Kilgore & Kilgore’s Commercial Litigation Caseload Rises to Address Elder Financial Abuse in Texas

The number of reports involving elder financial abuse has grown significantly over the past decade, according to the National Adult Protective Services Association (NAPSA). One in 20 older adults has indicated some form of perceived financial mistreatment. Perpetrators include relatives, friends and strangers. Below are just a few cases at Kilgore & Kilgore.

Kilgore & Kilgore Represents Relatives Against Caretaker Who Misappropriated Inheritance Monies

Kilgore & Kilgore is working to recover assets taken by a caretaker of the family’s two elderly cousins. The caretaker used the assets to retain legal counsel to draft estate planning documents used to transfer assets to the caretaker. The caretaker moved one of the cousins, without informing the family, to various nursing home locations in Texas. The family’s attempt to obtain guardianships over the cousins was hindered by the caretaker who had access to, and used, the accounts of the cousins to pay attorneys and expert witnesses. Both cousins had wills there were probated. The statute of limitations to contest probate matters had expired. However, Kilgore & Kilgore found that the cousins had claims for breach of fiduciary duties against the caretaker that could be prosecuted by the heirs. The litigation proceedings occurred in 2012 and 2013 and were hotly contested, as was an unsuccessful emergency appeal by the caretaker to the Court of Appeals to attempt to set aside trial court rulings. The case was settled by mediation. However, adispute arose as to the interpretation of the settlement agreement, and the caretaker filed bankruptcy in order to obtain a change of venue. After extensive litigation in Bankruptcy Court the family’s claims were finally settled by a conveyance of assets.

Elder Flees Institution and Works to Recover His Assets

Kilgore & Kilgore also represents a wealthy man whose children took over his estate and placed him in an institution. The man escaped the institution and contacted Kilgore & Kilgore.

Texas Mother Kidnapped and Hidden From Other Siblings

Kilgore & Kilgore represents the other children in a dispute over assets swiped from them by their sister who kidnapped her mother, induced the mother to assign to her all of the substantial family assets, and then hid the mother from the family until the mother’s death. The kidnapper then filed for bankruptcy. The other children sued to recover the family’s land from the sister’s creditors that was taken from the family.

Commercial Litigation Cases Increase as Reports of Elder Abuse Become Widespread

Kilgore & Kilgore has recently experienced a rise in elder financial abuse cases, which mirrors a national trend. According to the National Adult Protective Services Association (NAPSA), the number and complexity of reports involving financial abuse of older adults in the U.S. has spiked during the past decade. One in 20 older adults indicated some form of perceived financial mistreatment. Reports of financial abuse to NAPSA identified the perpetrators as relatives, trusted friends and strangers.

censusIn Dallas County, there were just under 338,000 people age 60 years or older, according to the U.S. Census of 2012, of which just over 32,000 older adults were below the poverty line and just fewer than 132,000 were minorities. In our next blog post, we will discuss our advice for older adults who wish to avoid becoming susceptible to others hoping to take advantage of them. This starts with knowing their rights, which we will summarize next week. If you know an older adult, share this blog post with him or her. Do what you can to help neighbors, friends and relatives become aware.

Elderly Man Struggles to Maintain His Independence as His Abilities Decline

By way of example, consider the following scenarios. A 79- year-old man holds a substantial sum of money in trust, for the benefit of the children of his deceased son by his first marriage. There is no court supervision of the trust. He remarried but is now divorced and living alone. Since his remarriage, he has had very little contact the wife and children of his deceased son. He now suffers from the onset of dementia, and is hospitalized with what may be his final illness. He is very independent, refuses to recognize his diminishing condition, and often sends visiting relatives away from his hospital bed. He has placed the daughter of his second wife in charge of his affairs, under a power of attorney. Family members are respectful of his wishes, but are concerned about his ability to manage his affairs. In this case, it is not only the interest of the elderly person that needs protection. In what way can the children’s interest in the trust funds be protected?

Older Couple Becomes Isolated and Dependent on a Stranger

Another example involves an elderly couple lives together on a rural homestead. Neither has any children, and they have no close relatives. Over time, the husband’s health fails, and he becomes physically unable to manage the farm or their personal affairs. His wife has no business experience and is not capable of properly managing their affairs. A care giver is hired to manage the household, provide meals and otherwise look after the couple. However, over a period of time the caregiver gains their confidence, and ultimately takes control of all their affairs, including the expenditure of their funds. The caregiver gradually alienates this couple from long-term employees, friends, attorneys and advisors and discourages visitors. Slowly but surely the care giver isolates them completely. They become totally dependent on the caregiver, who ultimately acquires the entire estate. How can infirm elderly people be protected from undue influence by a caregiver in these kinds of circumstances?

