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On the Legal Front:  So Whats New At www.eeoc.gov?

Art Gutman
Florida Institute of Technology

Its mid July, a slow time for tracking developments on the legal front. There are always media reports to read (e.g., Reuters reports that the Supreme Court may tackle opposing affirmative action rulings on law school vs. undergraduate admissions at the University of Michigan).1 Still, forecasting what the Supreme Court is likely to review is not easy. So instead, at times like this, I try to catch up with one my favorite Web siteswww.eeoc.gov. This site has lots of information on laws and regulations, yearly statistics, and other good stuff. The link I like the most is on press releases, particularly those relating to settlements, court rulings on EEOC- sponsored cases, and freshly minted EEOC litigation. To illustrate the value of this site, lets sample some of the EEOC press releases from January through July 2001.

1Dont get me wrongthere is a critical issue here; whether diversity, per se, can serve as a compelling state interest under the 14th Amendment. But there is plenty of time to tackle this one.

 Racial and Sexual Harassment

Clearly, the EEOC has a been on a campaign against hostile racial harassment, reporting that such claims have more than doubled over the past decade (from 2,849 in 1991 to 6,116 in 2000). More specifically, the EEOC reports the following:

  • Two settlements totaling $1.9 million on behalf of an undisclosed number of current and former employees at The Larson Automotive Group, which operates several car dealerships in the metropolitan Tacoma, Washington area (January 21).
  • A $200,000 settlement on behalf of four employees at the Butner, North Carolina plant of Georgia Pacific (April 3).
  • Initiation of a lawsuit on behalf of four employees at Dana Corporation (Syracuse, Indiana) and five at Bennis Company (Terra Haute, Indiana) (May 22).
  • A $1.2 million settlement on behalf of nine employees at a St. Louis, Missouri nursing home (July 2).
  • Initiation of a lawsuit on behalf of 11 employees of Emery Worldwide Airlines at its priority mailing processing center in Kearny, New Jersey (July 3).

These cases feature racial slurs, jokes, cartoons, graffiti and/or drawings of hangmans nooses. In the St. Louis case, the director of the nursing home required white employees to wear smiling faces and black employees to wear frowning faces on their uniforms, a practice reminiscent of how Jews were treated in Nazi Germany. Another common feature in these cases is for employers to discharge employees (white and black in the St. Louis case) who object to the hostility.

Sexual harassment claims have also more than doubled over the past decade (from 7,906 in 1991 to 21,613 in 2000). Two of the press releases involve Mitsubishi and TWA Airlines. On May 23, the EEOC announced its satisfaction with the final report of the Mitsubishi Consent Decree Monitors. The Mitsubishi settlement (on June 23, 1998) was the largest ever for a sexual harassment claim ($34 million). Then, on May 24, there was a 2.6 million dollar settlement with TWA on behalf of an undisclosed number of female ground employees in relation to a hostile work environment since January, 1988 that culminated in severe and repeated harassment and retaliation for complaining about discrimination. The harassment in this case included unsolicited touching, sexual propositions, exposure of genitals, lewd comments, and other abusive or offensive language. In addition to these releases, on April 10, the EEOC announced a $485,000 settlement with a chicken processing plant in Alabama on behalf of seven black women for, among other things, both sexual and racial harassment.

Interestingly, the racial harassment cases contain no serious disagreements regarding reasonable Black versus reasonable White perceptions, whereas in several hostile environment sexual harassment cases, disagreement exists with respect to reasonable victim versus reasonable person perceptions (compare Rabidue v. Osceola, 1986 to Ellison v. Brady, 1991). There was no such confusion in the TWA case; clearly exposure of genitals should offend either the reasonable victim or person. However, in other cases, the criteria for defining hostile sexual harassment have not been so clear.

For example, in Rabidue v. Osceola, the plaintiff (Rabidue) endured a pattern of vulgarity by a male employee (Henry) and an atmosphere permeated with obscene posters and other evidence of sexual stereotyping. Nevertheless, two of three 6th Circuit judges,2 using the reasonable person standard, ruled that: 

Henrys obscenities, although annoying, were not so startling as to have affected seriously the psyches of the plaintiff or other female workers.The sexually oriented poster displays had a negligible effect on Rabidues work environment when considered in the context of a society that condones and publicly features and commercially exploits open displays of written and pictorial erotica at the newsstands, on prime-time television, at the cinema, and in other public places.

