EEOC reports record number of discrimination filings for FY 2011

The U.S. Equal Employment Opportunity Commission (EEOC) recently released fiscal year 2011 statistics, compiled in its annual Performance and Accountability Report (PAR). The EEOC handled a record 99,947 discrimination charges in fiscal year 2011 (ending September 30) -- the highest number in the agency's 46-year history. The EEOC also recovered more than $364.6 million in monetary benefits for victims of workplace discrimination -- again, the highest level in the agency's history. The fiscal year ended with 78,136 pending charges, a 10 percent decrease from FY 2010 (and the first such reduction since 2002).

Race charges were the most common claims filed in 2011 (36%), followed by sex (29%), disability (25%) and then age (23%). National origin, religion and Equal Pay Act claims all registered less than 5% of all charges filed.

“I am proud of the work of our employees and believe this demonstrates what can be achieved when we are given resources to enforce the nation’s laws prohibiting employment discrimination,” said EEOC Chair Jacqueline A. Berrien.

The major takeaway in all this? Be especially diligent about training your employees and managers on proper, non-discriminatory behavior and document, document, document. The bad economy may be driving the bump in discriminatory charges. And unless the economy picks up in 2012, this trend may continue.

EEOC reports record number of discrimination filings for FY 2011

Top 3 employment law trends to keep on your radar

Running a business these days is certainly no picnic, thanks to the still-struggling economy and near-constant employment law risk. Management must maintain that perfect balance of awareness and action - or find themselves on the receiving end of a costly, potentially crippling lawsuit.

According to Shanti Atkins, Esq., president and CEO of ELT, the biggest employment law concerns plaguing employers today are:

1) Discrimination. And the claims aren't predominantly sexual harassment anymore, but also sexual orientation, religious and disability discrimination. Are your anti-harassment and anti-discrimination policies in order and, even more important, are you training your managers and staff - thoroughly and regularly?

2) Violence and bullying. Did you know that approximately 20 percent of all violent crime occurs in the workplace? This is no time to ignore bullying and other threatening behavior that could escalate into something more dangerous. Be on the lookout for early warning signs and encourage employees to report concerns immediately so that you can respond appropriately.

3) Wage and hour violations. Perhaps the biggest risk of them all, wage and hour class action lawsuits have expoded. In fact, these claims account for a whopping 84 percent of all employment class action lawsuits. Just as alarming, the Department of Labor (DOL) estimates that more than 80 percent of employers are out of compliance with federal and state wage and hour laws. Not knowing is no excuse. Make sure you're educated on the latest Fair Labor Standards Act (FLSA) guidelines and that you carefully explore any gray areas.

Top 3 employment law trends to keep on your radar

In a weak economy, discrimination charges strengthen

Not good. Not good at all. According to a wsj.com article, workers filed a record number of discrimination charges against employers last year. And once again, the strained economy is to blame.

The number of charges filed with the Equal Employment Opportunity Commission (EEOC) climbed to nearly 100,000 – a 7% increase from the year prior and a 21% jump from 2007.

Joe Trauger, vice president of human-resources policy for the National Association of Manufacturers, a business trade group, explains:

"When times are good, people are happy and when they're not, they aren't. Anytime we go into a recession or the economy gets a little shaky the numbers seem to spike a bit.”

The fact that the EEOC has ramped up its budget and staffing may be contributing to the increase, as well. With more resources to work with, the agency is working harder to educate employees about their workplace rights while also making their services more user-friendly and accessible.

Apparently workers are getting the message. They’re quicker to recognize discriminating behavior and take legal action when they feel they’ve been wronged.

The message, then, for employers is to ensure a harassment-free workplace supported through clear workplace policies, strict adherence to anti-discriminatory labor laws, and ongoing employee and manager training.

In a weak economy, discrimination charges strengthen

DOL and ABA partner to help resolve wage-related complaints

In the first-ever collaboration between a federal agency and the private bar, the Department of Labor (DOL) and American Bar Association (ABA) will join forces to resolve employee complaints received by the Wage and Hour Division (a department that handles more than 35,000 employment-related legal complaints in a typical year).

Through an attorney-referral system, the new program will ensure more workers obtain legal assistance for complaints such as not getting paid the minimum wage, not being paid overtime, or being denied family medical leave.

As of December 13, complainants whose cases cannot be resolved by the DOL due to limited capacity will get a toll-free number connecting them to a network of state and local ABA-approved attorneys. If the DOL has already conducted an investigation, the complainant will receive the findings to share with the attorney who takes the case. The DOL also has established a special process to help complainants and representing attorneys obtain additional case details and documents.

