Sexual Harassment Retaliation Lawsuit against Metro - Update

January 31, 2010 by Jim Higgins

In a Tennessee sexual harassment retaliation case the Tennessee Law Blog has been following for greater than a year, a federal jury has awarded Nashville woman $1.5M in a retaliation lawsuit case. Vicky Crawford, a former employee of Nashville schools, claimed she suffered wrongful termination after she cooperated in a workplace sexual harassment investigation at Metro Schools.

(For previous Tennessee Law Blogs on this case, see our "Harrassment Retaliation Lawsuit from Nashville…” and, for an earlier report, "TN Sexual Harassment Suit before Supreme Court Expected to Expand Retaliation Protections for All Workers”).

After working over 30 years with Metro Schools, Crawford was fired from her Payroll Coordinator position in 2003. Subsequently, she suffered lost wages, future lost wages, and pension benefits, for which she filed her TN employment lawsuit. Originally, her case was dismissed by a federal judge since Crawford, herself, was not the subject of the sexual harassment investigation.

Then, in January 2009, the U.S. Supreme Court ruled for Crawford that sexual harassment retaliation protections extended to her for testifying in a sexual harassment investigation when she told investigators about sexual advances her coworker made, which are detailed in previous Tennessee Law Blogs. No action was taken against this male supervisor for these allegations. The same day the sexual harassment investigator’s report was filed, allegations were made by Metro Nashville that it was concerned about Crawford’s payroll department. In addition to Crawford’s termination, two other female employees who testified were fired.

The $1.5M award was for compensatory damages, back pay and future lost wages.

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Tennessee Overtime Cases on the Rise

January 31, 2010 by Jim Higgins

Over the past year our office has pursued more overtime cases than ever before. I am not sure if people are just becoming more aware of their rights or if more employers are trying to increase profits by denying employees the overtime they have earned.

As most people know, if you are eligible for overtime you are entitled to be paid one and 1/2 times your normal pay rate for all time worked over 40 hours in one week. There are some common scams that we are seeing the employers use to avoid paying overtime. Here is one we see often:

Giving the employee an empty management title and paying a salary. Sometimes an employer will give an employee a bogus title such as manager or supervisor. This is done so the employer can pay a specific salary each week no matter how many hours are worked. To determine if this is a scam or legitimate it is important to look not at the title but what the work duties. In other words, if you are called a manager but do not have any management type powers you may be entitled to overtime pay. Common questions to ask are: Do you have the right to set schedules? Do you have the power to hire and fire? Do you supervise employees beneath you? If the answer is no then you may be entitled to back pay and overtime.

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Outback Settles $19M Sexual Discrimination Suit

January 27, 2010 by Jim Higgins

Outback Steak House is going to have to serve a whole lot of bloomin' onions to make up for the $19 million dollar settlement it agreed to pay in order to end a class action sexual discrimination lawsuit. The suit alleged a glass ceiling for female workers by requiring that all employees reaching the profit sharing managerial level have experience in the kitchen. The problem was female employees were consistently being denied any positions in the kitchen for then to gain the necessary experience. This has been hotly denied by OSI Partners, Outback's parent company.

Also part of the settlement is a consent decree that makes significant changes to OSI Partners promotion process including an online application that will allow employees to apply for managerial positions via the Internet. Human Resources will also get assistance in the form of a "Vice President for People". And just to make sure that all of this is actually happening, an outside consultant will be brought in for at least two years and every six months they will be reporting to the EEOC.

This is not the first time Outback has been called to task for treatment of its female employees. Over the years there have been thousands of complaints at hundreds of restaurants alleging discriminatory treatment of servers and managerial staff. In one instance they paid over $1.2 million to a woman who was fired only to find her position was filled by a man making twice her salary.

In a bit of an ironic twist, Flemings, a sister company to Outback, is facing its own lawsuit for sexual harassment. This one involves male workers. Obviously OSI Partners has some issues to address regarding their attitude toward employees. Not doing so has proved costly in the past. It could be devastating in the future.

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Million Dollar Verdict in Whirlpool Harassment Case

January 26, 2010 by Jim Higgins

A million dollar verdict was the only good thing to come of Carlotta Freeman's time at the Whirlpool plant in La Vergne, TN. This was the award from Federal judge John T. Nixon at the conclusion of her suit against the company for racial and sexual harassment.

Freeman claimed that Willie Baker, a white male co-worker, repeatedly made lewd and inappropriate comments and gestures in the plant and also in the break room. Her complaints to superiors largely fell on deaf ears. Despite assurances that something would be done, an investigation was never started and the supervisor never spoke with Baker. It was not until Freeman and another African-American woman, Chinica Lillard, complained about racial slurs to Kim Wheeler, a white female co-worker, that something finally started to happen. Unfortunately what happened was the supervisor advising the women to ignore Baker and suggesting Freeman just go ahead and have sex with Baker so he'd leave her alone.

The situation escalated to the point where Baker physically assaulted Freeman on the factory floor, pushing her into the moving assembly line causing her to be struck in the head by air conditioners moving down the line and throwing a steel valve at both Freeman and Lillard who had rescued Freeman from the moving line. Baker was fired for his part in the assault and Freeman returned the next day to take an open ended leave of absence. Freeman has subsequently been diagnosed with Post Traumatic Stress Disorder from her experiences. She has become a reclusive introvert, rarely leaving her home as a result of her ordeal.

The court stated that Whirlpool essentially did nothing about the ongoing complaints lodged by Freeman against Baker. Nixon found that every level of management in the now defunct plant failed to protect Carlotta Freeman in her place of work.

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Tennessee Class action filed for automatic lunch deductions

January 22, 2010 by Jim Higgins

A new class (or collective) action has been filed in Tennessee against a hospital for automatically deducting a lunch break from workers schedules. Apparently, the payroll system would deduct a specific period of time for lunch from the employee's pay even when the employee did not take lunch. This automatic payroll deduction would effect both regular pay and overtime received by employees.

In the age of automated systems and computers it is tempting and easy for employers to set up standard clock in and out procedures. Unfortunately, these systems do not always match reality. Also, it seems that it is usually the employer that gets the benefit and the employee that gets short changed on their paycheck.

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Tennessee Minimum Wage and Tipping Practices Subject of New Series of Articles

January 18, 2010 by Jim Higgins

The Memphis News began a series today titled Tipping a Tricky Business that covers many of the wage and hour legal issues facing tipped wage employees, especially when they are required to share their tips.

Written by Fredric Koeppel, this first installment covers a variety of tip-related subjects that have appeared in previous Tennessee Workplace Law Blog, such as tip pooling and illegal paycheck/tip deductions.

If you are a tipped employee, tips are the bulk of your paycheck. A tipped employee with 10 years with the company often receives the same on his or her paycheck as someone who just started. As Koeppel’s piece points out, “Some diners tip well and some don’t[…] Some tip on the amount before taxes and some on the after-tax total.” Furthermore, some restaurants charge their wait staff for tips paid on a credit card as a means of recovering the charges the restaurant must pay for credit card transactions.

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