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    Welcome to the Labor and Employment Law Update where attorneys from SmithAmundsen blog about management side labor and employment issues. We cover topics including addressing harassment and discrimination in the workplace, developing labor law, navigating through ADA(AA), FMLA and workers’ compensation issues, avoiding wage and hour landmines, key legislative, case law and regulatory changes and much more!
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    The Labor and Employment Law Update is provided for information purposes only, and should not be construed as legal advice on any subject matter, nor should it be construed as creating an attorney client relationship. Do not send confidential information or facts about a legal matter. The opinions of this blog's contributors do not reflect the opinions of SmithAmundsen LLC as a whole. See the disclaimer page for further information.

Beware of the EEOC’s Continued Efforts to Bring Class Actions Against Employers

Contributed by Sara Zorich

January 11, 2013 was a victory day for the Equal Employment Opportunity Commission (EEOC) in the matter of EEOC v. UPS, 2013 U.S. Dist. LEXIS 4462 (N.D. Ill. Jan. 11, 2013) and a day on which employers should take note that courts have made it less burdensome in the Northern District for the EEOC to bring class action lawsuits against employers.

In 2009, the EEOC filed a complaint on behalf of Trudi Momsen (Momsen) and other unidentified class members alleging that United Postal Service (UPS) violated the Americans with Disabilities Act (ADA) by permitting Momsen and the other class members only twelve-month leaves of absence and failing to provide them with reasonable accommodations for their disabilities.  The court dismissed the complaint on the basis that the EEOC had failed to plead that Momsen and others were qualified individuals under the ADA.  The EEOC then filed an amended complaint pleading additional facts about Momsen, added an additional individual and plead more specific facts stating that the unidentified class members were qualified individuals able to perform the essential functions of their job and that UPS failed to reasonably accommodate these unidentified individuals.  The EEOC did not plead any specific facts with regard to any of the unidentified individuals.  The court once again dismissed the EEOC’s complaint on the basis that it failed to plead any specific facts regarding the unidentified individuals.  The EEOC then sought leave to file a second amended complaint that added the claim that the unidentified individuals were part of a common scheme to terminate individuals with disabilities through an alleged inflexible process and lack of individual analysis, which the Court denied.

In response to the court’s denial, the EEOC then filed a motion requesting the district court to certify the matter for appeal to address whether the EEOC must plead individual facts regarding class members.  In its response to the EEOC’s motion, the court reviewed its prior rulings, reviewed the case law and reversed its prior dismissals of the EEOC complaints.  In a change of stance, the court held that the EEOC’s first amended complaint met the sufficient pleading standard since it identified “the statutes that UPS allegedly violated; the time frame in which the alleged violations occurred; the names of two presently identified victims; a general description of the class of aggrieved persons; the specific claims alleged and their elements as to the charging party and the class of aggrieved persons; the types of conduct to which the named claimants and the unidentified class were subjected; and the remedies being sought.”  Thus, the court changed its previous view and now found that the EEOC did not have to plead any specific facts about unidentified class members in order to survive a motion to dismiss.

Take away: Employers should be cognizant that the EEOC is aggressively pursuing class actions against employers.  Furthermore, based on the ruling in this matter, the EEOC may file a class action without having to plead any specific evidence regarding unidentified class members.  This does not mean that the EEOC will be victorious on the merits of the case, but rather that this minimal pleading will allow them to survive a motion to dismiss.

EEOC Approves Its Highly Anticipated Strategic Enforcement Plan – Adds Equal Pay to List of Nationwide Priorities

Contributed by Samantha Esmond

On September 10, 2012, we blogged about the EEOC’s proposed Strategic Enforcement Plan (SEP), which had been released for public comment.

On December 18, 2012, the EEOC announced that it officially approved its highly anticipated SEP for 2013-2016 with bipartisan support. The EEOC’s press release can be accessed at: http://www.eeoc.gov/eeoc/newsroom/release/12-18-12a.cfm

According to the EEOC, the purpose of the SEP is “to focus and coordinate the EEOC’s programs to have sustainable impact in reducing and deterring discriminatory practices in the workplace.” Notably, the final version of the SEP has added “equal pay enforcement” to its list of national priorities.

The approved SEP identifies and highlights the following areas as national priorities:

  1. Eliminating barriers in recruitment and hiring;
  2. Protecting immigrant, migrant, and other vulnerable workers;
  3. Addressing emerging and developing employment discrimination issues (such as certain ADA issues, including coverage, reasonable accommodation, qualification standards, undue hardship, and direct threat, accommodating pregnancy-related limitations under the ADAAA and the Pregnancy Discrimination Act, and coverage of lesbian, gay, bisexual, and transgender individuals under Title VII’s sex discrimination provisions);
  4. Enforcing equal pay laws;
  5. Preserving access to the legal system; and
  6. Preventing harassment through systematic enforcement and outreach.

In addition to the above nationwide priorities, the SEP directs the 15 EEOC district offices to develop their own District Complement Plans by March 29, 2013, identifying, among other things, their own local enforcement priorities and describing how the district office will implement the SEP nationwide priorities.

It is also anticipated that the EEOC will take a more aggressive approach and give priority to systematic cases – those pattern or practice, policy, and/or class cases – where the alleged discrimination has a broad impact on a particular industry, occupation, business, or geographic area. While systematic cases generally involve a class of individuals, they may also originate from a single charging party alleging that an employment policy is discriminatory.

The approval of the SEP provides employers with insight into the types of issues the EEOC will likely target in the coming years. With the intensified investigative and enforcement efforts of the EEOC, employers will continue to face many challenges when responding to and defending against charges of discrimination.

EEOC Collects Record Amount in Monetary Relief

Contributed by Jon Hoag

A recent EEOC press release announced that the EEOC collected a record $365.4 million dollars from private employers last year.  The EEOC highlighted this record-breaking level of monetary relief recovered as evidence that it was successful in its objective of strategic law enforcement.  The EEOC stressed that approximately 10% of the monetary relief came from systemic charges of discrimination, which was four times the amount received in the previous fiscal year.

As part of the EEOC’s new strategic plan, it will release the amounts it recovers on an annual basis. We should expect that the EEOC will strive to exceed the record $365.4 million it collected this fiscal year.  To do so, the EEOC will continue to seek out systemic claims and look for opportunities to bring a class-based claim, including requests for company policy information during investigations.  Based on recent guidance and decisions issued by the EEOC, the focus on systemic discrimination is likely to be in the area of background checks in hiring and employer leave/attendance policies as related to the making of reasonable accommodations under the amended ADA. 

It seems that one the EEOC’s main objectives may be to obtain monetary relief for alleged victims of discrimination.  This is unfortunate news for employers.

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