Lonely Widower Gets Involved in Internet Relationship

Yet another example involves a retired, somewhat reclusive investor is left alone late in life following the death of his second wife. With no active social life and no children or close relatives, this gentleman becomes lonely and searches the internet for companionship. His inquiries are rewarded when he finds an attractive and sympathetic middle-aged woman, with similar interests and a pleasing personality. As they start seeing each other regularly, the woman shares the details of her personal life, her family background and her business interests. He, of course, reciprocates. Ultimately, they make plans to marry. He makes her a bridge loan so she can move her business closer to him. He explains to his in-laws that he probably won’t attend family functions, as in the past. It then turns out that the marriage has to be postponed due to severe medical problems the woman suddenly developed. The gentleman was more than willing to help out with additional loans to meet these unexpected medical expenses. It was not until most of his savings was depleted that this gentleman is informed by an assistant District Attorney that his companion is under investigation for criminal fraud. Eventually, it is revealed that the companion is already married and believed to be a member of a criminal group suspected of various scams to defraud people. Although the companion was indicted for fraudulently obtaining money under false pretenses, none of this gentleman’s money was recovered. In this case, the elderly man was not infirm or mentally impaired, only emotionally vulnerable. What could have been done to protect his interests?

Awareness, Knowledge and Planning – Best Strategies for Prevention

This small sampling of legal problems that can occur as a result of the aging process is presented in the hope it becomes apparent that older adults are vulnerable emotionally and financially. Attempts to deal with problems of this nature after they occur are difficult and generally unsatisfactory. The keys to prevention are awareness, knowledge and planning so as to avoid the kinds of circumstances where elder financial abuse may occur.

Get Legal Details in Order Before Need Arises

No matter how self-sufficient an older adult feels, the natural loss of energy, declining health, debilitating illness, injury, or dementia can put anyone in a vulnerable position, regardless of financial condition. The best protection is through staying connected to family members, friends and neighbors. Wills, powers of attorney and advanced directives should be put in place before the need arises. Family members, counselors and legal advisors should be made aware of the elder person’s wishes concerning care, treatment and disposition of personal assets before there is reason to question judgment or competence.

Consult a Kilgore & Kilgore Attorney

Many of these unfortunate situations can be resolved through the efforts of an attorney. Kilgore & Kilgore attorneys are experienced, compassionate and skilled at these types of matters. Stay tuned to next week’s blog post. We will briefly discuss our advice for older adults who wish to avoid becoming susceptible to others hoping to take advantage of them. This starts with knowing their rights, which we will summarize next week.

Your Rights as an Employee: Wiping the NLRB Slate Clean?

Your Rights as an Employee: Wiping the NLRB Slate Clean?
The Impact of NLRB v. Noel Canning – Part 2

On June 26, 2014, in the case of National Labor Relations Board v. Noel Canning, the U.S. Supreme Court declared the recess appointments to the NLRB made by President Obama to be invalid. This means that for the period between August 5, 2013, and January 4, 2013, the NLRB was acting without a quorum. Its decisions during that period are arguably invalid as well. It is safe to describe the Noel Canning aftermath as an uncertain mess.

There are the more than 1,000 decisions that were issued by the NLRB during the relevant 19-month time period. Approximately 98 are still on appeal, and almost all of those decisions will have to be vacated and reheard by the NLRB. It is unclear what will happen to the rest of the decisions, depending in large part on how many employers and employees who were adversely affected want to have their cases reopened one or two years after the fact, especially given that most of what the NLRB ordered them to do at the time will have long ago been put into effect.

There is now a fully constituted five-member NLRB, three of whom are Democrats, so reopening a case would mean betting that the new Democratic members would reach a different conclusion than the invalidated recess appointees. For this reason, most believe that if the cases were sent back to be reheard, the original decisions would simply be affirmed in most cases.

During the 19-month period in question, the NLRB’s regional directors also made many decisions. The status of those decisions is also unclear The NLRB has yet to take a public stance on this topic, but if actions at the regional level are also subject to challenge, then a real Pandora’s Box of prior cases will be opened.

Each NLRB decision sets a precedent that employers and employees look to in making workplace decisions. During the relevant 19-month period, several very important NLRB precedents were set. It appears now that those decisions have now been set aside. This leaves employers in an unenviable position; should they now follow the state of the law before January 4, 2012, or should they instead take into account the subsequent invalid decisions on the assumption that the NLRB will eventually revalidate those decisions?

Politics and practicality play into this question as well. Given the workload of the NLRB, it is uncertain when and how— not to mention whether—they will be able to reestablish the lost precedents. In any event, it is bound to take a considerable amount of time to do so. And if that is the case, there is no telling what the future makeup of the NLRB will be. The term of one NLRB member is set to expire in December 2014, meaning the board will be left in a potential Two Democrat/Two Republican deadlock. If a third member cannot be confirmed during the term of the current administration, it could be a long time before new decisions and rules are handed down, and the political composition of the NLRB may have changed dramatically in the interim.

