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The Human Resources Briefs below are a general overview of the subject matter, and are not meant to provide legal opinions regarding any specific case, matter, or set of facts, or to substitute for the professional advice of Waag and Co.

AUGUST 2001

HR TRENDS: (1) Law schools rank as a top draw for college grads and former dot-comers, with a 19% jump in the number of those taking the national Law School Admissions Test, or LSAT, this June over a year ago. (2) A quarter of the Equal Employment Opportunity Commission’s fiscal 2000 cases involved alleged employer retaliation against workers speaking their mind, doubling 1990's rate. (3) About a third of 1,130 workers surveyed on line by the Society of Financial Service Professionals say they have played computer games during work hours. (4) The percentage of women holding executive-management posts in the 500 top U.S. companies rose to 5.1% in 1999 from 2.4% in 1996, says an International Labor Organization survey. Other Western nations generally have registered even lower rates, such as Australia with 1.3%. (5) Studies show that companies that slash their workforces during short term economic slowdowns take longer to rebound when times get better. Businesses that cut more than fat are left hobbled by demoralized, skeletal staffs that can’t handle increased production when things perk up.

WHISTLEBLOWERS: EMPLOYEES FIRED FOR REPORTING ILLEGAL WORKERS CAN SUE: Fu E. Min and his wife, who worked for Los Angeles garment company Liang Tai Knitwear, reported to the Immigration and Nationalization Service that their employer was using undocumented workers, prompting an INS raid in which 40% of the company's workforce was arrested. A short time later the Mins were fired. The employer claimed their termination was due to a business slowdown, but they were the only workers let go. A jury found that the firing was retaliatory and awarded them $477,000. Now the federal appeals court that covers California has upheld the verdict, finding that federal immigration laws did not preempt the couple's claim for wrongful discharge in violation of public policy.

EMPLOYEE BENEFITS: RELIGIOUS ORGANIZATION HEALTH PLANS MAY HAVE TO COVER CONTRACEPTIVES: A 1999 law requires California employers to include contraceptives in their health insurance plans if they cover other prescription drugs. Although there was a narrow exemption in the law for religious employers, Catholic Charities didn't qualify because it serves the general public and most of its employees aren't Catholic. Now, in a closely watched case, a California Court of Appeal has rejected the organization's challenge to the law, ruling that employee insurance offered by Catholic Charities of Sacramento must include birth control. The decision may be appealed to the state Supreme Court.

GOVERNMENT CONTRACTORS: CONTRACTOR BARRED FOR FAILING TO RETURN EEO SURVEY: The Office of Federal Contract Compliance Programs initiated an enforcement action in January against Giant Merchandising, a Los Angeles-based graphic design company that didn't complete the OFCCP's Equal Employment Opportunity survey. Now, the agency has announced that the design firm has been barred from government contracting for six months. The OFCCP sent out another 49,000 surveys in January that were due back May 31.

WORKERS' COMP: EMPLOYERS MAY BE ENTITLED TO PREMIUM REBATES: Under an obscure law enacted in 1993, workers' comp insurers owe premium rebates to small and midsize California employers who get workers back on the job in modified or alternative work arrangements--but many employers aren't aware of the refunds, according to Richard Stephens, a spokesman for the state Division of Workers' Compensation. Labor Code Section 4638 requires insurers to refund one year's worth of workers' comp premiums paid on behalf of an injured employee who returns to the job in modified or alternative work for 12 months. The savings could amount to thousands of dollars for workers in high-risk jobs such as construction, and a few hundred dollars each for workers in low-risk occupations such as clerical jobs.

ACCOMMODATING EMPLOYEES: WAL-MART MUST RUN ADS FOR NONCOMPLIANCE: A federal judge in Tucson has fined Wal-Mart $750,000 for violating the settlement terms of a previous lawsuit that charged the retailer with failing to accommodate two deaf applicants. In particular, the judge found that Wal-Mart failed to timely train its staff in ADA compliance and neglected to provide an interpreter or other means of communication after the workers' training period ended. In addition to fining the company, the judge ordered Wal-Mart to produce a TV ad to appear locally every day for two weeks to explain the Americans with Disabilities Act, state that Wal-Mart violated it, and refer people with potential ADA claims to the Equal Employment Opportunity Commission.

 


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