not sufficiently severe or pervasive enough to create a sexually hostile work environment. In reaching its conclusion, the Court emphasized that it did not suggest that use of sexually coarse and vulgar language can never constitute harassment because of sex. Indeed, the Court stated that language similar to that at issue in the case at hand might well establish actionable harassment depending on the circumstances. The Court also found that although California State law prohibited harassing conduct that created a work environment hostile or abusive on the basis of sex, it did not outlaw sexually coarse and vulgar language or conduct that would merely offend. The “Friends” case does not give employers a free pass to use coarse or vulgar language at work in every scenario. The Court went to great lengths to point out that the work environment was a “creative workplace, focused on generating scripts for an adult oriented comedy show featuring sexual themes.” The Court’s conclusion was that no reasonable trier of fact could find that the language used, and the manner in which it was used during the show’s writing sessions constituted harassment against Lyle because of her sex within the meaning of the California statutes. “You’re Actually Going To Wear That?” So, can companies use sexually coarse and vulgar language any time they want to sell sexual themes aimed at adults? Let’s take a look at the example of American Apparel. American Apparel is a company on the cutting edge, which makes clothing emphasizing sexuality. In order to maintain its racy image, the company maintains a sexually charged work environment. American Apparel translates that sexual charge into advertisements that tie its products with sexuality. The message conveyed in American Apparel’s advertisements about sexuality are mirrored by those of its CEO Dov Charney. Charney’s persona and the image he created for the company have opened him up to charges of exploitation and sexual harassment. Charney vehemently denies the charges, but it has clearly led to problems. Last year American Apparel, and Charney himself, were sued three times by three former employees and an independent contractor, all for sexual harassment. None of the lawsuits accused Charney himself of untoward sexual behavior, but instead concentrated on the sexualized work environment and the sexual language that Charney casually uses. One of the lawsuits was dismissed and the other settled out of court. The third is still pending. One result of these lawsuits was the creation of a document which all American Apparel employees now must sign. The document declares that “American Apparel is in the business of designing and manufacturing sexually charged T-shirts and intimate apparel, and uses sexually charged visual and oral communications in its marketing and sales Continued on page 4 © 2006 Fisher & Phillips LLP © 2006 Fisher & Phillips LLP activities. Employees working in the design, sales, marketing and other creative areas of the company will come into contact with sexually charged language and visual images. This is a part of the job for employees working in these areas.” Of course, individual companies like American Apparel cannot dictate what is and isn’t sexual harassment. But American Apparel’s use of a sexually charged work environment has created incredible business success. With this success, it is not hard to see why companies like American Apparel are trying to push the envelop on what is and isn’t sexual harassment. Sex Versus Sex: Comparing American Apparel And Friends Is American Apparel the new benchmark? When do language and actions like the ones used in the “Friends” case become pervasive enough to support a claim for sexual harassment? The California Supreme Court in the “Friends” case was interpreting a California statute, but every employer in every state needs to carefully analyze its own state’s laws before allowing any such coarse and vulgar language. In fact, the “Friends” case can easily be distinguished. The Court itself pointed out that it was particularly important that it was a creative workplace focused on generating scripts for an adult oriented comedy show featuring sexual themes. Although American Apparel is a sexually charged workplace whose self-imposed mantra is that of creating a “new normal” in designing, manufacturing, and selling of sexually charged T-shirts and intimate apparel, this may not be enough to withstand a sexual harassment lawsuit. A reasonable person may conclude, like the California Supreme Court, that sexual language is needed to allow the “creative juices” to flow for an adult oriented comedy show. But the same reasonable person may easily think that a charged sexual environment at a clothing design and manufacturing employer is not needed, and is sufficiently vulgar and pervasive to sustain a claim for sexual harassment. So, Who Sets The Standard? While not all workplaces could even consider legitimately arguing that their atmosphere was “sexually charged” for business reasons, there are some who might, especially in the hospitality and entertainment areas, where lounge acts and wait staff are frequently chosen to create a particular ambience. For now the standard remains the same. What constitutes sexual harassment based on a hostile work environment must still be looked at from the