The rocky road of the NLRB does not appear to be getting any smoother. This will mean employers and employees alike will need to carefully navigate their journey under the NLRA.

Wiping the NLRB Slate Clean?

The Impact of National Labor Relations Board v. Noel Canning

The National Labor Relations Board (NLRB) is an incredibly busy agency of the U.S. government. It administers the National Labor Relations Act (NLRA) and makes hundreds of decisions every year. The rulings in these decisions then set a precedent for future decisions, effectively contributing to the law of the employer-employee landscape. So what would happen if 19 months of rule-issuing, decision-making, precedent-setting and other administrative actions by the NLRB suddenly became invalidated? How would this impact employers and employees who were either positively or adversely affected by those decisions, or had been following those rules and precedents? What would be the current state of the law? We’re in the process of finding out.

The NLRB is appointed by the president of the United States and confirmed by the Senate. It is intended to have five members, but needs at least three for a quorum. A quorum isthe minimum number of members needed to conduct the business of the agency.In January 2012, there were only two members of the NLRB. As a result, President Obama made recess appointments to the board, so that the agency could reach a quorum and conduct its normal activities. These appointments were never confirmed by the Senate. Nonetheless, the NLRB conducted business as usual for over two years. But on June 26, 2014, in the case of National Labor Relations Board v. Noel Canning, the U.S. Supreme Court declared the recess appointments to be invalid. This means that for the period between January 4, 2012 and August 5, 2013, the NLRB was acting without a quorum. Its decisions during that period are arguably invalid as well. It is safe to describe the Noel Canning aftermath as an uncertain mess.

There are the more than 1,000 decisions that were issued by the NLRB during the relevant 19-month time period. Approximately 98 are still on appeal, and almost all of those decisions will have to be vacated and reheard by the NLRB. It is unclear what will happen to the rest of the decisions, depending in large part on how many employers and employees who were adversely affected want to have their cases reopened one or two years after the fact (especially given that most of what the NLRB ordered them to do at the time will have long ago been put into effect). There is now a fully constituted five-member NLRB, three of whom are Democrats, so reopening a case would mean betting that the new Democratic members would reach a different conclusion than the invalidated recess appointees. For this reason, most believe that if the cases were sent back to be reheard, the original decisions would simply be affirmed in most cases.

Your Rights as an Employee – The Concerted Activity Rule – Part 2

Note: This is a continuation of our blog post dated July 16, 2014.
Legal rights of employees regarding what an employee can or cannot say, or can or cannot do, with respect to the terms and conditions of her or his employment is a judicial minefield. While an employee has considerable latitude under section 7 of the National Labor Relations Act, this discretion is not without limits. The advice of an employment attorney like those at Kilgore & Kilgore should be sought before attempting to navigate the treacherous waters of employee and employer rights.

While employees have broad latitude in what they can say or do with respect to the terms and conditions of their employment, employers can draw the line when the communications or conduct impacts the employers’ customers. For example, employees of a New York grocery store chain became upset when the chain, which had marketed its fresh cut meats, began to sell prepackaged meats in addition to those that had been freshly cut by its meat and deli employees. Employees began wearing hats and t-shirts that proclaimed: “Don’t Cheat About the Meat!” The grocery store chain suspended these employees.

Neither the grocery store chain nor the National Labor Relations Board (NLRB) were troubled by the employees’ earlier slogans, which included, “Ask Me Which Meats Were Cut Fresh Today!” However, with its “don’t cheat about the meat” campaign, the NLRB found that the employees had gone too far. The message, the NLRB noted, went beyond the prepackaging issue and could have customers believing that the grocery store was “cheating” about its meat in more nefarious ways. he chain properly disciplined the employees who proclaimed this message.

The NLRB also sided with an employer in a case involving a New York bakery that specialized in Kosher foods. The business’ customers relied on the bakery’s assurance that all of its food products satisfied all Kosher requirements. Thus, when the employees began wearing t-shirts proclaiming that “If it’s not Union, it’s not Kosher,” the bakery demanded that the employees remove the shirts or face discipline. The NLRB supported the employer, finding that the message incorrectly sent the message to customers that some of the employer’s food may not be Kosher, compromising the very core of the employer’s business.

The Medco case (mentioned in our July 16th blog) from Las Vegas further illustrates this principle. While the federal court of appeals was unconcerned about Stephen’s t-shirt and its message, it did find merit in Medco’s concerns that Medco’s customers might be troubled by the shirt. “Especially for a firm selling a service, concern for customer’s appraisal of its employees’ attitudes seems natural. Obviously we don’t mean to suggest that employers are free to suppress employee speech in the interest of presenting a Potemkin village of intra-firm harmony, but that is quite different from trying to exclude the display of slogans that an outsider might read as sullen resentment (especially when the object of discontent is something so seemingly inoffensive as the WOW program),” stated the finding. Thus, the federal appellate court concluded that the employee, Michael, could challenge the WOW program, doing so in the presence of corporate customers was a step too far.

