Showing posts with label Volunteers. Show all posts
Showing posts with label Volunteers. Show all posts

Thursday, October 17, 2019

EMPLOYMENT LAW QUARTERLY | Volume XXI, Issue iii

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City of Toledo Joins Cincinnati, Passes Salary History Ban

By Scott H. DeHart*

The City of Toledo passed Ordinance No. 173-19, which generally prohibits Toledo employers with at least fifteen employees from seeking an applicant’s prior salary information. Toledo joins a growing number of states and municipalities that have enacted similar bans, including the City of Cincinnati in March of 2019. Accordingly, Toledo employers should determine whether they are subject to the law and, if so, implement necessary changes to existing practices to ensure compliance with the ordinance when it becomes effective on June 26, 2020.

“Prohibition on Inquiring About or Use of Salary History”
Beginning on June 26, 2020, covered employers in Toledo cannot seek, use, or otherwise rely upon an applicant’s salary history during the hiring process. Notable exceptions include discussions of salary and benefit expectations, internal transfer or promotion, “voluntary and unprompted disclosure” of salary history, and applicants governed by a collective bargaining agreement. The ordinance also requires an employer to provide an applicant the applicable pay scale for the position following an offer of employment, but only upon “reasonable request.”

Remedies and Statute of Limitations
In the event the ordinance is violated, the applicant can seek “compensatory damages, reasonable attorney’s fees, the costs of the action, and such legal and equitable relief as the court deems just and proper.” The applicant must initiate any such action within two years.

Toledo has joined a growing number of jurisdictions outlawing inquiry into an applicant’s salary history, passing an ordinance similar to that passed by the City of Cincinnati just months earlier. Given this trend, employers should expect other cities to pass similar laws. Toledo employers should begin preparations and implement necessary changes to existing practices to ensure compliance with the ordinance when it becomes effective in June 2020.

*Scott H. DeHart, who works in the Columbus office, practices in all areas of labor and employment law. If you have questions about this ordinance or about inquiry into an applicant’s salary history, please contact Scott at shd@zrlaw.com or (614) 224-4411.





Use it or Lose it: U.S. Supreme Court Holds That Title VII Defendants Must Raise Charge-Filing Defense in a Timely Manner

By Tiffany Henderson*

Before an employee can file a lawsuit under Title VII of the Civil Rights Act of 1964 (“Title VII”), which prohibits discrimination based on an employee’s race, color, religion, sex, or national origin, the employee must file a Charge of Discrimination with the Equal Employment Opportunity Commission (“EEOC”) or the employee’s state’s equivalent of the EEOC. In Ohio, the state equivalent to the federal EEOC is the Ohio Civil Rights Commission. Generally, employees must file their Charge of Discrimination within 180 calendar days of the day the discrimination occurred or, if in a state like Ohio that has its own state agency, within 300 calendar days of the date that the discrimination occurred.

On June 3, 2019, the U.S. Supreme Court unanimously held that Title VII’s “charge-filing requirement” is not “jurisdictional,” i.e., grounds for dismissal at any point during litigation. Fort Bend County, Texas v. Davis, 139 S. Ct. 1843 (June 3, 2019). Instead, employers must raise the objection in a timely manner or they forfeit the defense. So, if an employee sues its current or former employer under Title VII, and the employee incorrectly or insufficiently filed a Charge of Discrimination with the EEOC or equivalent state agency, then the employer cannot wait until the later stages of the litigation to object on these grounds.

In Davis, an employee filed an EEOC Charge of Discrimination against her employer alleging sexual harassment and retaliation. While the EEOC processed her charge, the employer fired the employee after she did not show up to work due to a conflict with a church commitment. The employee then attempted to amend her EEOC Charge to include an allegation for religious discrimination by making a handwritten notation on her EEOC intake questionnaire. However, she did not amend her formal EEOC Charge.

After the EEOC notified the employee of her right to sue, she filed a lawsuit in federal court and asserted claims including sexual harassment, retaliation, and religious discrimination under Title VII. After litigating the case for years, the employer moved – for the first time – to dismiss the religious-discrimination claim. The employer argued that the court lacked jurisdiction over the claim because the employee failed to properly assert it in her EEOC Charge. The district court agreed and dismissed the claim. On appeal, the Fifth Circuit reversed and reinstated the claim. The U.S. Supreme Court agreed to hear the case and decide whether Title VII’s charge-filing requirement was a jurisdictional precondition that can be raised at any stage of a lawsuit or a “procedural prescription” that the employer must raise in a timely manner or risk forfeiting. The U.S. Supreme Court picked the latter.

In Davis, the U.S. Supreme Court noted that Title VII’s language regarding the charge-filing requirement focuses on a party’s procedural obligations, not a court’s jurisdiction. Accordingly, the Court held that the charge-filing requirement is not “jurisdictional,” and thus an employer forfeits the objection if it does not raise it in a timely manner. The Court contrasted the “harsh consequences” of jurisdictional objections, which can dissolve a claim at any point in the litigation (even in front of the U.S. Supreme Court), against a party’s argument that the other party failed to comply with a claim-processing rule, which the objecting party forfeits if it “waits too long to raise the point.” The U.S. Supreme Court never specified what amounts to waiting “too long to raise the point.”

The U.S. Supreme Court also confirmed that the EEOC charge-filing requirement is mandatory. Accordingly, upon an employer’s timely objection, a Title VII plaintiff’s failure to abide by the requirement will prove fatal to their lawsuit. Employers who are facing a Title VII lawsuit should consult with counsel to determine whether this procedural defense may exist.

