Tuesday, June 30, 2015

NLRB Judge Finds Employer Committed an Unfair Labor Practice When it Fired Worker for Making Racist Remarks While Picketing


An Administrative Law Judge (ALJ) for the National Labor Relations Board recently held that an employee was engaging in “protected activity” when he made racist remarks toward African American replacement workers as they entered a plant to work during a labor dispute.  An arbitrator had ruled in a separate proceeding that the employer was justified in terminating this individual for racial harassment.  However, the Board’s ALJ determined that because the racially offensive comments were made during the course of union picketing at the plant’s entrance, in opposition to workers who were replacing the picketers, his actions were protected by federal labor law. 

During the labor dispute, as is often the case picketers regularly yelled and gestured at the replacement workers as they entered and departed from working in the plant.  After vans carrying several African American replacement workers passed through the picket line, the employee in question made the following racially offensive remarks: “Hey, did you bring enough KFC for everyone?” and “Hey, anybody smell that?  I smell fried chicken and watermelon.”  Based on these comments, the employer determined that the employee violated its harassment policy and terminated the employee.  The union grieved the termination, and an arbitrator sided with the employer, finding that there was just cause to terminate the employee.

In separate proceedings before the NLRB, however, an ALJ determined that the employer acted unlawfully in terminating this employee for making these racial remarks.  According to the ALJ’s decision, an employer can only deny reinstatement to a picketer if the misconduct “may reasonably tend to coerce or intimidate employees in the rights protected under the Act,” or if the employee’s actions raised a reasonable likelihood of an imminent physical confrontation.  The ALJ determined that, although reprehensible, the employee’s actions did not meet either of these standards. 

The ALJ indicated, however, that this highly protective standard for behavior on a picket line does not apply to behavior in the everyday workplace, such as on the shop floor.  Therefore, this decision does not mean that an employer would have to put up with racist comments in the workplace.  In fact, an employer has an obligation to appropriately respond to these sorts of comments, which could create a racially hostile workplace.  Under this ALJ decision, however, the employer would find itself in a Catch-22: if it terminates the picketing employee, the NLRB says it violates labor law; however, if it takes no action against the employee, it could face a race harassment claim.


Questions? Contact the attorneys in Wessels Sherman’s Minneapolis office at (952) 746-1700.

Monday, June 29, 2015

Reminder: Minimum Wage Increase Effective August 1st for Minnesota Employers

Employers with any employees in Minnesota are reminded that Minnesota's minimum wage law (passed last year), not only increased the minimum wage in 2014 but also included an automatic incremental increase for subsequent years. 

For large employers (those who annually conduct at least $500,000.00 gross sales or business)
  • Effective August 1, 2015 - $9.00/hour 
  • Effective August 1, 2016 -  $9.50/hour
For small employers
  • Effective August 1, 2015 - $7.25/hour
  • Effective August 1, 2016 - $7.75/hour
Also, beginning in 2018 the minimum wage for all employers is subject to further increases based on cost of living data.

Questions on details of distinguishing between large and small employer status for purposes of the new minimum wage, certain exemptions from these increases, or other help with employer wage and hour questions, contact the Minnesota office of Wessels Sherman, at (952) 746-1700, or email chbeggan@wesselssherman.com

DOL Investing Tax Monies to Make the Case for Paid Leave Programs

June 2015
By: James B. Sherman, Esq.

The United States Department of Labor announced that it is making approximately $1.25 million available as grant money for research and analysis of how paid leave programs can be developed and implemented across the country.  The DOL financed study clearly is aimed at making the case for mandating paid leaves of absence.  In fact, a number of state and local governments have already considered or passed legislation requiring employers to provide employees with paid leaves of absence in various circumstances, and the Obama administration has made mandating paid leave a priority.  

Questions? Contact Attorney James Sherman by email at jasherman@wesselssherman.com or call him at (952) 746-1700.

Thursday, June 11, 2015

Script for Termination Meeting Where There is Severance Pay and a Release

June 2015
By Richard H. Wessels

Here is something that we have used over and over again. It has proven to be so useful and valuable that we thought we would share it. Routinely, our clients conclude that the use of severance pay along with a release is a good tool particularly in sensitive termination cases. The normal ground rules need to be considered – preferably two management people involved in the meeting, short meeting with no debate, general commentary on the reason for termination, and a handling of the meeting in a dignified, respectful manner. The script below has stood the test of time.
Charlie, you know Mary who is here with me from our Human Resources Department. She is here because of some specific HR issues. I would like this to be a positive meeting. But, unfortunately, the subject is not positive. Let me get right to the point. A decision has been made that today will be your last day with our Company.

This decision goes to the top levels of the Company. It is not an issue for debate. I do not want to be unduly negative. You know that we have discussed in the past the big problems with production schedules, the quality issues, and then most recently the complaints on deliveries from our biggest customer. Again, I do not want to be unduly negative, but we have simply made the decision that we must part ways effective today.
Now, there are two ways we can handle this. One is normal Company policy. That would mean pay through today plus any unused vacation.

Or, and this is the way we would prefer to handle it, we can give you an enhanced program. This enhanced program would be severance pay for three months plus health care for those three months at the same rate that you are paying now. We will also provide outplacement assistance. If you choose the enhanced program, you will have to sign a standard form release. Mary has a letter explaining the enhanced program, and she has the release form. Mary and I can answer any questions that you may have.
Naturally, there are any number of variables. So give us a call to discuss any of these issues (including the format for a release) before you move forward.

You can contact me here at our St. Charles office at (630) 377-1554 or via email at riwessels@wesselssherman.com