2 The dissenting judge in this case asserted that hostility is what the reasonable woman would find offensive, not society, which at one point also condoned slavery. 

Why is it so clear that racial obscenities constitute racial harassment, and yet, the gender-based obscenities hurled at Rabidue require a debate on the perceptions of victims versus persons? Also, why is it that so early in the game (in Rogers v. EEOC, 1971), the 5th Circuit identified and outlawed hostile racial harassment, and yet, after five Supreme Court rulings on hostile sexual harassment,3 the standard is still fuzzy? For example, in Onacle v. Sundowner (1998), Justice Scalia ruled that harassment should be judged from the perspective of a reasonable person in the plaintiffs position considering all of the circumstances.4 Is that clear?

3 Meritor v. Vinson (1986), Harris v. Forklift (1993), Onacle v. Sundowner (1998), Burlington Industries v. Ellerth (1998) and Faragher v. Boca Raton (1998).

4 It should be noted, however, that the EEOC advocates the reasonable person standard originally espoused in Ellison v. Brady (1991).

The Americans with Disabilities Act

The EEOC reports that since 1992, it has obtained approximately 325 million dollars on behalf of approximately 20,000 ADA plaintiffs. The recent press releases on ADA-related issues include 

  • Initiation of a lawsuit against Northwest Airlines regarding its zero acceptability policy in relation to individuals with diabetes and epilepsy (April 25).
  • Three press releases related to prior and ongoing litigation against Wal-Mart (May 10, June 14, and June 21).
  • Two press releases in relation to genetic testing by Burlington Northern Santa Fe Railroad (BNSF) (February 9 and April 19).

 

In the Northwest case, the EEOC is challenging a blanket exclusion of individuals with diabetes or epilepsy on behalf of three plaintiffs who applied for jobs as baggage handlers and/or airplane cleaners. The EEOC contends that Northwest refused to consider on an individual basis (a) if these applicants posed a direct threat to workplace safety and (b) if there were potential reasonable accommodations. Prior rulings in related cases are mixed. For example, in Turco v. Hoechst (1996), diabetes was deemed to be a direct threat to workplace safety in a job involving heavy equipment and intense heat. But in Sarsycki v. UPS (1994) a company rule excluding diabetic truck drivers was defeated based on the plaintiffs showing that he could be reasonably accommodated by having food available while driving the truck.

In the 1990s, the EEOC filed 15 lawsuits against Wal-Mart. Among these, two were settled, three resulted in jury trial losses (by Wal-Mart), and 10 are still pending. On May 10, the EEOC sued Wal-Mart for contempt for failing to abide by a settlement agreement in case #15; on June 14, the district court agreed and ordered a $750,000 fine. The June 21 release is for case #16 on behalf of a plaintiff who was severely restricted with respect to standing for long periods of time. The plaintiff, who applied to be a people greeter, requested periodic rest breaks. According to the EEOC, Wal-Mart refused to engage in flexible interaction to determine if this request was a reasonable accommodation. Interestingly, there are several prior cases in which employers had what appeared to be winning hands, but lost for failing to flexibly interact.5

5 See for example Bultmeyer v. Ft. Wayne Schools, 1996; Feliberty v. Kemper, 1996 ; Whitebeck v. Vital Signs (1997); Ralph v. Lucent Technologies (1998); Criado v. IBM (1998); Dalton v. Subaru-Izuzu (1998); and Hendricks-Robinson v. Excel Corp. (1998)

The Northwest and Wal-Mart releases involve ADA issues that have a relatively rich case law history. In comparison, the BNSF case is likely to open new vistas. On February 9, the EEOC filed for a preliminary injunction against BNSFs policy of using secret genetic blood tests to assess Chromosome 17 deletion, a presumed predictor of carpal tunnel syndrome. In the April 19 release, the EEOC announced a partial settlement in which BNSF will (a) no longer require employees to submit blood samples for genetic testing; (b) not analyze any blood previously obtained; (c) not evaluate, analyze or consider previous tests conducted; and (d) not retaliate against those who opposed the testing or participated in the EEOC proceedings. The EEOC has also requested the statutory limit for compensatory and punitive damages ($300,000) for each of 20 to 30 affected employees. The EEOC contends that such blood tests are unlikely to be relevant to the employees present ability to perform his or her job, and consequently, satisfy the regarded as prong of the definition of being disabled.6

6 There are three prongs to the definition of being disabled under the ADA: (1) a current physical or mental impairment that substantially limits a major activity; (2) a history of such a disability; and (3) being regarding as being disabled.