perspective of a reasonable person in the employee’s position. But as more and more companies push the envelope on the “sex sells mentality,” what is unreasonable in some scenarios might well be reasonable in others. For more information contact the author at 702.252.3131 or czinn@laborlawyers.com. 3 Give Me One Order Of Harassment, With A Side Of Failure To Remedy By Shaun Haley (Las Vegas) Houston-based restaurant chain Luby’s, Inc. recently agreed with the EEOC to pay a former employee $90,000 to settle her claims that she was harassed based on her disability. The settlement followed closely on the heels of a federal district court’s decision to allow the employee’s case to be presented to a jury. Though the case itself does not create new law, it does highlight the critical importance of investigating employee complaints of disability-based harassment. EEOC v. Luby’s Inc. FISHER & PHILLIPS LLP attorneys at law ATLANTA 1500 Resurgens Plaza 945 East Paces Ferry Road Atlanta, GA 30326 404.231.1400 CHARLOTTE Suite 2020 227 West Trade Street Charlotte, NC 28202 704.334.4565 CHICAGO 1000 Marquette Building 140 South Dearborn Street Chicago, IL 60603 312.346.8061 COLUMBIA 1901 Main Street Suite 1400 Columbia, SC 29201 803.255.0000 DALLAS Thanksgiving Tower Suite 4343 1601 Elm Street Dallas, TX 75201 214.220.9100 FORT LAUDERDALE 450 East Las Olas Boulevard Suite 800 Fort Lauderdale, FL 33301 954.525.4800 IRVINE 18400 Von Karman Avenue Suite 400 Irvine, CA 92612 949.851.2424 The Hospitality Labor Letter is a periodic publication of Fisher & Phillips LLP and should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general information purposes only, and you are urged to consult counsel concerning your own situation and any specific legal questions you may have. Fisher & Phillips LLP lawyers are available for presentations on a wide variety of labor and employment topics. LAS VEGAS 3993 Howard Hughes Parkway Suite 650 Las Vegas, NV 89169 702.252.3131 ORLANDO 1250 Lincoln Plaza 300 South Orange Avenue Orlando, FL 32801 407.541.0888 NEW JERSEY Corporate Park III 580 Howard Avenue Somerset, NJ 08873 732.560.7100 PORTLAND 111 SW Fifth Avenue Suite 1250 Portland, Oregon 97204 503.242.4262 OAKLAND 501-14th Street Suite 200, City Center Oakland, CA 94612 510.763.4411 TAMPA 2525 SunTrust Financial Centre 401 E. Jackson Street Tampa, FL 33602 813.769.7500 NEW ORLEANS 201 St. Charles Avenue Suite 3710 New Orleans, LA 70170 504.522.3303 SAN DIEGO 4225 Executive Square Suite 950 La Jolla, CA 92037 858.597.9600 KANSAS CITY 104 West 9th Street Suite 400 Kansas City, MO 64105 816.842.8770 Fisher & Phillips LLP represents employers nationwide in the areas of labor, employment, civil rights, employee benefits and immigration law. We’re interested in your opinion. If you have any suggestions about how we can improve the Hospitality Labor Letter (or its sister publication the Labor Letter), let us know by contacting your Fisher & Phillips attorney or email the editor at mmitchell@laborlawyers.com. 2 Case’s Case Sally Case, who claims that she suffers from a developmental disability and possesses an I.Q. of less than 70, was employed as a floor attendant at one of Luby’s Phoenix restaurants beginning in 1998. In 2000, Case filed a charge of discrimination with the EEOC, alleging that the restaurant’s general manager told her to “shut up” on several occasions, called her a “retard,” and even slapped her on the face. Case also reported that Luby’s employees intentionally hid her bicycle in the men’s room, blocked her way out of the kitchen when she tried to pass, barked like a dog at her when she entered a room, and threatened to cut her arm with a bread slicer. Case claimed that she resigned her position because Luby’s management failed to respond to her complaints about this treatment. The EEOC then sued the restaurant on Case’s behalf under the ADA, alleging that Luby’s subjected her to a hostile working environment. Did Luby’s Know? Asking for a summary judgment, Luby’s presented its defense, including that Case was not actually disabled under the ADA, and even if she were, that Luby’s did not actually know that she was. Lacking any knowledge of a disability, Luby’s argued it could not have harassed Case “based on a disability.” The district court disagreed and found that the evidence could lead a jury to determine that the restaurant was given notice of Case’s disability. Why? Case’s sister met with the general manager approximately twenty times to discuss the alleged harassment, and told the general manager that Case was a “special” girl who required more patience on the part of her supervisors. Also, Case’s sister asserted that she reported the alleged harassment to the company’s employee complaint hotline at least twice. Finally, there was evidence that a state social worker had visited with the general manager to discuss Case’s employment. If The Kitchen Is Burning, Put Out The Fire After the district court denied Luby’s request for summary judgment, the company entered into a settlement agreeing to pay Case $90,000 in compensatory damages and an additional $60,000 in attorney’s fees and costs. As a third condition of settlement, Luby’s agreed to do something that could have helped the restaurant avoid any liability in this matter: train its employees to ensure that disabled workers are