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Adverse Employment Actions in Discrimination Claims

 

The California courts have ruled once again on the seriousness of claims of sexual orientation workplace discrimination and retaliation. On February 5, 2007, the Fourth Appellate District, Division One of the California Court of Appeal reversed a San Diego trial court’s motion for judgment notwithstanding the verdict for applying the wrong standard for adjudging adverse actions and mistakenly ruling that individual supervisors cannot be held personally liable for retaliation under the California Fair Employment and Housing Act (FEHA) when the underlying claim is discrimination. The Court of Appeal  reinstated the 1.395 million dollar verdict against The Lodge at Torrey Pines for sexual orientation discrimination and retaliation and the $155,000 verdict against the supervisor for retaliation. (Jones v. Torrey Pines P’ship, Cal. Ct. App. No. D046600, 2/5/07.)

 

The case is especially noteworthy in two respects: First, for making it easier to establish an adverse employment action by applying the  “totality of the circumstances” approach as first articulated in Yanowitz v. L’Oreal USA Inc., 36 Cal. 4th 1028, in that consequences other than a termination or demotion, such as a transfer, a failure to invite the complainant to a important meeting, placing the complainant on probation,  and/or reducing the complainant’s responsibilities may be the basis, when taken as a whole, for an “adverse employment action”;  and Second, for holding individual supervisors personally liable for retaliation under the FEHA when the underlying complaint is for discrimination.

 

The lesson for employers is to take all stages of a discrimination claim very seriously – from the moment you first hear of it, all the way through to the conclusion of your investigation – making sure the complaining employee suffers no adverse employment action as a result. Penalizing an employee in any way only compounds an already serious problem, exposing you and your supervisors to large monetary penalties if found guilty.

 

Sexual Orientation Discrimination

 

In the case, plaintiff Scott Jones worked as a restaurant manager for The Lodge at Torrey Pines, in San Diego, California. He claimed his supervisor, Jean Weiss, made daily sexually derogatory comments to him while at work. When he complained to Weiss and to human resources, they responded by excluding him from meetings and offering transfers and demotions to other company locations.

 

The evidence that came out during the trial reads like a checklist of how not to handle an employee complaint of discrimination or harassment:

 

·         Jones testified that Weiss and another supervisor used words like “fu*#ing,” “coc*#ucker,” and “fag*#ot,” in jokes that Jones found highly offensive and degrading.

·         Weiss threatened to fire Jones if he complained to human resources, and berated him verbally when Jones sent a memo requesting an end to Weiss’ “unprofessional remarks.”

·         When Jones complained to HR, the manager, Jim Fulks, “…suggested he quit his job because ‘things like this get worse.’” Further, HR did nothing to stop the activity, and accused Jones of “blackmailing” the company when Jones complained to the Department of Fair Employment and Housing (DFEH), the state agency in charge of enforcing discrimination laws.

·         Weiss initiated a disciplinary process against Jones, writing him up on several occasions for what amounted to trumped up charges of poor performance, all after Jones complained of the discrimination. HR director Fulks was complicit in the write ups, providing Weiss with the format to use to document the poor performance.

·         When Jones returned from a month-long disability leave due to the “on-the-job harassment,” Weiss and other management responded by excluding him from important meetings, and telling him he had burned a bridge with the company.

·         When Jones finally resigned, almost a year after making his initial complaint, the company responded by referencing Jones’ so-called performance issues, telling him, “…despite (management’s) efforts and attempts to assist you to improve your work performance, (we) believe you made the best decision for yourself.”

 

What Constitutes Adverse Employment Action?

 

Among the most noteworthy issues in the case is the standard the Court of Appeal  used to establish an “adverse employment action.” The court focused on the “totality of the circumstances,” rather than a single event such as a demotion or firing. This means that the sum of a number of more subtle negative incidents can add up to retaliation in the eyes of the law.

 

In its decision, the court noted that, “…(the law) must be interpreted broadly to further the fundamental antidiscrimination purposes of the FEHA. Appropriately viewed, (an employee is protected) against unlawful discrimination with respect not only to so-called ‘ultimate employment actions’ such as termination or demotion, but also (to) the entire spectrum of employment actions that are reasonably likely to adversely and materially affect an employee’s job performance or opportunity for advancement in his or her career.”

 

What You Should Do

 

As with all claims of discrimination, it is best to err on the side of caution and investigate every claim carefully. Most importantly:

 

·         Review your company discrimination policies with employees and supervisors, making sure everyone knows your company will not tolerate discrimination of any kind.

·         Investigate all claims promptly, and correct any problems right away – without penalizing the individual(s) who brought the complaint.

·         Train all employees about harassment, discrimination and retaliation

·         Check in with complaining employees after the investigation to see how they are doing and investigate any complaints of retaliation

·         Purchase The Ison Law Group’s recently published pamphlet on harassment and retaliation prevention entitled “Harassment in the Workplace” and distribute them to all employees.  The pamphlet is in English and Spanish and also has photos for those who cannot read.  Contact us for more information. We promise that this pamphlet will provide an extra layer of protection against harassment and retaliation claims.

·         For Best Practices on Preventing Sexual Orientation Discrimination and Harassment in the Workplace, contact Pat Luzuriaga.  This is The Ison Law Group’s newest training offering.  Please call our office for a cost quote.  The Ison Law Group’s newest trainer, Sheri Atkinson, is the Director of the Lesbian, Gay, Bisexual, Transgender Resource Center at the University of California, Davis.  She has worked in Higher Education and LGBT services for 10 years beginning with her graduate work at the Ohio State University, where she earned a Master of Arts in Higher Education and Student Affairs.   She then started the GLBT Services office at St. Cloud State University (SCSU) in Minnesota before moving to California to direct the LGBT Resource Center at UC Davis.  Sheri has done many presentations on a wide range of diversity and social justice related issues.  We are happy to have her on our training team!