UPCOMING EVENTS

THE NEED FOR TRAINING PROGRAMS TO COMBAT PUNITIVE/LIQUIDATED DAMAGES

McMahon Berger’s attorneys are dedicated to providing clients and other businesses and organizations training in all aspects of labor and employment law. It is in the best interest of your company to ensure that your human resource professionals and other members of management are armed with the necessary information to recognize labor and employment issues in the workplace.

The United States Supreme Court issued two holdings which “reward” employers for having trained managerial/supervisory employees in employment law compliance. (1) For example, in Faragher v. Boca Raton, 524 U.S. 775, 77 FEP 14 (1998), the Supreme Court articulated a two element affirmative defense applicable to sexual harassment allegedly perpetrated by a chain-of-command supervisor (where no tangible employment action is taken); the “first” of the two elements (both of which must be proven by the employer) requires proof “that the employer exercised reasonable care to prevent and correct promptly any sexually harassing behavior.” Thus, where the employer has trained its managerial/supervisory employees in identifying and eliminating sexual harassment, the employer is well on its way towards establishing Faragher’s first affirmative defense element. (2) Moreover, in Kolstad v. American Dental Association, 527 U.S. 526, 79 FEP 1697 (1999), the Supreme Court held that punitive damages are available under Title VII to redress intentional discrimination only where the manager/supervisor acted with “malice or with reckless disregard” for Title VII rights -- but that such conduct will not be imputed to the employer where the employer expended “good faith efforts”, including “education”, to “prevent discrimination in the work place.”

More recently, the United States Court of Appeals for the Seventh Circuit (which includes, inter alia, Illinois) issued a holding which “punishes” employers for failing to train managerial/supervisory employees in employment law compliance. In Mathis v. Phillips Chevrolet, Inc., 269 F.3d 771 (7th Cir. 2001), a rejected applicant for a car salesperson position sued the auto dealer for age discrimination. The general manager testified (at trial in 1996) that he did not know it was illegal to consider age in making hiring decisions!! Since ADEA liquidated damages are only available upon proof of “reckless disregard” for the ADEA, the Seventh Circuit easily upheld the $50,000 liquidated damage award, chastising the auto dealer for its non-existent training program in employment law compliance, holding that “… leaving managers with hiring authority in ignorance of the basic features of the discrimination laws is an ‘extraordinary mistake’ for a company to make, and a jury can find that such an extraordinary mistake amounts to reckless indifference.”

Because the Courts will “reward” employers who train their managerial/supervisory employees in employment law compliance—but Courts (and juries) will “punish” those who do not—our attorneys often present training seminars to various businesses and organizations. For more information about any of these upcoming training sessions, including location, please contact the law firm at (314) 567-7350.