Showing posts with label Medical Marijuana. Show all posts
Showing posts with label Medical Marijuana. Show all posts

Wednesday, January 26, 2022

EMPLOYMENT LAW QUARTERLY | Volume XXIV, Issue i

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The Sixth Circuit’s Epic Enforcement of Employment Arbitration Agreements with Class Action Waivers

By Stephen S. Zashin*

In Epic Systems Corp. v. Lewis, the U.S. Supreme Court made it unequivocally clear: arbitration is the favored means of handling employment disputes. See 138 S. Ct. 1612, 200 L.Ed.2d 889 (2018). In doing so, the Court held that arbitration agreements containing class action waivers do not violate the National Labor Relations Act and are enforceable under the Federal Arbitration Act (“FAA”). Recently, the U.S. Court of Appeals for the Sixth Circuit reinforced that mandate. See Williams v. Dearborn Motors 1, LLC, No. 20-1351, 2021 U.S. App. LEXIS 26350 (6th Cir. Aug. 30, 2021).

In Williams, the Sixth Circuit relied on Epic in upholding the enforcement of an employer’s mandatory arbitration agreement requiring employees to waive their right to pursue claims on a class basis. Further, the Sixth Circuit held an employee could not premise a retaliation claim on his termination for refusing to sign the mandatory arbitration agreement.

The plaintiffs in Williams worked at a car dealership for several months when the dealership presented an arbitration agreement to all employees and required them to sign in order to continue employment. The arbitration agreement included a “class waiver” provision, which required employees to litigate all disputes with the dealership individually, rather than on class action basis. Additionally, the class waiver provision required employees to opt-out of class actions and waive all rights to any monetary recovery in any such action.

One of the plaintiffs refused to sign the arbitration agreement, and the dealership terminated his employment. The other plaintiff opposed the arbitration agreement, but ultimately signed and continued to work at the dealership. The plaintiffs then filed a lawsuit asserting discrimination claims and sought to represent a class of the dealership’s current and former employees whom the dealership required to sign the arbitration agreement as a condition of employment. One plaintiff also alleged the dealership unlawfully terminated him in retaliation for refusing to sign the arbitration agreement. The district court dismissed the class claims, along with the individual retaliation claim.

The plaintiffs appealed to the Sixth Circuit arguing that the arbitration agreement’s class waiver provision was unlawful and violated their rights under various antidiscrimination laws, including Title VII of the Civil Rights Act of 1964 (“Title VII”), the Americans with Disabilities Act (“ADA”), and the Age Discrimination in Employment Act (“ADEA”). Furthermore, the one plaintiff argued his termination for refusing to sign the arbitration agreement constituted unlawful retaliation under those laws. On appeal, the Sixth Circuit rejected the plaintiffs’ arguments.

Unlike the antidiscrimination laws at issue in Williams, the underlying claims in the Supreme Court’s Epic decision were wage and hour claims brought under the Fair Labor Standards Act. Nonetheless, the Williams Court found Epic’s holding applied in the antidiscrimination context. Recognizing the FAA’s broad mandate in favor of arbitration and prior decisions enforcing employment arbitration agreements with class action waivers, the Sixth Circuit noted, absent an “express statement [in the antidiscrimination laws] barring the use of class waivers, such policies are enforceable under the FAA with respect to employment discrimination claims.” Id. at *9. As Title VII, the ADA, and ADEA contain no such “express statement,” the court held “none of the civil rights laws that plaintiffs rely on supports the notion that a class waiver constitutes an unlawful employment practice, which plaintiffs assert is the basis for the class-based discrimination claims in the complaint.” Id. at *19. Accordingly, the Sixth Circuit upheld the dismissal of the class claims alleging discrimination.

The Sixth Circuit also affirmed the dismissal of the individual retaliation claim premised on the plaintiff’s termination for refusing to sign the arbitration agreement. In order to set forth a viable retaliation claim, the plaintiff must have engaged in “protected activity.” The Sixth Circuit found that, by refusing to sign the arbitration agreement, the plaintiff did not engage in any such activity. Rather, the court explained the plaintiff’s “opposition to the class waiver was based on his belief that it violated the procedural requirements under the [antidiscrimination laws] by depriving him of a method of litigation and type of remedy. The refusal to sign did not constitute protected activity because it was not based on a reasonable belief that he was opposing allegedly ‘discriminatory acts.’” Id. at *21. The court cautioned that the plaintiff may have had a viable retaliation claim if the arbitration agreement required him to waive substantive statutory rights under the antidiscrimination laws, e.g., the right to file a charge of discrimination with the Equal Employment Opportunity Commission. However, the dealership’s arbitration agreement, including its class waiver provision, did not interfere with the plaintiff’s substantive rights under the antidiscrimination laws. Accordingly, the court found his retaliation claim baseless and properly dismissed.

In sum, the Sixth Circuit’s Williams decision reinforces the mandate in favor of arbitration as a means to resolve employment disputes, including discrimination claims, and employers’ rights to include class action waivers in their arbitration agreements and to terminate employees who refuse to sign them. Employers should consult with counsel to discuss implementing arbitration agreements with their workforce or revising existing agreements to include class action waivers.

*Stephen S. Zashin, an OSBA Certified Specialist in Labor & Employment Law, has successfully litigated class arbitration issues in state and federal courts including successfully arguing a class action arbitration issue before the Ohio Supreme Court. If you have questions relating arbitration agreements or any other employment law issues, please contact Stephen at ssz@zrlaw.com or (216) 696-4441.