*Tiffany Henderson practices in all areas of labor and employment law. If you have questions regarding the U.S. Supreme Court’s Davis decision or any other employment law issues, please contact Tiffany at tsh@zrlaw.com or (216) 696-4441.




Companies Must Make Reasonable Efforts to Maintain the Confidentiality of their Trade Secrets if They Want Courts to Protect Them

By Ami J. Patel*

For information to be considered a trade secret, it must be sufficiently secret to impart economic value because of (1) its relative secrecy and (2) the owner of the information must take reasonable efforts to maintain the secrecy of the information. Recent case law serves as a reminder that to obtain trade secret protection from the courts, the second, often overlooked component of the “trade secret” rule is pivotal. In litigating trade secret misappropriation under the federal Defend Trade Secrets Act (“DTSA”) and applicable state law, it is not enough for companies to simply show the existence of a trade secret. Companies must show they took appropriate measures and had proper policies and procedures in place to protect their trade secret information.

A federal court recently reiterated this principle in Abrasic 90 Inc. v. Weldcote Metals, Inc., 364 F. Supp. 3d 888 (N.D. Ill. 2019). In Abrasic, defendant Joseph O’Mera was president and a director of the plaintiff Camel Grinding Wheels, U.S.A. (“CGW”), which produced abrasive products. In his capacity as president, O’Mera developed and oversaw various aspects of CGW’s operations, played the primary role in negotiating costs with CGW’s suppliers, and set CGW’s prices for its entire product line and approved all pricing discounts. In 2018, O’Mera left CGW to start a competing abrasives business for Weldcote Metals, Inc. (“Weldcote”). When he left, O’Mera took files containing information about CGW’s pricing, customers, and suppliers. Additional employees who also took files containing information about CGW’s pricing, customers, and suppliers, followed O’Mera to Weldcote. Further, O’Mera convinced one such employee to bring customer pricing documents from CGW’s shared drive.

CGW filed suit against its former employees and Weldcote and moved to enjoin the defendants from entering the abrasives business, from doing business with CGW’s suppliers or distributors, and from using the information at issue. The information at issue included compilations of CGW’s pricing and sales data. Notably, the court held that this type of information could be a trade secret under the law. However, the court denied CGW’s motion for a preliminary injunction under DTSA and the Illinois Trade Secrets Act, because CGW had taken “almost no measures to safeguard the information that it now maintains was invaluable to its competitors.”

According to the court, CGW could have taken the following data security measures, but did not:
  1. Requiring its employees to enter into non-disclosure and confidentiality agreements. CGW failed to require those with access to its supposed trade secrets to enter into non-disclosure and confidentiality agreements. The court described this as “among the most fundamental omissions by the company.”
  2. Establishing and implementing policies concerning the confidentiality of the company’s business information. CGW’s employee handbook did not have a policy regarding confidentiality beyond a “vague, generalized admonition about not discussing CGW business outside of work,” which “did not define, delineate, or specify which information was considered confidential.” The court determined this was “too broad and vague to confer meaningful protection over the information at issue.”
  3. Training company employees about their obligation to keep certain categories of information confidential. In the absence of a confidentiality policy, CGW further “did nothing to train or instruct employees about their obligation to keep certain categories of information confidential.”
  4. Ensuring all confidential information is returned to the company upon the cessation of employment of any employee with access to such information. Although CGW instructed departing employees to return CGW “property,” these employees “were not asked whether they possessed any of the information at issue or instructed to return or delete such information.” The court noted that merely requiring that departing employees return company property is not enough, and that company precautions “must go beyond normal business practices for the information to qualify for trade secret protection.”
  5. Ensuring that employees with responsibility for maintaining the security of sensitive company data and information are trained in data security and IT management. CGW’s IT management person had “no training in data security (or virtually any other area of IT management) and was ill-equipped to identify, much less champion, sound data security practices.”
  6. Ensuring that the company maintains and implements comprehensive data security policies and practices. CGW’s IT management practices were “grossly inadequate to prevent unauthorized access and use of the company’s purportedly valuable proprietary information.” Further, CGW’s IT person recommended to the company internally that it “take some basic steps to improve the security of the information at issue,” such as segregating access to documents on a need-to-know basis and adopting an “acceptable device use policy.” CGW, however, failed to implement “even these modest suggestions, further undermining its trade secret claim.”
  7. Restricting access to sensitive company information to employees on a need-to-know basis, such as assigning employees passwords to access the information. The entire contents of CGW’s shared drive were accessible to employees who did not need access to this information. Further, the IT management person always granted any request for access that was made of her and she “did not make any meaningful inquiry into whether the person needed access to the information.”
  8. Differentiating access and protective measures with respect to sensitive company information from those imposed with respect to non-sensitive company information. The court disfavored the manner in which the information was stored on CGW’s shared drive. CGW provided all employees with the same password to obtain access to the shared drive. Files were not encrypted, and there were no restrictions on employees’ ability to access, save, copy, print, or email the information. Further, there was no evidence that employees needed the authorization of the IT management person to obtain access to the shared drive. Rather, any employee could have enabled their own workstation to access the shared drive with minimal knowledge or assistance. Moreover, the documents on the shared drive were not segregated from other files that were not trade secrets and the documents were not labeled in any manner as “confidential” or “proprietary.” The court noted that it “takes virtually no effort and little sophistication to include a heading on an Excel spreadsheet identifying a document as ‘proprietary’ or ‘confidential,’ yet CGW failed even to do that much with respect to the information at issue.”

