Worker Settles Overtime Suit Against Home Remodeler

By Caleb Drickey/Law360 · 2023-10-16 19:49:04 -0400 ·  Listen to article

A worker who accused a home remodeling firm of misclassifying him as an overtime-exempt, salaried employee asked a New York federal court Monday to sign off on an individual settlement to his wage action.

In a letter to U.S. District Judge Diane Gujarati, ex-PHRG Management LLC remodeling consultant Sean Wachter said that a proposed $11,500 settlement to individual age claims would make him whole for withheld back wages and was a fair resolution to disputed claims.

The total settlement equates to more than 100% of what the plaintiff could have recovered under the Fair Labor Standards Act and New York Labor Law, Wachter said, adding: “The proposed settlement agreement is both fair and reasonable.”

Under the terms of the deal, Wachter would receive approximately $6,500 after the payment of attorney fees and expenses. That sum, the worker said, outpaced the roughly $2,400 unpaid overtime wage bill he racked up during his tenure at the company and amounted to roughly 55% of his total potential damages figure.

That return was fair, Wachter said, in light of the risks of further litigation. The worker noted that his former employer maintained its belief that he had been properly classified as an overtime-exempt outside sales worker and contested the number of overtime hours he worked.

“The settlement alleviates plaintiff’s risk of a lower recovery or no recovery at all,” the worker said.

Wachter’s attorneys, meanwhile, would receive an above-benchmark 40% cut of the total settlement fund, plus roughly $230 in expenses, for a total of approximately $4,700. Although Wachter noted that the Eastern District of New York generally limits attorney awards to 33% of a worker’s return, he said that the Second Circuit dissuaded district courts from placing ceilings on fee awards in 2020’s Fisher v. SD Protection Inc. 

He also argued that the proposed fee sat below a nearly $9,500 lodestar figure and was thus reasonable on its face.

Wachter accused the company of violating the FLSA and NYLL in a proposed class and collective action filed in November 2022. In his complaint, he alleged that he should have received time-and-a-half overtime wages instead of a flat, $1,000-per-week salary to compensate him for his up-to-60-hour workweeks.

Representatives of the parties did not immediately respond to requests for comment Monday.

Wachter is represented by Alexander White of Valli Kane & Vagnini LLP.

PHRG is represented by Anthony Mingione of Blank Rome LLP.

The case is Wachter v. PHRG Management LLC, case number 2:22-cv-07155, in the U.S. District Court for the Eastern District of New York.

–Additional reporting by Isaac Monterose. Editing by Nick Petruncio.

See the article from Law360 here.

How to Prepare a Strong Discrimination Claim Against Your Employer

By Kellie Hand

When faced with discrimination in the workplace, it is important to take action as soon as possible, as there are time limits for filing discrimination claims. The best way to protect yourself from discrimination, harassment, and retaliation is to (1) know your legal rights, (2) document everything allowed within state law and company policy (3) consult a legal professional, and (4) remember to take care of your mental and physical health. 

Know Your Rights

In the U.S., employees and job applicants are protected from discrimination in various aspects of employment under federal and state laws. These protections are based on specific “protected classes” such as Race, Color, National Origin, Religion, Sex (including sexual orientation and gender identity), Pregnancy (including childbirth or related medical conditions), Age, Disability, and Genetic Information. 

Note: The Age Discrimination in Employment Act (ADEA) protects individuals who are 40+ years old from age discrimination. However, state laws may have a lower age threshold. For example, New York State’s age discrimination law protects individuals 18+ years old.

Employment aspects protected from discrimination include (but are not limited to):

  • Hiring and firing;
  • Compensation, assignment, or classification of employees;
  • Transfer, promotion, layoff, or recall;
  • Job advertisements;
  • Recruitment;
  • Testing;
  • Use of company facilities;
  • Training and apprenticeship programs;
  • Fringe benefits;
  • Pay, retirement plans, and disability leave;
  • Other terms and conditions of employment.

Employees are also protected from retaliation if they engage in a legally protected activity, such as reporting discrimination or participating in a discrimination proceeding or investigation. 

Document Everything 

Start by keeping a record of each incident you believe is discriminatory. This can include emails, memos, text messages, or any other form of communication. Also, make a note of any verbal conversations. Be as detailed as possible – write down dates, times, locations, people involved, what was said, and any witnesses. However, please be aware that what you can record and document will vary depending on state laws and company policies. 

Report the discrimination to your supervisor, Human Resources department, or any other relevant authority in your organization. Be sure to follow the company’s procedures for reporting, and do this in writing so you have a record of your report. Additionally, keep copies of your job evaluations and any letters or memos that show you perform your job well. This can be crucial if your employer tries to defend their actions by criticizing your job performance.

