The New Jersey Employment Law Firm Blog

May 13, 2014

Question of Whether Employers Can Fire Employees for Lawful Marijuana Use to Go Before Colorado Supreme Court

An employee who relied on medical marijuana for debilitating pain lost his job after failing a drug test, and his case has raised the difficult question of whether moves towards marijuana decriminalization have changed the legal standards in cases of termination for marijuana use. The employee alleged that the employer violated a statute prohibiting termination for “lawful activity” outside of work, but the Colorado Court of Appeals disagreed in Coats v. DISH Network, L.L.C., 303 P.3d 147 (Col. App. 2013). The state supreme court has agreed to hear the employee’s appeal. The question involves both state and federal law, especially now that marijuana is at least partly legal in many states, but still illegal under federal law.

The plaintiff worked as a telephone operator for the satellite television service provider DISH Network. A spinal injury left him quadriplegic, and he obtained a prescription for medical marijuana to treat severe muscle spasms. Despite a good employment record, he was terminated in 2010 after failing a random drug test. He sued DISH, citing a Colorado statute that prohibits termination for “lawful activity off the premises of the employer during nonwork hours.” C.R.S. § 24-34-402.5 (PDF file).

Both the trial court and the appellate court ruled that marijuana use outside of work, even with a legal prescription, was not “lawful activity” within the meaning of the state statute. Marijuana use of any kind is still prohibited by federal law. The U.S. Supreme Court held in Gonzales v. Raich, 545 U.S. 1 (2005) that state laws allowing marijuana use do not supersede federal laws prohibiting it. For an activity to be “lawful” in a wrongful termination case, the Colorado court held, “it must be permitted by, and not contrary to, both state and federal law.” Coates, 303 P.3d at 151.
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May 13, 2014

Lawsuit Alleges Employer Failed to Provide Adequate Restroom Breaks

by Resnick Law Group, P.C.

A factory worker’s lawsuit alleges that her employer violated state labor laws by failing to allow her adequate restroom breaks, then firing her for improvising her own solution. A U.S. district court denied the defendant’s motion to dismiss in Prince v. Electrolux Home Products, Inc., No. 13-cv-02316, mem. op. (D. Minn., Feb. 14, 2014), finding that the plaintiff had met the pleading requirements for wrongful termination or retaliation. The plaintiff in this case can take advantage of a state law requiring reasonable restroom breaks. The federal Fair Labor Standards Act (FLSA) does not expressly require employers to allow restroom breaks, although the Occupational Safety and Health Administration (OSHA), has interpreted its regulations to mean that employers may not unreasonably deny access to restroom facilities.

The plaintiff was an assembly-line worker at a plant in St. Cloud, Minnesota. She suffers from a medical condition that causes her to need to use the restroom frequently. She alleges that she asked her supervisor for permission to take a restroom break several times over the course of thirty to forty minutes, but was repeatedly ignored or denied. Eventually, the 51 year-old plaintiff was no longer able to wait, so she lined an empty box with a plastic bag, concealed herself as best she could near her workstation, and urinated in the box. The following day, she was terminated for violating a company health and safety policy.

The supervisor allegedly refused permission for restroom breaks on a regular basis, and the plaintiff claims that he had instructed her to use a box or a bucket in the past. The plaintiff was out of work for about nine months until an arbitrator reversed her termination in April 2013, finding that it violated the union collective bargaining agreement. Even though she got her job back, the plaintiff filed suit against her employer in federal court in August 2013, asserting causes of action for violations of the Minnesota Occupational Safety Act (MOSHA) and a state statute requiring adequate restroom breaks for employees.
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April 25, 2014

NLRB Proposes New Procedures for Union Representation Votes, Rules that College Football Players May Vote on Unionizing

by Resnick Law Group, P.C.

The National Labor Relations Board (NLRB) took two recent actions affecting union representation. In early February, it issued proposed rule changes for representation cases, when employees or unions seek a vote to determine whether employees want to form or join a union for collective bargaining. Existing rules have faced criticism for allowing excessive delay and other inefficiencies. In late March, the NLRB issued a ruling in a dispute between an organization representing college football players and Northwestern University. It found that scholarship players are “employees” within the meaning of the National Labor Relations Act (NLRA), and that they are entitled to vote on union representation.