Moreover, an employer can reasonably expect some degree of civility in an employee’s conduct or communications regarding workplace conditions and issues. Godwin’s Maxim – a humorous (but apropos) rule of arguments – posits that the longer a discussion occurs, the probability of an analogy to Hitler or Nazis approaches one. Judicial decisions suggest that employee speech or conduct has crossed the line should Godwin’s Maxim come into play. In a noteworthy case from the late 1960s, when tensions between the United States and Cuba ran very high, an employee interrupted a plant manager’s meeting and encouraged employees not to vote to unionize. In his interruption, the employee shouted at the plant manager: “I want you to know that you are no different than Castro; Castro told the people in his country if they did not like the way he was running it to pack up and leave, and you tell people at Boaz Spinning Company if they do not like the way you are running the plant to punch out and go home.” The employee was immediately fired.

The federal appellate court was not unduly concerned about the employee’s interruptions, but comparing the plant manager to Castro went too far. It stated in its finding: “[The manager] had no difficulty in understanding that he was being likened to a Communist, and [the employee]’s fellow-employees, in describing [employee]’s remark to [the manager], remembered the remark as being ‘You are just like Castro.’ That [the manager] was ‘unwilling to hear both sides of the question’ hardly deserves casting him as an ‘industrial dictator.’”

An employee has substantial freedom concerning speech in the workplace, but this discretion is has limits, particularly when customers or others with influence over the buying decision are concerned. What an employee can or cannot say, or can or cannot do, with respect to the terms and conditions of her or his employment is a judicial minefield. Seek the advice of an employment law attorney if you find yourself the victim of wrongful discharge.

Your Rights as an Employee – The Concerted Activity Rule Part 1

Employers must use considerable caution to ensure employee rights at work when disciplining or terminating an employee for employment-related speech. A recent survey commissioned by CBS News found that only forty-five percent of Americans were satisfied with their working conditions, a modern-day low. Employers have little legal obligation to improve working conditions. And, employers can do little to stop employees from complaining about, or talking about, the working conditions at their jobs.

The genesis of this rule is the “concerted activity” clause in the National Labor Relations Act, signed into law by President Franklin Roosevelt over 78 years ago. Initially intended to protect employees who were working together to establish unions in their workplaces, this clause has been expanded to encompass a broad array of employee communications regarding working conditions, including those not involving union activity and conversations made by just one employee to a boss.

Section 7 of the National Labor Relations Act guarantees an employee the right to engage in “concerted activities for the purpose of collective bargaining or other mutual aid or protection.” An employer may not discipline or terminate an employee who engages in conduct that falls within this provision. Not surprisingly, these relatively simple terms have generated decades of litigation. What constitutes “concerted” activity? What does “mutual aid or protection” mean? Courts have given employees considerable latitude in defining these terms. Among other things, Courts have held that a communication made by a single employee may constitute “concerted action,” so long as it was intended to address the “mutual aid or protection” of other employees. Moreover, what constitutes a working condition is also construed broadly.

A recent case out of Las Vegas illustrates these principles. The employer, Medco Health Solutions of Las Vegas, instituted an employee incentive program called “WOW,” under which the company selected one employee each week for recognition of his or her achievements. The recognized employee would then be memorialized on the company’s “Wall of WOW,” including a photo and brief description. This “Wall of WOW” was featured in company promotional materials, as well as in customer tours of the company’s facilities.

Not all employees were enamored with the program, however. One employee, Michael, wore a t-shirt to work one day, featuring a union logo on the front and proclaiming on the back that “I don’t need a WOW to do my job!” The employee picked a bad day to wear the t-shirt. Clients were touring the facility that day. Accordingly, Medco management told Michael to remove his shirt or be terminated. He filed a grievance, through the union, with the National Labor Relations Board.

The case wound its way through the federal administrative agency and ultimately to the District of Columbia Court of Appeals. There, the federal appellate court rejected many of the employer’s arguments that Michael’s conduct was not protected under section 7. First, Medco argued that he acted “alone,” not in “concert” with other employees. The Court disagreed, noting that protected conduct includes communications “where individual employees seek to initiate or to induce or to prepare for group action.” Medco then argued that the WOW program was not really a “term or condition of employment,” as there were no monetary incentives attached to the program, nor was any discipline imposed on anyone who did not receive a “WOW” award. Again, the Court disagreed, noting that any program intended to increase productivity fell within a term or condition of employment.

