Monday, March 29, 2010

Unpaid Breastfeeding Breaks Now Mandated by FLSA Per the Patient Protection and Affordable Care Act

As some of you may recall from my August 27, 2009 post at Lactation Discrimination in Ohio: Toto: We’re Not In Kansas Anymore, the Ohio Supreme Court ruled that employers were not required to provide breaks to new lactating mothers. However, the Patient Protection and Affordable Care Act signed last week by President Obama changed that for Ohio and other employers subject to the FLSA. Among other things, the PPACA amends the FLSA to provide that employers must provide an unpaid break for mothers to express breast milk for one year after the birth of the child in a location (other than a restroom) that is shielded from view and intrusion by the public or coworkers. There is an exception for small employers (with fewer than 50 employees) who can show an undue hardship by the significant difficulty or expense of providing such beaks considering the employer’s size, financial resources, nature or structure.

There is no “official” website for the text of the PPACA yet, but the text of Section 4207 of the PPACA (as reflected by the Senate bill later passed by the House and signed by the President) provides as follows:

Section 4207. Reasonable Break Time for Nursing Mothers.

Section 7 of the Fair Labor Standards Act of 19389 (29 U.S.C. § 207) is amended by adding at the end of the following: “(r)
(1) An employer shall provide –
(A) a reasonable break time for an employee to express breast milk for her nursing child for 1 year after the child’s birth; and
(B) a place, other than a bathroom, that is shielded from view and free from intrusion from coworkers and the public, which may be used by an employee to express breast milk.
(2) An employer shall not be required to compensate an employee receiving reasonable break time under paragraph (1) for any work time spent for such purpose.
(3) An employer that employs less than 50 employees shall not be subject to the requirements of this subsection, if such requirements would impose an undue hardship by causing the employer significant difficulty or expense when considered in relation to the size, financial resources, nature, or structure of the employer’s business.
(4) Nothing in this subsection shall preempt a State law that provides greater protections to employees than the protections provided for under this subsection.


A summary of the Public Law 111-148 is available on the Library of Congress website.

NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can change or be amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.

Obama DOL Eliminates FLSA Opinion Letters

As some of you may recall from my 3/9/09 post -- DOL Releases New FLSA Opinions from Bush Era Including Letters Addressing Mandatory Use of Vacation or PTO During Temporary Shutdowns -- on the last day of the Bush Administration, the Department of Labor attempted to issue 36 FLSA Administrator Opinion Letters, but only about half them were properly post-marked before the change in administrations. As a result, the Obama Administration published all of the letters on the DOL website, but indicated that it was withdrawing and was reserving the right to review, clarify and even reverse the 18 letters which had not been mailed before the Obama inauguration. (These letters were marked on the website with an asterix). However, the Obama Administration has not issued any FLSA Opinion Letters since that time and last week announced that it would not be issuing any more FLSA Opinion Letters for the foreseeable future (or revising any of the 19 Opinion Letters it previously withdrew pending review). Rather, it will instead be issuing Administrator Interpretations -- general statements of policy applicable to particular industries or involving particular rules:

In order to provide meaningful and comprehensive guidance and compliance assistance to the broadest number of employers and employees, the Wage and Hour Administrator will issue Administrator Interpretations when determined, in the Administrator's discretion, that further clarity regarding the proper interpretation of a statutory or regulatory issue is appropriate. Administrator Interpretations will set forth a general interpretation of the law and regulations, applicable across-the-board to all those affected by the provision in issue. Guidance in this form will be useful in clarifying the law as it relates to an entire industry, a category of employees, or to all employees. The Administrator believes that this will be a much more efficient and productive use of resources than attempting to provide definitive opinion letters in response to fact-specific requests submitted by individuals and organizations, where a slight difference in the assumed facts may result in a different outcome. Requests for opinion letters generally will be responded to by providing references to statutes, regulations, interpretations and cases that are relevant to the specific request but without an analysis of the specific facts presented. In addition, requests for opinion letters will be retained for purposes of the Administrator's ongoing assessment of what issues might need further interpretive guidance.

In the past, FLSA Opinion letters involved the FLSA Administrator's detailed legal analysis of real questions by real employers and these letters could be relied upon as a reasoned legal position of the DOL in an employer was later investigated by the DOL or sued in court. General statements of policy are typically entitled to less judicial deference.

