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PW: bnaweb22 -----Original Message----- From: "BNA Highlights" <bhighlig@bna.com<@ENRON Sent: Tuesday, November 20, 2001 11:22 PM To: BNA Highlights Subject: Nov. 21 -- BNA, Inc. Daily Labor Report ______________________________ DAILY LABOR REPORT Highlights & Table of Contents November 21, 2001 ______________________________ ISSN 1522-5968 __________ HIGHLIGHTS __________ TITLE VII PUNITIVE DAMAGES NOT DEPENDENT ON COMPENSATORY DAMAGES Punitive damages may be awarded in cases under Title VII of the 1964 Civil Rights Act regardless of whether a judge or jury awarded any compensatory damages, the Second Circuit rules, addressing an issue of first impression ("Cush-Crawford v. Adchem Corp., "2d Cir., No. 00-7617, 11/16/01). The appeals court affirms a jury verdict of $100,000 in punitive damages but no other damages for Tonia Cush-Crawford in her Title VII sexual harassment suit against Adchem Corp. The statute allows a maximum of $100,000 in total damages for companies of Adchem's size. The statutory caps "strongly undermine the concerns that underlie the reluctance to award punitive damages without proof of actual harm," Judge Leval writes. Citing the different purposes underlying the award of compensatory damages and punitive damages, Leval also says it would be improper for an employer who acted with malice or reckless indifference to the employee's rights to escape the award of punitive damages just because the employee was fortunate enough to avoid suffering actual harm . . . . Page AA-1, Text E-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7g6h0_ http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7b7y7_ JUDGE REJECTS CHALLENGE TO FORD'S POLICIES FOR EXTENDING FMLA LEAVE Ford Motor Co.'s requirement that absent workers notify the employer of the need to extend an approved medical leave within five days of the expiration of the leave does not violate the Family and Medical Leave Act, the U.S. District Court for the Eastern District of Michigan rules ("Alexander v. Ford Motor Co., "E.D. Mich., No. 01-70051, 11/5/01 ). A group of Ford employees sued challenging the company's "five-day quit" procedures, as applied to those employees seeking to extend an approved FMLA leave. Department of Labor regulations interpreting the FMLA require the employer to give employees two days to notify it of the need for an extended leave, so Ford's more generous policy does not violate the act, Judge Edmunds finds, granting Ford summary judgment on the claim. . . . Page A-7 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7h9w6_ FEDERAL EMPLOYEES CAN BRING RETALIATION SUITS UNDER ADEA Federal employees may bring retaliation claims against their agencies under the Age Discrimination in Employment Act, the District of Columbia Circuit rules ("Forman v. Small, "D.C. Cir., No. 00-5256, 11/16/01). Although the ADEA provision waiving sovereign immunity for federal employee suits does not specifically mention retaliation claims, the language requiring that federal agency personnel decisions "shall be made free from any discrimination based on age" is broad enough to do so, the court explains in a retaliation suit brought by a curator for the Smithsonian Institution. Unlike the express prohibitions applicable to private, state, and local employers in ADEA Section 623(d), the provision governing federal agencies, 29 U.S.C. Section 633a(a), does not by its terms prohibit retaliation. "Congress's failure to mention 'retaliation' explicitly does not undermine its intended breadth of the provision," the court says. It is difficult to imagine, it adds, how a workplace could be "free from any discrimination based on age" if a federal agency could fire or take other action adverse to an employee for complaining about age discrimination. . . . Page A-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6d1f6_ WORKER'S CLAIM ADVANCES BASED ON REQUIRED REPORT TO HARASSING BOSS A machine shop worker at a Pennsylvania factory can proceed with her sexual harassment claim against her former employer because the company's internal policy required her to report the actions to her supervisor--who was one of the alleged harassers, a federal judge in Philadelphia rules ("Hare v. H&R Industries Inc., "E.D.Pa., No. 00-CV-4533, 11/7/01). Rejecting H&R Industries' motion for summary judgment, Judge James McGirr Kelly of the U.S. District Court for the Eastern District of Pennsylvania holds that former employee Priscilla Hare presented enough evidence for her claims under Title VII of the 1964 Civil Rights Act and the Pennsylvania Human Relations Act to go to trial. Hare's evidence showed that the company's policy was ineffective and that her failure to pursue it was reasonable, the court holds, and she also presented evidence that her subsequent termination resulted from harassment. . . . Page A-2 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7c2x6_ NO DENIAL OF BENEFITS TO DEPRESSED HARASSER, DIVIDED COURT DECIDES A Michigan probation officer allegedly unable to continue working because of depression arising from his suspension for sexually harassing female public defenders, may not be denied