Employers Should Update Their Discrimination Policies in Light of the EEOC's Increased Awards for Discrimination Victims in 2011

Overall, 2011 was a record breaking year for the EEOC.  During the 2011 fiscal year, the Equal Employment Opportunity Commission (“EEOC”) won a record-breaking $365 million for discrimination victims.  In addition, the EEOC’s private sector mediation program obtained more than $170 million in monetary benefits for employees. 

It was also a productive year for the EEOC in terms of reducing its backlog.  For example, in fiscal year 2011, 99,947 charges of discrimination were filed with the EEOC.  However, as of September 20, 2011 there were only 78,136 pending charges – a decrease in ten percent over the last year.  This reduction was due to the EEOC following through on its pronouncement to make the reduction of its backlog a priority. 

EEOC enforcement was also up.  In 2011 the EEOC reported that at the end of the fiscal year, there were 580 systematic investigations under way, which was up from 485 investigations the previous year.  In addition, EEOC field legal units filed 261 lawsuits – 23 of which involved systematic allegations affecting large numbers of people; 61 involved between two and 19 alleged victims; and 177 were individual lawsuits.  

Based on the increased activity by the EEOC, employers need to review and revise, if necessary, their discrimination and harassment policies to ensure they are up-to-date.  With the EEOC being aggressive in its pursuits to dispose of cases as well as the increased success in obtaining awards for discrimination victims, employers must protect themselves against these types of claims.

Employers May Not Be Liable For The Boorish Behavior Of Their Employees

On October 19, 2011, the Appellate Division affirmed a trial court’s decision that abrasive, abusive, and condescending conduct toward employees does not, on its own, equate to a hostile work environment claim if the workplace conditions were the same for men and women. In other words, while the law protects against harassment motivated by a protected category such as race, gender, or religion, it does not guarantee a civil or courteous environment.

In Miceli v. Lakeland Automotive Corp., A-302-10T2, the Appellate Division considered the trial court’s grant of summary judgment in favor of Lakeland Automotive Corporation (“Lakeland”). Miceli, the only female car salesperson at Lakeland, brought a gender discrimination claim under New Jersey’s Law Against Discrimination (“LAD”), N.J.S.A. 10:5-1 to 49, against her former employer, Lakeland. She alleged that on three occasions a male co-worker abused, belittled, and harassed her. The scope of the alleged abusive language included the co-worker yelling at her saying she was “going to get hers” and that her “day is coming.” Miceli also complained that her supervisor permitted this conduct and directed his own abrasive behavior toward her by speaking to her (and other employees) in an angry, belittling, and condescending manner, and making statements in front of her and everyone else about his frustrations with the employees’ work.

The trial judge initially denied Lakeland’s pre-discovery motion for summary judgment, noting that the conduct complained of, “while it is impolite, while it is boorish, while it is probably reflective of a lack of human kindness, does not seem to be predicated upon . . . sexist conduct.” Nevertheless, the trial court denied the motion so that plaintiff could pursue discovery. Following discovery, Lakeland renewed its motion for summary judgment, and the Court granted it, finding that Miceli did not allege sufficient additional proofs “that the conflicts and altercations between herself and both the sales manager and the co-worker were motivated by her gender,” other than Miceli’s “blanket assertions.”

On appeal, Miceli argued, among other things, that Lakeland had a duty to eliminate the abusive behavior that constituted a “hostile work environment” in violation of LAD. The Appellate Division affirmed the trial court’s decision, recognizing that “there is no LAD violation if the same conduct would have occurred regardless of [Miceli’s] sex.”

The Appellate Division reasoned that the sales manager did not permit the conduct to continue as he addressed each incident about which Miceli complained and warned the co-worker that he would be terminated if problems continued. Moreover, plaintiff admitted that her supervisor’s abrasiveness was not limited to plaintiff, but that “[e]veryone complained about [the sales manager].” Miceli even admitted that the sales manager treated two other male co-workers abusively. She explained that the sales manager was “[j]ust an angry person all together.”

The Appellate Division concluded that, although rude and obnoxious, “there is no evidence to suggest that the co-worker’s conduct . . . was motivated by gender.” “Personality conflicts, albeit severe, do not equate to hostile work environment claims simply because the conflict is between a male and a female employee.” citing Herman v. Coastal Corp., 348 N.J. Super. 1, 20-21 (App. Div. 2002).

Even though “boorish” behavior may not be unlawful, employers should implement and enforce appropriate workplace guidelines. Also, if issues arise, employers should consult legal counsel regarding the remediation of and potential exposure for acts of their employees and obtain guidance on the best course of action to pursue to avoid and/or minimize liability for such acts.

Supreme Court Holds That Employees' Close Family Members are Protected From Retaliation Under Title VII

On January 24, 2011, in Thompson v. North American Stainless, L.P., __ U.S. __ (2011), the United States Supreme Court held that the anti-retaliation provisions of Title VII of the Civil Rights Act (“Title VII”) prohibit retaliation against third-parties, such as close family members of employees who engage in protected activities under Title VII.

In Thompson, Eric Thompson (“Thompson”) filed suit against North American Stainless, L.P. (“NAS”), claiming that he was subject to an unlawful termination because his fiancée, who was also a NAS employee, had filed a charge of discrimination against NAS with the Equal Employment Opportunity Commission (“EEOC”). The district court dismissed the case on summary judgment finding that Title VII does not permit third-party retaliation claims. The United States Court of Appeals for the Sixth Circuit affirmed the dismissal, reasoning that because Thompson himself did not engage in a protected activity under Title VII (his fiancée did), he could not maintain a claim against NAS. The Supreme Court reversed.

The Supreme Court held that Title VII’s anti-retaliation provisions protect against third-party reprisals. The Court noted that Title VII’s anti-retaliation provisions are worded broadly and are designed to prohibit employers from taking actions that “might have dissuaded a reasonable worker from making or supporting a charge of discrimination.” Burlington N.&S.F.R. Co. v. White, 548 U.S. 53, 68 (2006). In this instance, the Supreme Court found that a reasonable worker might be dissuaded from engaging in a protected activity if her fiancé was going to be fired as a result. While the Court declined to identify a fixed class of relationships that are protected from third-party reprisals, the Court did note that “firing a close family member will almost always meet the … standard, and inflicting a milder reprisal upon a mere acquaintance will almost never do so ….” Thompson (slip opinion p. 4.)

The Court next considered the issue of whether Thompson who, unlike his fiancée, had not engaged in a protected activity could sue NAS under Title VII and concluded that he could. Specifically, the Court found that Thompson was within the “zone of interests protected by Title VII” because he was an employee of NAS. The Court further reasoned that harming Thompson was an unlawful act by which NAS punished his fiancée for filing a charge of discrimination.