Assignment for Kim

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Page 1 of 8 Employment Law

Addressing an EEOC Claim

Note: Use the hyperlinks within the tables to select the next step in the case study. The chart at the end of the tables shows the flow of the case study. The boxes highlighted in blue and green show the most preferred paths in which the EEOC claim can be managed.

Case Study: Ralph Blake, a 49-year-old marketing representative, has been working for Beta Technology for eleven months. He recently started to complain that his back was bothering him. Concerned, you asked him what he did, and he tells you that he might have pulled a muscle loading a seminar display into the trunk of his car. He moves these displays as part of his job, so you suggest filing a first report of injury with his manager. The manager gives you the form a few days later and makes a remark about how Ralph is probably exaggerating, and he really just wants to stay home and collect disability. This manager is known to make negative comments, so you are not alarmed initially. However, when you think about it, you have heard other employees make similar comments. You have never investigated any of these statements, and you do not know Ralph, so you are not entirely sure what is true or not. You file the claim with your workers’ compensation insurance carrier, and they begin to investigate the claim. In the meantime, you look at Ralph’s file and realize that in the last few months, he has developed a poor attendance record, a mediocre performance record, and has been written up for his lack of punctuality on several occasions. You also realize the sensitive nature of the injury and therefore, you would need to carefully consider your options. You recognize that Ralph may be setting the company up to carry him because he does not want to work but needs to collect income. However, you have no clear proof of the issue. You also know that he is close to becoming eligible for FMLA, and you are concerned that an employee with his performance record should be terminated. Your phone rings—it is the insurance company asking questions about the claim. The claim representative asks you a series of questions about the dates and the nature of the injury. He also asks if you have any reason to question the validity of the claim. You take a moment to consider the consequences of your statement before responding. How do you respond?

Choice 1 You Doubt the Claim

You tell them you question the validity of the claim and provide the insurance company with the contact information for the manager.

Choice 2 You Provide the Facts You simply provide information you know to be fact, and refrain from discussing the manager’s concern.

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2 Addressing an EEOC Claim

Step 1 Text Raising Concerns

Ralph has been notified of the investigation into the validity of his claim. He is unhappy about it and claims that the company is trying to push him out the door. He makes a few comments to his peers about the fact that the company must think he is too old to do a good job. He does not show up to work for the next three days and does not contact his supervisor. This is in direct violation of company policy and cause for termination due to job abandonment. You know that you should terminate him per policy, but you are sure that if you do, he is going to retaliate. How will you proceed in this situation?

Choice 1A

Terminate his Services You call Ralph and terminate him the next morning.

Choice 1B

Offer Leniency You call Ralph, remind him of company policy, and ask him to return to the office or properly notify his supervisor that he will be out.

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3 Addressing an EEOC Claim

Step 2 Text Questionable Claim

The workers’ compensation claim is approved. Ralph takes two weeks off work to recover and attend physical therapy. However, two days before his scheduled return day, another employee reports that she saw Ralph on the golf course that Saturday. You are now sure the claim is questionable and you need to take action. How will you proceed?

Choices Choice 2A

Demand a Medical Examination You call Ralph and tell him that his medical excuse is no longer valid and he is going to have to be examined by a doctor selected by the company.

Choice 2B

Inform Workers’ Compensation Carrier You call the worker’s compensation carrier and report the new information.

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4 Addressing an EEOC Claim

Step 1A Text Angry Threats

Ralph is clearly angry. He accuses you of firing him because he filed a workers’ compensation claim. He calls the president of the company and makes the same claim. He threatens to go to the media and file a complaint with the EEOC for retaliation unless you pay him six months of severance pay. How will you address this situation?

Choices Feedback Choice 1A.1

Give in to his Claims You offer him a three-month severance package, including a binding contract that maintains confidentiality of the issue. You know that regardless of the outcome, media exposure and an EEOC claim are costly and you feel that the negotiated severance package is less expensive.

This Closes the Issue The issue is closed. While you probably did not want to pay him, especially because you knew he was wrong, it was much faster and possibly less expensive than a drawn out claim. This may or may not be the right answer, as it is often impossible to predict what the media will pick up on, and what claims the EEOC will accept. Depending on your resources, the size of your human resources department, and your workload, this may be the simplest approach at this point.

Choice 1A.2

Refuse his Claims You refuse. He goes to the media and files an EEOC claim against the company.

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5 Addressing an EEOC Claim

Step 1B Text E-mail from the Employee

Ralph is polite on the phone. However, within thirty minutes of agreeing to your request to abide by policy, he sends you, his manager, and the president of the company an e-mail. The e-mail claims that he is being retaliated against for filing a workers’ compensation claim, that his manager knew he was out, and that he did not feel comfortable returning to a hostile work environment. How will you proceed in this situation?