Employers May Utilize Wellness Programs to Encourage Employees to Get a COVID-19 Vaccine

By Brittany A. Mallow*

The U.S. Department of Labor, U.S. Department of Health and Human Services (“HHS”), and the U.S. Treasury (collectively, the “Government”) recently issued FAQs (available here) to clarify how employers may encourage employees to get vaccinated using incentives/surcharges through the employer’s group health plan. Essentially, a group health plan may offer participants a premium discount for receiving a COVID-19 vaccination if the discount complies with the final wellness program regulations.

HIPAA Compliance


Generally, employers may not charge different premiums under their health plans based on the health factors of their employees. However, the Government advised that HIPAA permits exceptions for both vaccination surcharges and incentives, provided that a plan complies with the requirements for “activity-only” wellness programs. These requirements include:
  • The total amount of non-tobacco-related incentives/surcharges may not exceed 30 percent of the cost of coverage under the health plan;
  • Employers must provide a reasonable alternative to avoid the surcharge if it is medically inadvisable for an individual to receive the COVID-19 vaccine;
  • Individuals must have the opportunity to qualify for the reward (or avoid the penalty) at least once per year;
  • The full reward under the activity-only wellness program must be available to all similarly situated individuals; and,
  • The program must be reasonably designed to promote health or prevent disease.

30 Percent Rule


As established under HIPAA, employers may encourage participation in certain types of wellness programs by offering incentives of up to 30 percent of the total cost of an employee’s health insurance premiums for self-only coverage. Therefore, any surcharge imposed on an unvaccinated worker cannot exceed more than 30 percent of the total cost of their health insurance premiums for self-only coverage when combined with any existing surcharge.

Many employers have existing wellness programs and may not have much wiggle room to add additional incentives/surcharges and remain under the 30 percent cap.

Reasonable Alternative


The Government advised that a “reasonable alternative” to a surcharge may require an attestation that the individual will follow the Centers for Disease Control and Prevention’s (“CDC”) masking guidelines for unvaccinated individuals. Additionally, an employer is permitted to require a doctor’s note related to whether the vaccine is medically inadvisable.

ACA Affordability Rules


The FAQs also confirm that employers should disregard vaccination incentives when determining compliance with the Affordable Care Act’s (“ACA”) affordability rules, but employers should include vaccination surcharges in the premium cost when performing affordability calculations. For example, if a COVID-19 vaccination wellness program reduces an employee’s individual premium contribution by ten percent, employers should disregard the reduction for purposes of determining whether the offer of that coverage is affordable in assessing liability for the employer’s shared responsibility payment. However, if a surcharge increases an unvaccinated employee’s individual premium contribution for coverage by ten percent, employers should include the surcharge when assessing affordability.

Employers wishing to impose a surcharge should rerun ACA affordability calculations to ensure compliance with affordability rules. However, employers considering utilizing the incentive approach should not face ACA affordability concerns, as their plans presumably already satisfied the requirements.

Eligibility/Coverage


The FAQs make clear that plan sponsors cannot condition eligibility for benefits on vaccination status. Thus, employers cannot deny unvaccinated health plan participants benefits or eligibility for coverage. Although there is an exception to the general prohibition on discrimination based on a health factor for wellness programs that meet federal standards, this exception is available only for premium discounts or rebates, or modifications of otherwise applicable cost-sharing mechanisms, and not for denying eligibility for benefits or coverage based on a health factor.

EEOC’s Lack of Guidance


The Government cautioned that compliance with their regulations is not determinative of compliance with the Americans with Disabilities Act (“ADA”) and the Genetic Information Nondiscrimination Act (“GINA”), as the U.S. Equal Employment Opportunity Commission (“EEOC”) enforces those laws.

The EEOC has remained silent on how wellness plans can comply with the ADA and GINA. Despite the EEOC’s silence, it is comforting to note that no court has ever determined that a wellness plan that complies with the Government’s regulations violates either the ADA or GINA. Additionally, the EEOC regulations governing the applicability of the ADA to wellness programs defer to HIPAA when it comes to health-contingent wellness programs, and the EEOC has not provided any reason to believe that would change for COVID-19 vaccine incentives.

Best Practices

  1. Re-calculate incentive limits to ensure that the incentive, taken together with all other non-tobacco incentives, does not exceed the 30% HIPAA incentive limit.
  2. Establish ways to earn incentives for reasonable alternatives/accommodations for those who cannot get vaccinated due to a medical reason, disability, or a religious exemption.
  3. Ensure affordability standards are met under the ACA.
  4. Notification rules: Open enrollment periods are either underway, closed, or about to commence for most employers; thus, it may not be logistically possible to implement a vaccine incentive/surcharge program for commencement in the near future. However, if an employer chooses to modify the group health plan by implementing a wellness program mid-year, it must communicate the modification to employees at least 60 days in advance.
*Brittany A. Mallow practices in all areas of labor and employment law. If you have questions utilizing wellness programs to encourage COVID-19 vaccinations or any other employment law issues, please contact Brittany at bam@zrlaw.com or (216) 696-4441.

Scripture vs. Shots – How Employers Should Respond to Religious Objections to COVID-19 Vaccine Mandates

By Katie McLaughlin*

In the wake of COVID-19 vaccine mandates, an increasing number of employees have claimed religious exemptions. How should employers respond when their employees object to vaccine mandates on religious grounds?

