Shedding Some Light on the Serious H1B Visa Program Issue

60 Minutes recently ran a story on the H1B Visa program that showed the impossible situation many American workers found themselves in when they were told to train their own replacements. These workers from foreign countries were a part of the H1B Visa program, which is intended to save taxpayers millions of dollars through outsourcing, but the alleged long-term benefits for taxpayers are of no comfort to those who are facing the loss of their jobs.

American workers interviewed about the situation were still having trouble “wrapping their minds” around actually being forced to train someone to take their own position; their livelihood. Workers agreed with interviewers that the situation feels like being forced to dig their own grave…and then get in it.

Robert Harrison, one of the workers interviewed regarding the situation, is an engineer previously employed by UCSF Medical. Harrison was fired along with 80 of his co-workers recently when their jobs were outsourced to India. Before leaving his position, Harrison, like his coworkers, was forced to train his own replacement. The situation left Harrison, and many American workers in similar situations, outraged and angry. Harrison had to sit next to the worker chosen to replace him in his position at UCSF Medical - wishing the entire time that he wasn’t being forced to work with his own replacement sitting next to him “shadowing” him and attempting to learn all that he knows in order to step into Harrison’s place at the company. Yet doing so was the only way to ensure that he would receive pay through February 2017 as well as a promised bonus. Making the full pay contingent upon fulfilling obligations to train replacements left Harrison, and many like him, with his hands tied. 

Representation for hundreds of workers who have been fired from their jobs in favor of foreign workers with H1B Visas stated emphatically that the situation should offend everyone. She insists that no one should be told that they are losing their job because they are being replaced by cheap, foreign labor. It is an insult to each and every worker being forced to train their own replacements and seek employment elsewhere.

The H1B visa was created in 1990 to help the United States attract the top foreign graduates and offer them a path to United States citizenship. When the program was created, Congress promised American workers that their jobs would be protected. Almost every major tech company has employees here on H1B visas, including Apple, Google, etc. Media companies also embrace the practice. The author of the H1-B Visa bill, Former Congressman Bruce Morrison, has stated that the bill has been “hijacked.”

If you have questions about how the H1B visa program could affect your job or your workplace, please get in touch with one of the experienced southern and northern California employment law attorneys at Blumenthal, Nordrehaug & Bhowmik.

Applicants Sue PricewaterhouseCoopers LLP for Alleged Age Bias

Applicants of a proposed class of 40 and over job seekers rejected by PricewaterhouseCoopers LLP allege age discrimination on the part of the accounting giant, specifically citing the company’s employment practices. The applicants say that the hiring (in addition to other employment practices) inadvertently favor younger potential employees while discouraging older applicants.

Recently a federal judge in California ruled that the company would need to defend against the claims; in opposition to the previous conclusion reached in October 2016 by the U.S. Court of Appeals for the Eleventh Circuit. The federal judge’s conclusion embraces the view of the Equal Employment Opportunity Commission. The case could lead to a possible showdown between federal courts regarding who can bring this type of discrimination claims under the Age Discrimination in Employment Act. Although the U.S. Supreme Court has been asked to look at the Eleventh Circuit’s ruling so they may address the issue before it comes to that.

If the justices decide to review this particular case, they would necessarily need to consider the question of how much deference lower courts owe to the EEOC’s views on this particular issue.

PricewaterhouseCoopers LLP’s Reaction to the Ruling:

PwC’s argument that the job applicants didn’t have the right to sue for disparate-impact bias because they were not actually hired failed according to the U.S. District Court for the Northern District of California’s decision February 17th. The theory behind disparate-impact claims allege unintended biased effects resulting from policies or practices that may not be explicitly discriminatory. The allegation PwC is facing cites the company’s tool that purposefully recruits college students as limiting potential for hiring to recent college graduates and applicants with impending college graduations.

In October, a similar claim was brought before the Eleventh Circuit regarding the R.J. Reynolds Tobacco Co. Allegations in this case included that the company used guidelines to review resumes submitted for open positions that targeted job applicants that were only 2-3 years out from college graduation. In the R.J. Reynolds Tobacco Co. case, the court held that only the workers already hired could bring disparate-impact claims and that potential employees still in the hiring process or being considered for a position may sue only for intentional age discrimination.

