Reversing a denial of a motion to compel arbitration in Parisi et al. v. Goldman, Sachs & Co. et al., the Second Circuit held that a plaintiff does not have a substantive right to bring a pattern and practice claim under Title VII. The plaintiff at issue in Parisi alleged gender discrimination under Title VII, seeking to bring her claims on behalf of herself and a putative class of female Goldman Sachs employees. During her employment, the plaintiff signed a broad arbitration agreement, which covered her discrimination claims and did not contain a provision providing for class-wide arbitration. READ MORE
Discrimination
EEOC Releases Its Strategic Enforcement Plan
On December 17, 2012, the EEOC released its Strategic Enforcement Plan. As previously reported, the EEOC released the draft SEP for public comment on September 4, 2012, with a plan to vote on and implement it by October 1. The more than two month delay suggests that the Commission reviewed the more than 100 comments to the draft and may have also been internally conflicted over portions of the draft (the Commission’s final vote was 3-1). READ MORE
Discoverability of Social Networking
Two recent employment discrimination cases, though differing in their outcomes, make it clear to litigants that information posted on social networking sites (“SNS”) is fair game.
The court in EEOC v. Original Honeybaked Ham Company equated social networking sites to file folders entitled “Everything About Me.” 2012 WL 5430974, *1 (D. Colo. Nov. 7, 2012) After citing some exemplar entries from a class member’s Facebook account, the court reasoned that “[i]f all of this information was contained on pages filed in the ‘Everything About Me’ folder, it would need to be produced.” Id. at *2. The court’s analysis also included reference to the significant amount in controversy, and the high likelihood that the sites will contain relevant information (a determination made in part based on a review of pages “already obtained [from] one affected former employee[].”). Id. In an attempt to ensure that only relevant, non-privileged material is disclosed, the court established a two-step review process involving the in camera inspection by a special discovery master and subsequent review by plaintiffs’ counsel before production to the defendant. Id. at *3.
The Central District of California, in Mailhoit v. Home Depot U.S.A., Inc., 2012 WL 3939063, *2 (C.D. Cal. Sept. 7, 2012), also determined that “[g]enerally, SNS content is neither privileged nor protected by any right of privacy.” Id. However, while the Mailhoit court expressed its willingness to consider the grant of access to relevant content on plaintiffs’ SNS pages, the court found fault with all but one of defendant’s requests; (the requests were “not reasonably particular; “impermissibly overbroad;” “fail[] for vagueness”). Id. at *3-5.
Sixth Circuit Reverses Cintas Pattern-or-Practice Case
Last week, the Sixth Circuit Court of Appeals reversed summary judgment orders in a Title VII sex discrimination case against Cintas Corporation, holding that the EEOC (the intervening plaintiff) should have been allowed to pursue a pattern-or-practice claim under §706 of Title VII using the analytical framework set forth in Int’l Brotherhood of Teamsters v. United States, 431 U.S. 324 (1977). The decision rejects the notion that the Teamsters framework can only be used in cases brought under § 707 of Title VII, paving the way for the EEOC to pursue pattern-and-practice claims under § 706, which allows for the recovery of punitive and compensatory damages.
In Serrano et al. v. Cintas Corp., the EEOC challenged hiring practices used for women who applied to work as truck-driving sales representatives in Michigan. The district court dismissed the EEOC’s pattern-or-practice claim on the grounds that the agency pled the claim under § 706 rather than § 707, which provides specific authorization for such claims. The district court also granted summary judgment for Cintas on thirteen individual claims that the EEOC had pursued, analyzing them under the McDonnell-Douglas framework. READ MORE
EEOC Delays Release of Strategic Enforcement Plan, Suggesting Revisions to Draft Plan Likely
On September 4, 2012, the EEOC released for comment its draft Strategic Enforcement Plan (SEP). The EEOC invited the public to comment on the SEP by September 18, 2012, with a plan to vote on the draft at the end of September 2012 and to have the SEP become effective October 1. But that time has now passed with no word from the Commission. This suggests that the Commission is closely evaluating the comments submitted and considering which, if any, to incorporate into the final plan. There may also be disagreement within the Commission over portions of the draft plan. As a result, we do not expect the EEOC to issue the final SEP until mid-October at the earliest. READ MORE
Collection of Pay Data by Gender, Race and National Origin
On August 15, 2012, a panel commissioned by the Committee on National Statistics (CNSTAT) issued a report concluding that the U.S. Equal Employment Opportunity Commission (EEOC) and the Office of Federal Contract Compliance Programs (OFCCP) of the U.S. Department of Labor (DOL) should not collect earnings data by gender, race and national origin from private employers until the agencies develop a clearly articulated plan regarding how the data will be used to further their enforcement responsibilities. The panel also made several recommendations to assist the agencies in preparing to collect such data. READ MORE
Orrick’s Employment Law and Litigation Global Newsletter – Summer 2012
Welcome to the first edition of Orrick World: A Quarterly Report of Global Employment Law Issues for Multinationals. We have designed this newsletter to provide our multinational clients with quarterly updates on important employment law issues across the globe.
EEOC Issues New Enforcement Guidance Regarding Criminal Background Check Policies
On Wednesday, April 25, 2012, the Equal Employment Opportunity Commission (“EEOC”) issued new enforcement guidance regarding the use of criminal conviction and arrest records in employment decisions. The EEOC has had a long-standing policy that, unless job-related and justified by business necessity, a policy or practice of denying employment because an applicant has a criminal record violates Title VII. The new enforcement guidance, however, emphasizes EEOC’s presumption that consideration of a criminal history is unlawful, and undoubtedly illustrates the increased scrutiny under which EEOC will review criminal background check policies. Click here to view the new guidance on the EEOC’s website. READ MORE
EEOC: Gender Identity Discrimination Covered by Title VII
In a decision issued April 23, 2012, the EEOC held that gender-identity discrimination-or discrimination against transgender individuals because they are transgender-constitutes sex discrimination under Title VII. This decision builds on the Supreme Court’s decision in Price Waterhouse v. Hopkins in 1989, which held that the prohibition against sex discrimination includes protection for people who do not conform to gender stereotypes. The EEOC also held that, even if stereotyping was not involved, an employment decision made on the basis of the fact that an employee had a change of sex would be considered sex discrimination under the law. Since transgender employees report facing workplace discrimination at high levels, this decision, coupled with an increasing number of states that now include sexual identity as a protected category under their anti-discrimination statutes, may spark an increase in claims brought on this basis.
Credit Checks & Employment Discrimination—State Legislatures and the EEOC Take Action
Faced with the current uncertain economic climate and concerns regarding the plight of the unemployed, several state legislatures have recently passed or introduced bills restricting employers and prospective employers from using credit checks in hiring and personnel decisions. For example, on October 12, 2011, California Governor Jerry Brown signed AB 22 into law, creating California Labor Code section 1024.5, which prohibits California employers from using a consumer credit report for employment purposes except in limited circumstances. In passing this law, California joined six other states (Connecticut, Hawaii, Illinois, Maryland, Oregon, and Washington) in recently enacting laws restricting the use of credit checks in employment decisions. And the trend is expected to continue. As of February 13, 2012, 36 bills in 19 states and the District of Columbia have been introduced or are pending concerning the use of credit information in employment decisions. Click here for a list of the bills. READ MORE