Another example of protected activity under Section 7 comes from Blue Circle Cement in Tulsa, Oklahoma. Stephen worked there and was also an ardent environmentalist. In fact, he was the local union’s “environmental” officer and a founder of a non-profit organization, Earth Concerns of Oklahoma (“ECO”). Blue Circle applied for a license to burn hazardous waste to fuel its operations, potentially releasing heavy metals into the atmosphere. Stephen opposed this. He found a Greenpeace pamphlet discussing the environmental issues relating to releasing heavy metals into the environment and photocopied the pamphlet on the company’s copy machine for distribution “to provide to persons who had no direct connection with Blue Circle.” After a plant manager discovered Stephen using the company’s copy machine for this purpose, the company terminated Stephen.

Blue Circle claimed that Stephen’s actions were not “concerted activity” on behalf of other employees, but “personal activity” in support of ECO, his non-profit environmental action committee. The United States Court of Appeal for the Fifth Circuit, however, upheld that National Labor Relations Board’s finding that Stephen was, in fact, engaging in “concerted activity” in using the company machine to copy the fliers and, therefore, that he was wrongfully terminated. The Union, the Court observed, opposed the company’s plan to burn hazardous waste. As part of its opposition, the union enlisted support from the local community beyond its membership. Stephen’s efforts, even on behalf of his personal non-profit, “were intimately connected to, and derived from, the Union’s broad-based strategic efforts.” The company should not have fired Stephen.

Employers must use extreme caution when disciplining or terminating employees who do or say anything that could be construed as addressing terms or conditions of employment. Stay tuned to our next blog, Your Rights as an Employee – The Concerted Activity Rule Part 2, in which we will discuss where employers can draw the line when the communications or conduct of employees impacts the employer’s customers.

Social Media Challenges the Rules of Sexual Harassment and Employment Discrimination – Courts are Divided On the Value of Social Media Posts in Deciding Employment Law Cases – Part 2

Social media has changed the way we, as a society, communicate. It is a mobile form of communication, can be a form of mass communication, can be made over a variety of devices, and is often instantaneous. Courts are just now addressing the relationship between this “new” form of communication and its impact on pre-social media rules regarding sexual and other prohibited harassment. Whether you are an employer or an employee, an experienced employment attorney can help navigate the current legal uncertainty in this area.

            The laws regarding sexual harassment and hostile working environments will undoubtedly evolve as more cases involving the use of social media as a tool of harassment emerge. Employment attorneys will have to establish how existing laws against sexual harassment play out when some or all of the harassment occurs through social media, rather than more traditional means of communication. Will it matter if the harassing communication occurs outside of work hours? Does it matter if private devices (cell phones, etc.) are used rather than work computers? Do employers have an obligation to monitor the use of social media by its employees?

            Courts, however, have been quick to illustrate one social media lesson from The Social Network; namely, that “Facebook is forever.” Mark Zuckerburg’s girlfriend in the movie, Erica Albright (played by Rooney Mara) tells Mark Zuckerberg (Jesse Eisenberg):  “The Internet’s not written in pencil, Mark, it’s written in ink.” This maxim has inured to the benefit of employers, who have been quick to use employees’ Facebook posts to defeat claims of sexual harassment.

            Consider the case of Christina Targonski, an Oak Ridge, Tennessee, police officer who sued the City of Oak Ridge, claiming that the City had tolerated a sexually-charged, hostile working environment. The district court set the matter for trial, but noted that Oak Ridge could use Ms. Targonski’s prior Facebook posts in its defense. At her deposition, Ms. Targonski had testified that ‘“I’m a Christian and I strive really hard to be a moral person. So for someone to start thinking of me as someone who has orgy parties at my house while my son is home, that’s severely humiliating to me.”’ Yet, as the district court noted, her Facebook posts did not match this claim. “[O]n February 23, 2010,” the district court noted, “plaintiff was herself discussing on Facebook her desire for a female friend to join her ‘naked in the hot tub.’” Further, “[t]he previous day on her Facebook page, the plaintiff was discussing ‘naked Twister.’” The Court also observed that Ms. Targonski’s Facebook friends “talked about female orgies involving plaintiff, [another officer], and others, to be filmed by plaintiff’s husband.” These posts, the trial court held, were “relevant to the source of the alleged rumors [within the Department about Ms. Targonski] and to whether plaintiff could truly have found those alleged rumors offensive.”

            Similarly, in Braun v. Ultimate Jetcharters, Inc., 5:12-CV-01635 (N.D. Ohio, July 25, 2013), the federal district court granted a summary judgment to an employer regarding her hostile working environment claims, using, at least in part, the plaintiff’s own Facebook conduct against her. The plaintiff, a flight attendant, claimed in part, that a pilot made sexual advances towards her on Facebook. Nonetheless, the district court did not find these claims to be relevant, noting that the plaintiff “did not report the messages to anyone, and did not block or defriend [the pilot] from Facebook.”

Although both employers and employees should exercise caution in their use of social media, the employee should bear in mind that “Facebook is forever.” Although posts may seem to be fleeting, they could come back to haunt someone later.

The employer must also bear in mind that hiring decisions based upon scrutiny of a candidate’s social media sites could intrude upon that person’s privacy and other statutory rights.

