New York Federal Court Dismisses Donning and Doffing Collective Action

Since the Supreme Court’s decision in IBP, Inc. v. Alvarez , 546 U.S. 21 (2005), “donning and doffing” claims have been filed with increased frequency against employers in many industries. In some instances, these claims take the form of a collective and or class action. Recently, the United States District Court for the Western District of New York granted summary judgment dismissing wage and hour claims brought under the Fair Labor Standards Act (“FLSA”) and the New York Labor Law in a case defended by Bond, Schoeneck & King, PLLC (“BS&K”). Albrecht v. The Wackenhut Corp., slip op. no. 07-CV-6162 (W.D.N.Y. Sept. 24, 2009). The court’s holdings are discussed below.

 

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Questions to Avoid During the Hiring Process

Although many employers have put a freeze on hiring during these tough economic times, as we ease out of the current recession, many employers are moving from a hiring freeze mode to a hiring expansion mode. If you are one of those employers, it is a opportune time to remember that federal and state equal employment opportunity laws prohibit prospective employers from asking certain questions during the hiring process, whether on a job application or in an interview. Asking such questions can lead to potential liability for discriminatory hiring and to costly lawsuits. Below are twelve key subjects to avoid during the hiring process.

 

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New York Increases Amount of Salary Necessary to Qualify Employees for Executive and Administrative Exemptions

Effective July 24, 2009, the minimum salary that an employee must receive to qualify for the executive or administrative exemption from overtime pay requirements in New York increased to $543.75. It was $536.10. Because this amount differs from the exempt salary amount under the federal Fair Labor Standards Act (“FLSA”) of $455, employers in New York should evaluate their pay practices to ensure compliance with both state and federal law. The differences between federal and New York law are described below.

 

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Mandatory E-Verify Participation for Certain Federal Contractors is Effective September 8, 2009

E-Verify is a free, Internet-based system operated by the Department of Homeland Security (“DHS”) and the U.S. Citizenship and Immigration Services (“USCIS”) in partnership with the Social Security Administration (“SSA”). E-Verify enables participating employers to electronically verify the employment eligibility of their employees based upon electronic information and records maintained by the DHS and SSA databases. As of September 8, 2009, many federal contractors and subcontractors are required to use the E-Verify system to confirm whether their employees are eligible to work in the United States. This change is the result of the final version of the applicable Federal Acquisition Regulation (“FAR”). The scope of coverage of the new rule is described below. DHS, SSA and USCIS have a variety of informational resources on E-Verify on the USCIS website, www.uscis.gov.

 

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Yet Another Amendment to the New York Labor Law

On August 26, 2009, Governor Paterson signed yet another  bill amending sections of the New York Labor Law.  This time, the amendments are designed to provide a greater deterrent effect to employers who violate the law.  The two amendments are described below.

 

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New York Insurance Law Changes Extend Continuation Coverage and Dependent Coverage Under Insured Medical Plans

Governor Paterson recently signed legislation that will affect the administration of insured medical plans in New York State. The legislation generally extends the period that terminated employees may elect continuation coverage under an insured plan from 18 months to 36 months and requires medical insurers to offer continued coverage to employees’ unmarried children through age 29, regardless of financial dependence. Each aspect of the new legislation is explained below.

 

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What Impact on Municipal Labor and Employment Issues? New York's Government Reorganization and Citizen Empowerment Act

Earlier this summer Governor Paterson signed the “New York Government Reorganization and Citizen Empowerment Act” (Chapter 74, Laws of 2009). This sweeping piece of reform legislation was championed by Attorney General Cuomo as a way to improve local government efficiency and provide property tax relief to an already burdened citizenry. The Act, which will become effective on March 21, 2010 intends to make it easier to consolidate various governmental bodies such as Towns, Villages, and Special Districts. What remains to be seen, however, is whether the Act’s two new methods for consolidation/dissolution will truly benefit taxpayers and save money, or simply create a costly process counterproductive to the Act’s admirable goals. Equally uncertain is the Act’s impact on municipal labor and employment successorship issues arising out of consolidation or dissolution.