All that being said, the first Administrative Interpretation concerns the exempt status of Mortgage Loan Officers. In doing so, the Obama DOL has withdrawn prior Opinion Letters finding mortgage loan officers to be exempt from overtime wages.

NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can change or be amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.

Thursday, March 25, 2010

Sixth Circuit: Employer’s Summary Judgment Reversed Where Plaintiff Was Denied Deposition of Kmart Chairman and SVP of Finance


This morning, a divided Sixth Circuit Court of Appeals reversed summary judgment entered in favor of Sears Holding Corporation f/k/a Kmart Holding Corporation on an age discrimination claim brought by the former Senior Vice President of Sales/Division President because he had been denied the opportunity to depose the Chairman of the Board and Senior Vice President of Finance of the company about potentially ageist comments after establishing a prima facie case of age discrimination. Marsico v. Sears Holding Corporation, No. 07-2231 (6th Cir. 3/26/10). The Court's majority found the denial of the plaintiff's motion to compel discovery to be an abuse of discretion by the trial judge because the alleged comments were equivocal and the plaintiff had shown that he had been replaced by someone who was considerably younger than him. He had been employed by Kmart for 30 years.


In particular, the Court's decision reflects that there had been deposition testimony that the new post-bankruptcy Chairman (who was 41) mentioned to the plaintiff that he had "been around here a long time" and there were some non-specified things that he did not like about store operations. He was also alleged to have said that what was "wrong with these Kmart people, that old way of thinking." Plaintiff was then demoted to a Vice President position for Super Kmart in September 2003, was replaced as SVP by and began reporting to someone who was substantially younger, and, after he make that Super Kmart more profitable than Kmart, his salary was cut. After his demotion, the president offered in November 2004 to help find him another job elsewhere. When plaintiff protested and argued that he could still help the company, the president explained that the Chairman did not "think that someone's that's been around for 30 years can fix Kmart." At the end of that month, Plaintiff was informed that his VP position was being eliminated, but the SVP felt that he could be transferred to Sears after the merger of Kmart and Sears (although the VP of HR told plaintiff he disagreed). The new SVP suggested that he look for another job because no one cared about the sacrifices and contributions he had made for the company in the past. The SVP also allegedly told him that the SVP of Finance also wanted him gone from the company. Plaintiff resigned in February 2005 because of the age discrimination he had suffered and the hostile work environment.


While agreeing that the alleged comments made by the Chairman were not necessarily indicative of discrimination, they were ambiguous enough to justify asking him to clarify and explain them in a deposition because they could indicate discriminatory intent. (The dissent noted that it was inconceivable that comments post-bankruptcy comments about the business savvy of Kmart's former officers could be construed as discriminatory as opposed to describing failed business strategies). In short:


It was through the discovery already conducted that Plaintiff obtained the evidence represented by
witnesses' comments, and given the substance of the comments, there is enough evidence of discriminatory intent such that additional discovery should have been permitted. No one but Lampert and Crowley can testify as to whether the comments cited by Marsico were motivated by age discrimination as indicated by the context and circumstances in which the comments were made. Plaintiff should have been allowed to elicit such testimony and use it in responding to Defendant's motion for summary judgment. Accordingly, we conclude that the district court abused its discretion in denying Plaintiff's motion to compel the depositions and hold that Marsico may depose both Lampert and Crowley.





NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can change or be amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.



Monday, March 22, 2010

Deadline for Federal COBRA Subsidy Again Extended

Early in March, Congress passed the Temporary Extension Act of 2010, which among other things, extended unemployment benefits through April 5, 2010 and again extended the federal COBRA subsidy until March 31, 2010. However, the length of time (15 months) for which an individual may receive the COBRA subsidy has not been extended. In addition, the TEA added another provision which provides that individual who experience a COBRA qualifying event of a reduction in working hours (which renders them ineligible for medical insurance even though they remain employed part-time) before March 1, 2010, but are laid off after March 1, 2010 are now eligible for the COBRA subsidy. The Department of Labor has amended the COBRA notifications which employers must send to eligible employees (even though the explanation section of its website still refers to the February 28 date).

The Ohio Department of Insurance has reported that on February 25, 2010, Govenor Strickland also signed a bill to authorize the temporary extension of the period of time which the laid-off employees of small employers (i.e., with less than 20 employees who are not subject to the federal COBRA statute) from 12 months to 15 months for as long as a federal COBRA subsidy is available. The ODOI website also mentions the new March 31, 2010 deadline.