In response to the situation, PricewaterhouseCoopers LLP stated that they respect all anti-discrimination laws, but do not agree with the interpretation of the court regarding the situation. The company spokesperson, advised that the firm believes that the provision of the ADEA does not apply to applicants for open positions.

Lead class counsel Outten & Golden LLP had a different take on the same issue. They found the Court’s decision to follow decades of Supreme Court precedent pleasing in its confirmation that job applicants can challenge age discrimination through the conventional disparate impact theory. They noted that Congress carefully ensured that all individuals could depend on coverage, not just employees. They also pointed out that it has been pointed out by the Supreme Court numerous times that the ADEA should be read similar to other civil rights statues (like the Fair Housing Act or Title VII) in order to include the types of claims being questioned.

U.S. District Judge Jon S. Tigar’s rejection of PwC’s attempted reliance on the Eleventh Circuit’s decision in the Villarreal v. R.J. Reynolds Tobacco Co., was based on a different interpretation of the ADEA in comparison to the majority. Tigar points to the phrase “any individual” used in the law providing a claim for disparate-impact bias and indicates that it does not use the narrower term “employee” even though the narrower term, “employee,” is used in other sections.

Because of the specific word use, Tigar concluded that it can be assumed that Congress’ variation in the terms used was deliberate and indicated that they intended to include all individuals rather than limiting the protections offered to employees. Tigar’s reading is supported by Supreme Court cases that signal disparate-impact claims may be brought by 40+ applicants for jobs.

While the plain language of the law in this case may continue to see varying interpretations, Tigar argued that the law should be viewed as providing protections for 40+ applicants alleging discrimination in employment and hiring policies like PwC’s college student recruitment tool. When a statute’s meaning is not clear the court should grant deference to the stance of the federal agency that is actually tasked with enforcing the law. In the case in question, the agency tasked with enforcement is the EEOC, which has interpreted the ADEA in the past as permitting disparate impact claims by applicants. PwC did not provide a substantial or compelling argument for not adhering to long-established views of the EEOC. Additionally, the law’s legislative history also supports rejection of the position the company is taking that the law only provides protection for employees. The Court added that Congress intended for the ADEA to overcome barriers to employment for older workers, not just age discrimination that may be faced once they’re hired.

If you have questions regarding age discrimination in the workplace or in the hiring process, please get in touch with the experienced northern California employment law attorneys at Blumenthal, Nordrehaug & Bhowmik.

Are Hugs a Hostile Act in the Workplace?

Are hugs a hostile act? What about in the work environment? In a recent decision by the U.S. 9th Circuit Court of Appeals a sexual harassment lawsuit against Yolo County Sheriff Edward G. Prieto was revived. According to the lawsuit, Prieto allegedly hugged a female correctional officer more than 100 times over the course of 12 years.

In defense of the “hugging,” Prieto argued that he also hugged male employees in the workplace. His lawyers further argued that if he hugged the women in the workplace more, it was simply due to general differences in the way that men and women interact on a routine basis with members of the same and opposite sex. Yet according to the 9th Circuit, hugging can create an abusive work environment if the action is unwelcome and pervasive.

Plaintiff in the case, Victoria Zetwick, was a correctional officer. She also alleges in the suit that Prieto once kissed her when congratulating her on her wedding to another deputy. She claims she saw him hug dozens of other female employees throughout her 12 years on the job, but only give male employees handshakes. During the case, Yolo County defense did get Zetwick to admit that she had been known to hug male co-workers on occasion. The Yolo defense team also pointed out a statement in which Zetwick described Prieto’s hugs as “brief.” There were no sexual comments or other touching.

In 2014, a federal district judge dismissed Zetwick’s lawsuit, but in appeal the court found she had offered up enough evidence to possibly persuade a juror of reasonable mind that she had experienced sexual harassment in the workplace due to Prieto’s tendency to hug female workers in the department. They indicated that it would seem that Zetwick had offered evidence that there were both qualitative and quantitative differences in the conduct of Prieto toward the two genders. In the suit, Zetwick stated that the behavior made it difficult for her to concentrate, left her stressed and anxious and eventually made her resort to sleeping medication.

