More social media worries for employers

Whether through Facebook or Twitter, LinkedIn or GooglePlus, social networking is changing the way the world communicates and how business is conducted.  Employers should already be aware of the benefits and pitfalls of employee social media use. For more information on social-media-related issues for employers, our previous social media blog posts are listed below:
NLRB GC outlines federal protections for employee social media activity
NLRB posts two complaints in May regarding employee activity on Facebook
Is Social Media On Your Mind? The top 5 questions you should be asking 

A recent decision highlights yet another wrinkle.

In Maremont v. Susan Fredman Design Group, LTD, Jill Maremont, as SFDG’s marketing director, promoted SFDG on her personal social media accounts.  Over time, Maremont became well-known in the Chicago design community and developed a 1,250-person Twitter following.

In September 2009, Maremont was seriously injured in a car accident.  During her recovery, SFDG, without permission, used Maremont’s Facebook and Twitter accounts to promote itself.  Maremont sued SFDG for false endorsement because SFDG falsely used her account to endorse its services.  She also alleged violations of the Stored Communications Act, which prohibits unauthorized, intentional access to communications held in electronic storage, and violations of her right to privacy.  The District Court for the Northern District of Illinois recently held that, if Maremont is able to demonstrate actual injury (i.e., money damages) or show that SFDG was unjustly enriched, she can maintain her false endorsement and Stored Communications Act claims.

Although Maremont may have a tough time demonstrating actual damages or unjust enrichment, the decision nonetheless muddies the waters for employers by creating another avenue for social media-based liability.  It also reinforces that employers should not use an employee’s social media account without permission, regardless of whether these accounts have promoted or discussed the employer in the past.  In fact, employers, to the extent they actively use or promote the use of social media, should consider creating their own pages, blogs and accounts rather than relying on employee accounts.  Doing so can help avoid the fate already suffered by SFDG: hefty legal bills despite the fact that liability has yet to be determined. 

NLRB GC outlines federal protections for employee social media activity

Report addresses what employers can and can’t do when an employee goes all @normarae


By George AsimouVictor Geraci and Todd Sarver

The Office of General Counsel of the National Labor Relations Board (“NLRB”) issued a sprawling Report of the General Counsel (“Report”) on the interaction of employee social media activity and the National Labor Relations Act yesterday.   The Report summarizes the Office of General Counsel’s findings in a wide array of cases submitted for its review and provides some useful guidance for employers grappling with employee social media activity.  As a reminder, the NLRB has jurisdiction over union and non-union workplaces.

A recent survey by the U.S. Chamber of Commerce found that the NLRB has reviewed more than 129 cases involving social media in some way.   In April, the Office of General Counsel, in a commendable attempt to ensure consistent enforcement, directed the NLRB’s various regional offices across the country to submit social media cases to the NLRB’s Division of Advice.  In essence, the Office of General Counsel was taking a step back and looking over the whole field of cases in the interest of articulating some general principles as to the NLRB’s enforcement position on social media.  While the Office of General Counsel’s Report does not represent a binding ruling by the NLRB, the way unfair labor practice charges involving social media will be handled at the regional level is now much clearer.

McDonald Hopkins will be providing a comprehensive review of NLRB’s social media enforcement position, but we wanted to immediately provide clients with an initial take on the Office of General Counsel’s Report:

  • Employers are well advised to review their social media policy to ensure that it is narrowly tailored.   (Yes, we know you just implemented your policy.)

The Report frequently notes provisions of employer social media policies that the Office of General Counsel concluded could be reasonably interpreted as prohibiting protected activity under Section 7 of the National Labor Relations Act (which, amongst other things, provides employees with the right to engage in “concerted activities for the purpose of … mutual aid or protection”) and, therefore, were overly broad and unlawful.

Example: An employer policy that “prohibited employees from making disparaging remarks when discussing the company or supervisors, and from depicting the company in any media, including but not limited to the internet, without company permission” was deemed overly broad.  In the first instance, “disparaging remarks” about the company or supervisors may include concerted activity for the purposes of mutual aid or protection.  More subtly, barring media depictions of the company could be reasonably interpreted as prohibiting the posting of “a picture of employees carrying a picket sign depicting the company’s name” or the wearing of “a t-shirt portraying the company’s logo in connection with a protest involving terms and conditions of employment.”

Another Example:   An employer policy that, in part, “prohibited employees from using any social media that may violate, compromise, or disregard the rights and reasonable expectations of privacy or confidentiality of any person or entity” was deemed overly broad.  The Office of General Counsel noted that the rule provided no definition or guidance as to what the employer [here, a hospital] considered to be private or confidential.  Accordingly, the rule “could be reasonably interpreted as prohibiting protected employee discussion of wages or other terms and conditions of employment.”