Religious Discrimination Under Title VII


Title VII of the Civil Rights Act of 1964 (“Title VII”) prohibits employment discrimination on the basis of religion and requires employers to provide “reasonable accommodations" to employees’ “sincerely held” religious beliefs, practices, or observances. Title VII defines religion broadly – protected religious beliefs need not be formally recognized. However, employees’ objections cannot be based solely on social, political, or personal preferences or nonreligious concerns about the possible effects of the vaccine. Employers must distinguish between political objections that happen to be religious and objections that are religious at their core.

Most major organized religions do not openly oppose vaccines. For example, Pope Francis stated he believes that everyone has an ethical duty to get vaccinated. In fact, only two religions formally oppose vaccination – Christian Scientists and the Dutch Reformed Church. However, the U.S. Equal Employment Opportunity Commission (“EEOC”) stated that a religious group’s acceptance or nonacceptance of a belief is not determinative under Title VII. Employers must not lose sight of this statement from the EEOC and should not deny religious accommodations requests based solely on religious doctrine or statements from religious leaders like Pope Francis. The below considerations apply to not only employees who oppose the vaccine altogether on religious grounds, but also employees who wish to wait until an alternative version or specific brand of the COVID-19 vaccine is available.

“Sincerely Held” Religious Beliefs


If an employee raises a religious objection, an employer should generally assume the objection is based on a sincerely held belief. Employers can only question an employee’s belief if they have an objective basis to do so. The EEOC identified four factors that can create doubt as to the sincerity of an employee’s religious belief:
  • Whether the employee has acted in a way inconsistent with the claimed belief;
  • Whether the employee is seeking a benefit or an exception that is likely to be sought for nonreligious reasons;
  • Whether the timing of the request is questionable (for example, the request follows closely after the same employee’s request for the same benefit for different reasons); and
  • Whether the employer has other reasons to believe that the employee is seeking the benefit for secular reasons.
If an employer has an objective basis, it can ask the employee to discuss their beliefs, describe how the employee follows them, provide written materials about the tenets of their faith, and/or request statements from others who have observed the employee discussing or practicing those beliefs. A religious leader may provide an exemption letter to bolster the employee’s claim, but it is not required. Additionally, an employer should not assume that an employee’s belief is not sincere because it deviates from the commonly followed tenets of the employee’s religion or the employee adheres to some common practices but not others. Although prior inconsistent conduct is relevant to the question of sincerity, an employee’s beliefs may change over time. An employee’s newly adopted or inconsistently observed practice may nevertheless be sincerely held.

Employers should use caution when questioning employee beliefs. For example, in EEOC v. Consol Energy, Inc., the U.S. Court of Appeals for the Fourth Circuit held that an employee was entitled to nearly $600,000 in damages because his employer failed to accommodate his religious concerns regarding a biometric hand scanner.

Reasonable Accommodations


If an employee’s religious belief is sincerely held, Title VII requires employers to provide the employee reasonable accommodations. For employees who refuse to get the COVID-19 vaccine due to a sincerely held religious belief, reasonable accommodations include mask wearing, remote work, social distancing, etc. Much will depend on the specific circumstances. Employers must ensure that the accommodation is legitimate and non-retaliatory. However, employers do not have to accommodate an employee’s religious beliefs if doing so would impose an “undue hardship” on the employer’s legitimate business interests. The EEOC identified six factors employers can consider in denying a religious accommodation as unduly burdensome:
  • The accommodation is too costly;
  • The accommodation would decrease workplace efficiency;
  • The accommodation infringes on the rights of other employees;
  • The accommodation requires other employees to do more than their share of hazardous or burdensome work;
  • The accommodation conflicts with another law or regulation; and
  • The accommodation compromises workplace safety.
Employers should rely on objective information, and not on speculative hardships that may arise as a result of a religious accommodation. Common relevant considerations during the COVID-19 pandemic may include whether the employee works indoors or outdoors, works in a solitary or group setting, or has close contact with other employees or members of the public who are medically vulnerable. The number of fully vaccinated employees, how many employees and nonemployees physically enter the workplace, and current CDC recommendations are also relevant. If more than one reasonable accommodation could eliminate a religious conflict, an employer should consider the employee’s preferences but is not obligated to provide the reasonable accommodation preferred by the employee.

If an employer is faced with requests from multiple employees for religious accommodations, the determination of whether a particular proposed accommodation imposes an undue hardship depends on its specific factual context. If an employer grants one employee a religious accommodation related to the vaccine, it is not required to grant the requests of all employees who seek a religious accommodation for the vaccine. Additionally, the cumulative cost or burden on the employer is relevant when multiple employees seek similar accommodations. However, employers should keep in mind that a mere assumption that many more employees might seek a religious accommodation in the future is not evidence of undue hardship.

Finally, employers have the right to discontinue a previously granted accommodation if it is no longer being used for religious purposes and/or the accommodation poses an undue hardship on their operations due to changed circumstances. However, employers should discuss their concerns with employees before revoking accommodations and consider alternative accommodations that do not impose an undue hardship.

Takeaways


Before imposing vaccine mandates, employers should develop a system for considering and responding to religious objections. Employers should use caution when questioning an employee’s religious beliefs. So as to avoid inconsistent treatment, employers should strongly consider using a form attestation to be completed by the employee that identifies the employee’s belief system and the belief, practice, or observance that prohibits the employee from getting the COVID-19 vaccine. Employers should consult with counsel when drafting such attestations.

*Katie McLaughlin practices in all areas of labor and employment law. If you have questions regarding COVID-19’s continued impact on the workplace or other employment matters, please contact Katie at kem@zrlaw.com or (216) 696-4441.

