Below is a review of the posts on Facebook and LinkedIn from the past week. You can check out the full posts by clicking on the links.
The post on Sunday 5/5/2024 told us the EEOC sues Chesterfield Valley Investors for sexual harassment. Chesterfield Valley Investors, LLC, doing business as Gateway Classic Cars, allegedly violated Title VII by subjecting a female employee to a hostile work environment because of her sex. According to the EEOC’s lawsuit, Gateway’s chief financial officer and chief operating officer (CFO/COO) subjected a female employee to unwelcome sexual conduct, advances and requests while she worked in the showroom. So what exactly did the CFO/COO, one of the highest-ranking executives in the company do? See the post. The female employee complained to the showroom manager. His response is noted in the post. The EEOC filed suit in federal court after conciliation failed. The EEOC is seeking both compensatory and punitive damages for the employee along with the non-monetary relief noted in the post (which includes among the many things an order requiring Gateway to institute and carry out policies, practices and programs that provide equal employment opportunities for women as specified in the post.
TAKEAWAY: You can’t hide – make sure your employees treat all employees equally and do not harass or discriminate against any employees. You don’t want to be a defendant in a civil suit.
The post on Monday 5/6/2024 noted (or warned) that the FTC’s non-compete ban could reshape the US workplace. The Federal Trade Commission’s ban prohibits almost all non-compete agreements – and is a seismic legal shift that could restructure the balance of power between businesses and workers. It will make it easier for millions of US workers to leave their existing jobs and got to work for a competing company or start their own business.
But is the FTC’s ban also good for employers? We know it will become harder for companies to protect trade secrets and confidential information. And even though the ban is not yet effective, a legal challenge is already underway.
The ban applies to employees and independent contractors in almost all industries – and it applies retroactively. However, there are some exceptions as noted in the post. And not all industries will be subject to the ban. Some banks, certain nonprofits such as healthcare providers, and stockyards will not be subject to the ban. The exceptions might lead to inequities within some industries as noted in the post. There is also a different exception to the ban that allows non-competes to protect a company’s interests if it is sold.
Employers are not backing down. Within a short time after the ban was announced, two lawsuits were filed in Texas federal district court, including one by the US Chamber of Commerce. The arguments advanced in those suits are described in the post.
On the one hand, employers may sue to protect their confidential information; on the other hand, employees may claim the FTC illegally usurped their right to negotiate for increased compensation in exchange for noncompete agreements. And on the other hand (yep, there are more than 2 hands), businesses are worried that the ban will put their most valuable know-how at risk and more as noted in the post. And how broad is the ban? What else might it include? Those things noted in the post that help keep confidential information confidential? It would not be a surprise if a federal judge in one of the pending cases temporarily stays the ban while the cases are pending. The expected end outcome? See the post.
TAKEAWAY: Employers should start to think about what they will do if the ban goes into effect. Reach out to your employment lawyer now.
The post on Tuesday 5/7/2024 told us nobody’s happy – HOA announces new rule but it depends on your car. The HOA has restricted residents from parking certain vehicles in a garage near their homes. Not all vehicles, just EVs. The reason for the ban is in the post. An email went out to residents about the EV ban in 2021; part of the content is pasted in the post, including differentiating EVs from standard (gasoline) vehicles and the effect(s) on garages.
There are other parking spots outside of garages, but residents were up in arms over the EV ban. One owner who has an EV, Marissa Dailey, said it can be difficult to snag those other spots during busy seasons. She talked a bit about some decisions the EV ban would make for her – see the post. She also thought that ore information was needed to determine the reasonability of the ban.
TAKEAWAY: Condo and homeowners’ association board should know why they make the decisions they do (whether required based on a statute or otherwise).