Yet Another Example:   A newspaper’s management repeatedly tells a reporter that the tweets on his Twitter account, which identifies him as a reporter for the paper and links to the newspaper’s website, should exclusively address news items pertinent to his beat after he blasts the paper’s copy desk in a tweet, picks a fight with a local television station in a tweet, and tweets about recent crimes, some of which were sexual in nature.   Here, the Office of General Counsel concluded that newspaper management’s oral instructions to the reporter did not constitute formal work “rules,” but rather direction in the context of individual discipline over specific misconduct and therefore were not overly broad – but suggested that similar orally promulgated rules implemented more broadly would be violative of Section 7.

The Office of General Counsel’s fine-tooth comb analysis dictates, at minimum, prominent disclaimer language that the employer’s social media policy does not prohibit the exercise of Section 7 rights.  Even employers who have recently implemented social media policies should consider a quick review of the policy by legal counsel in light of the General Counsel’s recent Report.

  • Employers may reasonably get mad about an employee’s online antics, but should talk to counsel before getting even.

A substantial portion of the Report is devoted to making distinctions between mutual aid and protection as to terms and conditions of employment (protected) and individual griping about the job (not protected).  Given the NLRB’s legislative mandate to promote and protect employee rights, the Office of General Counsel not surprisingly takes an expansive view of what constitutes protected activity.

Example:   A “luxury” automobile dealership puts on a sales event that includes complimentary food and beverages.  Some of the dealership’s sales professionals believe the assortment of “small bags of chips, inexpensive cookies from the warehouse club, semi-fresh fruit, and a hot dog cart where clients could get overcooked hot dogs and stale buns” are, ahem, déclassé.   One of the sales professionals posts his thoughts on the sales event on Facebook, including photos of the allegedly lackluster spread, other sales professionals posing by the offending snack table, and one of the dealership’s promotional banners.  As the Office of General Counsel subtly notes, “the employee included comments along with the photographs, reflecting his critical opinion of the inexpensive food and beverages provided.”  The sales professional was ultimately terminated.  The Office of General Counsel concluded that the Facebook posts were protected concerted activity as they reflected the consensus of a number of the dealership’s sales professionals and employee discontent as to promotional efforts was directly relevant to the terms and conditions of employment because the sales professionals were commissioned employees. The Office of General Counsel also noted that, while some employee conduct can be so outrageous as not to be protected, the Facebook post in question was “much less offensive than other behavior found protected by the Board” and “did not refer to the quality of the cars or the performance of the dealership and did not criticize the employer’s management.”

Another example:  A number of former and present employees of a sports bar are informed by their state that they owe taxes on certain income earned at the bar.  The tax assessment upsets the employees and the issue is placed on the agenda for an upcoming meeting.  A former employee subsequently posts about her discontent on Facebook (including, as the Office General Counsel notes, “a shorthand expletive”) and asserts that the employer “could not even do paperwork correctly.”  A current employee clicks that he “likes” the post.  A second current employee responded to the post, calling one of the bar’s owners a term not acceptable under the standards of Midwestern nice.   Both current employees are terminated.  The employee that “liked” the original Facebook post was “told he would be hearing from the employer’s attorney.”   The employee that actually added additional commentary received a letter from employer’s counsel informing her that the employer intended on filing suit for defamation if she did not delete the post.  The Office of General Counsel concluded that both employees had engaged in protected concerted activity in expressing “truly group complaints,” noting further that even an allegedly defamatory statement will not lose its protected status unless it is not only false, but maliciously false.  More instructively, the Office of General Counsel concluded that the threat of lawsuit, even if there was a reasonable basis for legal action, violated Section 7 of the National Labor Relations Act as it interfered with the right to mutual aid and protection.

Overall, the take away is that, despite the Office of General Counsel’s best efforts, general principles of what is protected and what is not protected will necessarily give way to the specific facts of a given case – and a lot of judgment calls.  Employers are advised to consult with legal counsel in determining the best response to even the most egregious employee conduct in the social media realm.

As noted above, the Report of General Counsel is sweeping in its scope and addresses other finer points of law such as the legal bounds of union use of social media, policies governing co-workers “pressuring” other co-workers to use social media, and policies governing employee contact with the media.

McDonald Hopkins will continue to provide further guidance in the near term, including a long-form alert that deals with the Report and other related legal developments comprehensively.  In the interim, if you have any questions, please do not hesitate to contact one of us.

EEOC to Employers Via $20M Verizon ADA Settlement: Can you hear me now?