Get Legal Advice

If you feel you may be experiencing discrimination, consult with an employment law attorney right away to ensure that you are taking the best possible steps from the start. An employment lawyer can provide advice tailored to your specific situation, guide you through the process, and help protect your rights. 

Take Care of Yourself 

Experiencing discrimination in the workplace can be emotionally draining. Therefore, it is important to seek support from friends, family, or a mental health professional. Taking care of your physical health is also vital during stressful times.

US appeals court adopts lower bar for proving workplace bias claims

By Daniel Wiessner/ Reuters

Aug 21 (Reuters) – A U.S. appeals court has thrown out its unique decades-old precedent that made it more difficult for workers to prove discrimination claims.

The en banc 5th U.S. Circuit Court of Appeals on Friday revived a lawsuit claiming Dallas County, Texas, required female jail guards, but not men, to work at least one day each weekend, overruling its longstanding precedent that federal anti-discrimination law only prohibits bias in “ultimate employment decisions” such as hiring, promotions and setting pay.

That precedent imposed a more strict standard than Title VII of the Civil Rights of Act 1964 itself, which applies to any “terms, conditions, or privileges of employment,” the New Orleans-based court said.

“It is no wonder … that no other court of appeals applies so narrow a concept,” Circuit Judge Don Willett wrote for the 5th Circuit.

Jay Ellwanger, a lawyer for the plaintiffs, said the ruling makes clear that Title VII prohibits all workplace discrimination.

Read the full article from Reuters here.

Female Delta Pilot Advances Sexual Harassment, Reprisal Claims

By Patrick Dorrian/ Bloomberg Law

Delta Air Lines Inc. must face a female pilot’s claims of workplace sexual harassment and that she was retaliated against for complaining about gender bias and harassment, including by being forced to undergo retreatment for alcohol abuse.

The ruling by the US District Court for the District of Minnesota rejected Delta’s contention that the retreatment requirement and other job actions cited by the pilot weren’t adverse for purposes of proving job retaliation, but instead were “beneficial opportunities” permitted by its collective bargaining agreement with her union. Binding case law “indicates otherwise,” the court said.

According to Andrea Ratfield, Delta’s adverse employment actions also included threatening her with termination and suspension, and manipulating her use of leave so it could demote her from captain to first officer. She started drinking to deal with trauma stemming from an incident in which she was raped while attending an aviation event in September 2017, which she reported to her supervisor, Ratfield says.

Ratfield says the sexual harassment she’s experienced in her Delta tenure includes being groped, her training manager asking her on a date, a supervisor calling her “princess,” and lewd hand gestures and comments. A supervisor also allegedly bragged to others that he had seen Ratfield’s breasts while she was breastfeeding, Judge Katherine Menendez said.

Those allegations sufficiently state a hostile work environment claim under the Minnesota Human Rights Act, the judge said. The alleged acts of harassment may be “of the type brushed off by courts in different eras,” but they “comprise the sort of workplace behavior today that reasonable people” likely wouldn’t tolerate, Menendez said.

At least two of the incidents alleged by Ratfield occurred within the time period for suing, the court said.

Her retaliation claims are plausible in light of the alleged close timing—two weeks—between when she reported unfair and discriminatory treatment and when Delta refused to accept secondary test results she received that contradicted an allegedly false positive test that triggered the retreatment requirement, Menendez said.

Ratfield also alleges the retreatment facility was told that she rubbed people at Delta the wrong way and that supervisors further tried to sabotage her retreatment and effort to regain her license to fly by sharing her false positive test with the facility, the judge said.

The court dismissed Ratfield’s gender discrimination claims, including her allegations that Delta accepted secondary test results from male pilots under similar circumstances, but not from her.

Those claims require Ratfield to prove she was qualified to be a pilot and thus implicate terms of her union CBA, Menendez said. They therefore are preempted by the Railway Labor Act. RLA preemption didn’t apply to Ratfield’s retaliation claims because they don’t require proof that Ratfield was qualified for her job, the judge said.

Valli Kane & Vagnini LLP, Nichols Kaster PLLP, and Ellwanger Law LLLP represent Ratfield. Dorsey & Whitney LLP represents Delta.

Read the full article from Bloomberg Law here.

A Win for Delta Captain Andrea Ratfield!

By Sara Hammel

For all those following what’s by far the most-read story in The Landing’s short history, we have a victory to report.

Captain Ratfield will have her day in court. Delta Air Lines’ motion to dismiss was denied on two of three claims. As United States District Judge Katherine Menendez writes in part in her August 11, 2023 decision,

Delta’s motion is denied to the extent it seeks dismissal for failure to state a claim. Ms. Ratfield has plausibly pleaded a claim for retaliation under Title VII and the MHRA and sexual harassment under the MHRA.

