HR and Employment Law case study (final) (9 10 2016)

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Human Resources Package Case Study Executive Summary Sexual harassment is one of the most frequently discussed topics in employee relations today. Even Donald Trump has advice for victims of sexual harassment. In an interview with USA Today, Trump said that if his eldest daughter Ivanka were ever subjected to sexual harassment, he “would like to think she would find another career or find another company.” It seems Donald Trump’s daughter, Ivanka, has a better understanding of employment law and workplace behavior issues than her father. Ivanka Trump told Fox News: "I think harassment in general, regardless, sexual or otherwise, is totally inexcusable and if it transpires it needs to be reported and it needs to be dealt with on a company level." "We have a very strong HR team at the Trump Organization, who is equipped to deal with these issues if they arise and you hope they never arise, you hope you have a culture in which they don't arise, but when they do they needs to be dealt with swiftly." The Supreme Court says that if an employer has a published sexual harassment policy, the victim has to report sexual harassment according to the policy and give the company a chance to fix it. Follow Donald Trump’s Advice on Sexual Harassment? Not A Good Idea.

Transcript of HR and Employment Law case study (final) (9 10 2016)

Page 1: HR and Employment Law case study (final) (9 10 2016)

Human Resources Package Case StudyExecutive Summary Sexual harassment is one of the most frequentlydiscussed topics in employee relations today. EvenDonald Trump has advice for victims of sexualharassment.InaninterviewwithUSAToday,Trumpsaidthat ifhiseldestdaughterIvankawereeversubjectedtosexualharassment,he“wouldliketothinkshewouldfindanothercareerorfindanothercompany.”

It seemsDonald Trump’s daughter, Ivanka, has a betterunderstanding of employment law and workplacebehavior issues than her father. Ivanka Trump told FoxNews: "I thinkharassment in general, regardless, sexual

orotherwise, is totally inexcusableand if it transpires itneeds to be reported and it needs to be dealtwith on acompany level." "Wehave a very strongHR teamat theTrumpOrganization,who isequippedtodealwiththeseissues if they arise and you hope they never arise, youhope you have a culture in which they don't arise, butwhentheydotheyneedstobedealtwithswiftly."The Supreme Court says that if an employer has apublished sexual harassment policy, the victim has toreportsexualharassmentaccordingtothepolicyandgivethecompanyachancetofixit.

Follow Donald Trump’s Advice on Sexual

Harassment? Not A Good Idea.

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Challenges

There are a few key challenges when dealing with sexualharassment cases. These types of claims are not only ugly,butcanalsobecostly. Nootherkindofclaimhasquitethescareandshockvaluethatasexualharassmentclaimcarries.That is because most people associate sexual harassmentwith sexual overtures, unwelcome touching, or outrightassaults on an employee.Most sexual harassment creates ahostile work environment for the employee which has thepurposeoreffectofunreasonablyinterferingwithaperson'swork performance or creating an intimidating, hostile, oroffensiveworkingenvironment.TherecentcaseagainstFoxNews and its $20M settlement is a classic example of theseriousnatureofthissubject.Thefollowingcasestudiesareintended to illustrate how employers can proactively avoidor mitigate claims of harassment and the high cost oflitigationassociatedwithit.

Illustrative Cases

Case 1.Over thecourseof severalmonthsanareadirector“Brandon” of a financial services company “LucrativeFinance” makes sexual advances toward a femalesubordinatenamedJennifer. JenniferrejectedtheadvancesandfiledacomplainttotheHumanResourcesDepartmentofLucrative. While working hand-in-hand with its in-houselegal team Lucrative HR Department launched aninvestigationonJennifer’scomplaint,butfoundtheresultstobe inconclusive. During a regional meeting, Brandon’sadvances continued and he left several drunken explicitmessageson Jennifer’shotelroomphone. Jenniferrecordedthe message and launched a second complaint with thehuman resources department, but this time she provided acopy of the sexually explicit phone messages. Lucrativeconductedaninvestigationimmediately,andfoundBrandonhas violated the company’s harassment policy and he wasterminated. Jennifer late filed a charge with the EqualEmployment Opportunity Commission (EEOC). Here,Lucrativewasabletoshowthatitpromptlyinvestigatedthetwocomplaintsofharassment,andthelatterresultingintheterminationofBrandon.TheEEOCdismissedthecomplaint.Lucrative did not have to pay anything to Jennifer and itstimely action saved Lucrative a ton of money by way ofexpensivelegalcostandordamagers.

Case2.Astartupcompanyofthreeemployees“Neglijex”quickly grew to over sixty with offices in the US andabroad. The founder’s of Neglijex had established an“opendoor”policyforitsemployeesthatappearedontheHRhandbook,butthehandbookwasneverimplemented.TheopendoorpolicyofNeglijexwascreatedtoempoweremployeesandboostmorale.AtNeglijex’sfirstChristmasparty, a QA manager named “Justin” made certaininappropriate sexual remarks to one of his new femaletesters “Testie”. During the weeks that followed, Justincontinued to engage in sexual banter and dirty jokesagainstJenniferuntilJenniferdecidedtoquitherjobandfiled a charge of sexual harassment with the HumanRights Commission (HRC). TheNeglijex’s defense beforeHRC was that it was never given the opportunity toinvestigate and take corrective action. The commissionconducted a full investigation and found that thecompany failed to act reasonably to prevent theharassmentbecausethecompany’sopendoorpolicywasnotaclearharassmentpolicywithareportingprocedure.The HRC made a finding in favor of Testie. Testie andNeglijext agreed for mediation that resulted in asettlement.ItwasimportanttonotethatNeglijexdidnothave an HR and Labor Law saavy in-house counsel orteamthatprovidedreviewandfeedbackontheadequacyof its opendoor policy to satisfy the SexualHarassmentPolicy obligations of Neglijex. Neglijex also did not haveaccess to a legal team that conductedonsite training foritsemployees.

Results, Strategies and Future Plans on Dealing with Clients There are a few key lessons to be drawn from the illustrative cases discussed above to provide guidance when dealing with sexual harassment issues:

1. Adopt a clear disciplinary policy and an explicitpolicyonsexualharassmentinyouremployeehandbook.

2. Haveaformalcomplaintprocess.

3. Haveaprovisionoraprocess thatallows forgoingoutsidethechainofcommandtomakeacomplaint.

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4. Educate all employees on the various forms sexualharassment that can take place and on the harm it cancauseviaon-sitetrainingconductedbylegalexperts.

5. Have an organized procedure for quickly andeffectivelydealingwith suchcomplaintsandensure thateveryoneknowsaboutit.

6. Setanexamplefortheemployees-thebestpolicyinthe world will be useless if management ignores it anddoes not take the problems or complaints seriously, orworse,ifmanagementispartoftheproblem.

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