To summarize, rules about sexual harassment and employment retaliation were put into place long before social media existed. Now, the courts are divided over the interpretation and application of these rules. It is important to consult an employment attorney when evaluating a case against an employer which cites social media as a reason for an employment action (or inaction). The employment attorneys at Kilgore & Kilgore can give competent advice for these hostile work environment situations. Call today for a free review of the facts of your case with a Kilgore & Kilgore employment attorney:  (214) 969-9099 or visit our website:  kilgorelaw.com and fill in a Contact Us form.

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The Rules of Sexual Harassment and Employment Discrimination are Challenged by Social Media – in Deciding Employment Law Outcomes, Courts are Divided over the Value of Social Media Posts

            According to the movie, The Social Network, Hollywood’s re-creation of the history of Facebook, Mark Zuckerburg created Facebook based upon his earlier internet site called Facemash, which he used to rate the attractiveness of Harvard coeds. In short, Facebook’s foundation was, arguably, a site for sexually harassing classmates. Now, with approximately 1.2 billion users, Facebook – as well as other social media platforms such as Twitter, Flikr, and others — has changed the rules of communication. With one fell swoop, any person can instantly communicate with hundreds or even thousands of “friends” or “followers” about any conceivable topic.

            Not surprisingly, having changed the way we communicate, Facebook and other social media tools have also challenged established rules of sexual harassment in the workplace. For many years, the rules of employer liability – and, correspondingly, an employee’s ability to recover – for sexual harassment in the workplace have been relatively clear. Sexual harassment based upon a “hostile working environment,” the Texas Court of Appeals recently observed, requires a workplace environment that is “so extreme and abusive that it deprives the victim of equal employment opportunity in the workplace.” Twigland Fashions, Ltd. v. Miller, 335 S.W.3d 206, 219 (Tex. App. 2010).

            Moreover, an employer is not responsible for such harassment by co-employees unless the employer either knew or condoned the harassment, or negligently failed to remedy the situation once made aware of it. Faragher v. City of Boca Raton, 524 U.S. 775, 808, 118 S. Ct. 2275, 2293 (1998). In contrast to a hostile working environment created by co-workers, however, a supervisor with authority over an employer’s terms of employment can create automatic employer liability for his or her harassing conduct. Id.

            Significantly, courts have generally held that “an employer is not liable for the harassment or other unlawful conduct perpetrated by a non-supervisory employee after work hours and away from the workplace setting.” Duggins v. Steak’N Shake, Inc., 3 F. App’x 302, 311 (6th Cir. 2001). Social media platforms that do not neatly fit within the geographic and time-based scope of “work hours” resist the neat application of these rules.

            Courts have struggled with these concepts. For example, in Garvin v. Siouxland Mental Health Servs., Inc., a 2012 case from Sioux City, Iowa, two female employees of a local psychological clinic accused a project supervisor (also female) of sexual harassment. In holding that the two employees demonstrated the need to let a jury determine the issue, the federal trial court relied upon Facebook exchanges between one of the two employees. The supervisor, the court noted, quickly “friended” one of the employees on Facebook. Thereafter, the supervisor began engaging in highly personal Facebook communications with the employee, escalating to queries of a sexualized nature. The trial court described these Facebook communications as a “period of grooming,” culminating in a Facebook text asking the employee if “hypothetically, she would have a relationship with [the supervisor].” The district court found these Facebook exchanges, while presumably occurring outside of the actual workplace, to be significant evidence relating to the hostile working environment at the clinic overall.

             A federal district court in Brooklyn, New York, however, held fast to the pre-social media rules when evaluating the relevance of Facebook posts. Summa v. Hofstra University, CV 08-0361 WDW (E.D.N.Y. Apr. 7, 2011) aff’d in part, vacated in part, 708 F.3d 115 (2d Cir. 2013). Hofstra University employed the plaintiff, Lauren Summa, as a manager for the school’s football team. During her employment, various members of the football team posted derogatory or insulting references about Summa on Facebook, commenting on her purported sexual activity with her boyfriend, referring to her as “Miss Piggie,” and calling her the “’Wannabe’ Big Boss Man, F.B. [football] Manager.”

            Although offended by the posts, the federal district court concluded that the Facebook posts were unrelated to her employment as a football manager. “[T]here is no real connection between the posting, made by a football player or players, and plaintiff’s employment,” the court concluded. “When sexual harassing acts occur outside the workplace, the plaintiff must identify sufficient facts from which to infer a connection between the misconduct and the employment.” Id. “In addition, there is no evidence that it [the Facebook post] was viewed in the workplace.”