According to DOL Secretary Hilda Solis, this collaboration “streamlines worker access to additional legal resources and builds on the Department of Labor’s continued efforts to ensure that employers comply with America’s labor laws.”

To learn more, check out the We Can Help area of the DOL’s website.

DOL and ABA partner to help resolve wage-related complaints

Wage and hour lawsuits outnumber all other class actions combined

According to a 2010 survey of more than 1,800 legal and HR professionals, one-third of respondents were hit with a wage and hour claim in the past year. At the same time, more than half of respondents shared that their organization has increased spending for wage and hour compliance.

Shanti Atkins, the President and CEO of ELT, the workplace compliance training company that conducted the survey, explains the dramatic rise in claims: “Employers are being hit from two sides. On one, there is a better funded, more fully staffed Dept. of Labor (DOL) that has made fighting wage theft one of its key priorities. On the other side are aggressive plaintiff law firms that literally salivate at these easy-to-identify and easy-to-win, lucrative class actions.”

To complicate matters further, the DOL reports that more than 80% of employers are out of compliance with federal and state wage and hour laws! The top Fair Labor Standards Act (FLSA) that get employers in trouble are:

• Misclassifying a non-exempt employee (eligible for overtime) as salaried/exempt
• Not paying overtime to non-exempt employees for all hours worked, including unauthorized overtime
• Making improper salary deductions from exempt and non-exempt employees

Go here for clear guidelines on how to comply with FLSA regulations – and practical forms and recordkeeping tools to keep you on track.

Wage and hour lawsuits outnumber all other class actions combined

Federal agencies to bump up enforcement in 2010

Last year a number of federal agencies increased their compliance enforcement efforts, including the Department of Labor (DOL), Internal Revenue Service (IRS), Equal Employment Opportunity Commission (EEOC), Occupational Safety and Health Administration (OSHA) and Department of Homeland Security (DHS). Recent actions by these agencies suggest that this trend will continue in 2010:

• Designed to raise employee awareness of their rights under the Fair Labor Standards Act (FLSA), the recently launched, DOL-sponsored We Can Help campaign will undoubtedly increase the number of employee wage and hour complaints to the agency. The campaign is actively targeting the country’s lowest-paid workers, regardless of citizenship status, and encourages them to submit information, including pay stubs and hours of work, via the agency’s website. In addition, the DOL received a significant uptick in funding for 2010, and is requesting more in its proposed 2011 budget.

• Immigration enforcement is a priority for the Obama administration, and the DHS is following through with plans to conduct 25,000 on-site inspections at companies who employ workers with H-1B visas – an increase of nearly 20,000 over the previous year.

• Secretary of Labor Hilda Solis has promised more OSHA inspections, and employers can expect to see a shift to a more aggressive, citation-based approach from OSHA. Last year, between July and September, OSHA performed nearly 700 inspections and issued over 1,000 violations that resulted in $1.6 million in fines.

Enforcement efforts like the We Can Help campaign and others underscore the importance of maintaining strict compliance with federal regulations, including those covering labor, safety, tax, immigration and employment law. Stay tuned for more updates as they come.

Federal agencies to bump up enforcement in 2010

Survey reveals heavy financial burden of class action lawsuits

Based on the sixth annual Workplace Class Action Litigation Report by Seyfarth Shaw LLP – a leading law firm handling complex employment litigation – employers should be aware of several key trends that occurred in federal and state courts last year:

• Class action filings seeking recovery for unpaid wages and 401(k) losses increased. More age discrimination and Worker Adjustment and Retraining Notification (WARN) lawsuits were filed, too, due to workers being displaced in layoffs.

• Wage and hour litigation outpaced all other types of employment-related cases, especially in CA, FL, IL, NJ, NY, MA, MN, PA and WA.

• The Obama Administration’s renewed focus on regulation and enforcement, mostly through the DOL and EEOC, continues to increase exposure for employers.

• Massive settlements were seen in several nationwide class actions, as plaintiffs’ lawyers pushed for greater damages. The top 10 employment discrimination settlements in 2009 totaled $86.2 million, while the top 10 wage and hour settlements reached $363.6 million.

Just one major, costly lawsuit could be devastating to your business. Stay on the right side of the law and reduce your risk with legally compliant products and services – from Poster Guard® Compliance Protection to the latest FMLA, FLSA, OSHA and HIPAA compliance materials.

Survey reveals heavy financial burden of class action lawsuits