The lesson from Abrasic is clear: to claim information is a statutory trade secret, companies need to employ reasonable security measures to protect that information. While companies need not implement each and every measure discussed above, it is imperative that they take heed of these measures.

*Ami J. Patel practices in all areas of labor and employment law. If you have questions regarding protecting your company’s trade secret information or any other employment law issues, please contact Ami at ajp@zrlaw.com or (216) 696-4441.




Letter of the Law: U.S. Department of Labor’s Wage and Hour Division Continues Issuing Opinion Letters

By Michele L. Jakubs*

In 2018, the U.S. Department of Labor's Wage and Hour Division (“DOL”) reinitiated its practice of issuing opinion letters. The DOL’s opinion letters offer official guidance addressing how a particular law, such as the Family and Medical Leave Act (“FMLA”) and Fair Labor Standards Act (“FLSA”), applies in specific circumstances. These letters also serve as important guidance for other employers faced with similar circumstances and compliance concerns. Although the letters are not binding precedent, they can help bolster arguments made by employers.

Since 2018, the DOL has released a steady stream of opinion letters (available through this link). Just this year, the DOL already has issued over a dozen opinion letters offering guidance on specific issues under the FMLA and the FLSA. A summary of some important opinion letters is provided below.

Opinion Letter FMLA 2019-1-A (available here)

This opinion letter addresses whether an employer may permit employees to exhaust some or all available paid sick (or other) leave prior to designating leave as FMLA qualifying, even when the leave clearly is FMLA qualifying. The DOL’s answer is a resounding no.

The individual submitting this request for an opinion stated that employers often justify this practice pursuant to language in the FMLA regulations, 29 C.F.R. §825.700, which in relevant part states that “[a]n employer must observe any employment benefit or program that provides greater family and medical leave rights to employees than the rights provided by the FMLA.” However, the DOL’s response is clear that an employer may not delay the designation of FMLA-qualifying leave as FMLA leave. “Once an employee communicates a need to take leave for a FMLA-qualifying reason, neither the employee nor the employer may decline FMLA protection for that leave. Accordingly, when an employer determines that leave is for an FMLA-qualifying reason, the qualifying leave is FMLA-protected and counts toward the employee’s FMLA leave entitlement.” Further, pursuant to the FMLA regulations, “once the employer has enough information to make this determination, the employer must, absent extenuating circumstances, provide notice of the designation within five business days, and may not delay designating leave as FMLA-qualifying, even if the employee would prefer the delay.” 29 C.F.R. §825.300(d)(1).

The DOL reconciles the language in 29 C.F.R. §825.700, i.e., the regulation cited in the underlying request for an opinion, with the opinion set forth in its letter, stating “[o]f course an employer must observe any employment benefit or plan that provides greater family or medical leave rights to employees than the rights established by the FMLA, [b]ut providing such additional leave outside of the FMLA cannot expand the employee’s 12-week (or 26 week) entitlement. [If] an employee substitutes paid leave for unpaid FMLA leave, the employee’s paid leave counts toward his or her 12-week (or 26-week) FMLA entitlement and does not expand that entitlement.”

This opinion may create additional confusion for employers in the Ninth Circuit, which covers Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, and Washington. In 2014, the Ninth Circuit Court of Appeals concluded that an employee can decline FMLA leave and use paid leave instead, even though the underlying reason for leave would have been FMLA-qualifying. Escriba v. Foster Poultry Farms, 743 F.3d 123, 1244 (9th Cir. 2014). In issuing this opinion letter, the DOL noted its disagreement with the Escriba decision in a footnote.

Opinion Letter FLSA 2019-2 (available here)

This opinion letter addresses whether time spent participating in an employer’s optional volunteer program constitutes “hours worked” requiring compensation under the FLSA. The answer is no, unless such time is forced.

The program at issue in the opinion letter is an employer-sponsored optional community service program for employees, where employees can choose to engage in certain volunteer activities. Under the program, the employer compensates employees for time they spend on volunteer activities during normal working hours or while they are required to be on the employer’s premises, but activities which take place outside of normal working hours are not compensated. At the end of the year, the employer awards a monetary bonus to certain participating employees based on the total overall hours each employee volunteered.

Relying on a previous opinion letter concerning volunteer activities, the DOL notes that “[a]n employer may use an employee’s time spent volunteering as a factor in calculating whether to pay the employee a bonus, without incurring an obligation to treat that time as hours worked, so long as (1) volunteering is optional, (2) not volunteering will have no adverse effect on the employee, and (3) the employee is not guaranteed a bonus for volunteering.” FLSA 2006-4.

The DOL concluded that participation in the program at issue does not count as hours worked under the FLSA because: (1) the employer does not require participation in the program nor control or direct volunteer work; (2) employees do not appear to suffer adverse employment consequences if they do not participate in the program; and (3) the employer does not guarantee participating employees a bonus for volunteering.

The DOL also confirmed that an employer can use a mobile device application to track a participating employee’s time spent volunteering, provided that this application is not used to direct or control the volunteering activities.