accommodated and not harassed. One interesting question raised by the district court was whether a harassment claim can even arise out of the ADA. The U.S. Court of Appeals for the Ninth Circuit (which has jurisdiction over Arizona and eight other Western States) has yet to specifically address the issue. But in every circuit that has addressed it, the theory has survived. You can pretty much take it as a given that a hostile environment theory under the ADA will eventually gain universal acceptance. Consequently, employers should understand that they have a legal obligation to prevent and promptly correct any harassment. Dishing Up The Answers It could very well have been that Luby’s did not know that Ms. Case was disabled – she adequately performed all of her job responsibilities without an accommodation, and the evidence indicated that she was able “THAT’S NOT HARASSMENT – WE JUST HAVE A ‘SEXUALLY CHARGED’ ATMOSPHERE” Continued from page 1 The California Supreme Court found that the evidence showed the sexual antics and sexual discussions during the writers meetings did not involve, nor were they aimed at, Lyle or any other female employee present. The Court also found that the conduct took place in group sessions where both male and female writers were present, and where both male and female writers participated in discussions of their sexual experiences to generate materials for the television show. The Court found that the comments made during these meetings were not sufficiently severe or pervasive enough to create a sexually hostile work environment. In reaching its conclusion, the Court emphasized that it did not suggest that use of sexually coarse and vulgar language can never constitute harassment because of sex. Indeed, the Court stated that language similar to that at issue in the case at hand might well establish actionable harassment depending on the circumstances. The Court also found that although California State law prohibited harassing conduct that created a work environment hostile or abusive on the basis of sex, it did not outlaw sexually coarse and vulgar language or conduct that would merely offend. The “Friends” case does not give employers a free pass to use coarse or vulgar language at work in every scenario. The Court went to great lengths to point out that the work environment was a “creative workplace, focused on generating scripts for an adult oriented comedy show featuring sexual themes.” The Court’s conclusion was that no reasonable trier of fact could find that the language used, and the manner in which it was used during the show’s writing sessions constituted harassment against Lyle because of her sex within the meaning of the California statutes. “You’re Actually Going To Wear That?” So, can companies use sexually coarse and vulgar language any time they want to sell sexual themes aimed at adults? Let’s take a look at the example of American Apparel. American Apparel is a company on the cutting edge, which makes clothing emphasizing sexuality. In order to maintain its racy image, the company maintains a sexually charged work environment. American Apparel translates that sexual charge into advertisements that tie its products with sexuality. The message conveyed in American Apparel’s advertisements about sexuality are mirrored by those of its CEO Dov Charney. Charney’s persona and the image he created for the company have opened him up to charges of exploitation and sexual harassment. Charney vehemently denies the charges, but it has clearly led to problems. Last year American Apparel, and Charney himself, were sued three times by three former employees and an independent contractor, all for sexual harassment. None of the lawsuits accused Charney himself of untoward sexual behavior, but instead concentrated on the sexualized work environment and the sexual language that Charney casually uses. One of the lawsuits was dismissed and the other settled out of court. The third is still pending. One result of these lawsuits was the creation of a document which all American Apparel employees now must sign. The document declares that “American Apparel is in the business of designing and manufacturing sexually charged T-shirts and intimate apparel, and uses sexually charged visual and oral communications in its marketing and sales Continued on page 4 © 2006 Fisher & Phillips LLP © 2006 Fisher & Phillips LLP activities. Employees working in the design, sales, marketing and other creative areas of the company will come into contact with sexually charged language and visual images. This is a part of the job for employees working in these areas.” Of course, individual companies like American Apparel cannot dictate what is and isn’t sexual harassment. But American Apparel’s use of a sexually charged work environment has created incredible business success. With this success, it is not hard to see why companies like American Apparel are trying to push the envelop on what is and isn’t sexual harassment. Sex Versus Sex: Comparing American Apparel And Friends Is American Apparel the new benchmark? When do language and actions like the ones used in the “Friends” case become pervasive enough to support a claim for sexual harassment? The California Supreme Court in the “Friends” case was interpreting a California statute, but every employer in every state