As hospitality industry employers continue to be targets of class action discrimination suits, union organizing campaigns and wrongful termination lawsuits, JMBM offers the following update to help you stay current and avoid some of the pitfalls of personnel management. 

Temporary Workers.

If you hire temporary personnel or use employment agencies, take note! The EEOC recently expanded the application of federal anti-discrimination laws to temporary workers and issued new guidelines on when a company may be liable for discrimination against temporary workers even if they are not on the company's payroll. Use of agencies may not help. Staffing contracts should be reviewed by counsel for compliance with the EEOC guidelines and for unenforceable provisions under the guidelines.
 

Union Activity Alert.

Members of the Hotel and Restaurant Employees Local 11 just ratified a new six year contract with six of Los Angeles' major hotels. The agreement will provide approximately 1,800 employees with hourly wage increases totaling $2.90 over the term, maintenance of employer-paid insurance with a new prescription plan and coverage for domestic partners, successorship language on the sale of a hotel or change in operator, a guarantee against subcontracting, and job security for immigrant workers in the event of work permit problems. 

The union is now negotiating with eight other hotels to extend these same contract provisions and has publicly vowed to start union organizing efforts at other hotels throughout Southern California to get these "guarantees." If you have not already done so, consider adopting union free policies, practices and training for management personnel. This union means business! 

Termination for "Good Cause."

Employers recently received a favorable decision from the California Supreme Court in setting aside a $1.8 million verdict for an executive who had been fired for what the employer believed were credible complaints of sexual harassment. The court held that the employer need not prove that the former employee actually committed the alleged misconduct. It only needed to demonstrate that at the time of the termination, based on a thorough investigation, the employer acted in good faith and had reasonable grounds for believing the employee's misconduct. 

This outcome agrees with federal law and the law of many other states. It endorses responsible employer action without requiring that an employer insure the accuracy of the facts on which the employer relies. However, to meet this standard, the employer must have adopted investigatory policies and practices which provide a fair and complete fact-gathering and evaluation process. Employers should review and revise their disciplinary, grievance and investigation policies and procedures to meet this high standard.