On February 6, 2014, the NLRB published proposed changes to representation-case procedures. 79 F.R. 7317. The new rules, according to the NLRB, would “remove unnecessary barriers to the fair and expeditious resolution” of petitions for union representation. This would include simplifying and standardizing case procedures, and improving the transparency of the process. The current rules, found at 29 C.F.R. Parts 101-103, have been criticized for allowing a substantial amount of time to pass between a petition by non-union workers and a vote on union representation, allowing employers to pressure employees to vote against the union. The new rules are similar to a proposal first made in June 2011. A district court struck down the rules that resulted from that proposal, finding that the NLRB enacted them without the required quorum. Chamber of Commerce v. NLRB, 879 F.Supp.2d 18 (D.D.C. 2012).

The College Athletes Players Association (CAPA), a labor organization, petitioned the NLRB on behalf of football players receiving grant-in-aid scholarships from Northwestern University, seeking a ruling that the players are “employees” within the meaning of the NLRA. Northwestern argued that the players are not employees, comparing them instead to graduate student assistants who were ruled not to be employees in Brown University, 342 NLRB 483 (2004). The NLRB’s Region 13 Director ruled that the players are employees, and directed that an election take place. Northwestern University, No. 13-RC-131359, decision (NLRB, Mar. 26, 2014).
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April 18, 2014

New Ordinance Closes Loophole Preventing New York City Unpaid Interns from Asserting Rights Against Workplace Harassment

by Resnick Law Group, P.C.

The New York City Council unanimously passed a bill in late March 2014 amending the New York City Human Rights Law (NYCHRL) to extend the anti-discrimination provisions of the law to unpaid interns. A 2013 federal court case, in which an unpaid intern filed suit for sexual harassment and hostile work environment, inspired the bill. The court dismissed the intern’s claims because city and state law, it found, do not apply to interns. Wang v. Phoenix Satellite Television US, No. 1:13-cv-00218, mem. order (S.D.N.Y., Oct. 3, 2013).

The plaintiff in Wang was a graduate student in journalism at Syracuse University in December 2009 when she began working as an unpaid intern for the American subsidiary of Phoenix Media Group, a television news company based in Hong Kong. She viewed the internship as a training opportunity, with the possibility of a full-time job after she graduated. She reported to the Washington DC bureau chief, who also oversaw operations in New York.

While the bureau chief was in New York one night in January 2010, she and several employees met him at a restaurant. She alleged in her lawsuit that he asked her to stay after the meal to discuss job prospects, then invited her back to his hotel. He allegedly made sexual comments that made her uncomfortable, but she felt that she could not refuse his invitation to go to his room because he was her boss. Once they were alone, he allegedly threw his arms around her, groped her, and attempted to kiss her. She broke free of him and left the hotel. After that, she claims, he ceased to express any interest in hiring her.
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April 18, 2014

McDonald’s Faces Multiple Lawsuits in New York for Alleged Wage Violations

by Resnick Law Group, P.C.

Workers and state regulators have filed multiple lawsuits against McDonald’s, the national fast-food chain, and its franchisees for alleged violations of state and federal wage and hour laws. The company has faced widespread protests from employees, who allege that they have been denied overtime pay. A federal lawsuit filed in mid-March 2014 in New York claims that the company regularly failed to pay employees for time they were required to be at work, failed to pay overtime as required by law, and did not reimburse employees for certain work-related expenses. The New York Attorney General’s office announced around the same time that it has settled a claim against a McDonald’s franchisee regarding violations of state wage and hour laws.

Six McDonald’s employees filed a putative class action lawsuit against McDonald’s for violations of the federal Fair Labor Standards Act (FLSA) and New York laws regulating minimum wage and the cost of maintaining work uniforms. Beard, et al v. McDonald’s Corp., et al, No. 1:14-cv-01664, complaint (E.D.N.Y., Mar. 13, 2014). McDonald’s has annual gross revenues of more than $27 billion, according to the complaint, and it directly operates thirty-four restaurants in New York out of more than 33,000 around the world. The plaintiffs work at McDonald’s restaurants in the Queens, New York area. Their job duties include working the cash registers and drive-through windows, food preparation, restocking, and cleaning.