Weeded Out: Pennsylvania Court Greenlights Employee Claims for Discipline Based Upon Status as a Certified Medical Marijuana User

By Jessi L. Ziska*

Pennsylvania’s Medical Marijuana Act (“MMA”) prohibits employers from discharging, refusing to hire, or otherwise discriminating or retaliating against an employee based upon their status as a certified medical marijuana user. However, as the MMA does not expressly include a private right of action, it remained unclear whether Pennsylvania employees have a right to bring a lawsuit alleging a violation of the MMA. Last August, a state appellate court answered that question in the affirmative. See Palmiter v. Scranton Quincy Clinic Co., LLC, No. 498 MDA 2020, 2021 PA Super 159 (Pa. Super. Ct. 2021). Accordingly, Pennsylvania employers must exercise caution as they may face private lawsuits for making employment decisions based upon an employee’s or applicant’s status as a certified medical marijuana user.

Background


The plaintiff in Palmiter worked as a medical assistant and submitted to a drug test after a new company acquired the hospital where she worked. In connection with the drug test, the employee notified the laboratory that she had a medical marijuana prescription and provided a copy of her legal certification. Nonetheless, her new employer informed her of her termination on account of her drug test. The employee then sued her employer arguing, in part, that her termination violated the MMA and public policy. The trial court overruled the employer’s objections to this claim, and the employer appealed the trial court’s decision.

Superior Court Decision


The Pennsylvania Superior Court affirmed the decision of the trial court, holding individual employees can maintain private causes of action against their employer under the MMA and public policy. In reaching its decision, the court reviewed the language of the MMA along with similar state medical marijuana laws across the country to find that “an implied private cause of action” existed under the MMA. In doing so, the court held the state legislature’s intent in enacting the MMA sought to protect employee-patients certified to use medical marijuana from employers who would penalize employees for availing themselves of the benefits provided under the MMA.

Impact on Pennsylvania Employers


Under the Palmiter Court’s holding, Pennsylvania employers can face private lawsuits for disciplining, terminating, or otherwise discriminating against an employee or job applicant based on the individual’s status as a certified user of medical marijuana. However, the MMA does not require employers to accommodate medical marijuana use in the workplace and allows employers the right “to discipline an employee for being under the influence of medical marijuana in the workplace or for working while under the influence of medical marijuana when the employee’s conduct falls below the standard of care normally accepted for that position.” See 35 P.S. § 10231.2103(b)(2). Accordingly, before taking an adverse action, Pennsylvania employers should ensure that they have adequate evidence to show the adverse action is not merely premised upon the individual’s status as a certified medical marijuana user.

What About Ohio?


Compared to Pennsylvania’s MMA, Ohio’s medical marijuana law is more employer friendly. For example, under Ohio law:
  • Employers do not have to permit or accommodate an employee’s use, possession, or distribution of medical marijuana;
  • Employers may refuse to hire, discharge, discipline, or otherwise take an adverse employment action against a person with respect to hire, tenure, terms, conditions, or privileges of employment because of that person’s use, possession, or distribution of medical marijuana; and
  • Employers can establish and enforce a drug testing policy, drug-free workplace policy, or zero-tolerance policy.
See R.C. § 3796.28(A)(1)-(3).

Given that medical marijuana laws vary by state, employers should review state medical marijuana laws and consult with counsel prior to making employment decisions based upon an employee’s status as a medical marijuana user.

*Jessi L. Ziska practices in all areas of labor and employment law. If you have questions about employment issues relating to medical marijuana or any other employment law matters, please contact Jessi at jlz@zrlaw.com or (216) 696-4441.

New Year, New Minimum Wages: States Increase Minimum Wage for 2022

By Jzinae N. Jackson*

On January 1, 2022, several states, including Ohio, increased their minimum wage. Ohio’s minimum wage increased from $8.80 to $9.30 for non-tipped employees and from $4.40 to $4.65 for tipped employees. In 2022, Ohio’s minimum wage law applies to employers with gross revenue of $342,000 or more. Employers whose gross revenue is below that threshold are only subject to the federal minimum wage of $7.25 per hour for non-tipped employees and $2.13 for tipped employees. Additionally, for minors aged fifteen years or younger, Ohio employers are only required to pay the federal minimum wage.

While most states have not yet scheduled minimum wage increases beyond 2022, several states, such as California, Delaware, Florida, Illinois, Maryland, Virginia, and others have scheduled increases over the next few years, with the end goal of $15.00 per hour. Additionally, minimum wage increases in some states will not take effect until later in 2022. For example, Oregon’s and Nevada’s increases become effective on July 1, 2022. Employers should also recognize that some municipalities have higher minimum wages than the state minimum wage.

The following table lists all 2022 minimum wage increases by state (unless otherwise noted, all increases are effective January 1, 2022):


State

Standard

Tipped

Arizona

$12.80

$9.80

California

$15.00 for employers with 26 or more employees.

 

$14.00 for employers with 25 or less employees.

$15.00 for employers with 26 or more employees.

 

$14.00 for employers with 25 or less employees.

Colorado

$12.56

$9.54

Connecticut

(effective July 1, 2022)

$14.00

$7.62 for service employees

 

$5.77 for bartenders

Delaware

$10.50

$2.23

Florida

(effective Sept. 30, 2022)

$11.00

 

$7.98

 

Illinois

$12.00

$7.20

Maine

$12.75

$6.38

Maryland

$12.50 for employers with 15 or more employees.

 

$12.20 for employers with 14 or less employees.

$3.63

Massachusetts

$14.25

$6.15

Michigan

$9.87

$3.75

Minnesota

$10.33 for employers earning $500,000 or more annually.

