Seminar on Hiring & Firing for NJ Businesses

On April 7, 2011 I will be speaking at a seminar entitled "How to Hire and Fire Without Getting Burned."  The seminar is sponsored by the Somerset County Business Partnership and will run from 8 - 9:30 a.m. in the Partnership's main conference room.

Jim Burke from J. Burke Advisors and yours truly will be the presenters.  Jim will approach the subject of hiring good employees (and when necessary, firing them) from an HR perspective, while I will cover the legal points.

Personnel issues are a fact of life for every business.  This seminar will teach you how to make sound evaluations of job candidates, hire them properly, and, when necessary, reverse the procedure.  Even if you have been in business for a while, this seminar will be a good refresher and help you to use the hiring/firing process to move your business forward while minimizing risk.

The event is free to Partnership members and is open to non-members for a small fee.  Register at this link or contact the Partnership at (908)218-4300.

Is "Slimebag" Now a Legal Term of Art?

Just about every severance agreement nowadays contains a "non-disparagement" clause.  In plain language, that's a provision that is designed to prevent a departed employee from saying unpleasant things about a former employer.  But how to enforce that clause?  There's the rub! 

A new case out of Ohio says that calling your former boss a "slimebag" is not enough to violate a non-disparagement clause, at least where there has been no demonstrable harm to the employer's business.

The Ohio Employer's Law Blog found the decision, which came to our attention through Robert Fitzpatrick.  Both of the linked posts contain detailed and insightful analyses of the decision.

Hopefully this case will not spark new efforts by management lawyers to define specifically what constitutes disparaging statements.  I have to think that there is a lot of room for common sense on this subject.  At least I hope so.

Wal-Mart Fires Security Guard for Chasing Shoplifter

They say that no good deed goes unpunished, and so it seems in this case.

A Wal-Mart guard saw a man in the act of stealing golf balls.  He chased the suspect, who pulled a knife and was later arrested, across the parking lot.  In doing so, the guard violated Wal-Mart's policy against chases.   He was fired the next day.

What do you think about this?   Should Wal-Mart have treated the guard so harshly?

I'll leave the answer to the moral part of the question to you.  The answer to the legal part of the question is that Wal-Mart was clearly within its rights to set a policy on how shoplifting incidents were to be handled and to decide that the guard's violation of that policy warranted termination.

Severance Pay: Violence as a Negotiating Tactic

Here's an interesting post from our  northern neighbors at the New York Employment Law Blog.  French workers are trying to persuade their ex-employer to pay them severance by threatending to blow up the factory.  As the post accurately points out, lots of American companies are currently laying off workers without severance, and there usually is nothing that can be done for the terminated employees.  Even with our present economic problems, doesn't the example set by our French friends make you glad that you still live in the good old US of A?

In Sports, Make Sure That A Contract Is Really A Contract

College coaching is big business.  At many major state universities the highest paid employee is not the president, but the football coach.  With big bucks involved, the Chronicle of Higher Education asks why universities often settle for hastily drafted contracts, or worse, informal writings that may or may not even be contracts.  (If the terms "memorandum of understanding" or "letter of intent" ring a bell for you, you may understand what we're talking about here.  And lawyers love them.  As a lawyer who goes to court, I can tell you that one good "letter of intent" case can pay a lot of college tuition!)

Oddly enough, authorities quoted in the article think that the universities often get "out-gunned" by the coaches and their agents.  And yet that point of view is plausible.  Coaching contracts often get put together in a hurry.  The employers usually rely upon their in-house legal staffs, who may or may not have the requisite expertise, and who always have many other things to think about.  The coaches, on the other hand, have a singular focus: to get the deal done as quickly as possible, on the most favorable financial terms.  And usually with the help of agents and lawyers who do have the requisite expertise.  Viewed that way, one can see that it is not always a fair fight.

How to level the playing field?  For one thing, college administrators can try to anticipate their coaching needs --- and coaching changes --- and prepare for the negotiation in advance.  One way to prepare is to line up some "outside talent," such as consultants and outside attorneys, to work with in-house lawyers as an integrated team.

We can tell you from experience that a poorly drafted contract can cause many problems down the road.  Especially when you're playing in the high stakes world of major college coaching, get it right from the start to avoid big problems later.

Employer Violates Public Policy:Time Off to Deal with Domestic Abuse

Here's a cautionary tale for employers from the Left Coast, and specifically the great State of Washington.  The question is whether this tale has value for New Jersey businesses.

In Danny v. Laidlaw Transit Services, Inc. the Supreme Court of Washington was asked to clarify this unsettled point of law: "Has the State of Washington established a clear mandate of public policy of protecting domestic violence survivors and their families and holding their abusers accountable?"

A thorough review of Washington's statutes and regulations led to an affirmative answer --- there is such a policy.  As a result, Laidlaw's termination of Danny's employment may have been unlawful.

I am unaware of any New Jersey precedent that has dealt with this question.  However, New Jersey too has a comprehensive statutory and regulatory scheme to address domestic violence.  It is hard to imagine a NJ court, if presented with the same issue as the Washington court, coming to a different conclusion.