The plaintiffs state that they are paid a “nominal hourly rate only at or slightly above the minimum wage.” Id. at 2. The company requires them to maintain their own work uniforms, but does not reimburse them for maintenance expenses. It also does not pay them for time spent on uniform maintenance. Because of this additional, uncompensated work time, the plaintiffs claim that their wages are below the minimum set by the FLSA and state law. The lawsuit claims violations of the New York Hospitality Industry Wage Order, 12 N.Y.C.R.R. Part 146, which requires employers to reimburse employees for certain expenses related to uniform maintenance, as well as minimum wage violations under FLSA and state law.
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March 31, 2014

New Jersey Law Against Discrimination Now Protects Workers from “Salary Secrecy” by Prohibiting Retaliation for Inquiring About Wage Discrimination

by Resnick Law Group, P.C.

An amendment to the New Jersey Law Against Discrimination (NJLAD) that took effect in January 2014 protects employees from retaliation by employers for asking about co-workers’ salaries as part of an investigation into wage discrimination. Prior to this amendment, New Jersey labor law already protected workers, commonly known as whistleblowers, who investigated or reported various unlawful practices by their employers, but did not protect workers who investigated certain practices. Many companies employment have “salary secrecy” policies that prevent employees from inquiring about other employees’ wages, making wage discrimination claims difficult.

Despite laws at the state and federal level prohibiting overt wage discrimination based on gender, the gap in wages between men and women is alive and well in New Jersey and around the country. Salary secrecy is among the biggest reasons for this continued disparity. Companies discourage employees from discussing pay with one another, and in some cases, even terminate employees for asking about other employees’ wages. A 2012 Forbes article found that companies with salary secrecy policies often had little justification for the policies aside from management’s unwillingness to explain their salary decisions to others. Such policies may also increase employee dissatisfaction and reduce overall efficiency, while more transparent policies have had positive results. The new amendment to the NJLAD effectively bans salary secrecy in New Jersey.

New Jersey law prohibits sex discrimination “in the rate or method of payment of wages.” N.J. Rev. Stat. § 34:11-56.2. It also prohibits employers from retaliating against employees who complain to the employer or the New Jersey Civil Rights Commission about alleged wage discrimination. N.J. Rev. Stat. § 34:11-56.6. The statute does not specifically mention investigations of possible wage discrimination, and this is where salary secrecy policies can prevent employees from asserting their rights.
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March 28, 2014

Lawsuit Claims Employer Fired Plaintiff for Reporting Racial Discrimination, Sexual Harassment Within Company

by Resnick Law Group, P.C.

A federal lawsuit accuses a New York business of firing the plaintiff in retaliation for his report of unlawful employment practices. Giraldo v. The Change Group New York, Inc., et al, No. 1:14-cv-00375, complaint (S.D.N.Y., Jan. 21, 2014). The plaintiff, who is a gay man, also alleges that he was subjected to ongoing sexual harassment, discrimination, and a hostile work environment based on sexual orientation. The lawsuit asserts causes of action for retaliation, discrimination, and harassment in violation of federal, state, and city law.

The plaintiff was employed as a sales consultant by a currency exchange group in Manhattan from December 2012 until November 2013. He alleges multiple instances of harassment by two managers in the office, including inappropriate comments about his sexual orientation. One of the managers allegedly displayed similar behavior towards female employees and customers on a regular basis. The plaintiff claimed that he also frequently made “ethnically and racially discriminatory comments towards African American employees,” Muslim employees, and the plaintiff, who is Hispanic of Colombian descent.

In a seemingly-anonymous email sent to company executives just after midnight on October 8, 2013, the plaintiff complained about the two managers’ allegedly widespread discrimination and harassment. He identified multiple specific instances of inappropriate sexual and racial comments directed to the plaintiff, and inappropriate comments and behavior directed at others. He also noted his concern that speaking out publicly would cost him his job, as people who expressed dissenting opinions were often “squashed or treated as heretics” by the managers. He specifically stated that if he attached his name to the email, he believed he would be fired.
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March 20, 2014

Lawsuit in New Jersey State Court Accuses Police Department of Sexual Harassment, Race Discrimination, and Harassment

by Resnick Law Group, P.C.

A lawsuit filed in a New Jersey Superior Court against a police department and several police officials seeks over $1 million in damages for alleged race discrimination, sexual harassment, and retaliation. The plaintiff in Cruz v. Old Bridge Police Department, et al alleges that the department ignored her repeated complaints of sexual harassment because of her race, and then subjected her to retaliation and a hostile work environment that prevented her from returning to work. The New Jersey Law Against Discrimination (NJLAD) protects workers from employment discrimination based on factors like race and sex, and includes sexual harassment as a form of gender discrimination.