 

$8.42 for employers earning less than $500,000 annually.

$10.33 for employers earning $500,000 or more annually.

 

$8.42 for employers earning less than $500,000 annually.

Missouri

$11.15

$5.575 (tipped employees must be paid half the state minimum wage rate)

Montana

$9.20

$9.20 for employers earning more than $110,000 annually.

 

$4.00 for employers earning $110,000 or less annually.

Nevada

(effective July 1, 2022)

$9.50 for employers offering health benefits.

 

$10.50 for employers not offering health benefits.

$9.50 for employers offering health benefits.

 

$10.50 for employers not offering health benefits.

New Jersey

$13.00 for employers with 6 or more employees.

 

$11.90 for seasonal employees and employers with 5 or less employees.

 

$10.90 for agricultural employees.

$5.13

New Mexico

$11.50

$2.80

New York

(effective Dec. 31, 2021)

$13.20

 

$15.00 for fast food employees.

$8.35

Ohio

$9.30 for employers earning $342,000 or more annually.

 

$7.25 for employers earning less than $342,000.

$4.65

Oregon (effective July 1, 2022)

$13.50

 

$13.50

 

Rhode Island

$12.25

$8.36

South Dakota

$9.95

$4.975 (tipped employees must be paid half the state minimum wage rate)

Vermont

$12.55

$6.28

Virginia

$11.00

$2.13

Washington

$14.49

$14.49


*Jzinae N. Jackson regularly advises clients on labor and employment matters, including state and federal wage and hour law compliance. If you have questions about minimum wage laws or labor and employment matters more generally, please contact Jzinae at jnj@zrlaw.com or (216) 696-4441.



Z&R SHORTS


Please join Z&R in welcoming Katie McLaughlin and Brittany Mallow to its Employment and Labor Groups


Katie McLaughlin’s practice encompasses all areas of labor and employment law. Katie graduated cum laude from Cleveland-Marshall College of Law, where she served as Editor-in-Chief of the Cleveland State Law Review. As a law student, Katie participated in Cleveland-Marshall’s Civil Litigation Clinic, where she advised clients on unemployment claims and landlord-tenant disputes. Prior to law school, Katie worked as an insurance underwriter.

Brittany Mallow represents both public and private sector employers in all aspects of labor and employment law. Brittany graduated, cum laude, with her J.D. from Cleveland-Marshall College of Law, where she was a Cleveland-Marshall Law Justice Scholar and Cleveland-Marshall Law Alumni Association Life Member Scholar. Brittany also earned her M.B.A. from Cleveland State University. During law school, Brittany served as Vice Chair of the Moot Court Team and Treasurer of the International Law Society. As a Member of the Moot Court Team, Brittany competed in several national moot court competitions, winning Best Petitioner’s Brief and advancing to the final four at the Herbert Wechsler National Moot Court Competition. Brittany also gained valuable legal experience while serving the Cleveland community as a student in the Community Advocacy Law Clinic at Cleveland-Marshall.

Please join Z&R in congratulating its attorneys for the following achievements:


CONGRATULATIONS


Super Lawyers List | 2022
George Crisci, Jon Dileno, Jonathan Downes, Michele Jakubs, Amy Keating, Drew Piersall, Christopher Reynolds, Jonathan Rich, Richard Stahl, Patrick Watts, Jeffrey Wedel, Andrew Zashin, Stephen Zashin

Rising Stars List | 2022
David Frantz, Kyleigh Weinfurtner

Best Lawyers | 2022
George Crisci, Jon Dileno, Jonathan Downes, Amy Keating, Drew Piersall, Christopher Reynolds, Jonathan Rich, Richard Stahl, Jeffrey Wedel, Kyleigh Weinfurtner, Andrew Zashin, Stephen Zashin

Best Lawyers Top Listed Firm | 2022
First-Tier Rankings in Ohio for 7 years

Tuesday, November 6, 2018

EMPLOYMENT LAW QUARTERLY | Volume XX, Issue iii

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Opioid Crisis: Drug Addiction and a Tight Labor Market

By Ami J. Patel*

Following years of consecutive job growth, the unemployment rate dropped to 3.7% in September. Despite the decreasing unemployment rate, labor market participation remains low. Men ages 25 to 54 currently have an 88.4% labor participation rate. According to a recent report, of those males not participating, one in five is out of the workforce because of drug addiction. Drug abuse coupled with the current economy has made the tight labor market even tighter. According to the Ohio Chamber of Commerce, one-half of Ohio businesses report suffering consequences from substance abuse.

Ohio ranks among the hardest hit states in the ongoing battle against opiate addiction. The increased use of opiates and other more-accepted drugs like marijuana combined with a tight labor market has left many employers reevaluating their hiring and drug procedures.

Ohio is taking direct action to help employers struggling with drug-use issues. Ohio’s Chamber of Commerce created an Opiate Toolkit (available here) to help employers to manage risk, prevent drug abuse, and respond to issues affecting the workplace. The toolkit contains several modules to educate employers about workplace drug policy, employee drug testing, and responding to employee drug use. The toolkit also contains an hour-long employee education course designed to help foster understanding of prescription drug abuse.

Employers understandably wish to avoid or reduce the impacts of drug abuse on their workplaces. Drug abuse affects employers by causing increased liability, productivity problems, and financial loss. In seeking to protect their interests, however, employers must ensure that their policies and practices do not conflict with the Americans with Disabilities Act (“ADA”) or related state laws.

