Mitchell Boyarsky to Speak at Upcoming NJBIA Employment Seminar

Mitchell Boyarsky, a Director in the Gibbons Employment & Labor Law Department, will speak at the upcoming NJBIA Employment Seminar, "Workplace Harassment & Discrimination: Creating a Culture of Zero Tolerance," on Friday, May 10, 2013 at the Wilshire Grand. Mr. Boyarsky's panel, "Making Training Work," will discuss how to implement internal training programs to prevent harassement. Mr. Boyarsky will also provide insight into how to handle cases that occur when training fails or is neglected.

For additional information on the other panel discussions at this seminar or to register for this event, please click here.

Gibbons Director, Susan Nardone, to Speak at Upcoming NAWL Labor & Employment Webinar

Employee complaints concerning discrimination and harassment occur in nearly every workplace.

Susan L. Nardone, a Director in the Gibbons Employment & Labor Law Department, will serve as a panelist for the upcoming NAWL webinar, "Avoiding the Pitfalls that Cost: Highlighting Best Practices in Labor and Employment Internal Investigations," taking place on Wednesday, February 27, at 11:00 am. This webinar will focus on how to handle common, yet complex, issues likely to arise during the internal investigation of an employee complaint.

Ms. Nardone, along with other female professionals, will play out a virtual fact scenario after which they will offer their professional guidance and advice. Participants will be able to interact with the panelists and offer their own input on best practices. This webinar is free of charge and CLE credits are available. For more information or to register, please click here.

Time to Review Your Employee Policies and Training Programs

As we near the end of the year, now may be a good time to dust off your employee manual and training programs! An annual review of policies is a good best practice that can save your company both time and money in the long run.

For instance, have you considered revising your policies or offering trainings in areas that have been the focus of recent legal activity such as:

  • social media
  • confidentiality
  • reasonable accommodations, or
  • bullying

Kelly Ann Bird expands on the policies that employers should review today in an article recently published by the Association of Corporate Counsel entitled Employment Policies and Training: Why They Make Sense Now. Click here to read the full article.

Crucial Issues in Investigations

Does your company conduct internal investigations? If so, you should be asking yourself these four crucial questions:

  1. Is the right person conducting the investigation?
  2. Is the investigation thorough?
  3. Is it taking too long?
  4. Is the company following through?

Click here to read more about these important internal investigation concerns in an article recently written by Kelly Ann Bird and published by The Metropolitan Corporate Counsel.

The Importance of a Workplace Romance Policy

The adoption and enforcement of a policy regarding consensual workplace relationships is essential for all employers. With the American workforce spending at least one-third of their lives at work, it is inevitable that some employees will engage in romantic and sexual relationships with one another. A recent case in the Eastern District of Pennsylvania, Lucchesi v. Day & Zimmerman Group, reinforces that such relationships may have business and legal costs. While employers cannot prevent these relationships from forming or ending, they can take steps to manage their effect on the workplace and to reduce the potential liability stemming from them. A well-drafted policy is a critical first step.

Office Romances At-a-Glance

According to a recent survey 59% of employees admitted that they have been involved in an office romance, while an additional 64% answered that they would be willing to do so if the opportunity arose. This same survey reported that 75% of employers do not have a policy regarding workplace relationships.

While often harmless, consensual co-worker relationships can create a myriad of problems for the employees involved, their co-workers, and their employer. In addition to the obvious distractions of the romance, when the relationship sours, ends or is no longer consensual, the potential for sexual harassment, discrimination, or retaliation claims increases. Claims arising out of workplace romances, however, are not only brought by the parties to the relationship - as in the Lucchesi case - but also by third-parties. Indeed, a growing number of “paramour favoritism” claims have been brought by employees who claim to be undervalued or “passed over” as a result of a favoritism shown toward a co-worker who is engaged in a romantic relationship with the supervisor. In addition to the obvious impact on employee morale, these situations have led to claims of discrimination and retaliation. While at least one California Supreme Court case held that widespread paramour favoritism may be actionable, most courts, including the New Jersey Appellate Division and the Southern District of New York have found that claims of isolated favoritism are not viable under Title VII and similar state anti-discrimination statutes. This is consistent with the EEOC’s published guidance on employer liability for sexual favoritism. Nevertheless, plaintiffs continue to bring the claims.

