MARCH 2003

I. LEGISLATIVE/REGULATORY UPDATE
Pending Legislation

Pending Bills To Watch For

Several bills are currently pending in the California Legislature that, if passed, may impact California employers and employees.

AB 244 (Maze) addresses overtime laws, and would rewrite the overtime regulations more favorably for employers.

AB 274 (Koretz) would create a rebuttable presumption that an adverse employment action taken within 90 days after an employee exercises his or her employment rights is retaliatory, unless there is clear and convincing evidence that the employee made up the claim in order to prevent the employer from taking an adverse employment action. This bill is similar to last year’s AB 2990, sponsored by the same legislator. AB 2990 passed both houses of the legislature, but was vetoed by Governor Davis.

AB 293 (Daucher) seeks to have a voluntary plan for small businesses to supply health insurance to its employees.

AB 331 (Kehoe) seeks to change existing waiting period requirements for union employees. Under the new law, the seven day waiting period for unemployment compensation would not apply to situations involving lock outs.

AB 1223 (McCarthy) would repeal the penalties of up to $500 per day, for each day of the employer’s violation, if 60 days notice is not provided prior to a mass layoff, relocation, or termination.

AB 1327 (Wyland) would provide only businesses that employ 50 or more employees who are within a 75 mile radius of the worksite of the individual requesting leave are subject to the family temporary disability insurance program (“FTDI”), which takes effect January 1, 2004. In addition, the bill would require employee service of at least 1,250 hours during the 12 month period preceding the claim prior to eligibility for FTDI benefits.

AB 1527 (Frommer) would require every employer with 500 or more employees to provide health care coverage to its employees and their dependents effective January 1, 2004, and would impose this requirement on all other employers effective January 1, 2005.

AB 1582 (Koretz) would make it an unlawful employment practice to subject an employee to an abusive work environment, as defined, and would provide that an employer is vicariously liable for a violation committed by its employee, but would prescribe certain affirmative defenses.

AB 1617 (Montanez) would specify the reasonable steps an employer should take to investigate complaints of harassment and to prevent harassment, including the use of a trained and experienced investigator; corrective action that effectively disciplines the harasser and does not adversely affect the victim; and review of the effectiveness of any prior corrective action.


Federal EEOC Complaints

Federal job discrimination complaints filed by employees against private employers jumped more than 4% in 2002. The Equal Employment Opportunity Commission (“EEOC”) stated that complaints increased to 84,442 during 2002, up from 80,840 the previous year. Complaints in 2002 reached the highest level since 1995, when 87,529 were filed.

Religious complaints increased 21%, age complaints were up 14.5%, and national origin complaints rose 13%. Allegations of race and gender discrimination accounted for the majority of the complaints, at 35% and 30%, respectively. The industries generating the most complaints were retail, food services, and manufacturing.

The EEOC resolved 95,222 cases last year, a 5% increase from 2001. Complainants recovered $310.5 million in compensation. The average time to process a complaint declined 6% to 171 days. The backlog of complaints awaiting investigation dropped 10% to 29,041.


Telecommuting as a Reasonable Accommodation

The Equal Employment Opportunity Commission (“EEOC”) has released a new Americans with Disabilities Act (“ADA”) guidance memorandum advising employers to, at a minimum, consider telecommuting as a reasonable accommodation option for certain individuals with disabilities, even if the employer does not have a telecommuting program in place for other employees. The ADA requires covered employers to provide a reasonable accommodation to qualified individuals with disabilities, unless such accommodation would cause an undue hardship, i.e., significant difficulty or expense. Whether this reasonable accommodation obligation requires an employer to permit an individual to telecommute is an issue that had not been previously addressed by the EEOC.

The EEOC notes that the fact that adjustments may have to be made in the way an employee is supervised, or that there would be an increased burden on communications with co-workers or others is not, by itself, sufficient to justify failing to consider telecommuting as an accommodation option. However, employers are not required to adopt telecommuting where an equally effective alternative exists; if it would otherwise create an undue hardship or expense; or if it would necessitate the lowering of production standards.

The EEOC’s guidance is consistent with its prior statements regarding reasonable accommodation – employers must consider all possible alternatives even if they are a departure from usual policies or practices. In light of this guidance, employers should: (1) review job descriptions to ensure that they contain all essential functions and duties, including any work that must be done on-site, if applicable; (2) examine current telecommuting and any related policies and procedures to ensure they are consistent with the EEOC’s position on working at home; and (3) include telecommuting as one of the options to be considered on any reasonable accommodation checklist.

The EEOC’s full opinion may be found at http://www.eeoc.gov/facts/telework.html.

II. JUDICIAL UPDATE

State Disability Rules Upheld

The California Supreme Court upheld California’s broad interpretation of what it means to be disabled and entitled to protection against discrimination at work; a ruling that could open thousands of legal cases for re-examination. The ruling in Colmenares v. Braemar Country Club Inc. affirms that California’s definition of disability goes far beyond federal guidelines, which require that an employee be substantially limited in a life activity. California’s statute omits that qualification, therefore, individuals with any condition that affects a life or work function can be considered disabled. The Colmenares decision now focuses the argument on whether an accommodation is reasonable and whether the employee can perform the job.

Based upon the Supreme Court’s decision, Francisco Colmenares’ (the “Employee”) disability discrimination case will be reconsidered. Because of a 1981 back injury, the Employee’s physician stated he could perform only light work. In 1997, however, a supervisor reassigned the Employee to a job involving heavy labor, and when he was unable to do the work, the Braemar Country Club (“the Employer”) terminated him. The Employee – who worked for the Employer for 25 years – sued, claiming the Employer failed to accommodate his disability. A lower court ruled that the Employee was not disabled because he did not fit the federal definition of being “substantially limited in a major life activity.”

The California Supreme Court ruled, however, that the Employee’s disability should have been considered under the less restrictive language of California’s Fair Housing and Employment Act, even though that language was not clear until a 2001 amendment. This case is important because the Supreme Court retroactively applied the 2001 amendment to a 1997 claim.


Supreme Court Agrees to Review Disabilities Case

The U.S. Supreme Court agreed to consider whether employers that refuse to rehire rehabilitated drug addicts can be sued under the Americans With Disabilities Act (“ADA”). The case tests employment policies that make lifetime bans against employees who break rules, such as using drugs, then want a second chance at a job after receiving addiction treatment.

In Raytheon Co. v. Hernandez, the Court will review the treatment of a man who lost his job as a technician working on missile systems after he tested positive for cocaine. Joel Hernandez (the “Employee”) tried to get rehired at Hughes Missile Systems, now part of Raytheon Co. (the “Employer”), but was rejected because the Employer does not hire back employees terminated for violation of misconduct rules. The Employee spent 25 years with the Employer until the Employer told him he had to quit or have his employment terminated because of positive drug test results. A divided panel of the Ninth U.S. Circuit Court of Appeals ruled that the Employer’s policy violated the ADA and held that the policy discriminates against employees who have been successfully rehabilitated and are thus protected by the ADA.

 

 

 

 

 

 

 

 

 

 

 

 

Want to Automatically Receive These Monthly Updates?


Home | About | News | Practice Areas | Profiles | Careers | Clients | Locations | Privacy | Contact

©2010 KLINEDINST PC. All rights reserved.