The ADA protects qualified individuals with disabilities. The ADA’s definition of “qualified individual with a disability” specifically excludes employees and applicants who are currently engaging in the illegal use of drugs. However, the ADA does not exclude from its protection: (a) successfully rehabilitated individuals who no longer engage in the illegal use of drugs; (b) those who are currently participating in a rehabilitation program and no longer engage in the illegal use of drugs; and (c) those who are regarded by an employer, erroneously, as illegal drug users. Accordingly, employers who discriminate against these groups of individuals may face liability under the ADA and similar state laws.

For example, the Equal Employment Opportunity Commission (“EEOC”) recently filed suit against an employer that fired a recovering opioid addict who was on a methadone treatment program. According to the EEOC, on the employee’s first day of work, he took a drug test and proceeded to work the rest of the week. The next week, he learned that his test came back “positive” as a result of his prescribed methadone treatment. After the employee provided the testing laboratory with verifying information regarding his treatment, the laboratory cleared him to work. Nonetheless, the employer refused to return the employee to his position, even after he provided a letter from his doctor regarding his treatment. Based upon the employer’s refusal, the EEOC is seeking a permanent injunction barring the employer from engaging in any future disability discrimination and compensatory and punitive damages on behalf of the employee.

In the midst of the opioid crisis, employers continue to face the practical and legal impacts of drug addiction. In addition to its effect on the labor market, this crisis also has important legal implications on employers’ management of their workforces, including employees and applicants who are in recovery from opioid addiction. Employers should proceed cautiously in addressing these complicated issues and contact counsel with questions.

*Ami J. Patel, an OSBA Certified Specialist in Labor and Employment Law, practices in all areas of labor and employment law. For more information about workplace issues relating to opioids, the ADA, or any other employment-law questions, please contact Ami at ajp@zrlaw.com or 216.696.4441.


ICE Raids: Cold Shouldering Employees, Employers, and Local Law Enforcement

By Lauren M. Drabic*

The Trump administration has taken a hard stance against undocumented workers. The impact of this stance is far-reaching, especially in Ohio, which recently was called the “Ground Zero” for Immigration and Customs Enforcement (“ICE”) workplace raids. Two of the country’s largest raids occurred in Ohio over the summer and resulted in over 250 arrests.

The administration’s efforts regarding undocumented and foreign labor are two-pronged – arresting and deporting undocumented workers and prosecuting violating employers. Regarding the latter, the Department of Justice (“DOJ”) recently settled claims with a landscaping company for its alleged discriminatory practices in hiring foreign workers under the H-2B visa program. The DOJ claimed that the company favored foreign labor and improperly failed to make its job postings visible to those applying in the U.S. Under the settlement agreement, the company is required to pay over $100,000 in back pay and penalties, must engage in recruitment activities to attract U.S. workers, and is subject to three years of DOJ monitoring.

Employee Work Authorization

Most employers know they cannot hire workers without proper work authorization. Employers are responsible for ensuring completion of Form I-9, the Employment Eligibility Verification form used by U.S. Citizenship and Immigration Services (“USCIS”). This is true even with respect to employees who are citizens and, therefore, are automatically eligible for employment. Employers must retain each employee’s completed I-9 for three years after the date of hire or for one year after termination of employment, whichever occurs later. Employers should correct mistakes on an I-9 form to ensure they are compliant. However, employers may only edit sections two and three of the I-9 form. Only the employee may correct mistakes made in section one.

While citizenship is not a requirement for employment, employees must have the necessary work authorization. USCIS requires that the worker be a member of one of four classes: U.S. citizens; noncitizen nationals; lawful permanent residents; and aliens authorized to work. An alien is any foreign citizen living in the U.S. An employer also can petition for a nonimmigrant worker to receive work authorization on a temporary basis by completing an I-129 form. Upon approval of the I-129 form, the worker must apply for admission to the U.S.

Employers must ensure they are hiring foreign workers properly without discriminating based on protected class, such as citizenship, immigration status, or national origin. Treating individuals differently based on their membership in a protected class could violate the Immigration and Nationality Act or Title VII of the Civil Rights Act, among other laws. Similarly, according to USCIS, it may be discriminatory for employers to consider future expiration dates on visas and employment authorization documents.

An employer unable to fill open positions may seek a Foreign Labor Certification from the Department of Labor. The process can take months and involves several government agencies. Several different visas and programs exist to fill persistent employment vacancies. However, the employer must verify that the open position meets the criteria set by the Department of Labor.

Criminal and Civil Penalties

Under the Immigration and Nationality Act, it is illegal for any person or entity to knowingly hire an undocumented or illegal alien. “Knowing” includes constructive knowledge, i.e., knowledge which may fairly be inferred through notice of certain facts and circumstances that would lead a person, through the exercise of reasonable care, to know that an alien is unauthorized. Simply not checking for authorization is not a valid means to avoid this requirement. Anyone who employs or contracts with an illegal alien without verifying his or her work authorization commits a misdemeanor offense.

ICE is authorized to conduct investigations to determine whether employers knowingly employed unauthorized aliens or failed to properly complete and retain I-9 forms for newly-hired individuals. The Director of ICE has noted plans to dramatically increase the number of I-9 audits and workplace raids ICE conducts.

Employers who violate these laws can face substantial fines and criminal prosecution. Those who knowingly hire and employ workers without work authorization may be penalized from $375 to $16,000 per violation, whereas substantive and technical violations, such as failing to produce the I-9 form, can range from $110 to $1,100 per violation.

While ICE and Customs and Border Patrol cannot commandeer local law enforcement, many local agencies opt to work with the federal agencies by sharing information, conducting joint investigations, and contracting to detain arrested aliens. Immigration officers and police must have a valid warrant or an employer’s consent to enter their facilities.