The Lucchesi Case

In Lucchesi, No 10-4164 (E.D. Pa. Apr. 21, 2011), the plaintiff sued his former employer alleging he was unlawfully terminated based upon his gender, as well as in retaliation for challenging the fairness of Day & Zimmerman’s handling of a dispute between himself and a female colleague with whom he had engaged in a consensual sexual relationship. During his employment, plaintiff was informed by two human resources officers that his co-worker felt “uncomfortable” in his presence, and that she had complained about text messages and emails she received from the plaintiff on her personal phone and email accounts. The plaintiff then complained to Day & Zimmerman’s senior vice president of Human Resources “that he felt that he was being treated differently than his female co-worker in the company’s ‘investigation’ into her complaint,” noting that one HR officer had spoken to his female co-worker in connection with her complaint, whereas Plaintiff had been “interrogated” by two. Roughly four days after his meeting with HR to discuss these issues, Plaintiff was terminated. According to Plaintiff, one of the HR officers who had spoken with him allegedly told him that the reason he was being terminated was because he might “walk past [the female co-worker’s cubicle],” and this possibility of future interaction between the two created a “gray area” for the company. Plaintiff’s Complaint also excerpted an email from Day & Zimmerman’s counsel to Plaintiff’s previous counsel, in which Day & Zimmerman’s counsel allegedly asserted that Plaintiff was being terminated because he had “admitted to . . . conduct . . . that could be construed as harassment or stalking,” and also because the two HR officers had objected to Plaintiff’s “tone” during their conversation.

In denying Day & Zimmerman’s motion to dismiss the Complaint, which alleged gender discrimination in violation of the Pennsylvania Human Rights Act and Title VII of the Civil Rights Act of 1964, the court held that the facts “raise[d] a reasonable expectation that discovery will reveal evidence of discriminatory animus.”

Practice Tips

Employers who do not already have a policy regarding office-relationships should adopt and implement one, and those who already do, should periodically review and disseminate it. At a minimum, such a policy should require timely and discrete disclosure of the existence (or termination) of a romantic or sexual relationship to a designated member (or members) of company management or Human Resources. This is especially important when the employees involved are in a supervisor/subordinate relationship. Mandatory disclosure allows the employer to address the impact of the relationship proactively, such as whether it is necessary to alter reporting structures or change job responsibilities.

To discuss your company’s policy needs, contact any attorney in the Gibbons Employment Law Department. And watch for more posts on training and information about exciting new Gibbons educational programs on this blog.


Michael J. Riccobono is an Associate in the Gibbons Employment Law Department.

New Jersey Appellate Division Holds That Absence of Emotional Distress Damages Award Does Not Preclude Consideration of Punitive Damages

The New Jersey Appellate Division recently held in Rusak v. Ryan Automotive, LLC that a plaintiff was entitled to further proceedings on her punitive damages claim following a jury verdict in her favor on her hostile work environment and retaliation claims even though the jury did not award her emotional distress damages and rejected her separate intentional infliction of emotional distress claim. Although the case involved unique circumstances that are unlikely to be present in future matters, the decision serves as a reminder that the absence of an emotional distress award does not preclude further proceedings on punitive damages.

Rusak, a sales representative for a BMW dealership, presented evidence that the general manager of the dealership screamed and cursed at her, called her a “dumb… stupid blonde,” asked her if she was menstruating and told her and another female employee graphic stories about his sexual exploits. In addition, when Rusak complained to the general manager about the inappropriate behavior of a male co-employee, the general manager ignored her complaint and told others of his plans to fire her. The jury found that the general manager had created a hostile work environment and retaliated against Rusak and awarded wage loss damages only.

Two specific jury interrogatories on the verdict sheet addressed Rusak’s alleged emotional distress, asking the jury whether “the acts of the [d]efendants constitute such willful, wanton and reckless conduct that you find for [plaintiff] on the legal theory of intentional infliction of emotional distress” and whether the plaintiff should be “awarded damages to compensate for her emotional pain and mental anguish.” In both instances, the jury answered “No,” thus denying Rusak’s intentional infliction of emotional distress claim and denying Rusak damages for emotional distress on the other claims for which the jury found liability. The trial judge viewed the jury’s response to these questions as an indication that the jury did not intend to award punitive damages and did not allow further proceedings on the punitive damages claim.

In a February 8, 2011 decision by Judges Graves, Messano and Waugh, the Appellate Division initially held that “[o]nce the jury awarded plaintiff compensatory damages as a result of defendants’ violation of the LAD, the particular conduct of defendants in this case warranted submission of the punitive damages claim to the jury.” Next, the court considered whether the jury’s response to the interrogatories on the verdict altered its initial impression. The Court noted that the jury interrogatory concerning the intentional infliction of emotional distress claim incorporated language that was not even an essential element of that cause of action. Defendants argued that the language, which was more closely akin to the standard for an award of punitive damages under the Punitive Damages Act (the PDA), N.J.S.A. § 2A:15-5.9 to -5.17, was intended as a “bridge question” and was “designed to incorporate within its terms the requisite state of mind necessary to support an award of punitive damages.” According to Defendants, “the jury’s negative answer to [the question] means that plaintiff had failed to prove defendants had acted with ‘actual malice or. . .wanton and willful disregard’ of potential harm so as to support any award of punitive damages.” The Court rejected this argument, finding it both “confusing and unpersuasive” and holding that the jury’s response to the interrogatory “cannot be interpreted as a factual finding that defendants did not act with the requisite mental state to support an award under the PDA.”

