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Ricci decision highlights importance of validating tests

August 26th, 2009  |  Cynthia L. Hackerott

>One of the important lessons from the Supreme Court’s June 29, 2009 decision in Ricci v DeStefano, is that employers need to make sure, before administering a test, that the test is valid under the Uniform Guidelines on Employee Selection Procedures (41 CFR §60-3) for the specific job in question. Moreover, federal contractors should note that, post-Ricci, the OFCCP has demonstrated it will continue to evaluate whether employment tests have a disparate impact against any racial, ethnic or gender group. 

In Ricci, the Supreme Court found that the City of New Haven, Connecticut violated Title VII’s prohibition against discriminatory treatment when it tossed the results of firefighters’ promotion exams on the premise that certifying the exam results would lead to disparate impact litigation from minorities who were not promoted. In so ruling, the Court adopted a new standard — “strong-basis-in-evidence” — for resolving any potential conflict between Title VII’s disparate treatment and disparate impact provisions. The High Court held that under Title VII, before an employer can engage in intentional discrimination for the asserted purpose of avoiding or remedying an unintentional disparate impact, the employer must have a strong basis in evidence to believe it will be subject to disparate impact liability if it fails to take the race-conscious, discriminatory action.

However, the High Court ruling did not change the standards under Title VII and, thus, the Uniform Guidelines, regarding liability for employment tests that result in a disparate impact. Under the Uniform Guidelines, it is permissible for an employment test to have a disparate impact if the test is valid – i.e., job-related and consistent with business necessity, unless a plaintiff can show the employer had a better option, equally valid alternatives with lesser adverse impact, which is rare. A highly unusual aspect of the Ricci case was that the employer (rather than an employee alleging disparate impact) argued that its test was not valid and that it had equally valid alternatives with lesser adverse impact.

In addition to Title VII, the Uniform Guidelines apply to disparate impact liability under Executive Order 11246. During a forum at the Industry Liaison Group National Conference in Atlanta on July 30, OFCCP Midwest Regional Director Sandra Zeigler specifically stated that, post-Ricci, the OFCCP will continue to evaluate federal contractors’ use of tests pursuant to the requirements of the Uniform Guidelines. Recent OFCCP enforcement actions buttress Zeigler’s statement. On July 28, the agency announced that Kraft Foods Global, Inc. paid $227,500 to settle allegations of hiring discrimination against 193 minority jobseekers for the position of plant laborer at a Kraft facility. On August 18, the OFCCP announced that Gerber Products Co. agreed to pay $900,000 to settle findings of hiring discrimination against 1,912 rejected minority and female applicants for entry-level positions. In both cases, OFCCP investigators found that the employers used pre-employment tests with a disparate impact where there was insufficient evidence of validity for the positions at issue.  

Thus, employers are left with a legal landscape where they risk a Title VII action or OFCCP enforcement action by using invalid tests that result in a disparate impact, but, under Ricci, they cannot legally throw out the results of such tests without “a strong basis in evidence.” If the City of New Haven’s assertions are to be believed, then it begs the question why the city did not take care to validate the test prior to its implementation. In addition to potential disparate impact liability from using tests that are not valid, the OFCCP’s testing expert, Richard J. Fischer, Ph.D., has pointed out that if a test is not job-related, it simply doesn’t make business sense to use it. The bottom line is that employers should not be so concerned with the unusual circumstances presented in the Ricci case that they forget to focus on whether they are implementing valid employment tests in the first place. 

New York City private employers may soon wrestle with paid sick leave obligations

August 24th, 2009  |  David Stephanides

>Positioning New York City to become the fourth municipality in the country to pass paid sick leave legislation, Council Member Gale A. Brewer (D-Manhattan) introduced legislation on August 20, 2009, mandating that New York city private employers provide paid sick leave to their employees. Thirty-five of the 51 City Council Members have agreed to cosponsor the bill. New York City Mayor Michael Bloomberg has also endorsed the concept of paid sick days.

