Monday, November 24, 2014

Preferential Treatment of Minority Workers Is Still Unlawful Workplace Discrimination

November 2014
By: James B. Sherman, Esq.

When people think of workplace discrimination, they imagine an employer that disfavors applicants or employees on the basis of any number of legally prohibited grounds – e.g. race, sex, color, creed, religion, age, disability, etc. However, a recent class action lawsuit brought against household retail giant Bed Bath & Beyond, goes against these conventional notions of discrimination. The complaint accuses Bed Bath & Beyond of giving preferential treatment to its warehouse workers who are young, male and Hispanic. While the lawsuit may ultimately be found by the court to be without merit, the theory on which the plaintiffs base their case holds lessons for employers.

Some may think that giving favored treatment to minorities, or to a particular minority, would not violate workplace discrimination laws but would actually promote the objective of eliminating discrimination against minorities. But favoring any group always has the side effect, whether or not intended, of disfavoring other groups. This point is easy to grasp in the case of younger employees being favored over older individuals. After all, other than in Minnesota (where younger individuals between the age of majority and 40 are equally protected from age discrimination as are persons 40 and older), the age discrimination laws are not aimed at protecting younger individuals. The same can be said of favoring males over females – it is clearly gender discrimination.

But in a case such as that against Bed Bath & Beyond where it is also alleged that Hispanics (a minority) are given preferential treatment over others, if the allegations are proven true, the side effect would be that all other races, genders, persons of other national origins, etc. would necessarily be disfavored or excluded in relation to Hispanics.

In the 1990s the infamous Daniel Lamp case involved the EEOC in Chicago, bringing a class action race discrimination lawsuit against a small manufacturer, whose workforce was comprised of roughly 98% minorities. The problem for the EEOC was that the vast “majority of the minority,” if you will, were Hispanic individuals whereas the demographics of the area leaned more toward an African American populous. At the time, the case of an employer being accused of discrimination when nearly all its employees were “minorities,” was so novel that it received national media coverage on 60 Minutes. All these many years later the Bed Bath & Beyond case seems no less novel, other than its allegation of gender and age bias.

Of course employers rarely go intentionally looking for such troubles when it comes to hiring, etc. However, if not careful they can wind up in the same pickle as Daniel Lamp and Bed Bath & Beyond. For example, imagine that you have two employees and one turns out to be a superstar while the other barely manages to keep from being fired for poor performance. When an opening occurs, if both employees recommend an interested relative or friend, common sense tells you that you prefer more employees who are like your superstar, not your dud. Just as NFL teams all started drafting offensive lineman who looked (and weighed) like the dominant Washington team, famous “hogs,” you look to replicate that superstar employee. This may be perfectly fine unless your ideal employee begins to come from the same age group, gender, race, nationality, etc.

In sum, preferring one group – even a minority group – amounts to unlawful discrimination because it necessarily excludes or disadvantages other, equally protected groups. While few would consciously give preferential treatment to any class of people due to age, race gender, etc., it can sneak up on the unwary.  It is much easier to follow the practice of not treating any class of individuals poorly, than it is not giving preferential treatment to those with whom your experiences have been favorable. The best practice, then, is always to pursue equal treatment.

Wednesday, November 19, 2014

Illinois Workers’ Compensation Insurance Premium Rates Will Decrease in 2015



November 2014
By: Anthony J. Caruso, Jr., Esq.

Good news for Illinois employers.  The insurance premium rates for workers’ compensation insurance in the State of Illinois will continue to decrease for the 2015 year. 

In July, 2014, the National Council on Compensation Insurance (NCCI) delivered a workers’ compensation advisory rate and advisory loss cost filing to the Illinois Department of Insurance.  Based upon its review of the most recent available data, NCCI has proposed an overall average workers’ compensation advisory rate change of -5.5% to become effective January 1, 2015. With the implementation of this proposed change, the advisory rate level will be 19.3% below the advisory rate level prior to the 2011 workers’ compensation reform legislation.

The Illinois Department of Insurance has accepted the 5.5% drop in the advisory workers’ comp rate for 2015 recommended by the National Council on Compensation Insurance. 70% of carriers adopted the advisory rate.

It is estimated that the latest proposed reduction in workers’ compensation advisory and loss cost rates could result in an overall reduction in premiums of up to $143 million in 2015, with the total savings since the reforms were enacted in 2011 of $458 million.

The average rate change for the January 1, 2015 rate filing by Industry Groups are as follows

  • Manufacturing = -5.1%
  • Contracting = -4.8%
  • Office = -7.6%
  • Goods and Services = -5%
  • Miscellaneous = -6.4%

Employers should contact their insurance agent prior to their 2015 renewal date to determine the impact on their premium.

Please note that the NCCI rate reduction is advisory as to each individual insurance company issuing workers’ compensation insurance coverage in the State of Illinois.  Generally, most insurance companies will charge at or near the advisory rate by the NCCI.  The exception is for employers placed in the assigned risk pool who pay a substantially higher rate due to various factors (i.e. high loss experience, high risk industry, or no prior loss experience).

If you have any questions about this topic or any other questions related to workers’ compensation, please call attorney Anthony J. Caruso of Wessels Sherman’s St. Charles, Illinois office at (630) 377-1554 or email ancaruso@wesselssherman.com.

The RM Petition – A Little Known Way To Get Rid Of a Union



November 2014
By: Richard H. Wessels, Esq.
 
Over the years, Wessels Sherman has probably filed more RM petitions with the NLRB around the Midwest than anyone. It is an effective way to oust a union. But, for some reason it is seldom used. Here is the background. An RM petition is NRLB shorthand for a representation petition by management. In other words, the company files a petition to determine whether a union will continue to represent the employees. It is pretty much the same thing as a decertification petition.

With a decertification petition, an employee (management cannot instigate it) must obtain an indication that at least 30% of the individuals in a bargaining unit no longer want the union. Usually this is in the form of a piece of paper signed by employees indicating they no longer want the union to represent them. There are tight timeframes for the decertification petition. It can be filed only in the 90-60 day timeframe before labor contract expiration, or after expiration if no renewal contract has been negotiated. The problem, of course, is that rank and file employees are unlikely to go through all of the procedural red tape to get the NLRB process moving toward an election.

An RM petition is just a slight twist on this. If the disaffected employee can get a majority of the unit (rather than just 30%) to sign the paper that they don’t want the union any more, he can give it to management and management can take it from there. In other words, the company will be presented with clear evidence that the union no longer represents a majority and management can then file the petition rather than have the employee go through all of the red tape.

There are some other twists and turns here and the possibility of merely withdrawing recognition under certain circumstance, but the usual result is the RM petition. Then, what follows is the normal secret ballot election with the issue being decided by a majority of those who vote. This is something that management should keep in mind if they are hearing rumblings that bargaining unit employees no longer want to have union representation. For obvious reasons, this is very effective.

Another tip – a good way to facilitate this process if an employee asks questions about ousting the union is to direct the disaffected employee to instructions on the website of the National Right to Work Committee. That website is http://nrtwc.org/

Questions? Call Attorney Dick Wessels of Wessels Sherman's St. Charles, Illinois office: 630-377-1554 or email him at riwessels@wesselssherman.com.

Dick Wessels who is Founder and Senior Shareholder of Wessels Sherman Joerg Liszka Laverty Seneczko P.C. He is a nationally recognized labor attorney and has been honored as an Illinois Super Lawyer. Dick handles a wide variety of labor and employment law cases. His primary focus is dealing with labor unions, either on behalf of union-free companies or where unions already have representation rights. Dick has handled cases involving nearly all international unions for companies throughout the United States.