kpa lawsuit presentation 05.26.11
DESCRIPTION
You Budgeted for the employment lawsuit, right? $300,000, $600,000, $1.2 million – These are recent actual settlements. Are you prepared to defend your dealership from an employment lawsuit?TRANSCRIPT
You Budgeted for the employment lawsuit, right?
$300,000, $600,000, $1.2 million – These are recent actual settlements. Are you prepared to defend your dealership from an employment lawsuit?
Questions
• If you have questions during the presentation, please submit them using the “Questions” feature
• Questions will be answered at the end of the webinar
E.E.O.C.
• Handles charges of workplace discrimination
• 93,277 charges filed in fiscal 2009
Types of Charges:
• Disability: 21,451• Religion: 3,386• Retaliation: 33,613• Age: 22,778• Race: 33,579• Sex: 28,028
Reasons to Love HotlinkHR:
• $376 million $376 million
Recovered by EEOC in 2009
BUT• Does not reflect private litigation!
What’s Up?
EEOC 2010 budget increased by $23 million, with the emphasis on investigation and enforcement
Handbooks – Important?
• 10/20/09 10th Circuit Court of Appeals in Compton v. Rent-a-Center
$1.5 Million Reasons to Love Hotlink HR
• EEOC and Colorado auto dealer settled case alleging dealership subjected female employees to sex discrimination and sexual harassment and fired older male employees because of their age. (EEOC v. Arapahoe Motors, Inc. d/b/a Ralph Schomp Auto. 1/6/10)
• Company defense: Female owner, couldn’t discriminate against females. EEOC didn’t buy it.
• Remedy other than $$: provide training
Dealer Pays $85,000 to Settle EEOC Suite for Racial Discrimination and
Retaliation• Racial epithets – using the N-word and making
sales teams based on race.
• Retaliation for complaining about unlawful discrimination.
• Settlement:– $$
– Revise policy on non-discrimination and non-harassment
– Yearly anti-discrimination training
More Reasons:
Dealer Pays $500,000 to Settle EEOC Harassment Suit
• Dealer Pays $140,000 to Settle in GA• Dealer Pays $85,00 in Ohio• Dealer Pays $32,000 in Florida
More Reasons:
Mathis v. Phillips Chevrolet
• GM with hiring authority at dealership, often noted ages of employment applicants by hand on their applications!
• GM testified he was not aware that it was illegal to discriminate on the basis of age!
• Court: Leaving managers with hiring authority in ignorance of the basic features of the discrimination laws is an “extraordinary mistake”: reckless indifference.
($100,000+)
U.S. Department of Labor
• Handles claims for overtime and minimum wage
Examples:
• Hiring
• Secretary of Labor Hilda Solis
VERY pro union/employee
• Hired 250 new investigators
Fiscal Year 2008 FLSA Violations:
• $185.3 million collected for violations of the Fair Labor Standards Act’s overtime and minimum wage rules.
• This does not include private sector lawsuits!
• From 2001 to 2005 there was a 100% increase in cases filed.
The Bottom Line
• Ignorance of the law is no excuse• Lack of training is no excuse• Minority ownership is no excuse • Good intentions but no process is no
excuse
The Department of Labor doesn’t care what your excuse is, they are focused on investigation and enforcement and dealerships have proved to be an easy target –expect more lawsuits and big dollar settlements
Free Consulting Time!!!
James F. Hendricks Jr.Partner, Chicago Office
Atlanta Asheville Birmingham Chicago Dallas Denver Jacksonville Los Angeles Melbourne Memphis Miami Minneapolis New York Orlando
Phoenix Spartanburg Tampa Washington, DC
CONTACT INFORMATION
The recorded webinar and presentation slides will be emailed to you today including your local representative’s contact
information.
www.kpaonline.com
866-356-1735