Retired Delta Captain Karlene Petitt, who knows more about the airline’s legal strategies than almost anyone, covered that side of things on her blog yesterday:

Delta Air Lines utilizes the Railway Labor Act (RLA) to get away with illegal actions. The airline, under the management of CEO and Board of Directors, Ed Bastian, has a history of retaliation and sexual harassment. They also have a history of filing motions to remove these cases from the courtroom and pull them into the grievance process, of which they own both the arbitrator and the process. 

Congratulations to Capt. Ratfield. The cost of taking a stand is high, and can drain both your finances and your energy. But she’s standing firm, and I look forward to continuing to follow her court case.

Read more at The Landing here.

The Curious Case of Pilot Andrea Ratfield

By Sarah Hammel/The Landing

It’s the summer of 2020, and Delta Air Lines CEO Ed Bastian is drafting an epic memo outlining the company’s commitment to diversity and inclusion.

Bastian promises clarity and transparency throughout the $27.5-billion company’s journey to a less white, less male leadership. He writes that he is “committed to correcting our course as we become a more just, equal and anti-racist company.”

Meanwhile, up north in Delta’s “second home” of Minneapolis, Captain Andrea Ratfield is doing some writing of her own.

It’s June 26, a Friday. At her wits’ end, Ratfield composes an email to high-ranking Delta executives, including Bastian.

A skilled pilot with an exemplary flying record, Ratfield launched her career at Delta as a flight attendant in 1999 before joining the airline’s three percent of women pilots in 2007.

In the summer of 2020, Ratfield is balancing a full life as a commercial airline pilot, activist, mother of two young boys with special needs, and trauma survivor. Making life even more challenging: In the midst of it all, she’s been routinely sexually harassed and assaulted at work. Despite reporting the incidents to her bosses, the male pilot perpetrators are never disciplined.

In her email, Ratfield reminds the executives what she’s been through—likely touching on a few examples in a laundry list that includes a male instructor pilot coming to her hotel room at 2 a.m. for “a drink” and another grabbing her breasts—and outlines again the retaliation she’s endured since reporting the abhorrent behavior.

She closes out the letter with a request that she not be forced to work any longer with the male pilots she says are retaliating against her. She names Captain Scott Monjeau, First Officer Warren Mowry and Captain Ray Baltera.

She hits send.

On July 14, Bastian goes on CNN to tout his airline’s diversity and equity plan.

Delta’s top man talks a good game. The 6’ 3” bespectacled CEO with slicked-back salt-and-pepper hair is duly somber as CNN’s presenter pushes him on the airline’s poor record of minorities in leadership positions.

Bastian admits he’s heard Black employees speak of being left out of the “broader” discussion, and says that “…minorities of all varieties, women, are all really important…[we need to] ensure that we’re doing our very best to promote opportunity and equality.”

He adds, “They’re family. They’re my family…I have a responsibility to do a better job.”

On August 11, 2020, Ed Bastian’s diversity memo blasts out to staff and media worldwide. The subject: Taking Action.

Read the full article from The Landing here.

Artificial Intelligence in Employment Decisions

By Kellie Hand

Artificial Intelligence (AI) has revolutionized the way many businesses operate, and the realm of employment decisions is no exception. AI tools are increasingly being utilized to streamline and automate aspects of the hiring process. For instance, In February 2022, the Society of Human Resources Management found that 79% of employers use Artificial Intelligence (AI) and/or automation for recruiting and hiring. Although AI and automation can significantly reduce bias when implemented correctly, AI algorithms are only as good as the data they are trained on. As a result, if an AI tool incorporates biased information or reflects historical disparities, the AI tool may inadvertently perpetuate those biases, leading to workplace discrimination. 

In October 2021, U.S. Equal Employment Opportunity Commission (EEOC) Chair Charlotte A. Burrows announced the Artificial Intelligence and Algorithmic Fairness Initiative, an agency-wide initiative to ensure that the use of software, including artificial intelligence (AI), machine learning, and other emerging technologies used in hiring and other employment decisions comply with the federal civil rights laws that the EEOC enforces. On May 18, 2023, the EEOC released a technical assistance document, “Assessing Adverse Impact in Software, Algorithms, and Artificial Intelligence Used in Employment Selection Procedures Under Title VII of the Civil Rights Act of 1964,” wherein it affirmed that if an employer administers a selection procedure, it may be responsible under Title VII if the procedure discriminates on a basis prohibited by Title VII, even if the test was developed by an outside vendor. Additionally, employers may be held responsible for the actions of their agents, which may include entities such as software vendors, if the employer has given them authority to act on the employer’s behalf. However, in most cases, it can be impossible for an employee to know whether an employer is using a discriminatory AI selection procedure. 