The plaintiff, according to local news coverage, was hired in May 2004 as an auxiliary police officer for the Old Bridge Police Department. This is a part-time position that works certain events, assisting the police department by providing crowd and traffic control. She alleges that a lieutenant began sexually harassing her shortly after she was divorced by asking her questions and making comments of an inappropriate sexual nature, and with direct sexual advances. She asserts that she asked him to stop and reported the matter to the department’s Internal Affairs unit, but the harassment continued.

When the lieutenant was promoted to captain, he became the plaintiff’s direct supervisor. She claims that he created a hostile work environment by “ostraciz[ing] here” and behaving in a “disrespectful and…demeaning manner.” The department ignored her complaints, she claims, because she is a black Hispanic woman. She received a charge of “conduct unbecoming” that she claims was false, and in September 2011 she was suspended without pay for allegedly submitting false time records in order to increase her pay. She also denies this charge. The department did not fire her, but reportedly also did not set an end date for her suspension. The township listed her employment status as “did not return,” according to the Home News Tribune. She either quit or was terminated by the department in December 2011.
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March 18, 2014

NLRB Addresses the Question of When the NLRA Protects Employees’ Statements on Social Media

by Resnick Law Group, P.C.

The National Labor Relations Act (NLRA) protects employees from retaliation from their employers for union organizing and related “concerted activities.” Courts are constantly reviewing the question of what constitutes protected concerted activity. The growth of social media in recent years has led to numerous disputes over the extent of NLRA protections for online statements and activity. Two recent decisions from the National Labor Relations Board (NLRB) offers the possibility of clarity about the line beyond which the NLRA does not apply. Both cases involved activity on Facebook involving harsh language directed at one or more supervisors, including words that generally get films an “R” rating. The NLRB’s two decisions make an important distinction, seeming to draw the line based on whether the employee’s activity harms the employer.

Two rules have emerged for employees regarding social media posts. The first rule is that statements or discussions via social media, when directed to other employees or intended to spotlight an employment issue, are generally considered to be concerted activity protected by the NLRA. The unsettled question for social media is how far is too far before a statement or discussion exceeds the scope of the NLRA’s protection. The second rule is that employers will continue to push this still-hazy limit, so employees should be prepared and know their rights.

In Pier Sixty, No. 02-CA-068612 (NLRB, Apr. 18, 2013), the NLRB found that an employee’s colorful statements on Facebook were protected by the NLRA. An employee at a catering company reportedly became frustrated during the course of negotiations over union representation. While the employee was working an event, he felt that a supervisor was harassing him. He stepped outside the building and posted an update to his Facebook calling the supervisor a “NASTY M———-R” and a “LOSER,” followed by a call to vote yes on the union proposal. The employee was fired soon afterwards. The NLRB held that the employee’s statements were protected, the generous use of swear words notwithstanding, because they were directly related to ongoing union organizing. It ordered the employee’s reinstatement with back pay.
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March 14, 2014

New Jersey Employers Required by State Law to Provide Employees with Notice of Gender Equity Rights

by Resnick Law Group, P.C.

A 2012 law amending the New Jersey Equal Pay Act requires employers with at least fifty employees to provide official notice to workers of their rights regarding gender equity under state and federal anti-discrimination and pay equity statutes. The New Jersey Department of Labor and Workforce Development (NJDOL) published final notice forms on January 6, 2014. Under the thirty-day deadline established by the 2012 law, employers had until February 5 to provide the notice to all current employees. The 2012 law does not identify a penalty for failing to meet this deadline, and the NJDOL has not stated how it will handle noncompliance. Penalties for similar regulatory infractions might offer some idea of what employers might face.

The New Jersey Assembly passed A2647, which “[r]equires employers [to] post notice of worker rights under certain State and federal laws,” on June 25, 2012, and the governor signed it into law on September 19, 2012. It did not provide a specific date for employers to comply with its requirements, but rather set a deadline of thirty days after publication of final notice forms by the NJDOL. This took place on January 6, 2014, making the initial deadline February 5. For employees hired after that date, employers must provide the notice by the end of the calendar year in which an employee was hired.

The official notice form published by the NJDOL, entitled “Right to be Free of Gender Inequity or Bias in Pay, Compensation, Benefits or Other Terms and Conditions of Employment,” outlines workers’ rights under two federal statutes and two New Jersey statutes:
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