Opinion Letter FLSA 2019-9 (available here)

This opinion letter addresses whether an organization used permissible rounding practices when calculating its employees’ hours worked. The organization at issue used payroll software to calculate its employees’ hours worked and wages. Based on clock in and clock out times, the software would convert an employee’s hours worked each day into a numerical figure that would be rounded based upon whether the third decimal fell below .005. For example, if the software initially calculated an employee’s hours worked in a single day to be 6.865, that figure would be rounded up to 6.87 for purposes of calculating the employee’s pay for that day. However, if the initial figure was 6.864, then the software would use 6.86 for purposes of calculating the employee’s pay for the day.

The DOL found that this rounding practice was consistent with the FLSA’s regulations. The DOL explained it has been its “policy to accept rounding to the nearest five minutes, one-tenth of an hour, one-quarter of an hour, or one-half hour as long as the rounding averages out so that the employees are compensated for all the time they actually work.” The specific rounding practice at issue was neutral on its face and appeared to average out. Therefore, the DOL opined that, consistent with the FLSA’s regulations, the rounding practice “will not result, over a period of time, in failure to compensate the employees properly for all the time they have actually worked.” 29 C.F.R. § 785.48(b)

Conclusion

The key takeaways from the opinion letters summarized above are the following:
  • Employers may not permit employees to exhaust some or all available paid sick (or other) leave prior to designating leave as FMLA-qualifying. When an employer determines that leave is for a FMLA-qualifying reason, the qualifying leave is FMLA-protected and counts toward the employee’s FMLA leave entitlement.
  • Employers will not incur an obligation to treat an employee’s time spent volunteering as “hours worked” under the FLSA, so long as such time is not forced, i.e., (1) volunteering is optional, (2) not volunteering will have no adverse effect on the employee, and (3) the employee is not guaranteed a bonus for volunteering.
  • In determining employees’ hours worked, employers may use rounding practices, so long as those practices are neutral and average out so that the employer compensates its employees for all the time its employees actually worked.
The DOL’s opinion letters provide valuable insight regarding the intricacies of the FMLA and the FLSA and how these laws apply under specific circumstances. The attorneys at Zashin & Rich regularly provide guidance to employers regarding the nuances of the FMLA and the FLSA and counsel employers on such policies and procedures. Employers should consult with counsel to assess whether their FMLA and FLSA policies and procedures remain compliant with these ever-evolving laws.

*Michele L. Jakubs, an OSBA Certified Specialist in Labor and Employment Law, practices in all areas of labor and employment law. If you have questions regarding the DOL’s opinion letters, or the FMLA or the FLSA, please contact Michele at mlj@zrlaw.com or (216) 696-4441.




Z&R SHORTS


Please join Z&R in welcoming Tiffany Henderson and Ryan Spitzer to its Employment and Labor Groups


Tiffany Henderson practices out of Z&R’s Cleveland office. Her practice encompasses all areas of private and public sector labor and employment law. Tiffany graduated from Bowling Green State University and received her Master of Public Administration and her Juris Doctor (cum laude) from Cleveland State University and Cleveland-Marshall College of Law, respectively. As a law student, Tiffany served as Student Bar Association President, Director of Pre-Law and Recording Secretary for the Black Law Students Association, and was a member of the mock trial advocacy team. Tiffany also received the Norman S. Minor Scholarship and Cleveland-Marshall Law Alumni Association Life Member Scholarship. Prior to joining Z&R, Tiffany served as an Assistant Attorney General at the Ohio Attorney General’s Office. Before practicing law, Tiffany worked with PPG in Cleveland, Ohio as an Information Technology Systems Analyst.

Ryan Spitzer practices out of Z&R’s Columbus office and represents public and private sector employers in all aspects of labor and employment law. Ryan graduated from the Ohio State University and earned his law degree cum laude from Capital University with a concentration in civil litigation. As a law student, Ryan participated in the Fall National Moot Court Team and was an extern for Chief Justice Maureen O’Connor at the Ohio Supreme Court. Prior to joining Z&R, Ryan worked for the Miami County Prosecuting Attorney’s Office where he handled both civil and criminal matters and was appointed as a Special Assistant Prosecuting Attorney in multiple counties.


Congratulations to Stephen Zashin, Helena Oroz, and Jeffrey Wedel on their Recent Win before the Ohio Supreme Court


Z&R congratulates Stephen Zashin, Helena Oroz, and Jeff Wedel on their recent success before the Ohio Supreme Court in Gembarski v. PartsSource, Inc., 2019-Ohio-3231 (Aug. 14, 2019). The case is a significant win for employers. The Ohio Supreme Court held that when a single named plaintiff files an action on behalf of a class of employees, but is not bound by an arbitration agreement to which other members of the putative class action may be bound, the employer need not raise an arbitration defense at the pleading stage. Instead, the employer may wait and raise such a defense at the class-certification stage of the proceedings.

Upcoming Speaking Engagements


November 4, 2019
Jonathan J. Downes presents “Keys to Successful Negotiations” and “Negotiation Practice on Specific Issues” at the State Employment Relation Board (SERB) Advanced Negotiations Seminar. The seminar will take place at the State Library in Columbus, Ohio.

December 4, 2019
George S. Crisci will be part of a panel presentation entitled “Labor Law Hot Topics” at the Ohio State Bar Association’s National Labor Relation Board (NLRB) Updates seminar. The panel presentation will take place at the Ohio State Bar Association in Columbus, Ohio.