If you need information about hostile workplace environments or hostile actions in the workplace, please get in touch with one of the experienced southern California employment law attorneys at Blumenthal, Nordrehaug & Bhowmik.

CNN Faces Discrimination Lawsuit from Former Employee

Stanley Wilson, a former writer and producer for CNN will pursue racial discrimination and retaliation claims after being allegedly fired for a plagiarism incident. Wilson, a longtime employee for CNN allegedly failed to attribute credit to parts of a news piece that never ran. In the wrongful termination lawsuit, Wilson claims that he was only promoted once during his 13 years of work with the company and alleges that the failure to receive appropriate promotion on the job was due to the fact that he is African-American.

Wilson’s suit is filed under California law for race, age, ancestry, disability discrimination and retaliation. CNN already attempted to dismiss Wilson’s claims through the use of the “anti-SLAPP law” (strategic lawsuit against public participation). According to the California anti-SLAPP law, when a lawsuit infringes upon a party’s right to freedom of speech or participation in the legal process, the party can request the court dismiss the case. The court ruled that the anti-SLAPP law did not apply in Wilson’s suit – even after CNN presented argument that allowing Wilson to sue over his termination would inhibit CNN’s free speech rights for public interest.

Many see this ruling as a victory for workers making discrimination claims – particular in the entertainment and media industries. Employers in these fields are sometimes negatively affected by their employer’s abuse of the anti-SLAPP law and the findings in this case indicate they can be protected when they file a lawsuit alleging discrimination on the job. In effect, this ruling is the court reminding the industry and the public itself that discrimination is not the same as free speech.

If you have questions about what constitutes discrimination in the workplace or harassment on the job, please get in touch with one of the experienced southern California employment law attorneys at Blumenthal, Nordrehaug & Bhowmik.

California Harassment Lawsuit Filed Against Wells Fargo

Diana Duenas-Brown worked at a California Wells Fargo location for 14 years. During 11 of those years she worked as the Branch Manager. On December 9, 2016, Duenas-Brown filed a lawsuit alleging wrongful termination and retaliation. Allegedly, Duenas-Brown reported wrongdoing at Wells Fargo and as a result, she was fired in obvious retaliation for her reporting of illegal activity. In addition, her Wells Fargo supervisors harassed her.

According to the record, Duenas-Brown was fired on March 16, 2015 following her report of illegal sales practices by co-workers (i.e. opening customer accounts and issuing credit cards without prior customer consent). After an investigation uncovered widespread wrongdoing on the part of its sales representatives, Wells Fargo faced sanctions.

Duenas-Brown states that after reporting the illegal activity to her supervisors at Wells Fargo, she was harassed. She received unwarranted discipline, endured hostile interrogations, and was given poor performance reviews. She was also demoted, and transferred and had her wages reduced. This all occurred in the ten months preceding her termination from Well Fargo.

According to the lawsuit, Duenas-Brown suffered financial loss, the loss of her employee benefits and the loss of expected advancement opportunities as a direct result of the actions of Wells Fargo in response to her report of illegal activity in practice at the bank.

In response to the lawsuit and the allegations included, Wells Fargo stated that they have a zero tolerance for retaliation against employees policy – including retaliation against employees who submit a report of wrongdoing. The allegations included in the Wells Fargo lawsuit could easily be viewed as harassment on the job, but the lawsuit officially claims wrongful termination and retaliation. 

Wells Fargo is also facing lawsuits from customers who allege that the bank opened up face accounts/credit cards in their name without their consent. Some of the customers claim that the illegal action had a negative effect on their credit reports/scores. Wells Fargo has already paid $185 million in fines as a result of the illegal activity.

According to California employment law, employers must undergo training intended to prevent abusive conduct against employees, such as verbal abuse, physical abuse, derogatory remarks, etc. Abusive conduct can be defined as any act that occurs repeatedly. The law does not actually ban abusive conduct, but it does require training intended to prevent it from occurring. Sexual harassment against employees and discrimination against specified protected groups are also prohibited under employment law.

If you have questions or concerns regarding discrimination or harassment in the workplace, please get in touch with one of the experienced southern California employment law attorneys at Blumenthal, Nordrehaug & Bhowmik.