Called the Earned Paid Sick Leave Law, the bill would require employers to provide paid sick leave annually to each employee at a rate of one hour of paid sick leave for every 30 hours worked. Employees who work a 40-hour workweek would earn up to nine paid sick days per year, while employees working for small businesses (employing ten or fewer employees) would earn up to five days per year. Employees are eligible for the benefit once they begin work, but the paid sick days cannot be used until the employee has worked at least 90 days.

An employer must permit an employee to use the paid sick leave for the following reasons:

  • an employee’s or the employee’s child’s, spouse’s, parent’s, grandparent’s or domestic partner’s mental or physical illness, diagnosis or preventive medical care;
  • issues related to domestic violence; and
  • in the event a public oficial closes a school or place of business due to a public health emergency.

According to the bill, reasonable notice of foreseeable leave may be required and documentation may also be required for leave of more than three days. In addition, the bill bans employers from taking retaliatory personnel actions or discriminating against an employees because they take the leave. Businesses would be fined $1,000 per violation.

The District of Columbia, San Francisco and Milwaukee are municipalities that have paid leave programs, but Milwaukee’s paid sick leave ordinance was declared unconstitutional. An appeal has since been filed. Nationally, the Healthy Families Act (S. 1152/H.R. 2460) would establish a minimum standard of paid sick days for the nation, allowing workers to earn up to seven paid sick days a year. It is currently being considered by both the House and Senate.

U.S. signs international treaty promoting worldwide rights of persons with disabilities

August 21st, 2009  |  Deborah Hammonds

>The Obama administration continued to act on its stated commitment to be a “strong advocate for persons with disabilities” when it signed the U.N. Convention on the Rights of Persons with Disabilities. The convention is a treaty committing governments to promote, protect and ensure the full and equal enjoyment of all human rights and basic freedoms by people with disabilities worldwide.

When Susan Rice, U.S. Ambassador to the United Nations, signed the treaty, she noted it was “the first new human rights convention of the 21st century adopted by the United Nations and further advances the human rights of the 650 million people with disabilities worldwide. It urges equal protection and equal benefits under the law for all citizens, it rejects discrimination in all its forms, and calls for the full participation and inclusion in society of all persons with disabilities.”

“We all still have a great deal more to do at home and abroad,” she continued. “As President Obama has noted, people with disabilities far too often lack the choice to live in communities of their own choosing; their unemployment rate is much higher than those without disabilities; they are much more likely to live in poverty; health care is out of reach for far too many; and too many children with disabilities are denied a world-class education around the world. Discrimination against people with disabilities is not simply unjust; it hinders economic development, limits democracy, and erodes societies.”

Senior presidential advisor Valerie Jarrett took a moment during the signing ceremony to announce the President’s intent to create a new senior-level diplomatic post in the State Department to promote the rights of people with disabilities internationally.

“This individual will be charged with developing a comprehensive strategy to promote the rights of persons with disabilities internationally; he or she will coordinate a process for the ratification of the Convention in conjunction with the other federal offices; last but not least, this leader will serve as a symbol of public diplomacy on disability issues, and work to ensure that the needs of persons with disabilities are addressed in international situations. By appointing the necessary personnel to lead and ensure compliance on disability human rights issues, the President reinforces his commitment to the UN Convention.”

The United States joined 141 other countries that have signed the U.N. treaty. President Obama must submit the treaty to the U.S. Senate for ratification.

The workplace “equalizer”: female supervisors more likely to be targeted for sexual harassment

August 19th, 2009  |  Connie Eyer

>Last week, ground-breaking research regarding women in the workplace managed to create a buzz on a number of labor, science, health and feminist blogs. The first-ever, large-scale, longitudinal study to examine workplace power, gender and sexual harassment, presented August 8, 2009 at the 104th annual meeting of the American Sociological Association, contended that female supervisors are more likely to be the targets of sexual harassment than women in lower-level positions. Surprised? One might think that a managerial title might offer a female employee some protection, but the study’s findings did not support that presumption.

The research concluded that nearly fifty percent of women supervisors, but only one-third of women who do not supervise others, reported sexual harassment in the workplace. In more conservative models with stringent statistical controls, women supervisors were 137 percent more likely to be sexually harassed than women who did not hold managerial roles.