The post on Wednesday 5/8/2024 told us the EEOC sued Hotel Lodge for pregnancy and disability discrimination. Savage River Lodge, LLC, and Little Crossings, LLC, which do business as Fronterra Resources, allegedly violated Title VII when it discriminated against an employee because of her disabilities, including pregnancy-related disabilities, and retaliated against her. The EEOC complaint alleges that the guest services representative, who worked for Savage River Lodge in Frostburg, Maryland, was disabled and pregnant when the Lodge failed to accommodate her disabilities. Oh, but that’s not all – see the post for what else happened. The EEOC alleges that what the Lodge did violates Title VII (which prohibits pregnancy discrimination) and the ADA (what that law prohibits is in the post). The EEOC filed suit in U.S. District Court in Maryland after conciliation failed. And what relief does the EEOC seek in its suit? See the post.
TAKEAWAY: Employers must know the law and train workers (especially managers) as to what they can and cannot do and say. Get an employment lawyer involved early on.
In the post on Thursday 5/9/2024,we learned that a woman was awarded $20M in racial discrimination lawsuit against a State College business. Last month a federal jury made the award to a former employee of a home health care service’s State College area location after finding the business racially discriminated against her. Let’s get some details.
Patricia Holmes filed suit against Lincare subsidiary American HomePatient in 2021. Holmes alleged that she was subjected to repeated racial harassment by a manager and another employee during her time as a customer service representative at State College location. Holmes was the only Black employee at that location while she worked there from October 2019 to July 2020. At that point the racial animosity became so hostile that she was concerned for her safety and resigned.
It all began early. Just two days after Holmes started working at American HomePatient, a co-worker mentioned that her grandchild is an “Oreo baby” – the context is in the post. Later that month, Holmes was fitted for an N-95 mask, a process that involved placing a white hood over her head. The manager made a comment (see the post) and then requested others to do something (yep, in the post). Then the next month, the manager said something odd to Holmes. That comment too is in the post. Then in March 2020, the manager asked Holmes what she thought of the use of the N-word. Holmes said it was “an ugly word that should not be used.,” What then followed by the manager and another employee is (awful and) in the post. Holmes then complained to the manager’s supervisor and HR. A written warning was issued (why that is all that happened is noted in the post). But the other employee got a final written warning. The reason for the different treatment is noted in the post.
Holmes’ complaint did not happen in a vacuum. Other employees also reported the supervisor – see the post for details. And in the four months after the supervisor was given a warning, Holmes says he yelled at her and another employee for being too sensitive, aggressively snatched papers out of her hands on two occasions and … see the post. Holmes resigned on July 7, 2020.
The jury found in favor of Holmes. More details on that are in the post. The company (unsurprisingly) disagrees with the verdict. Holmes is seeking $1.65M in attorneys’ fees and costs.
TAKEAWAY: Harassing or discriminatory treatment can be costly, really costly. Just keep your company’s actions on the right side of legal.
The post on Friday 5/10/2024 noted No peace symbol! HOA cracks down on unauthorized flags. The man got this message from his HOA as part of its newly enforced ban on most flags. Ken Bauman was told that his tie-dyed peace symbol flag was in violation of requirements of The Ridge at Eagle Crest Owners Association. More details on the HOA’s flag rules are in the post. Bauman has hung out that flag for several years now. Bauman went to the Board after receiving the violation notice. What happened after that is in the post. Bauman has a theory as to why the policy was put into place – see the post. Despite the fact that Bauman has gotten support from neighbors, he still must remove the flag.
TAKEAWAY: Community associations can have rules related to flags (as long as they don’t prohibit flying the US flag). But make sure the rules are otherwise legal – consult a community association lawyer.
Finally, in the post yesterday 5/11/2024, we saw that Savage River Lodge pays $150,000 in an EEOC discrimination and retaliation suit. This was a follow-up to our post on Friday, May 8, 2024. The Lodge is going to pay $150,000 and provide other non-monetary relief to settle the suit.
The Lodge offers cabins for rent and also operates a restaurant for lodge guests. It also has operations in at least one other location in Maryland. More details about the bases of the suit are in our May 8, 2024, post. Under the consent decree that resolved the suit, the Lodge will provide non-monetary relief including what is listed in the post. Also, and this is a biggie, the Lodge provided an apology to the former employee.
TAKEAWAY: We’ve said it before but will again: treat all employees the same. Don’t discriminate, and especially not on the basis of a protected characteristic.
York, Pennsylvania 17403