Monday, November 25, 2013

EMPLOYMENT LAW QUARTERLY | Fall 2013, Volume XV, Issue iii

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Employers Struggle with “Bring Your Gun to Work” Laws

By David R. Vance*
Given the recent number of large-scale acts of violence, many employers are concerned about workplace safety and limiting access to firearms on company property. In an effort to prevent workplace violence, employers have increased security and banned weapons. In many states, however, “bring your gun to work” laws limit employers from banning guns in their parking lots. Employers affected by these laws are responding in a number of ways, including lobbying for their rights to ban guns on company property and developing policies and procedures to help prevent incidents of workplace violence.

There are 22 states that currently have some form of a “bring your gun to work” law, which allow employers to ban guns in the workplace but prohibit employers from banning guns in the parking lot. Two states, Missouri and North Carolina, have laws that only apply to state employers. Seven states (Florida, Georgia, Indiana, Kansas, Maine, Mississippi, and Texas) have laws that apply to all employers, while 13 states (Alabama, Alaska, Arizona, Illinois, Kentucky, Louisiana, Minnesota, Nebraska, North Dakota, Oklahoma, Tennessee, Utah, and Wisconsin) have laws that apply to all property owners.

While some argue that ready access to firearms makes workplaces safer, some employers believe the availability of guns in or near the workplace increases the odds of violent and potentially deadly incidents. Stressful events like terminations of employment occur on a regular basis. Ready access to a firearm in these situations arguably increases the possibility that an enraged or disgruntled individual may use a gun in an act of workplace violence. Therefore, many employers believe that “bring your gun to work” laws impede their ability to institute measures to minimize the risk of potentially deadly workplace incidents.

Employers in states that have no “bring your gun to work” law are free to ban employees from bringing guns onto their property, including the parking lots. Employers in states with “bring your gun to work” laws need to make sure that their policies do not violate these laws. In either situation, employers should consider implementing measures and policies, including updating or increasing security and employee training, which may reduce violence and increase safety in the workplace.

*David R. Vance practices in all areas of labor and employment law. He has extensive experience counseling employers as to workplace safety and related issues. For more information about this ever changing area of the law, please contact >David (drv@zrlaw.com) at 216.696.4441.


“Marriage” After Windsor: How to Resolve the Uncertainty Surrounding Same-Sex Marriage with Respect to Employment Benefits

By Emily Smith*
The Supreme Court’s decision in U.S. v. Windsor, 133 S.Ct. 2675 (2013) to strike down the definition of marriage in Section 3 of the Defense of Marriage Act (“DOMA”) created uncertainty for employers. A number of laws and federal programs, including the Family and Medical Leave Act (“FMLA”), relied on DOMA’s definition of marriage as that between a man and woman. After the Supreme Court held that definition to be unconstitutional, it was, and in some cases continues to be, unclear how laws and programs that relied on DOMA’s definition apply to same-sex spouses. Recently, the federal government and the Department of Labor (“DOL”) in particular have started to address the uncertainty that resulted from the Windsor decision.

The FMLA is one of the major laws that relied upon DOMA’s definition of marriage. Among other things, the FMLA allows eligible employees to take a leave of absence from employment to care for a family member that has a serious health condition. A spouse is a family member under the FMLA. While the FMLA defines a spouse as “a husband or wife as defined or recognized under State law for purposes of marriage in the State where the employee resides,” 29 C.F.R. 825.102, the DOL stated in a 1998 opinion letter that a “spouse” could only be a member of the opposite sex. Thus, even if a same-sex couple was legally married in New York, they would have been denied FMLA leave because the federal government, under DOMA, did not recognize same-sex marriage.

After the Windsor decision struck down DOMA’s definition of marriage, there were two possible ways to apply the FMLA (and similar statutes) to same-sex couples. The first approach is referred to as the “State of Residency” rule in which the federal government would merely adopt each state’s definition of marriage when enforcing its programs in that state. For example, if a same-sex couple is married in New York, and they request FMLA leave for a sick spouse while they live in New York, the FMLA leave should be granted because New York recognizes same-sex marriage. The second approach is referred to as the “State of Celebration” rule. Under this rule, the federal government would adopt the spousal definition of the state in which the individual was married. For example, if a same-sex couple is married in New York and then subsequently moves to Ohio, the couple’s marriage would still be viewed as legitimate by the federal government even though Ohio does not recognize same-sex marriage. Meanwhile, this same couple’s marriage would not be recognized under the “State of Residency” rule because Ohio, the couple’s state of residency, does not recognize same-sex marriage.

The DOL recently released two pieces of guidance that shed light on the application of two different federal laws to same-sex spouses. First, in Fact Sheet #28F, the DOL applied the “State of Residency” rule to the FMLA. The Fact Sheet contains a definition section under which “spouse” is defined as “a husband or wife as defined or recognized under state law for purposes of marriage in the state where the employee resides, including ‘common law’ marriage and same-sex marriage” (emphasis added). Therefore, employers in states that recognize same-sex marriage must treat same-sex married couples the same as heterosexual married couples under the FMLA. Employees residing in states that do not recognize same-sex marriage are not eligible to receive FMLA leave for same-sex spouses even if they moved from a state that allows same-sex marriage.

Contrary to the approach taken under the FMLA, the DOL adopted the “State of Celebration” rule for employee benefit plans under the Employee Retirement Income Security Act (“ERISA”). In Technical Release No. 2013-04, the DOL stated that for ERISA purposes, the term “spouse” refers to “any individuals who are lawfully married under any state law, including individuals married to a person of the same sex who were legally married in a state that recognizes such marriages, but who are domiciled in a state that does not recognize such marriages.” Therefore, under ERISA, same-sex married employees must be treated the same as heterosexual married couples even if the employee’s state of residence does not recognize same-sex marriage.

