December 2009 Archives

December 13, 2009

Pregnancy Discrimination in the Workplace Occurs Frequently, But Excessive Absences Due to the Pregnancy Could Justify Discharge of the Employee

We recently settled a pregnancy discrimination claim that we filed on behalf of an employee that worked for a Miami-based financial institution. In that case, the employee performed her work well for several months, but as soon as she told her supervisor that she was pregnant, the company began treating her differently than other employees and her requests for time off to see her doctor were met with much less tolerance. She was ultimately fired, at which point we filed a charge with the U.S. Equal Employment Opportunity Commission (EEOC). While we cannot give any more details, the case is typical of a pregnancy discrimination case.

A similar claim that was brought against the Kohler Company by the EEOC in Atlanta, Georgia was settled approximately two weeks for $175,000.00 and the company's commitment to conduct equal opportunity training. While the company denied liability, in that case the EEOC alleged that a showroom executive who had an excellent performance record was placed on probation after she informed management about her pregnancy and was ultimately fired prior to her delivery.

Under the Pregnancy Discrimination Act (PDA), discrimination on the basis of pregnancy is a form of sex discrimination. To prevail on a pregnancy claim, the employee must show that she was treated differently because of her pregnancy or a pregnancy-related condition. The PDA provides that an employer must treat a pregnant employee the same as they would treat any other similarly affected employee. The comparator employees would be employees that suffer any other temporary medical condition, such as having to undergo minor surgery.

However, while the PDA requires the employer to ignore the employee's pregnancy, the employer is not required to ignore absences from work unless the employer overlooks comparable absences of nonpregnant employees. Therefore, one of the most difficult challenges that arise with pregnancy claims is the belief that pregnant employees are entitled to take time off of work to go to medical appointments. This is not true. In this respect, the courts have held that excessive absences from work, even if caused by the pregnancy, could result in the justified termination of the pregnant employee's employment. Moreover, the PDA does not require employers to offer maternity leave or to take other steps to make it easier for pregnant women to work. As one court noted, "employers can treat pregnant women as badly as they treat similarly affected but nonpregnant employees." Troupe v. May Dept. Stores Co., 20 F.3d 734 (7th Cir. 1994). The important point is that the treatment must be the same. Therefore, a pregnant employee must be careful to schedule medical appointments during non-work hours and to limit absences from work, otherwise, her pregnancy claim could be in jeopardy.

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December 6, 2009

Department of Labor Found that Florida Automobile Dealership Violated Wage and Hour Laws and Required Back Wages to be Paid

Two weeks ago, Plattner Automotive Group, which operates 11 dealerships in the State of Florida, agreed to settle a U.S. Department of Labor investigation and pay $71,129.00 in back wages to its employees. The Department of Labor determined that the company had violated provisions of the Fair Labor Standards Act (FLSA). One of the points stressed by the Department of Labor in that case was that while there is an overtime exemption for commissioned automobile salespersons, such salespersons must still be paid at least the federal minimum wage for all of the hours that they work.

Most clients believe that most commissioned employees are not entitled to overtime pay. However, that is not true. Some retail sales employees are exempt from overtime pay, but these exemptions require specific compliance with certain requirements. The classic example is the case of automobile dealerships, where sales personnel are exempt from the overtime pay requirement. Yet, this exemption is absolute. There are certain requirements that must be met. In addition, with respect to automobile salespersons, they must be paid at least the minimum wage for all hours that they work, regardless of whether or not they make a sale.

Typically, automobile salespersons are paid a set "draw" which is usually based on working forty hours per week at the minimum wage or slightly above the minimum wage. Problems arise if the salesperson either works more than forty hours per week or does not sell any automobiles. The problem is compounded if the salesperson works more than forty hours per week and does not sell any automobiles. The salesperson receives the draw, but does not receive any compensation for work performed over forty hours per week.

Another exemption for commissioned salespersons is the retail sales exemption. Typically, salespersons in a retail store are not entitled to an overtime premium. However, in order to qualify for the exemption, the following requirements must be met: (1) the employer must be a retail store, with 75% of the annual sales being retail sales; (2) the employee's regular rate of pay must exceed one and one-half times the applicable minimum wage for every hour worked; and (3) more than half of the employee's compensation must be in the form of commissions. If all of these requirements are not met, then the employer does not qualify for the retail sales exemption and an overtime premium must be paid for all hours worked over forty per week.

Continue reading "Department of Labor Found that Florida Automobile Dealership Violated Wage and Hour Laws and Required Back Wages to be Paid" »

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