            In a related case from a year ago out of Arizona, a school student accused the principal’s son of sexually harassing her, including through Facebook posts. The district court expressed concern that such Facebook posts maybe be beyond the district’s control, “especially if done off-campus or through the student’s own computer or phone.” Doe v. Round Valley Unified Sch. Dist., 873 F. Supp. 2d 1124, 1138 (D. Ariz. 2012)

            Both employers and employees should exercise caution in their use of social media. The employee should bear in mind that “Facebook is forever.” Although posts may seem to be fleeting, they could come back to haunt the employee later. The employer must also bear in mind that hiring decisions based upon scrutiny of a candidate’s social media sites could intrude upon that person’s privacy and other statutory rights.

           In short, rules about sexual harassment and employment retaliation were put into place long before social media existed. Now, the courts are divided over the interpretation and application of these rules. It is important to consult an employment law attorney when evaluating claims against an employer which cite social media as a reason for an employment action (or inaction). The employment lawyers at Kilgore & Kilgore can give competent advice for these employment situations. Call today for a free review of the facts of your case with a Kilgore & Kilgore employment law attorney:  (214) 969-9099 or visit our website:  kilgorelaw.com and fill in a Contact Us form.

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WHO’S THE BOSS: THIS PIVOTAL QUESTION FOR EMPLOYER LIABILITY FOR A HOSTILE WORKING ENVIRONMENT SPLITS THE NATION’S COURTS

In the 1980 comedy blockbuster, Nine To Five (currently rated as the 20th highest grossing comedy of all time), three female employees, played by Jane Fonda, Lily Tomlin, and Dolly Parton, endure all manner of sexual harassment and discrimination from a workplace superior, played by Dabney Coleman. Ultimately, the trio takes matters into their own hands – quite literally – kidnapping the Coleman character and instituting numerous workplace changes in his absence.

The movie’s premise may seem farfetched, but the employees’ need for “self-help,” rather than legal remedies, was not as outlandish as we may now believe. Although Title VII of the Civil Rights Act, prohibiting gender discrimination in employment, was first passed in 1964, it would be another 22 years, in 1986, before the United States Supreme Court first mentioned the concept of a sexually-based “hostile working environment.” Meritor Sav. Bank, FSB v. Vinson, 477 U.S. 57, 106 S. Ct. 2399 (1986). Ironically, the prohibition against gender discrimination in Title VII was the product of a last-minute amendment to the bill sponsored by Republicans and Southern Democrats, apparently believing that the concept of a ban on gender discrimination would discourage northern and western state Senators from supporting the bill. See Vinson, 477 U.S. at 63, 106 S.Ct. at 2404 (“The prohibition against discrimination based on sex was added to Title VII at the last minute on the floor of the House of Representatives”).

Having suggested a sexually-charged, and hostile, work environment constitutes sexual discrimination under Title VII, the Supreme Court failed to give any meaningful guidance as to when an employer becomes legally responsible for a “hostile work environment.” Twelve years later, in a series of two separate decisions, Burlington Industries, Inc. v. Ellerth, 524 U. S. 742 (1998); Faragher v. Boca Raton, 524 U. S. 775 (1998), the Supreme Court attempted to answer this question.

The Faragher decision is particularly critical to understanding the Supreme Court’s recent decision in Vance v. Ball State University, — U.S. –, 133 S. Ct. 2434 (2013), the subject of this article. Beth Ann Faragher worked for the City of Boca Raton as a lifeguard during summers while she attended college, but finally resigned early one summer. She later claimed that several male employees – including Bill Terry and David Silverman — subjected her to a hostile work environment. Terry hired new lifeguards, supervised all aspects of a lifeguard’s work assignments, and delivered oral reprimands. Silverman made the lifeguards’ daily assignments and supervised their work and fitness training. According to Faragher, both men repeatedly made lewd remarks and spoke of women in offensive terms. More specifically, she claimed that Terry stated that he would never promote a woman to the position of lieutenant, and Silverman demanded that Faragher date him “or clean the toilets for a year.” The federal trial court ruled in favor of Ms. Faragher, concluding that she had been subjected to an impermissible hostile work environment, and that the City of Boca Raton was legally liable for the conduct of Terry and Silverman. The Supreme Court ultimately agreed to hear the matter, affirming the trial court’s ruling.

“An employer,” the Court held, “is subject to vicarious liability to a victimized employee for an actionable hostile environment created by a supervisor with immediate (or successively higher) authority over the employee.” Id. at 807, 118 S.Ct. at 2292-93. The Court reached a similar conclusion in its companion case, Burlington Industries, Inc. v. Ellerth, 524 U. S. 742 (1998).

The Court intended to draw a bright line in these two cases:  an employer is liable anytime a “supervisor” is engaged in discrimination or harassment. The simplicity of this rule was too good to be true, however, as courts struggled for years thereafter with the fundamental issue of deciding who is, or isn’t, a “supervisor.” As more employers rejected traditional models of organization, this question became even more muddied.