In addition to the guidance from the DOL, the Internal Revenue Service (“IRS”) recently announced that same-sex married couples may file joint federal tax returns in IRS Revenue Ruling 2013-17. In reaching this conclusion, the IRS applied the “State of Celebration” standard. As such, all same-sex married couples are entitled to file jointly, regardless of where they live, so long as they were married in a state that allows same-sex marriage.

In light of the uncertainty following the Windsor decision, employers should review their employment policies and practices to ensure — to the extent possible — that they are in compliance with the laws that were affected by the decision. While not binding on the courts, the DOL and the IRS have provided some guidance to employers. Employers should take a proactive approach in order to keep up-to-date with the latest developments and to avoid future liability.

*Emily A. Smith, practices in all areas of employment law and has extensive experience helping employers comply with the FMLA. If you have questions about how the Windsor decision impacts your company, please contact Zashin & Rich at 614.224.4441.

Don’t E-Smoke ‘em If You Got ‘em: E-Cigarettes in the Workplace

By David Frantz*
With a majority of states having workplace smoking bans, you may have thought that the days of an employee kicking back in his or her office chair and taking a few puffs were a thing of the past. However, at least for the time being, this may not be the case. With the advent of e-cigarettes, some smokers may rejoice as workplace smoking bans struggle to keep up with advances in technology.

Ohio’s smoking ban, which can be found at Ohio Revised Code Section 3794, generally prohibits “smoking” in any enclosed workplace or in areas directly adjacent to the entry or exit of a workplace. “Smoking” is defined as “inhaling, exhaling, burning, or carrying any lighted cigar, cigarette, pipe, or other lighted smoking device for burning tobacco or any other plant.” Although the definition sounds comprehensive, it does not extend to e-cigarettes because they operate by vaporizing (not burning) liquid nicotine (not tobacco). Touted by the e-cigarette industry as a safer alternative to traditional cigarettes, these battery operated devices emit a relatively scentless vapor that looks similar to cigarette smoke.

States and employers have responded to e-cigarettes in a variety of manners. In January 2010, New Jersey amended its workplace smoking ban, the New Jersey Smoke Free Air Act, to ban e-cigarettes in the workplace. Other states have also passed laws restricting the sale of e-cigarettes to minors. A number of employers also started imposing penalties, in the form of fees and increased health insurance premiums, on employees who use e-cigarettes.

Employers wishing to prevent employees from using e-cigarettes in the workplace may ban their use, even in areas where state or local municipality smoking laws do not apply to e-cigarettes. Employers who do not mind e-cigarette use should make sure that such use does not violate their state’s law or any local ordinances before permitting e-cigarette use in the workplace. Either way, as e-cigarettes become more popular, employers should be cognizant of the potential legal issues that they pose and plan accordingly, whether that be revising or instituting a new workplace smoking policy or seeking legal advice on applicable state and local laws.

*David Frantz practices in all areas of employment law. If you have questions about state or local smoking bans or workplace smoking policies, please contact David (dpf@zrlaw.com) at 216.696.4441.

FMLA Certification: Proactive Measures to Reduce Fraud and Abuse of FMLA Leave

By Stephen Zashin*

Employee leaves of absence under the Family and Medical Leave Act (“FMLA”) continue to increase, which in turn, increases an employer’s vulnerability to claims related to such leave. Employers must carefully evaluate all employee requests for FMLA leave. The following practices and procedures may help employers effectively administer FMLA leave while also reducing FMLA leave abuse.

Require Employees that Request FMLA Leave to Obtain Medical Certification

The medical certification process can help employers avoid granting improper FMLA requests or denying legitimate ones. Employers who require certification must provide notice to an employee in the Rights and Responsibilities Notice provided to employees with their Eligibility Notice. Any employee requesting medical leave must provide his or her employer with a complete and sufficient medical certification if the employer requests it. The employee must pay all costs associated with the initial medical certification. A medical certification may include: health care provider contact information; the date the health condition commenced; detailed information about the condition; details about how the condition prevents the employee from performing the essential functions of his or her job; in cases where the employee is taking leave to care for a family member, information about the care that is needed; and for intermittent leave, information about the condition that calls for intermittent leave and details concerning the dates of leave or frequency of incapacity. If an employee who has requested leave fails to provide the requested certification, the employer may deny the employee’s request.

Maintain Clear and Detailed Job Requirements and Keep Track of All Absences

Employers should maintain written job requirements and duties for each position at the company. When an employee requests FMLA leave, employers can attach these requirements to the certification forms that the employee submits to a health care provider. Health care providers use the job requirements to determine if the employee requesting leave can perform the essential functions of his or her job despite the condition. Employers should also track all employee absences. Work attendance statistics can be extremely helpful in detecting fraudulent leave requests. Employers can use this information during the certification process to verify with health care providers that an employee’s absences are an expected result of the condition at issue.

Authenticate and Clarify any Ambiguities that Appear on an Employee’s Certification

Occasionally, an employee will provide his or her employer with an incomplete or ambiguous medical certification. If so, the employer must provide the employee with written notice of any deficiencies and allow the employee to clarify ambiguities and correct deficiencies on the medical certification. Once an employee provides a complete certification, the employer can no longer request additional information from the employee’s health care provider. However, there are certain avenues through which the employer can seek clarification or authentication of the certification from the employee’s health care provider. Specifically, the employer may use: (1) a human resource professional; (2) a leave administrator; or (3) another health care provider to contact the issuing health care provider. It is critical that the employee’s immediate supervisor or someone to whom the employee reports to or works with directly does not contact the health care provider.