Choices Feedback Choice 1B.1

Relocate the Employee You send Ralph a certified letter stating that based upon his concerns he is being relocated to another branch under a new manager.

Resolving the Issue This is unlikely to resolve the issue but can sometimes be used to demonstrate a good-faith effort on the part of the employer. You have done everything you can at this point to accommodate the individual. He may refuse the assignment and thus quit, or he may continue to perform poorly, which should be documented, and be asked to leave on an unrelated occasion. This can be useful when you are trying to avoid conflict or visibility of the issue. However, it also relocates what appears to be a problem, potentially damaging morale of other employees and causing an added problem for another manager.

Choice 1B.2

Terminate the Employee’s Services You decide to terminate Ralph knowing that he is likely to file an EEO claim. You feel you have enough evidence to fight any claims that should arise.

Weighing your Options This may be a quick and effective answer or it may result in a long, drawn-out unemployment claim. It could also anger the individual to the point where he would file an EEO claim using any criteria he could think of, including age. A cost/benefit analysis is necessary in all cases— the consequences of keeping someone like Ralph employed versus the likely cost of letting him go.

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6 Addressing an EEOC Claim

Step 2A Text The New Medical Examination

The doctor selected by the company reports that he sees no evidence of physical injury, although he cannot make a statement regarding the pain that Ralph claims to feel. Ralph’s own doctor reported severe muscle strain and spasms, resulting in pain and immobility. The new doctor records his findings with your insurance carrier and now the claim has been terminated and will no longer cover related medical expenses. Ralph is left with several hundred dollars worth of medical bills and disagrees with the outcome. What will be your next step?

Choices Feedback Choice 2A.1

Terminate his Services—At-will Employment State You terminate Ralph without giving him any specifics, which you have the right to do as you work in an at-will employment state. You no longer want him employed but you do not want to create additional work by fighting his unemployment claim as well.

Weighing your Options This is a good option in an at-will state with an unemployment system that favors the individual versus the organization. It also gets the individual away from the company without the added issue of a denied unemployment claim, which is likely to anger the individual and could result in an EEOC claim in retaliation or a drawn out series of unemployment hearings. However, if the company has the resources and time to fight the claim when they have operated legally, that is certainly an option.

Choice 2A.2

Terminate his Service—Fight the Claim You terminate Ralph for making a false report of injury and violating company policy. You intend to fight his unemployment claims and are prepared to deal with any additional claims he may file.

Weighing your Options Few things anger people more than a denied unemployment claim. It tends to make them more likely to file a claim with the EEOC on virtually any basis they can think of, which is something to consider when making this decision. Other factors in the decision include your current unemployment tax rate. If you are already at your maximum rate, you would only fight the claim for the sake of being right, since the claim would not cause your rate to increase at this point. However, when you have factual evidence that the employee has clearly violated a policy and should be terminated, the employer has every right to terminate and fight the unemployment claim.

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7 Addressing an EEOC Claim

Step 1A.2 Text Opting for Mediation

The media story fizzles out and does not impact business in any significant way. The EEOC does accept the claim however, and you have to write a position statement regarding the company’s stance on the issue. You opt for mediation and proceed to negotiate a deal. What will be the outcome of this negotiation?

Choices Feedback Choice 1A.2.1

Accept the Deal You accept a deal after three hours of mediation that requires you to pay Ralph three months of salary and benefits, but he cannot pursue the claim nor can he discuss it after this point.

Avoiding a Lawsuit This may be a good option depending on how much more time and effort you can put into the issue. You do not know what the outcome of a lawsuit would be, and coming to an agreement in mediation avoids the issue of a lawsuit.

Choice 1A.2.2

Refuse the Deal You do not accept a deal with Ralph and he retains his right to sue. You do not believe there was any wrongdoing on the part of the company, and you believe that should Ralph successfully file a lawsuit, you would easily win the case. Although it represents a more significant legal expense, you would rather pay an attorney than Ralph. He attempts to file a lawsuit and sends threatening letters for about six more months and then he disappears.

Taking Chances It is your right as the employer to walk away from mediation and take your chances with a lawsuit. EEOC cases can be somewhat unpredictable, and this can be a costly choice (or the least expensive choice) so you need to be prepared for what this employee may do going forward. However, if you can afford to walk away when you are right, you should do so.

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8 Addressing an EEOC Claim

Preferred Paths

Blue Path

1) Case Study 2) Choice 1 3) Choice 1A 4) Choice 1A.2 5) Choice 1A.2.1

Green Path

1) Case Study 2) Choice 2 3) Choice 2A 4) Choice 2A.1

Case Study

Choice 1 Choice 2

Choice 1A Choice 1B Choice 2A Choice 2B

Choice 1A.1

Choice 1A.2

Choice 1A.2.1

Choice 1A.2.2

Choice 1B.1

Choice 1B.2

Choice 2A.1

Choice 2A.2