The Danny scenario underscores the difficulties that confront employers when dealing with requests for employee leave.  Leave requests can disrupt the smooth flow of business, especially in small businesses that lack the staff to take up the slack when someone leaves unexpectedly.  Employers must learn to evaluate leave requests carefully, and to consider more than just the needs of their businessMore and more the courts are requiring employers to accommodate the needs of their employees, as Danny illustrates.

Workers Fired for Gossiping

Did you hear about this one?

College Sports: Title IX Sexual Harassment

On April 9, 2007 the US Court of Appeals for the Fourth Circuit issued an en banc ruling in Jennings v. University of North Carolina, Chapel HillThe decision reinstated the complaint of two UNC female soccer players who alleged that they had been sexually harassed by coach Anson Dorrance while they were on the UNC soccer team, in violation of Title IX of the Civil Rights Act.  The case is not an employment rights case.  It nonetheless raises important questions for colleges and universities that sometimes must deal with with the legal problems of employees that have the potential for "spillover effect" into the employment context.

In a related development, the UNC website reports that the litigation was settled as to one player shortly before the Fourth Circuit ruled.  The remaing player's case is scheduled for trial in the Fall.  The terms of the settlement are (a) an apology the coach, (b) a payment of $70,000, and the coach's agreement to participate in sensitivity training for eight years.

Employee Privacy in an Office Computer

Our August 17, 2006 post discussed the decision of the Ninth Circuit Court of Appeals in United States v. Ziegler.  The case concerns the criminal prosecution of a private company's employee for child pornography using an office computer owned by the employer.  On January 30, 2007 the original panel withdrew its earlier opinion and filed a superseding opinion.  The result stayed the same, but the court explained its reasoning differently.  Here's the link to the new opinion.

The issue as framed by the court:

We must determine whether an employee has an expectation of privacy in his workplace computer sufficient to suppress images of child pornography sought to be admitted into evidence in a criminal prosecution. If there is such an expectation, we must determine whether the search in this case was reasonable under the narrow exceptions to the Fourth Amendment warrant requirement.

The basic facts were rather simple.  When the employer became concerned that Ziegler was using company computers to access child pornography, it notified the FBI.  The FBI agent who investigated enlisted the employer to search Ziegler's computer, but did not obtain a search warrant.   Ziegler had a private office which was kept locked.

The court found that a "search" had occurred.  It focused on whether the search was reasonable in the circumstances.  The court found that even though Ziegler had a subjective expectation of privacy in his physical office, the employer could consent to a search of premises that it owned.  The court found another reason:

"We are also convinced that Frontline could give valid consent to a search of the contents of the hard drive of Ziegler's workplace computer because the computer is the type of workplace property that remains within the control of the employer even if the employee has placed personal items in [it]."

The court summarized its holding this way:

In this context, Ziegler could not reasonably have expected that the computer was his personal property, free from any type of control by his employer. The contents of his hard drive . . . were work-related items that contained business information and which were provided to, or created by, the employee in the context of the business relationship.  Ziegler's downloading of personal items to the computer did not destroy the employer's common authority. Thus, Frontline, as the employer, could consent to a search of the office and the computer that it provided to Ziegler for his work.

Accordingly, the court affirmed the trial court's denial of Ziegler's motion to suppress the results of the search.

While most employers hopefully will not have to contend with this kind of problem, the best protection is to have a well thought out policy on employee internet use.  On that issue, we close with our usual caution.  In New Jersey, policies and employee manuals are not a do-it-yourself activity.  Mistakes are easy to make and the legal risks are simply too great.  If you need a handbook, or have one that needs to be updated, get help from an experienced employment attorney.

How to Get Fired Twice

The United States Court of Appeals for the Third Circuit recently ruled that an employer can fire an employee twice.  Yes, you read that right, twice.

As a sensible person you might be tempted to ask "isn't once enough?"  Not always, as the facts in Local 1776 v. Excel Corp. make clear.

On October 31, 2002, Excel Corporation suspended two of its employees, Sandra and Jose Diaz, for attempting to steal meat using a stolen receipt.  The next day, November 1, Excel fired both Sandra and Jose.  When Jose was informed of his termination he reacted violently by attacking an Excel security guard and breaking two of his ribs.

Local 1776 grieved the terminations and the parties selected an arbitrator.  Excel responded to the grievance by recounting both incidents: (1) the attempted theft, and (2) Jose's attack on the security guard.

The arbitrator sustained the grievance on the attempted theft, ruling that Excel did not establish just cause for the terminations on that issue.  He ordered that Sandra and Jose be reinstated and paid all lost wages.  However, the arbitrator declined to rule on the assault charge. 

As soon as the arbitrator ruled (about a year and a half after the actual event), Excel notified Jose that since the arbitrator did not rule on the assault question, it was terminating his employment retroactive to November 1, 2002.  It paid him his lost wages for the period October 31 - November 1, 2002.  In response, Local 1776 filed suit to enforce the arbitrator's award.  In essence, Local 1776 contended that Excel was unlawfully attempting to do an end run around the arbitrator.

In a matter of first impression in the Third Circuit, the courts sided with Excel, holding that the assault constituted legitimate independent grounds to discharge Jose.  So the theft charge didn't stick, the assault did.  The first termination failed; the second succeeded.

And that's how you get fired twice.