Require Employees with Questionable Certificates to Obtain a Second Opinion

If the employer contacts the health care provider and still believes the employee’s certification is unclear or invalid, the employer may require the employee to obtain a second medical certification from a different health care provider. The employer is responsible for choosing the second health care provider; however, this provider cannot be one the employer regularly utilizes. The employer bears the cost for the second medical certification. If inconsistencies arise between the first and second certification, the employer may request a third and final certification. The employer also must pay for the cost of this certification. Although second and third medical certifications come at a cost to employers, employers may request them if they believe the original certification is fraudulent or ambiguous.

Require Employees that Request Additional Leave to Get Recertified

Employers may require an employee on leave to obtain recertification before extending the employee’s leave. Employers may request recertification of an employee every 30 days unless the employee suffers from a serious health condition that impairs his or her ability to perform job requirements for a period of time exceeding 30 days. If the certification indicates that the minimum duration is more than 30 days, the employer must wait until the minimum duration expires before requesting recertification. An employer may request recertification after a period of less than 30 days if: (1) the employee requests an extension of leave; (2) the employee’s circumstances have changed since the previous certification; or (3) the employer has reason to believe that the previous medical certification was invalid. By requesting employee recertification, employers can help determine whether an employee’s original issue still inhibits his or her job performance. Generally, employers must allow the employee at least 15 days to provide the recertification, but the employee bears the expense of the recertification.

Require Employees that are Returning to Work from FMLA Leave to Obtain a “Fitness for Duty” Certification

Requiring employees to obtain a fitness for duty certification can help prevent employees from injuring themselves or others in an accident caused by a premature return to work. Employers may request a fitness for duty certificate for the particular health condition precipitating the employee’s need for leave only. Employers must provide notice to employees in their Designation Notices if they require employees to obtain fitness for duty certification before returning to work, and whether the certification must address an employee’s ability to preform the essential functions of his or her job. Employers should provide written job descriptions or a list of the essential functions of the employee’s position to employees with the Designation Notice. The employee is responsible for paying all costs associated with this certification. The employer may contact the health care provider to authenticate or clarify the certification in the same manner as the original medical certification. However, the employer may not request a second or third opinion. Also, if an employee’s return to work is governed by a collective bargaining agreement, the employer should abide by such agreement before proceeding with a request for a fitness for duty certification.

It is important that employers draft, enforce, and provide employees with a copy of company leave of absence policies and procedures. Specifically, employers should notify employees of their rights under the FMLA and the proper procedures to request leave. Employers must display an FMLA information poster at the workplace. This information also must be available in the employee handbook, or if the employer does not have a handbook, must be distributed to employees when they are hired.

Handling FMLA leave requests is a complicated process that can lead to costly mistakes. Employers should contact counsel for advice and assistance in developing policies and procedures that will help reduce FMLA leave abuse and limit potential liability.

*Stephen Zashin, an OSBA Certified Specialist in Labor and Employment Law and a Best Lawyer in America (2014), is the head of the firm’s Employment and Labor Group. Stephen’s practice encompasses all areas of employment litigation. He has extensive experience helping employers navigate through FMLA leave administration, certification, and other employment issues. For more information about this ever changing area, please contact Stephen (ssz@zrlaw.com) at 216.696.4441.

Clearing Away the Smoke: When a “Volunteer” is Really an “Employee” under the FLSA and FMLA

By Jonathan Downes*
In a counter-intuitive decision, the Sixth Circuit Court of Appeals recently addressed the ambiguity under the Family and Medical Leave Act (“FMLA”) as to when paid-volunteers should be considered employees. In Mendel v. City of Gibraltar, 727 F.3d 565 (2013), the court held that a city’s paid-volunteer firefighters were employees for purposes of the FMLA. This decision impacts smaller cities and other political subdivisions that utilize paid-volunteer forces and previously thought these forces were not subject to the FMLA.

In order for an employer to be subject to claims under the FMLA, it must have 50 or more “employees” working within a 75 mile radius. Thanks to the rather imprecise definitions used in the Fair Labor Standards Act (“FLSA”)—upon which the FMLA relies for its definitions of terms like “employ” and “employee”—the United States Supreme Court developed an “economic realities” test to determine who qualifies as an employee under the Acts. This test takes a case-by-case approach, weighing the circumstances of the business activity as a whole instead of relying on isolated factors.

In Mendel, a dispatcher for the city’s police department claimed that he was terminated in violation of the FMLA. The city argued that its employees were not covered by the FMLA because the city only employed 41 people, not 50 as is necessary for the FMLA to apply. The city contended that its 20-35 paid-volunteer firefighters were not employees

In determining whether the volunteer firefighters were employees, the court focused heavily on the amount of wages paid to the volunteer firefighters. Under the FLSA and the FMLA, volunteers for public agencies are excluded from the definition of “employee” if they are not paid or only receive a nominal fee for their services. The firefighters at issue in Mendel received $15 per hour for responding to calls and maintaining equipment while nearby communities paid full-time firefighters wages ranging from $14 to $17 per hour. In light of the “economic realities” of the situation, the court found that the “substantial compensation” paid to the volunteer firefighters was not a nominal fee, and as such, the firefighters were employees.