The EEOC announced on Wednesday July 6, 2011 that it had settled a nationwide class disability discrimination suit with Verizon for $20 Million – the largest ADA settlement in EEOC history.  The EEOC filed suit in federal court earlier this month alleging that Verizon’s “no fault” attendance policies mandated “that when an employee accumulates a designated number of ‘chargeable absences’ an employee is placed on a disciplinary ‘step’ and additional ‘chargeable absences’ during such step period result in the placement of the employee in the next step, which has more serious consequences, up to termination.”

The EEOC noted that such policies made no exceptions for disability-related leaves, which is contrary to the EEOC’s enforcement position that one-size-fits-all leave periods for disabled employees (i.e., disabled employees have x number of days to return to work or face termination) are violative of the Americans with Disabilities Act.  The policy did exempt FMLA leave.

The Verizon settlement, which also includes a consent order in which the EEOC will supervise Verizon’s revision of its attendance policies and its training of management, is just the latest step in an ADA enforcement campaign that we have reported on previously.

Employers are well-advised to review their leave policies to ensure compliance with ADA requirements.

Do you know the status of your workers? The right answer is more important than ever.

On April 28, a multi-disciplinary team of McDonald Hopkins lawyers explored the issue of worker classification – and misclassification – and the impact it can have on your business. With perspectives from tax, employee benefits, business law, and labor and employment attorneys, the panelists discussed the various tests used for distinguishing employees from independent contractors as well as potential liability under the Internal Revenue Code, the Employee Retirement and Income Security Act, and the Fair Labor Standards Act, among others. Panelists also offered tips for avoiding some of the most common mistakes found in employment agreements, benefit plans, and other business records.

Now Online Independent Contractor.JPG

View the entire webcast here:
http://www.mcdonaldhopkins.com/webcasts/webcast.aspx?id=2yaubUQfCUKtwoVrTCfxbQ

Find out about upcoming programs and webcasts here:
http://www.mcdonaldhopkins.com/nelist.aspx?id=AmsVUS7Ou0OJRoZ1UJhopg

Is Social Media On Your Mind? The top 5 questions you should be asking

On April 6, attorneys in McDonald Hopkins’ Labor and Employment Practice provided answers to some of the most pressing questions businesses face when dealing with social media. Those questions included:

  1. Isn’t my company better off leaving well enough alone?
  2. How do I protect my company’s brand in the social media world?
  3. Can I discipline employees for engaging in social media activities?
  4. What about privacy rights?
  5. Do I need a social media policy?

Panel members explored the prevalence of social media and how it affects business operations, employment relations, and the litigation process. In addition, the panel reviewed the steps employers can and cannot take to manage social media use by employees. The program also included a discussion of real-life social media situations and the effective – and not so effective – ways companies have addressed them. Finally, the panel provided tips on the best way to develop a social media policy that fits each business’s unique circumstances.

Now Online IsSocialMediaOnYourMind.JPG

View the entire webcast here: 
http://www.mcdonaldhopkins.com/webcasts/webcast.aspx?id=4xuM7GuB0UC0k8AJFZLvig

Find out about upcoming programs and webcasts here: http://www.mcdonaldhopkins.com/nelist.aspx?id=AmsVUS7Ou0OJRoZ1UJhopg

Sixth Circuit holds no right to jury trial under WARN Act

The Sixth Circuit recently resolved an open question regarding the Worker Adjustment and Retraining Notification – WARN – Act by holding that there is no right to a jury trial for employees who raise claims under that statute.  This is good news for employers since juries tend to be the wild card in any piece of employment litigation.

In Bledsoe v. Emery Worldwide Airlines.pdf, the Sixth Circuit concluded that, since remedies under the WARN Act were more equitable than legal in nature, the Seventh Amendment to the United States Constitution did not imbue such claims with a right to a jury trial.  In so doing, the Court relied on several characteristics of WARN Act remedies:

  • The Act’s back pay provisions are restitutionary in nature and only come into play if the employer does not comply with the Act’s 60-day notice period. 
  • The Act places the entire potential damages award – including liability for back pay and benefits – within the trial court’s discretion if the employer can prove that it acted in good faith and on reasonable grounds. 
  • The Act’s provisions do not otherwise indicate Congressional intent to make juries available to employees pursuing money damages under the statute.

The fact that jury trials are not available in WARN Act cases in the Sixth Circuit does not, however, mean that violations of the Act come cheaply.  Civil penalties and damages to employees are still on the table.  To guard against this risk, you should consider whether the WARN Act comes into play anytime you engage in lay-offs or facility closings.