The only analogous case in the literature is E. E. Black v. Marshall (1980), a claim filed under Section 503 of the Rehabilitation Act of 1973. Black was excluded from apprentice carpentry after a medical exam revealed a congenital back disorder. Black did not satisfy prong 1 because he had no current impairment, and did not satisfy prong 2 because he had a history of only two minor workplace episodes. However, the Hawaii District Court ruled that Black is protected under prong 3 because his exclusion was based on the belief that he would someday be disabled (and, at that time, be eligible for workers compensation benefits).

An ironic twist to this case involves the prong 1 status of carpal tunnel syndrome itself. In McKay v. Toyota (1997), the 6th Circuit ruled that carpal tunnel syndrome does not qualify as a disability when the severely restricted major life activity is working. More recently (Williams v. Toyota, 2000), the 6th ruled that carpal tunnel does satisfy prong 1 because of substantial interference with the life activity of performing manual tasks. However, for reasons noted in this column in the July 2001 issue of TIP, the Supreme Court will likely strike down this ruling in the 20012002 term.

The Age Discrimination in Employment Act

The EEOC reports that in 2000 there were 16,008 ADEA claims and, that during the year, EEOC enforcement and litigation resulted in awards totaling 56 million dollars. More recent victories include the following two cases: 

  • A jury trial victory against University of Wisconsin Press awarding $430,427 in back pay, front pay and liquidated damages to be shared by four plaintiffs aged 46 through 54 (May 10).
  • A summary judgment victory against Bul HN Information Systems for violating Title II of the Older Worker Benefits Protection Act of 1990 (or OWBPA) (June 12).

The Wisconsin case is relatively straight forward; four older employees were discharged and replaced by four much younger employees, the rational being that the older employees lacked newer computer technology skills. The EEOC successfully argued that the older workers were ready, willing and able to receive training for these newer skills and were illegally denied the opportunity.

The Bul HN case is particularly relevant in view of the current economic climate in which large companies are laying off thousands of employees. During a large-scale reduction in force (or RIF), Bul HN forced older employees to waive their ADEA rights in exchange for severance pay, a clear violation of Title II of the OWBPA. This case is reminiscent of the 1980s in which some companies forced older workers to choose between severance pay and retirement benefits (see EEOC v. Westinghouse, 1983 and EEOC v. Bordens, 1984), a policy outlawed in Title I of the OWBPA.7 Title II of the OWBPA outlines eight provisions for legally obtaining voluntary waivers. Critically, lower courts (e.g., Burch v. Fluor, 1994 and Griffen v. Kraft, 1995), as well as the Supreme Court (Oubre v. Entergy, 1998), have enforced these provisions quite literally.

7 Title I of the OWBPA was written to clarify the definition of bona fide benefit plans (BFBP) in light of a controversial Supreme Court ruling in Public Employees of Ohio v. Betts (1989).

Heightened scrutiny by the EEOC of large-scale RIFs is not new. For example, in 1994, the EEOC mediated a $300,000 settlement for 32 older Piedmont Airline pilots who were let go after Piedmont was acquired by US Air. Then, in three 1996 settlements, the EEOC extracted 13 million dollars in backpay and the promise of 450 jobs for older employees laid off by Lockheed Martin (the former Martin Marietta), about 18 million dollars from Monsanto on behalf of 43 older laid-off workers, and 2.5 million dollars from General Dynamics on behalf of 110 employees who were first reassigned to corporate headquarters and then laid off.

Of particular interest given the current economic climate is the 8th provision for voluntary waivers in Title II of the OWBPA. This provision requires that employees who are offered early retirement packages must be given information on (a) who else is eligible, (b) the time limit for making a decision, (c) job titles of all employees who volunteer to retire, and (d) similarly situated employees (in both the same job classification and in the same organizational unit) who are not eligible or selected for the program. The enhanced early retirement package is not only legal, but virtually endorsed in the OWBPA. However, in at least one media report relating to a RIF, an employee who accepted an early retirement package and who was otherwise satisfied, turned around and sued because, as a result of provision 8, he learned that a disproportionate number of the layoffs involved workers over age 50. Perhaps companies need to rethink whether it is necessary to obtain the voluntary waiver, given legally obtained (i.e., without coercion) volunteers for enhanced early retirement packages.