The court did not weigh other factors that would support a finding against employee status as heavily. For example, the volunteer firefighters were not required, whatsoever, to actually respond to any emergency calls, they had no consistent schedules or set shifts, they did not staff a fire station, and they maintained other employment. Despite the clear lack of control by the city over these volunteer firefighters, the court found that these factors were insufficient to overcome the fact that the city paid the firefighters substantial wages for their services.

In light of the Mendel decision, employers using paid-volunteer forces should reevaluate whether they are truly volunteers. If not, additional laws and regulations may apply to the employer when including its paid-volunteer forces as employees. Although courts will determine employee status on a case-by-case basis, this decision sheds light on the factors that the Sixth Circuit and other courts may emphasize in their determinations. Concerned employers should seek advice from legal counsel in determining potential liability under the FMLA, the FLSA, and other statutes.

*Jonathan Downes is an OSBA Certified Specialist in Employment and Labor Law and a Best Lawyer in America (2014). He has extensive experience developing policies for and advising municipalities and public entities. For more information about this article or general issues please contact Jonathan (jjd@zrlaw.com) at 614.224.4441.

State Minimum Wage Increases for 2014

By George S. Crisci*
The federal minimum wage will remain at $7.25 for non-tipped employees and $2.13 for tipped employees in 2014. The following states though are increasing their minimum wage as follows:

2014 STATE MINIMUM WAGE INCREASES
State Non-tipped Increase Tipped Increase
Arizona
$7.90
$0.10
$4.90
$0.10
California†
$9.00
$1.00
N/A
N/A
Colorado††
$8.00
$0.22
$4.98
$0.22
Connecticut
$8.70
$0.45
(No change)
Florida
$7.93
$0.14
$4.91
$0.14
Missouri
$7.50
$0.15
$3.75
$0.08
Montana
$7.90
$0.10
N/A
N/A
New Jersey
$8.25
$1.00
(No change)
New York
$8.00
$0.75
(Varies by industry)
Ohio*
$7.95
$0.10
$3.98
$0.05
Oregon
$9.10
$0.15
N/A
N/A
Rhode Island
$8.00
$0.25
(No change)
Vermont
$8.73
$0.13
$4.23
$0.06
Washington
$9.32
$0.13
N/A
N/A
†Not effective until July 1, 2014.
††Currently proposed; final rules pending.
*Only applies to employers with annual gross receipts of more than $292,000.00.


*George S. Crisci, an OSBA Certified Specialist in Employment and Labor Law and a Best Lawyer in America (2014), has extensive knowledge of wage and hour laws. For more information about changes to the minimum wage or your labor and employment law needs, please contact George (gsc@zrlaw.com) at 216.696.4441.



Z&R Shorts


Best Lawyers ® Best Law Firms

Zashin & Rich Co., L.P.A. is pleased to announce that the firm's Employment and Labor Group has received First Tier ranking in Employment Law - Management in the Cleveland Region and Labor Law - Management in both the Cleveland and Columbus Regions by U.S. News - Best Lawyers® “Best Law Firms” in 2014.
George Crisci, Jon Dileno, Jonathan Downes, and Stephen Zashin of the firm's Employment and Labor Group were all named Best Lawyers in America in 2014. The firm congratulates these four attorneys as well as all of its attorneys that contribute to the firm’s labor and employment practice. The firm represents clients from publicly traded national corporations to small businesses in matters ranging from discrimination and harassment complaints to workers' compensation.
Since it was first published in 1983, Best Lawyers® has become universally regarded as the definitive guide to legal excellence. Because Best Lawyers® is based on an exhaustive peer-review survey in which more than 39,000 leading attorneys cast almost 3.1 million votes on the legal abilities of other lawyers in their practice areas, and because lawyers are not required or allowed to pay a fee to be listed, inclusion in Best Lawyers® is considered a singular honor.

Zashin & Rich is pleased to announce the addition of David Frantz to the firm’s Employment and Labor Group in its Cleveland office.

David’s practice encompasses all areas of employment and labor law, including employment discrimination, retaliation, and labor relations. As a student at Case Western Reserve University School of Law, David served as an editor for the Case Western Reserve Law Review and received an award for excelling in the study of labor and employment law. Prior to joining Z&R, David externed with the United States Equal Employment Opportunity Commission and Judge Joan Synenberg at the Cuyahoga County Court of Common Pleas.

Upcoming Speaking Engagements


Sunday, February 2, 2014
Jonathan Downes presents “Advance Techniques in Arbitration Matters” at the Ohio Public Employers Labor Relations Association’s Annual Training Conference. For more details, go to www.ohpelra.org.

Thursday, February 20, 2014
Stephen Zashin presents “HR Issues” before the American Payroll Association Greater Cleveland Chapter. For more details, go to www.americanpayroll.org.

Thursday, April 17, 2014
Jonathan Downes speaks at the Labor Relations Information Systems conference on “Collective Bargaining for Public Safety Personnel” in Las Vegas. For more details, go to www.lris.com/lris-seminars/.

Tuesday, April 29, 2014
Jonathan Downes presents “Update on Employment and Labor Issues Affecting Law Enforcement” and “Collective Bargaining and Arbitration Decisions for Police Chiefs” at the Ohio Association of Chiefs of Police annual Chiefs In-Service. For more details, go to www.oacp.org/annualconf/chiefs.html.

Wednesday, May 21, 2014
George Crisci speaks at the National Business Institute’s Employee Documentation, Discipline, and Discharge seminar in Akron entitled, “Special Concerns When Dealing with Union Environments.”