needs to carefully analyze its own state’s laws before allowing any such coarse and vulgar language. In fact, the “Friends” case can easily be distinguished. The Court itself pointed out that it was particularly important that it was a creative workplace focused on generating scripts for an adult oriented comedy show featuring sexual themes. Although American Apparel is a sexually charged workplace whose self-imposed mantra is that of creating a “new normal” in designing, manufacturing, and selling of sexually charged T-shirts and intimate apparel, this may not be enough to withstand a sexual harassment lawsuit. A reasonable person may conclude, like the California Supreme Court, that sexual language is needed to allow the “creative juices” to flow for an adult oriented comedy show. But the same reasonable person may easily think that a charged sexual environment at a clothing design and manufacturing employer is not needed, and is sufficiently vulgar and pervasive to sustain a claim for sexual harassment. So, Who Sets The Standard? While not all workplaces could even consider legitimately arguing that their atmosphere was “sexually charged” for business reasons, there are some who might, especially in the hospitality and entertainment areas, where lounge acts and wait staff are frequently chosen to create a particular ambience. For now the standard remains the same. What constitutes sexual harassment based on a hostile work environment must still be looked at from the perspective of a reasonable person in the employee’s position. But as more and more companies push the envelope on the “sex sells mentality,” what is unreasonable in some scenarios might well be reasonable in others. For more information contact the author at 702.252.3131 or czinn@laborlawyers.com. 3 Casino Fires “Teflon” Employee By Myra Creighton (Atlanta) Employers frequently believe that they cannot discipline or adversely affect the employment of employees who have complained about violations of various state or federal laws or who have played the role of whistleblower. Worse, there are employees who believe their employment is “untouchable” if they complain or blow the whistle. In a recent case one such employee got a rude awakening. Imbornone v. Treasure Chest Casino. Timing Looked Bad, But... Sylvia Imbornone had worked as a surveillance agent for Treasure Chest Casino for seven years when the casino fired her. In 2002 she complained that a female co-worker was sexually harassing her. After an investigation the casino terminated Ms. Imbornone’s harasser. Additionally, the company met with the entire surveillance department and reviewed its harassment policy, which indicated the Company could terminate employees who violated the policy. Approximately three and one half months later, a male surveillance agent complained that Ms. Imbornone had sexually harassed him. Although Ms. Imbornone admitted the inappropriate behavior alleged, she contended the man reciprocated her conduct. The company suspended Ms. Imbornone pending additional investigation. During Imbornone’s suspension her attorney sent the casino a letter with a signed statement in which Imbornone admitted that she had engaged in the inappropriate conduct but which also complained that her co-workers were sexually harassing her. The company then terminated Ms. Imbornone for violating its sexual harassment policy. She subsequently filed a lawsuit in federal court against the company alleging that it terminated her for complaining about sexual harassment. GIVE ME ONE ORDER OF HARASSMENT, WITH A SIDE OF FAILURE TO REMEDY Continued from page 2 to accomplish most activities on her own. But “lurking” disabilities, particularly in the context of what the EEOC calls “intellectual disabilities,” create a significant hazard for employers. While it will usually be obvious whether harassment may be based on a protected class (such as race, sex or national origin), the same may not be true if a person does not present obvious indicators of a disability. For that reason, your policy against harassment should prohibit all types of offensive behavior, not just that based on a protected class. Train your supervisors to intervene whenever employee conduct may be offensive, even in cases of “horseplay.” Part of the necessary intervention includes investigations of employee complaints. You may determine that complained-of harassment does not affect an employee’s rights. And your investigation will go a long way toward protecting the company if a court later finds that you were wrong. ...Timing Isn’t Everything The district court determined that Ms. Imbornone did not present any evidence that her complaint and termination were related and granted judgment to the casino. In its holding, the court noted that Ms. Imbornone’s first complaint had led to the termination of a co-worker’s employment, that Ms. Imbornone had attended training, which indicated that termination was a possible consequence of violating the harassment policy, and that she had admitted engaging in inappropriate conduct. Thus, Ms. Imbornone failed to show that the company’s decision to terminate her employment was a pretext for retaliation. Lay The Groundwork Early The key questions then are when is an employer most at risk for retaliation claims and how do you avoid them. First, adverse