More information about the COBRA subsidy and the notices employers are required to send is available at Employers Must Send Amended COBRA Notices and DOL Publishes Model Notices for COBRA Subsidy Under Stimulus Act to Be Sent by Employers Before April 18.

NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can change or be amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.

Tuesday, March 9, 2010

Sixth Circuit: ADA Applies to Teachers in Church Sponsored Schools.

[Editor's Note: The Supreme Court heard oral arguments on this case on October 5, 2011].

This morning, the Sixth Circuit reversed a judgment which had been entered in favor of a Lutheran church and its elementary school on an ADA discrimination claim brought by a former teacher. EEOC v. Hosanna-Tabor Evangelical Lutheran Church and School, No. 09-1134 (6th Cir. 3/10/10). The District Court had granted the School summary judgment on the retaliation claim on the grounds that the teacher fell within the ministerial exception to the ADA and he would not inquire into why she had been fired. The Sixth Circuit reversed on the grounds that the primary duties of teacher showed that she was not a ministerial employee.

According to the Court’s opinion, the teacher spent about 45 minutes of each class day in religious activities with her students. After she developed narcolepsy and took an approximately 7-month leave of absence, the School refused to reinstate her in part because of a concern for the safety of her students and because it had already made arrangements with a substitute teacher. Indeed, it decided on its own that she was physically unable to return and offered to pay a portion of her medical insurance for the next ten months if she resigned even though her doctor had released her to return to work without restrictions. Because she appeared for work the day after her physician released her and made clear that she would sue the School after she was told that she would likely be fired, the School indicated that she would be terminated for being disruptive and insubordinate and that she had damaged her relationship beyond repair by threatening to sue the School. When her attorney explained how the School’s actions violated the ADA and that she would file a Charge with the EEOC if the matter were not resolved, the School fired her. Two years later, the EEOC filed suit on her behalf against the School.

The ministerial exception permits “preference in employment to individuals of a particular religion” and to “require that all applicants and employees conform to the religious tenants of such organization.” 42 U.S.C. § 12113(d). However, although based on the First Amendment, this exception is very narrow and is not meant to obviate the ADA. According to legislative history, “However, a religious organization may not discriminate against an individual who satisfies the permitted religious criteria because that individual is disabled. The religious entity, in other words, is required to consider qualified individuals with disabilities who satisfy the permitted religious criteria on an equal basis with qualified individuals without disabilities who similarly satisfy the religious criteria.”

“The question of whether a teacher at a sectarian school classifies as a ministerial employee is one of first impression for this Court. However, the overwhelming majority of courts that have considered the issue have held that parochial school teachers such as Perich, who teach primarily secular subjects, do not classify as ministerial employees for purposes of the exception.” In general, “an employee is considered a minister if “the employee’s primary duties consist of teaching, spreading the faith, church governance, supervision of a religious order, or supervision or participation in religious ritual and worship.” In this case, the teacher’s “employment duties were identical when she was a contract teacher and a “called” teacher and that she taught math, language arts, social studies, science, gym, art, and music using secular textbooks.” Her duties were also virtually identical to those of the teachers who were not entitled ministers. That she teaches at a religious school does not necessarily convert a teacher to a ministerial employee. That the School “has a generally religious character–as do all religious schools by definition–and characterizes its staff members as “fine Christian role models” does not transform [her] primary responsibilities in the classroom into religious activities.”

Similarly, it did not matter that she had specialized religious training and a religious title. “The governing primary duties analysis requires a court to objectively examine an employee’s actual job function, not her title, in determining whether she is properly classified as a minister. In this case, it is clear from the record that Perich’s primary duties were secular, not only because she spent the overwhelming majority of her day teaching secular subjects using secular textbooks, but also because nothing in the record indicates that the Lutheran church relied on Perich as the primary means to indoctrinate its faithful into its theology.”

While the Court did not want to intrude on church theology, it noted that the School’s employee manual included an EEO policy and that the focus of the court would be on the plaintiff’s disability and whether the School violated the ADA, not church theology (except as whether church theology was a genuine defense). In this case, however, the School did not identify church doctrine as a reason for firing the teacher in her termination letter.

NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can change or be amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.