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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.

SEPTEMBER 2001

IS CELL PHONE A COMPANY LIABILITY? A lady driving her car while (allegedly) making business calls on her cell phone, swerves off the road and kills a teenager. She was found guilty and sentenced. The teenager’s father is suing the company who employed her. Should her firm be held liable? Did the firm approve of driving while using the cell phone? Was her employer aware of the cell phone use by the employee while she was driving? The suit involves many questions and millions of dollars. Does your company handbook address this issue? This sounds like it may be a good time to issue some rules on driving and the use of cell phones.

AGE DISCRIMINATION COMPLAINTS JUMP: Age discrimination complaints have turned upward recently after dropping steadily through the 1990s, according to EEOC figures. Charges fell from 19,800 in 1993 to 14,000 in 1999. Last year, age-based complaints jumped 13.2% to 16,000. In the first half of the current fiscal year, complaints jumped another 15.4% to about 9,300 compared to 8,250 in the same period last year. About half of all age discrimination complaints are filed by workers who have been fired or temporarily laid off from their jobs. The median age of the U.S. labor force has climbed from 34.6 years old in the early 1980s to 39.2 years old in 2000. It will reach 41 years old by 2008, the U.S. Bureau of Labor Statistics says.

PREPAID PAYROLL CARDS ARE HERE: Visa USA and four major banks took direct aim at the check-cashing industry by introducing a prepaid card that can replace paychecks for workers who don’t have bank accounts. Employers can “deposit” employee wages onto the cards, and workers can then use them to withdraw cash at ATMs, pay for purchases at stores that accept Visa, and even pay certain bills. Visa’s product is the first to be backed by several of the nations largest banks, including Bank of America, Bank One, FleetBoston Financial and U.S. Bancorp.

NONMEMBERS CANNOT BE FORCED TO PAY FOR UNION ORGANIZING: A long-standing ruling by the National Labor Relations Board (“NLRB”) permitted unions to charge workers who were not union members fees that were used in organizing efforts in other workplaces. The rationale behind the rule was that nonunion workers derived a benefit from organizing efforts elsewhere because nonunion employers in the area would be forced to raise wages and benefits to compete for employees. Now the Ninth Circuit Court of Appeals has overturned the rule, holding that the United Food and Commercial Workers Union cannot require nonunion workers to pay any fees for organizing efforts outside their own place of employment.

 


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