workers' compensation based on his status as a sex harasser, a divided Michigan Court of Appeals rules ("Daniel v. Corrections Dep't, "Mich. Ct. App., No. 224423, 11/2/01). Tony Daniel's conduct was not willful and intentional and the depression he faced is too attenuated to find that it occurred by reason of his acts, Judge Danhof holds in reversing the judgment of the workers' compensation board and trial court. Calling Daniel an "unsympathetic" and "difficult" employee is not enough to disqualify him from receiving benefits, the appeals court says. The state workers' compensation law was designed to remove the focus on the consideration of the fault of the claimant, the court says. In dissent, Judge O'Connell says that allowing a serial sexual harasser to profit from his misconduct was "untenable" and a result never contemplated under the state workers' compensation law. . . . Page A-5 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y5z9h3_ ______________ TODAY'S EVENTS ______________ UNEMPLOYMENT: Weekly data on initial claims for unemployment benefits released, 8:30 a.m., Labor Department. ________________ ALSO IN THE NEWS ________________ LEADING INDICATORS: The index of leading economic indicators increased by 0.3 percent in October, after a 0.5 percent drop in September and a 0.1 percent decrease in August, according to figures released by the Conference Board. . . . Page D-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7a7r3_ EMPLOYMENT: Reflecting layoffs related to the September terrorist attacks and their aftermath, unemployment rates climbed in 33 states during October, according to the Bureau of Labor Statistics. . . . Page D-2 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7h0g3_ RETAIL FOOD STORES: United Food and Commercial Workers members employed at eight stores operated by the Great Atlantic and Pacific Tea Co. in Connecticut approve a new three-year contract. . . . Page A-3 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7a3y8_ ____ TEXT ____ SEXUAL HARASSMENT: Second Circuit decision in "Cush-Crawford v. Adchem Corp. ". . . Page E-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7b7y7_ NLRB: NLRB's weekly summary of cases. . . . Page E-5 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7g8h3_ _________________ TABLE OF CONTENTS _________________ LEADING THE NEWS SEXUAL HARASSMENT Punitive damages may be awarded in cases under Title VII of the 1964 Civil Rights Act regardless of whether a judge or jury awarded any compensatory damages, Second Circuit rules . . . Page AA-1, Text E-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7g6h0_ http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7b7y7_ ____ NEWS ____ AGE DISCRIMINATION Federal employees may bring retaliation claims against their agencies under the Age Discrimination in Employment Act, D.C. Circuit holds, allowing a Smithsonian Institution employee to proceed with the retaliation portion of his age bias claim . . . Page A-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6d1f6_ APPROPRIATIONS While the pending defense appropriations bill included $1.5 billion for Labor Department national emergency grants when it was marked up by the House Appropriations Committee, a proposal offered by the Bush administration appears to have reallocated that funding to a different grant program . . . Page A-8 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7h0b6_ ERISA Pipeline inspector did not waive his right to bring a lawsuit for employee benefits under the Employee Retirement Income Security Act when he signed a "consultant" agreement stating that he was an "independent contractor" not entitled to benefits, a federal district court in Louisiana rules, refusing to dismiss the inspector's action . . . Page A-4 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6z6t0_ FMLA Ford Motor Co.'s requirement that absent workers notify the employer of the need to extend an approved medical leave within five days of the expiration of the leave does not violate the Family and Medical Leave Act, federal district court in Michigan rules . . . Page A-7 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7h9w6_ PENSIONS CORRECTION: An article on the Internal Revenue Service's Revenue Procedure 2001-55, reported at 219 DLR A-6, 11/15/01, should have said it extends the remedial amendment period for all individually designed qualified retirement plans by two months, from Dec. 31 to Feb. 28 . . . Page A-8 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6y7r8_ RETAIL FOOD STORES UFCW members employed at eight stores operated by the Great Atlantic and Pacific Tea Co. in Connecticut approve a new three-year contract that raises wages, reduces the company's health and welfare contribution level, and increases employees' pension benefits . . . Page A-3 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7a3y8_ SAFETY & HEALTH Agreement aimed at protecting workers clearing the World Trade Center site in New York City is signed by OSHA, the contractors working on the site, and the unions providing labor . . . Page A-2 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6j9u0_ Texas drilling services contractor is responsible