In 2021, the New York City Department of Consumer and Worker Protection (“DCWP” or “Department”) sought to increase transparency by implementing new legislation regarding automated employment decision tools (“AEDT”). Local Law 144 of 2021, which will go into effect on July 5, 2023, “prohibits employers and employment agencies from using an automated employment decision tool unless the tool has been subject to a bias audit within one year of the use of the tool, information about the bias audit is publicly available, and certain notices have been provided to employees or job candidates” who reside in New York City. The law defines an “employment decision” as the act of screening “candidates for employment or employees for promotion within [New York City].” 

A bias audit of an AEDT must calculate the selection rate for each race/ethnicity and sex category (i.e., how often individuals in each race/ethnicity and sex category are chosen by the tool) and compare the selection rates to the most selected category to determine an impact ratio. The impact ratio shows if there is a significant difference in selection rates between groups. A large difference may indicate that the tool is biased.

To comply with the Code, an employer or employment agency may provide notice to a candidate for employment or promotion who resides in New York City by doing any of the following: 

(1) Provide notice on the employment section of its website in a clear and conspicuous manner at least 10 business days before the use of an AEDT; 

(2) Provide notice in a job posting at least 10 business days before use of an AEDT; or 

(3) Provide notice to candidates for employment via U.S. mail or e-mail at least 10 business days before the use of an AEDT. 

Additionally, Local Law 144 requires that employers provide instructions for how an individual can request an alternative selection process or a reasonable accommodation under other laws, if available. 

*It is important to note that while the law covers bias regarding race, ethnicity, and sex, it does NOT apply to older or disabled workers. 

VKV Partner Robert Barravecchio recognized for highest level of service by peers

Martindale-Hubbell, part of the Martindale-Avvo family, is proud to announce that the following attorneys have achieved a Martindale-Hubbell AV Preeminent Peer Review Rating, awarded to only those lawyers who have the highest ethical standards, legal knowledge, and professional ability. This rating signifies a large number of the lawyer’s peers have assessed their professional ability in a specific area of practice via a secure online survey.

Congratulations to the following for garnering the highest honor, the AV Preeminent (alphabetical by last name of attorney):

A

Mary Clift Abdalla, Attorney at Forman Watkins & Krutz
Reginald W. Abrams, Member at Law Office of Reginald Abrams, Sr., L.L.C.
James P. Alder, Attorney at Alder Law Group

B

Robert Barravecchio, Partner at Valli Kane & Vagnini, LLP
Michael S. Bender, Member at Kaye Bender Rembaum
James Thomas Bennett, Member at Bennett Law Firm, LLP
Richard Bolger, Managing Member at Bolger Law Firm
Fred Bowers, Principal at Bowers Law Office 
Jonathan Braaten, Attorney at Anderson, Creager & Wittstruck, P.C., L.L.O. 
Brian Britt, Member at Kopesky, Britt & Norton, LLC
W. Mark Broadwell, Partner at Broadwell Law

New York City Bans Appearance-Based Discrimination

Updated May 30, 2023

New York City Mayor Eric Adams enacted an anti-discrimination law on May 26 banning discrimination based on an individual’s height or weight when it comes to employment, housing or access to public accommodations.  With the new legislation, residents of New York City will be able to bring claims of discrimination related to their physical appearance before the New York City Commission on Human Rights, a local agency responsible for examining cases of discrimination and harassment.

The bill, sponsored by Manhattan Democratic Councilman Shaun Abreu, will be effective on Nov. 22, 2023. Prior to that date, employers must review their official policies to ensure that they do not include discriminatory practices against height and weight The law includes an exemption for positions where a certain height and weight are required to complete the functions of the job, as stated in federal, state or local law, or if permitted by the NYC Commission on Human Rights.

New York State legislators are aiming to pass a similar bill on the state level, which would prohibit weight and height discrimination across the state. Other states, including Massachusetts, Vermont, and New Jersey, are considering similar legislation in their respective states.

Michigan is currently the only state that bans height and weight discrimination, and only three US cities already have an ordinance in place to ban appearance-based discrimination – San Francisco, California; Madison, Wisconsin; and Urbana, Illinois.

Mayor Eric Adams said the passage of this bill is a significant step towards eliminating appearance-based discrimination in New York City.

“It shouldn’t matter how tall you are or how much you weigh when you’re looking for a job, are out on the town, or trying to rent an apartment,” he said. “This law will help level the playing field for all New Yorkers, create more inclusive workplaces and living environments, and protect against discrimination.”

Full 5th Circ. To Examine Employer-Friendly Title VII Rule

The family behind a massive Brooklyn Navy Yards film studio complex stands accused of stiffing local partners out of $50 million in profits, a new lawsuit contends.

Steiner Studios — where films such as Steven Spielberg’s”West Side Story” and Lin-Manuel Miranda’s “Tick Tick Boom!” were filmed — has been named in a civil suit filed by a group of local entrepreneurs who says they developed the complex then were cut out of profits, court records show.

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