Versace Allegedly Employed a Code Designed to Identify Black Shoppers

One of Versace’s former employees, Christopher Sampino, has come forward to file suit against the company alleging state law violations, i.e. unfair business practices, wrongful termination, racial discrimination, etc. The lawsuit claims that the Italian design house uses a secret “black code” that alerts staff and security when there is a black shopper in one of their retail locations.

Sampino’s complaint was filed in Alameda County Superior Court and included allegations that he was discriminated against by Versace for being of mixed race. He was fired after just two weeks at the Versace outlet store in Pleasanton, California. In the complaint, Sampino alleges that new-employee training included an unnamed manger advising him regarding the “D410 Code.” The code is used for labeling black clothing, but it is also used in a casual manner whenever a black person enters the Versace store. When he was advised of the use of the code, the manager explained that it was used to alert Versace workers that a “black person is in the store.”

Sampino also claims that during his time with Versace he was harassed and eventually terminated after informing the store manager that he was, in fact, black. According to Sampino, he met and/or exceeded all expectations in connection with his Versace employment, but was fired after two weeks because he did not “understand luxury” and did not “know the luxury life.” Versace also advised Sampino that his dismissal was due to his lack of experiencing a luxury life. He was advised to quit in order to make the paperwork easier.

Labor Violation Allegations Listed in Sampino’s Suit Include:

1. Not being paid for time worked.

2. Not receiving required rest periods.

3. Being wrongfully terminated.

Sampino seeks class action certification. If the proposed class action lawsuit is certified by the court, other employees and/or former employees of Versace who found themselves in similar situations and were subjected to discriminatory treatment by Versace in the U.S. during the same time frame would be able to join in the case and share in any settlement amounts.

If you have been wrongfully terminated or if you have questions regarding the definition of wrongful termination, please get in touch with one of the experienced southern California employment law attorneys at Blumenthal, Nordrehaug & Bhowmik.

AT&T Executive Fired Over Racist Texts Files Suit

Aaron Slator, AT&T’s former Head of Video Content and Advertising Sales filed suit against the company for breaching his employment contract and for defamation after his 2015 firing. The termination occurred during the regulatory review of AT&T’s $49 billion acquisition of DirecTV.  Legal counsel for the plaintiff filed the lawsuit in Los Angeles County court arguing that the former executive was cleared during the investigation of allegedly racist text messages discovered on his phone by his executive assistance in 2013. Slator was fired over the incident in 2015 after another executive assistant filed a discrimination and harassment lawsuit. 

Slator claims that AT&T advised him of their thorough investigation of the 2013 incident and assured him his job was secure. Two years later Slator was fired without any new evidence, new allegations, or new investigations into the matter. AT&T defends its actions insisting that diversity and inclusion are core values that are important to the company. They feel strongly about the situation and stand behind their termination of Slator and feel that his allegations are baseless and will result in a dismissal.

Slator’s firing made headlines across the country. He was the head of content acquisition and advertising for AT&T’s cable TV, broadband Internet, and wireless Internet services. He was also involved in the DirecTV acquisition, approved by the FCC and completed in 2015. In the lawsuit, Slator alleges that his executive assistant filed a complaint with the Equal Employment Opportunity Commission in 2013 alleging rampant racial discrimination by AT&T executives (listing Slator by name). Allegations included a detailed description of the racist text messages found on Slator’s phone. But AT&T’s internal investigation concluded that there was no discrimination.

Slator claims that he offered to resign, but was assured by AT&T that doing so was not necessary. He completed advisory training with an equal employment opportunity consultant in 2014. Yet the original allegations from the 2013 incident resurfaced in the 2015 lawsuit filed by a different executive assistant. Simultaneously, AT&T was sued by a unit of Byron Allen’s Entertainment Studios for alleged discrimination against African-American-owned media companies. Slator’s legal counsel points to the intense public and legal scrutiny resulting from this situation when claiming that AT&T needed someone to take the blame and that the someone became Slator. The executive assistant’s claims were dismissed in California Superior Court, but this did not occur until months after Slator’s termination.

If you have been wrongfully terminated or if you know someone who has been wrongfully terminated, please get in touch with one of the experienced southern California employment law attorneys at Blumenthal, Nordrehaug & Bhowmik.