Speak English Only Rules

Finally, on April 20, the EEOC announced a 2.44 million dollar settlement against the University of the Incarnate Word on behalf of 18 Hispanic housekeepers who were required to speak only English, not only on the job, but also during breaks and lunchtime. There were also indications of harassment.

This case is important because of the history of the English-only issue. In Garcia v. Gloor (1980), a case decided shortly before the 1980 update of EEOC Guidelines, the 5th Circuit rejected a challenge to an English-only policy. Subsequently, in the 1980 update to the Guidelines (see section 1606.7), the EEOC maintained an opposing position, arguing that English-only policies create an atmosphere of inferiority when applied at all times and require justification in accordance with job relatedness. Then, in 1983 (EEO Decision 83-7), the EEOC opined that English-only policies are job related when justified by safety concerns. More recently, in Garcia v. Spun Steak (1993), the 9th Circuit, in a divided ruling, overturned the EEOC Guidelines on this issue, and the Supreme Court refused to review the case. The EEOC, in turn, disagreed with the 9th Circuit ruling, stating that:

The 9th Circuits decision is the only appellate level ruling involving English-only requirements in 14 years since [the] EEOC promulgated national origin guidelines, creating speculation that the Court denied review in Garcia to allow other circuit courts to weigh in on the English-only issue.

In short, the EEOC believes that the Spun Steak ruling reflects the law in only one circuit, and its settlement in the Incarnate Word case expresses the EEOCs resolve to continue to fight on this issue.

Conclusion

The present discussion does not exhaust all of the press releases for the interval in question (January through July 2001). Also, the interval in question is only 7 months. Therefore, make sure to bookmark www.eeoc.gov and visit it routinely.

References 

Bultmeyer v. Fort Wayne Schools (CA7 1996) 100 F.3d1281.
Burch v. Fluor (D.Mo 1994) 65 EPD 43,227.
Burlington Industries v. Ellerth (1998) 118 S.Ct. 2257.
Criado v. IBM (CA11 1998) 145 F.3d 437.
Dalton v. Subaru-Isuzu Automotive, Inc. (CA7 1998) 141 F.3d 667.
E. E. Black v. Marshall (D. Hawaii, 1980) 497 F.Supp 1088.
EEOC v. Bordens Inc. (CA9 1984) 724 F.2d 1390.
EEOC v. Westinghouse Electric Corp. (CA3 1983) 725 F.2d 211.
Ellison v. Brady (CA9 1991) 924 F.2d 872.
Faragher v. City of Boca Raton (1998) 139 LED 2d 867 (No. 97-282).
Feliberty v. Kemper (CA7 1996) 98 F.3d 274.
Garcia v. Gloor (CA5 1980) 618 F.2d 264.
Garcia v. Spun Steak (CA9 1993) 998 F.2d 1480.
Griffin v. Kraft Foods (CA11 1995) 62 F.3d 368.
Harrris v. Forklift (1993) 114 S.Ct. 367.
Hendricks-Robinson v. Excel Corp. (CA7 1998) 154 F.3d 685.
McKay v. Toyota (CA6 1997) 110 F.3d 369.
Meritor v. Vinson (1986) 477 US 57.
Onacle v. Sundowner (1998) 523 US 75.
Oubre v. Entergy Operations (1998) 118 S.Ct. 838.
Public Employees Retirement System of Ohio v. Betts (1989) 492 US 158.
Rabidue v. Osceola (CA6 1986) 805 F.2d 611.
Ralph v. Lucent Technologies (CA1 1998) 135 F.3d 166.
Rogers v. EEOC (CA5 1971) 454 F.2d 518.
Sarsycki v. UPS (W.D.Ok 1994) 862 F.Supp 336.
Turco v. Hoechst (CA5 1996) 101 F.3d 1090.
Whitebeck v. Vital Signs (CA DC 1997) 116F.3d 588.
Williams v. Toyota (CA 6 2000) 223 F.3d 840.

 

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