Employers must take care not only to follow the various federal and state laws as they pertain to hiring foreign labor, but also must not discriminate against U.S. citizens when seeking out foreign labor. Likewise, employers must not discriminate based upon an employee’s protected class, including citizenship, immigration status, or national origin. Employers should contact counsel if they have any questions or are unsure how to navigate the complex legal landscape relating to foreign workers.

*Lauren Drabic recently joined Z&R’s Cleveland office and practices in all areas of employment law. If you have questions regarding I-9 form compliance or any other employment-related matter, please contact Lauren at lmd@zrlaw.com or 216.696.4441.


By the Book: Ohio Courts Look to Employee Handbooks to Determine Terminated Employees’ Entitlement to Payment for Unused PTO

By Christopher D. Caspary*

Does an employer have to pay an employee’s accrued paid time off when it discharges the employee? As one Ohio court recently explained, it depends on the terms of the employer’s policies. See Richardson v. MYCAP, 7th Dist. Mahoning No. 17 MA 0021, 2018-Ohio-2776. In MYCAP, the court granted summary judgment in favor of a group of laid-off employees, awarding them payment for accrued paid time off (“PTO”). This is the latest decision in a string of Ohio cases that look to the terms of employer policies when determining an employee’s entitlement to a payout of accrued PTO at the time of the employee’s discharge.

The MYCAP Decision

In MCYAP, the employer provided its employees with handbooks informing them of its employment practices and policies. The handbook stated “at the end of employment with MYCAP, unused PTO balance hours will be paid” in accordance with a payment schedule set forth in the handbook. After the employer laid off a number of employees, it did not pay them their accrued, unused PTO in accordance with the terms of the handbook. The employees then filed suit seeking payment of their PTO.

Finding in favor of the employees, the MYCAP Court citied to existing Ohio case law, which states “[a]lthough employee handbooks and policy manuals are not in and of themselves contracts of employment, they may define the terms and conditions of an at-will employment relationship if the employer and employee manifest an intention to be bound by them.” Accordingly, the MYCAP Court held that the employees were entitled to the PTO payments under the plain language of the handbook and that it would be unjust for the employer to retain those payments.

What Does This Mean For Employers?

Ohio courts’ continuing deference to the terms of employee handbooks and employer policies is favorable for employers with carefully drafted policies. Effectively written handbooks and policies protect employers from liability. For example, one Ohio court found that the following policy language - “All unused [PTO] will be forfeited upon an employee’s resignation or termination” – was clear and unambiguous and did not require the employer to pay out the employee’s PTO. See Majecic v. Universal Dev. Mgt. Corp., 11th Dist. Trumbull No. 2010-T-0119, 2011-Ohio-3752, ¶ 10. Likewise, another Ohio court determined that the plaintiffs were not entitled to PTO, because the employer’s policy clearly precluded its employees from collecting any payment for PTO upon discharge. See Sexton v. Oak Ridge Treatment Ctr. Acquisition Corp., 167 Ohio App. 3d 593, 856 N.E.2d 280, 2006-Ohio-3852, ¶ 13 (4th Dist.).
Accordingly, employers should address the payment of PTO upon discharge directly in their employee handbooks and policy manuals. The following is a list of tips for employers to consider when drafting or revising employee handbooks and policies addressing PTO:

1. Do Not Remain Silent

It is better for an employer to have a written PTO policy than to remain silent. As some Ohio courts have held, an employee may be entitled to unused PTO if the employer’s policies do not state otherwise. The rationale behind this is that such payments are not merely gratuitous but are deferred payments of earned benefits. Therefore, it is better to have a defined policy than nothing addressing this topic.

2. Say What You Mean

In MYCAP and other recent Ohio cases, the courts adhered to the language set forth in the applicable handbooks and policies. Ohio employers are not required by law to provide their employees with PTO. However, if an employer decides to provide this benefit and wishes to restrict it in any way, then the employer should do so explicitly and clearly in its written policies.

3. Follow the Policy

The employer should abide by its policies. Failure to do so may suggest that the employer’s actual practice is different than what it has set forth in writing, or that it may be treating some employees more favorably than others.

Employee handbooks and employer policies are important tools for employers, and the terms set forth therein have legal implications. Employers should consult with counsel to assess whether their handbooks and policies clearly state their intentions and to ensure they are taking the proper steps to abide by them.

*Christopher Caspary works in Z&R’s Cleveland office and practices in all areas of employment law. For more information about developing employee handbooks and policies or any other employment-related matter, please contact Chris at cdc@zrlaw.com or 216.696.4441.


Rolled up and Rolled Out: An Update on Ohio’s Medical Marijuana Law

By Patrick M. Watts*

Although marijuana remains a Schedule I controlled substance under federal law, numerous states have legalized the use of marijuana for medical and, in eight states and the District of Columbia, recreational purposes. As Z&R previously reported, Ohio (puff, puff) passed its medical marijuana law in 2016 and set the basic framework for Ohio’s Medical Marijuana Control Program (“MMCP”). Following delays in the MMCP’s implementation process, approved cultivators have now begun growing their first crop of state-sanctioned marijuana. Based upon growing and production timeframes, estimates suggest that patients may purchase medical marijuana in Ohio as early as the end of this year.