for the off-duty negligence of an employee who fell asleep while driving home after working the graveyard shift on an oil rig, a state district court jury decides . . . Page A-4 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6m0j0_ SEXUAL HARASSMENT Machine shop worker at a Pennsylvania factory can proceed with her sexual harassment claim against her former employer because the company's internal policy required her to report the actions to her supervisor--who was one of the alleged harassers, federal judge in Pennsylvania rules . . . Page A-2 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7c2x6_ STATE EMPLOYEES Facing a growing budget deficit and worsening state economy, the California State Employees Association agrees to send to a membership vote a proposed contract offer the union had rejected for the past six months as representing a loss in pay for covered employees . . . Page A-6 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6z5x5_ STATE LAWS Legislation signed by acting New Jersey Gov. DiFrancesco (R) (A. 1624) increases the administrative penalties for violations of the state's Law Against Discrimination for the first time in almost two decades . . . Page A-7 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7j1u1_ WARN ACT Lawsuit alleges that Dole Food Co. violated the Worker Adjustment and Retraining Notification Act by failing to give adequate notice to workers at company facilities in Tulare and Kern counties that they were losing their jobs . . . Page A-6 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6k3t5_ WORKERS' COMPENSATION Michigan probation officer allegedly unable to continue working because of depression arising from his suspension for sexually harassing female public defenders may not be denied workers' compensation based on his status as a sex harasser, divided Michigan appellate court rules . . . Page A-5 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y5z9h3_ _____________ ECONOMIC NEWS _____________ EMPLOYMENT Reflecting layoffs related to the September terrorist attacks and their aftermath, unemployment rates climbed in 33 states during October, Labor Department's Bureau of Labor Statistics reports . . . Page D-2 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7h0g3_ LEADING INDICATORS Conference Board says index of leading economic indicators increased by 0.3 percent in October, after a 0.5 percent drop in September and a 0.1 percent decrease in August . . . Page D-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7a7r3_ TRADE BALANCE U.S. trade deficit in goods and services shrank dramatically in September, but the improvement was due largely to a one-time insurance payment related to the Sept. 11 terrorist attacks rather than a trend, Commerce Department data show . . . Page D-10 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7j5m1_ ____ TEXT ____ SEXUAL HARASSMENT Second Circuit decision in "Cush-Crawford v. Adchem Corp." . . . Page E-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7b7y7_ NLRB NLRB's weekly summary of cases, dated Nov. 23, 2001 . . . Page E-5 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7g8h3_ ______________ TABLE OF CASES ______________ Alexander v. Ford Motor Co. (E.D. Mich.) . . . Page A-7 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7h9w6_ Cush-Crawford v. Adchem Corp. (2d Cir.) . . . Page AA-1, Text E-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7g6h0_ http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7b7y7_ Daniel v. Corrections Dep't (Mich. Ct. App.) . . . Page A-5 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y5z9h3_ Escoto v. Nabors Drilling (Tex. Dist. Ct.) . . . Page A-4 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6m0j0_ Forman v. Small (D.C. Cir.) . . . Page A-1 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6d1f6_ Hare v. H&R Indus. Inc. (E.D.Pa.) . . . Page A-2 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7c2x6_ Quevedo v. Dole Food Co. Inc. (E.D. Cal.) . . . Page A-6 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6k3t5_ Stewart v. Project Consulting Servs. Inc. (E.D. La.) . . . Page A-4 http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6z6t0_ ___________________________________________________________ Daily Labor Report (ISSN 1522-5968) Highlights are published daily by The Bureau of National Affairs, Inc., 1231 25th St., NW, Washington, DC 20037. Registered Web subscribers can access the full text of these articles by using the URL link supplied. To register for a FREE Web trial, go to http://web.bna.com. For subscription information and other inquiries, call BNA Customer Relations at 1-800-372-1033, Mon. - Fri. 8:30 am - 7:00 pm (ET), excluding most federal holidays. To request retransmission or to order a copy of the summarized article, contact 1-800-452-7773 or e-mail bnaplus@bna.com. For copyright guidelines, go to http://www.bna.com/corp/copyright. Copyright © 2001 by The Bureau of National Affairs, Inc. Washington, D.C. 20037. Use of this service is subject to the terms and conditions of the license agreement with BNA. Unauthorized access or distribution is prohibited.
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