actions on the heels of an employee’s complaint (even one made during the disciplinary process) can make adverse action seem too risky because the timing could lead a person to infer that there is a causal connection between the complaint and the action. The federal appellate courts currently are split on whether a temporal nexus standing alone is sufficient to give rise to an inference of retaliation. Nevertheless, if the basis for the decision is well-documented then an employee’s chances of prevailing drop considerably – especially if the decision was made before the protected activity took place. One crucial point is to document decisions as they are made and not just after they are communicated. For example, if you decide to terminate an employee but want to wait until after the holidays or after a project is complete, and the employee complains in the interim, the employee’s case looks viable because communication of the decision was delayed. But if the decision and basis for delay has been memorialized, then the documentation can help negate the nexus between the complaint and the decision. Documentation can take some of the shine off a teflon employee. For more information contact the author at 404.231.1400 or mcreighton@laborlawyers.com. attorneys at law www.laborlawyers.com Atlanta Charlotte Chicago Columbia Dallas Fort Lauderdale Irvine Kansas City Las Vegas New Jersey New Orleans Oakland Orlando Portland San Diego For more information contact the author at 702.252.3131 or shaley@laborlawyers.com. 4 FISHER & PHILLIPS LLP Tampa © 2006 Fisher & Phillips LLP © 2006 Fisher & Phillips LLP Hospitality Solutions at Work® LABOR LETTER September 2006 “That’s Not Harassment – We Just Have A ‘Sexually Charged’ Atmosphere” By Christian Zinn (Las Vegas) The California Supreme Court recently unanimously held that sexual antics and sexual language by the writers for the television show “Friends” was not severe or pervasive enough to create a hostile work environment in violation of California State law. Amaani Lyle, the female writers’ assistant who sued Warner Brothers Television Productions, interviewed for her job with the television show “Friends” in June of 1999. Lyle’s duties included attending all of the writers meetings, taking notes of the discussions held, and transcribing any jokes or dialog that might be used for the script. At the time of her interview, the producers and writers of the show warned her that writers often discuss sex and tell sexual jokes during the creative writing sessions. She accepted the job anyway. Lyle was fired after just four months, purportedly because of problems with her typing and transcription. Lyle v. Warner Brothers Television Productions. “Let’s Just Be Friends” Lyle, who is African American, sued Warner Brothers – and a slew of others including the producers and writers of the show – alleging race and sex discrimination, racial and sexual harassment, and retaliation for opposing race discrimination against African Americans in the casting of the show. Lyle testified at her deposition that nobody on the show ever said anything sexually offensive directly to her, or that they even sexually propositioned her. However, she stated that the writers regularly discussed their sexual preferences, experiences, and fantasies in her presence. She also alleged that the writers drew sexual pictures, wrote sexually explicit words on scripts and a calendar, made masturbatory gestures, talked about how one of them missed an opportunity to have sex with one of the show’s actresses, and made demeaning comments about the sexual ability and fertility of another actress. The producers and writers of the show testified that writers used sexually coarse and vulgar language during their meetings before and after Lyle was hired. They also testified that both men and women were present during all these meetings, and that both men and women discussed their sexual experiences for the purpose of generating material for the show. The Los Angeles County Superior Court held that the defendants could not be liable because they were either not Lyle’s employer or because she could not prove her claims. The California Court of Appeals affirmed the summary judgment on all but one count. It held that the employee’s claims of racial and sexual harassment against Warner Brothers, and other individuals including the producers and writers, was viable. The Appeals Court rejected the argument that sexually coarse and vulgar language is necessary for the creative process. The California Supreme Court agreed to review only the sexual harassment claim. Harassment Must Be Because Of Sex An employee claiming sexual harassment based on a hostile work environment must show that the conduct was unwelcome, that it was because of sex, that it was sufficiently severe or pervasive to alter the conditions of employment so as to create a hostile or abusive work environment, and that the conduct was imputable to the employer. The standard is to be judged from the perspective of a reasonable person in the plaintiff’s position considering all the circumstances. The California Supreme Court emphasized that the disparate treatment of an employee on the basis of their sex, not the mere discussion of sex or use of vulgar language, is the essence of a sexual harassment claim. Continued on page 3