As the smoke clears, many Ohio employers are rightfully concerned and confused about the MMCP and its potential implications for their businesses and workforces. In an apparent attempt to put employers at ease, Ohio’s General Assembly included a number of pro-employer provisions in the MMCP. Specifically, the MMCP (which is codified at Ohio Revised Code Chapter 3796) provides that:
  • Employers are not required to permit or accommodate an employee’s use, possession, or distribution of medical marijuana;
  • Employers are not prohibited from refusing to hire, discharging, disciplining, etc., a person because of that person’s use, possession, or distribution of medical marijuana;
  • Employers are not prohibited from establishing and enforcing a drug testing policy, drug-free workplace policy, or zero-tolerance drug policy;
  • The MMCP does not interfere with any federal restrictions on employment, e.g., Department of Transportation regulations; and
  • The MMCP does not permit a person to pursue a lawsuit against an employer “for refusing to hire, discharging, disciplining, discriminating, retaliating, or otherwise taking an adverse employment action against a person with respect to hire, tenure, terms, conditions, or privileges of employment related to medical marijuana.”

See Ohio Revised Code 3796.28(a)(1)-(5). Furthermore, Ohio’s unemployment compensation law considers a person discharged for using marijuana “in violation of an employer’s drug-free workplace policy, zero-tolerance policy, or other formal program or policy regulating the use of medical marijuana” as discharged for “just cause.” See Ohio Revised Code 3796.28(b).

Nevertheless, even with these pro-employer provisions, Ohio employers still may face the prospect of litigation arising out of employees’ use of medical marijuana. For example, it is possible that employees may attempt to bring a disability discrimination claim under Ohio’s anti-discrimination law (Ohio Revised Code Chapter 4112), which the MMCP does not expressly reference, claiming that their rights under Ohio’s anti-discrimination law are unaffected by, and independent of, the MMCP’s pro-employer provisions.

Given the nascency of the MMCP, there currently are no court decisions addressing Ohio’s medical marijuana law in the employment context. However, courts in other states have addressed employees’ marijuana-related claims. It is important to note that medical marijuana laws vary by state and, depending on the state, may provide greater protection to employees than Ohio’s law. Still, these cases provide some insight as to how courts are addressing the issue of medical marijuana in the employment context. For example, as Z&R reported last year, the Massachusetts Supreme Judicial Court reversed the dismissal of an employee’s claim and held the employee could pursue a disability discrimination claim under Massachusetts law after her employer discharged her for testing positive for medical marijuana. See Barbuto v. Advantage Sales and Marketing, LLC, 78 N.E.3d 37 (Mass. Jul. 17, 2017).

Similarly, in September, a Federal court in Connecticut addressed a case where a nursing home rescinded a job offer to an applicant who tested positive for marijuana during a pre-employment drug screen. See Noffsinger v. SSC Niantic Operating Co., LLC, d/b/a Bride Brook Health & Rehab. Ctr., No. 3:16-cv-01938, 2018 U.S. Dist. LEXIS 150453 (D. Conn. Sept. 5, 2018). The applicant accepted an offer for a position, which was conditioned upon her completion of a drug screen. Prior to the drug screening, the applicant explained that she used medical marijuana to treat her post-traumatic stress disorder. Upon obtaining the drug screen results, the nursing home decided not to hire the applicant. The applicant filed a complaint, alleging a violation of Connecticut’s medical marijuana law, which provides, “[n]o employer may refuse to hire a person or may discharge, penalize or threaten an employee solely on the basis of such person’s or employee’s status as a qualifying patient.” In addressing the applicant’s claims, the court held she was entitled to judgment, as a matter of law, on her claim of employment discrimination under the state medical marijuana law. Notably, the court rejected the employer’s arguments that it was required by federal laws (i.e., the Drug Free Workplace Act and the False Claims Act) to rescind the applicant’s job offer.

In sum, the legal landscape regarding medical marijuana in the employment context is evolving. Ohio’s medical marijuana law provides a number of important protections for employers regarding employment-related actions based on employees’ use, possession, or distribution of medical marijuana. With medical marijuana available in potentially as little as a couple of months, employers need to get prepared. This includes establishing policies that expressly address the employer’s stance on medical marijuana and determining how the employer intends to handle medical marijuana use in all aspects of its business, including hiring, drug testing, and discharge. Employers should contact counsel with any questions relating to the MMCP or its impact on their practices and workforces.

*Patrick M. Watts, an OSBA Certified Specialist in Labor and Employment Law, has extensive experience advising employers regarding medical marijuana and related issues. For more information about Ohio’s medical marijuana law or any other employment-related matters, please contact Patrick at pmw@zrlaw.com or 216.696.4441.


Z&R SHORTS

Please join Z&R in welcoming Lauren Drabic to its Employment and Labor Groups


Lauren Drabic's practice encompasses all areas of labor and employment law. Prior to joining Zashin & Rich, Lauren practiced employment law in Washington, D.C., where she litigated cases in federal court and before administrative agencies that arose under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Whistleblower Protection Act, and other federal employment statutes. Lauren graduated from Allegheny College and received her law degree cum laude from the American University Washington College of Law. While at American, she served on the senior editorial board of the American University Law Review.

Upcoming Speaking Engagements


November 14, 2018
Brad E. Bennett presents “Epic Fails! Top Supervisor Errors in the Workplace” at the Ohio Recorders’ Association Winter Conference to be held at the Polaris Hilton in Columbus, Ohio.

December 4, 2018
George S. Crisci presents “Murphy Oil/Epic Systems” at the Ohio State Bar Association’s Back to the Future? NLRB Update seminar in Columbus, Ohio.

December 10, 2018
George S. Crisci presents “NLRB Rules and Decisions” at the National Business Institute’s Ohio Employment Law seminar in Independence, Ohio.