 

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Dealing with Employee Use of Social Networking Sites

Being at work apparently poses no obstacle to checking the Facebook or MySpace status of friends and keeping up-to-date with the continuous “tweets” on Twitter.  According to a recent study  conducted by Nucleus Research, 61% of all employees access their Facebook profiles at work. While the length of time employees are plugged-in varies from one to 120 minutes per employee per day, according to the same study employers lose an average of 15 minutes of productivity per day from each social networking employee.

What is an employer to do?

An employer can prohibit accessing social networking sites during working hours.  But this approach may have its own detrimental side effects on employee productivity.  According to one university study, employees who surf the Internet at work, including accessing Facebook and YouTube, are 9% more productive than their non-Internet surfing counterparts.  A ban on employee access to social networking sites can also limit the potential benefits an employer might receive from such sites.  For example, the networking site LinkedIn can serve as a valuable tool for businesses looking to build relationships with potential clients/customers.  And, as one researcher has noted, sites like Facebook can assist employees in building relationships with professional acquaintances which can benefit their employers in the long run.

 Monitoring employees’ use of Twitter, Facebook, MySpace, and other social networking sites is another option.  But monitoring employee use of such sites raises several legal issues, including, in particular, whether an employer that accesses an employee’s social networking page without the employee’s consent violates federal law.

Social networking sites offer subscribers a variety of protections to keep their posts private or semi-private.  If a subscriber sets his profile to “private/friends only,” he can reasonably expect that his employer will not have access to his profile posts or pictures unless he accepts the employer as a Facebook “friend.”  But picture this scenario: Co-workers engage in a dialogue critical of their employer on a MySpace page that can only be accessed by individuals invited and authorized by the page creator to view it.  The employer then terminates these employees after learning about the page and its posts from an authorized viewer. Legal? According to the court in Pietrylo v. Hillstone Restaurant Group d/b/a/ Houston’s, (D.N.J. 2008) , the answer to that question depends, in part, on whether the employer violated a federal statute, the Stored Communications Act (“SCA”) (18 U.S.C. § 2701 et seq.).

The SCA applies to communications stored on Internet sites (such as Facebook, MySpace, Twitter, etc.). It imposes criminal penalties on individuals who gain unauthorized access to such stored communications. Employers can run afoul of the SCA by covertly monitoring their employees’ private social networking postings by, for example, using spyware to track keystrokes to gain log-in information. But the Act’s protections extend beyond such covert measures. “Unauthorized access” also encompasses situations where authorized access is exceeded.  The Act excepts from liability “conduct authorized … by a user of that service with respect to a communication of or intended for that user.”  So long as the information is freely provided by someone who is authorized to and has accessed the private website, the Act permits an authorized user to allow a third party to gain access to the same information the authorized user has access to.

In Pietrylo, the employer gained access to an employee’s password-protected, “by invitation only,” MySpace page when an invited member of the page (also an employee) showed it to a manager at a dinner party. The manager thereafter asked the invited member for her log-in name and password, and used that information to repeatedly access the page and its postings. The court held that a jury could find this means of access not “authorized” under the SCA, if the invited member’s consent was given under duress (the invited member thought that she could get in trouble with the company if she did not provide the information). The jury ultimately returned a verdict against the employer, and found that the employer had, in fact, gained unauthorized access to the MySpace page in violation of the SCA.

The Pietrylo decision and verdict does not mean that every request for log-in information will violate the SCA. Had the invited member in Pietrylo freely given the employer her log-in information, the employer would likely have faced no liability. But whether consent is freely given will often be a difficult question to answer, so employers should be cautious when making requests.

Moreover, the potential legal issues raised by accessing a social networking site do not end with the question of authorized access. Once access is lawfully gained, the issue then becomes, what, if anything, employers can do with the information that is discovered. For an overview discussion of those potential legal issues, see Employers: ‘Keep out!’ Beware intruding in employee web sites by Louis P. DiLorenzo.