“The study provides the strongest evidence to date supporting the theory that sexual harassment is less about sexual desire than about control and domination,” said Heather McLaughlin, University of Minnesota sociologist and the study’s primary author, adding that “male co-workers, clients and supervisors seem to be using harassment as an equalizer against women in power.” While supervisory status increased the likelihood of harassment among women, it did not significantly impact the likelihood for men.

In addition to workplace power, the sociologists found that gender expression was also a strong predictor of workplace harassment. More effeminate men were at a greater risk of experiencing more severe or multiple forms of sexual harassment, as were those employees who self-identified as non-heterosexual.

Sponsored by the National Institute of Mental Health and the National Institute of Child Health and Human Development, researchers used data on nearly 600 men and women who were part of the 2003 and 2004 Youth Development Study, which began in 1988 in St. Paul, Minnesota public schools.

So, what can employers do about this? Although McLaughlin recommends increasing and improving anti-sexual harassment education programs at work, she allowed that companies often treat the subject as a joke and merely provide such programs as a way to protect themselves from liability.

For those employers who desire more information on sexual harassment in the workplace, the EEOC website is an excellent resource that provides guidance, training and outreach. Employers are encouraged by the EEOC to take the necessary steps to prevent sexual harassment from occurring and to communicate to employees that it will not be tolerated. In addition to training, the EEOC notes, employers should also establish an effective complaint or grievance process and take immediate and appropriate action when an employee complains.

It became necessary to destroy EFCA in order to save it

August 17th, 2009  |  Matt Pavich

>The proposed Employee Free Choice Act — once labor’s greatest hope for reform — has been dealt a death blow. And it was poor EFCA’s friends who delivered it.

To recap, a group of senators led by Tom Harkin (D-Iowa) has decided to remove the card-check portion that would allow workers to bypass secret-ballot elections, if a majority signs petition cards stating their intent to organize. According to the New York Times, Congress is considering replacing that provision with a measure that would require shorter and quicker elections.

The senators and their labor allies claimed that the card-check provision, which was once considered so important that the bill became known as the “card-check” bill, lacked sufficient support and would kill the overall labor reform bill. They suggested that shortening election periods and expanding union’s worksite access will curtail the ability of employers to thwart the will of those employees who desire unionization. But these hopes seem illusory, given the response of EFCA’s opponents.

Corporate lobbyists have promised to oppose fast elections, arguing that they would deny employers ample opportunity to educate employees about the downside of unionizing. They want the situation to remain status quo and, in dropping card-check, EFCA opponents have taken away their only bargaining chip. But it gets worse for labor fans.

The same interests that killed card-check are even more adamantly opposed to the arbitration provision, which would mandate arbitration if no agreement is reached after 120 days of bargaining.

Some refer to it as economic poison and other lobbyists refer to it as “an absolute nonstarter.” Newt Gingrich wrote that “EFCA’s imposed binding arbitration would irreparably wound one of the most extraordinary features in American society, the willingness to take risk to build an enterprise that generates prosperity for one’s family and community. It must never be allowed to be signed into law.”

Whew. That’s a lot of intellectual firepower being aimed at the provision. And how will labor fight back?

The suggestion here is that they can’t. In bidding adieu to card-check by completely taking it off the table, the senators deprived themselves of their one big stick. They could have wielded card-check to force acceptance of the arbitration, triple-damages, and shorter election period provisions. The bill has the most prominent supporter imaginable in President Obama and with card-check available as a bargaining chip, EFCA’s supporters could have wrested a meaningful reform bill out of the legislative gristmill.

Instead, they chose to dump card-check. Given the intense opposition to the arbitration provision, it’s entirely possible that the labor “reform” bill will merely impose treble damages against employers proven to have engaged in unfair labor practices. And unions will tell you how difficult it can be to prove unfair labor practices.

The timing of the announcement suggests that EFCA, for all intents, is a dead political issue. By dropping this pebble into the ocean that is Health Care Reform-dominated Washington, the senators ensured that the ripples from this decision won’t reach shore for a long time. By then, perhaps no one but the union rank and file will mind that labor reform was taken down by its very supporters.