Posted On: February 20, 2011

Employer's Deductions Of Earned Wages Deemed Unlawful By The Supreme Judicial Court

Employee rights advocates experienced a notable victory under the Massachusetts Wage Act to start off the new year. In Camara v. Attorney General, the employer, ABC Disposal Service, provides curbside collection and disposal services. It instituted a policy whereby drivers determined to be at fault for accidents are provided with the option to either receive a disciplinary warning or to set off the damage allegedly caused against wages earned. The determination as to whether the driver is at fault is made by the company internally. The employee has no right to appeal the determination. Pursuant to this policy, over less than a two year period, the company deducted over $20,000 from the paychecks of 27 different employees. The question before the Supreme Judicial Court was whether this policy violated the Wage Act.

In finding that this policy, in fact, violated the Wage Act, the SJC noted that Section 148 of the Wage Act prohibits employers from entering into "special contracts" with employees that relieve the employer of the legal duty to pay wages earned:

No person shall by a special contract with an employee or by any other means exempt himself from this section or from section one hundred and fifty.
This particular clause of the Wage Act recognizes the unequal bargaining power between employer and employees. Often times, employers require employees to sign numerous forms of paperwork at the outset of employment without questioning the content. Preventing employers from leveraging their superior bargaining position to require employees to agree to a policy that avoids the full payment of wages is a paramount concern.

Notably, in reaching its decision, the SJC rejected the employer's argument that the wages ABC Disposal deducted from its employees constituted a "valid set-off" pursuant to Section 150 of the Wage Act:

An arrangement whereby ABC serves as the sole arbiter, making a unilateral assessment of liability as well as amount of damages with no role for an independent decision maker, much less a court, and, apparently, not even an opportunity for an employee to challenge the result within the company, does not amount to “a clear and established debt owed to the employer by the employee."
The Massachusetts Office of the Attorney General, which originally ordered restitution and imposed a civil penalty of $9,410, issued a press release praising the decision, in which Attorney General, Martha Coakley, stated:
Today’s decision is an enormous victory in our office’s efforts to protect workers and their hard earned wages from unfair business practices. The employer in this case shifted costs of doing business onto its workers who were forced to choose between giving up their wages or suffering uncertain discipline.
Overall, employees should be vigilant about wage deductions. As the Camara decision illustrates, only in very limited circumstances will an employer have the discretion to withhold earned wages.

Posted On: February 7, 2011

Race Discrimination Claim Filed Against Texas Company Alleging Rampant Use Of Racial Slurs

Race discrimination claims continue to grab headlines. In its article entitled Industrial Services Firm Faces Bias Suit, the Wall Street Journal recently reported that "[n]early 250 workers sued Turner Industries Group of Baton Rouge on Sunday, alleging racial discrimination in hiring, pay, promotions and on-the-job treatment."

The allegations in the complaint, which numbers more than 300 pages, are especially egregious:

Robinson and his similarly situated Black co-workers have been and continue to be subjected to racially offensive graffiti displayed at Turner job sites. For example, he has seen "Nigger hang from a tree," and "fuck you niggers, go back to Africa." He has also seen a noose and several confederate flags hung in the bays at Turner.
...

Jeffery and his similarly situated Black co-workers have been subjected to racial graffiti and depictions throughout Turner facilities and job sites. The bathrooms were constantly covered in offensive comments such as, “Niggers don’t belong here,” and he has seen drawings of White people wearing KKK hats.
...

Jones and his similarly situated Black co-workers have been subjected to a racially hostile atmosphere at Turner’s facilities. For example, White workers would leave notes on his truck calling him “nigger” and saying, “I know you sell drugs you nigger fucker.” Jones reported these notes to management, but Turner did not do anything to stop the notes.

The Equal Employment Opportunity Commission investigated similar complaints of racial harassment at Turner Industries. In early 2010, the EEOC found that numerous instances of racial harassment occurred at the company's Paris, Texas plant which, consistent with the allegations from the most recent lawsuit, included the use of racial epithets and symbols of discrimination. The Dallas Morning News reported the EEOC's findings in its article entitled,
EEOC: Black workers harassed at pipe factory in East Texas
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If you're the victim of race discrimination and harassment, its important to act quickly to preserve your rights and hopefully put an end to the hostile work environment. Please contact us to learn more about this process and about our Firm's special focus in this area.