Thus, following Faragher and Ellerth, the courts knew that only actions by “bosses” would subject an employer to automatic liability, but the courts had been provided with basically no guidance as to who a “boss” might be. The lower courts adopted two general approaches for determining who is, or is not, a “supervisor” for purposes of establishing an employer’s potential liability. The first approach – adopted by at least two federal appellate courts and the federal Equal Employment Opportunity Commission — was contextual:  a supervisor is anyone who had the “ability to exercise significant direction over another’s daily work.” Under this contextual definition, a supervisor need not have the ability to hire, fire, promote, transfer, or demote, but simply an ability to direct the work of another employee. For example, in Mack v. Otis Elevator Co., 326 F.3d 116 (2d Cir. 2003), Yasharay Mack, an African–American woman, worked for the Otis Elevator Company as an elevator mechanic’s helper at the Metropolitan Life Building in New York City. James Connolly, the “mechanic in charge” and the senior employee at the site, targeted Mack for abuse. He commented frequently on her “fantastic ass,” “luscious lips,” and “beautiful eyes,” and, using deplorable racial epithets, opined that minorities and women did not “belong in the business.” Connolly lacked authority to take tangible employment actions against mechanic’s helpers, but he did assign their work, control their schedules, and direct the particulars of their workdays. The Second Circuit Court of Appeals – covering New York, Connecticut, and Vermont –concluded that Connolly was a “supervisor” under this functional approach:  “Not only did he direct the particulars of each of Mack’s work days, including her work assignments, he was the senior employee on the work site. He therefore possessed a special dominance over other on-site employees, including Mack, arising out of their remoteness from others with authority to exercise power on behalf of Otis.”

In contrast, other federal appellate courts had adopted a more formalistic approach, concluding that a “supervisor,” for purposes of imputing liability to an employer, was limited to those persons who had actual authority to impact the terms and conditions of the employer, specifically, to “hire, fire, demote, promote, transfer, or discipline” an employee. For example, in Noviello v. City of Boston, 398 F.3d 76 (1st Cir. 2005), the plaintiff worked as a parking officer for the City of Boston. One of her co-workers ripped off her bra, an incident that the plaintiff properly reported to her superiors. Thereafter, however, her co-workers began to “bust her chops,” and her co-workers in charge of her daily assignments assigned her to different meal breaks, refused to pick her up during snow storms, and other similar, derisive conduct. However, the federal appellate court held that the City of Boston was not necessarily responsible for this boorish behavior, noting that “[w]ithout some modicum of this authority [to hire, fire, promote, or demote], a harasser cannot qualify as a supervisor for purposes of imputing vicarious liability to the employer in a Title VII case, but, rather, should be regarded as an ordinary coworker.”

In short, a shift supervisor in New York may impose liability upon his employer, but 150 miles away, wrongful conduct by the same shift supervisor in Boston would not result in an employer’s responsibility. Lawyers sought a uniform answer from America’s highest court.

Employee Rights Litigation Based Upon Scrutiny of an Employee’s Social Media Sites Could Be Defensible; an Employment Law Lawyer Could Tell You

New York school teacher Christine Rubino fared well with her judicial challenge to her wrongful termination. Ms. Rubino taught fifth grade at Public School 203 in Brooklyn, a position she held without incident for many years. The day after a student from another New York school drowned on a beach field trip, Rubino vented on Facebook:  “After today, I am thinking the beach sounds like a wonderful idea for my 5th graders! I HATE THEIR GUTS! They are the devils (sic) spawn!”  When a friend responded that Rubino would let a student float away, Rubino replied:  “Yes, I wld (sic) not throw a life jacket in for a million!!”

One of Rubino’s Facebook friends reported Rubino’s posts to the school administrators, who terminated Rubino from her teaching position. However, the reviewing court had some sympathy for Ms. Rubino. While finding her reference to the prospective death of a child as “repulsive,” the court found wrongful termination to be disproportionate to the offense, noting:

Facebook has rapidly evolved from a platform used solely by American college students to a world-wide social and professional network. . . . Indeed, with Facebook, as with social media in general, one may express oneself as freely and rapidly as when conversing on the telephone with a friend. Thus, even though petitioner should have known that her postings could become public more easily than if she had uttered them during a telephone call or over dinner, given the illusion that Facebook postings reach only Facebook friends and the fleeting nature of social media, her expectation that only her friends, all of whom are adults, would see the postings is not only apparent, but reasonable.

Rubino v. City of New York, 34 Misc. 3d 1220(A), 950 N.Y.S.2d 494 (Sup. Ct. 2012), aff’d, 9813, 2013 WL 1876235 (N.Y. App. Div. May 7, 2013).

Employers and employees alike should exercise caution in their use of social media. The employee should bear in mind that, like diamonds, “Facebook is forever.” Although posts may seem to be fleeting, they could come back to haunt the employee months or years later. However, the employer must also bear in mind that employment decisions based upon scrutiny of an employee’s social media sites could intrude upon both the employee’s privacy and other statutory rights.

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