At first glance, this case appeared more significant than is actually the case. The unique circumstances presented, and particularly the poorly worded jury interrogatory, clearly guided the outcome, and it seems unlikely that the same set of facts would occur in future matters. While the case stands for the proposition that the absence of an emotional distress award does not in and of itself preclude further proceedings on punitive damages, it remains within the province of the Court to dismiss a claim for punitive damages based on the facts presented at trial, even when the jury finds liability. From the Court’s decision, it appears that this has always been the law and remains the law today.


Susan L. Nardone is a Director in the Gibbons Employment Law Department.

New Jersey Appellate Division Holds that Anti-Harassment Policy Alone Cannot Shield Employers from Liability

An effective anti-harassment policy has long been recognized as a key component to an employer’s avoidance of liability for sexual harassment. As the New Jersey Appellate Division recently made clear, however, the mere existence of such a policy is insufficient to insulate an employer from liability for its employee’s sexually harassing conduct. Though an unpublished decision, Allen v. Adecco, Inc., provides a powerful reminder that to protect an employer from liability, an anti-harassment policy must be widely publicized, supported by training, and routinely enforced. Indeed, in Allen, although the employer promptly investigated plaintiff’s harassment claim and took prompt remedial action, the court ruled that the employer might still be held accountable if the harassment could have been prevented in the first place but for the employer’s alleged insufficient publication and training with regard to its anti-harassment policies.

Under New Jersey law, an employer will be liable for sexual harassment by a supervisor when the employer is negligent in protecting against a hostile work environment and the supervisor (1) is acting within the scope of the employment when engaging in harassment and (2) has abused delegated authority. An anti-harassment policy is relevant to the issue of the employer’s negligence in protecting against sexual harassment and may also provide the basis for an affirmative defense to vicarious liability imposed on an employer for a supervisor’s harassment of another employee under agency principles.

At issue in Allen was a University of Medicine and Dentistry of New Jersey (UMDNJ) temporary employee’s claim that she was sexually harassed by a supervisor and then terminated in retaliation for complaining about the harassment. The trial judge dismissed the plaintiff’s claims on summary judgment on the basis that UMDNJ had an anti-harassment policy, promptly addressed plaintiff’s complaint by transferring her harasser, and subsequently terminated plaintiff’s assignment due to her job performance and attendance. In reversing summary judgment, the Appellate Division stated that to be entitled to an affirmative defense based on an anti-harassment policy, an employer must demonstrate the policy’s effectiveness through “periodic publication of the policy; an effective and practical grievance process; and training for workers, supervisors and managers on recognition and eradication of unlawful harassment.” The court found issues of fact regarding the effectiveness of UMDNJ’s policy, specifically, whether UMDNJ’s policy was made known to temporary employees like plaintiff, whether the alleged harasser had been trained on the policy, and whether there was an effective monitoring system in place. These issues entitled plaintiff to present her claims before a jury, which “could well conclude that UMDNJ’s commitment to training and monitoring and to eradicating harassment was insufficient to allow it to avail itself of the case law’s safe haven.”

Employer Sued for Harassment May Discover Plaintiff's Social Networking Site Postings

As employers are faced in the great majority of discrimination, harassment and whistle-blowing cases with claims by employees of emotional distress, employers should keep in mind that potentially fruitful sources of valuable information to defend against such claims may be the social networking sites (“SNS”) maintained by the employees bringing these claims. In EEOC v. Simply Storage Management, L.L.C., 2010 U.S. Dist. LEXIS 52766, the EEOC brought suit in federal court in Indiana alleging that Simply Storage was liable for the sexual harassment of a number of its employees. The EEOC asserted that while three of these claimants had suffered “garden variety” emotional distress that was not ongoing, two claimants had suffered more serious emotional injuries for which they had sought medical treatment and that one claimant had been diagnosed with post traumatic stress disorder. Both of these employees maintained SNS accounts on Facebook and MySpace. Maintaining that information on these sites was relevant to the employees’ emotional distress claims, Simply Storage sought discovery of the their complete profiles on these sites, as well as all photos and videos posted on the sites.

The Court ruled that some SNS discovery was appropriate, as it:

is reasonable to expect severe emotional or mental injury to manifest itself in some social content, and an examination of that content might reveal whether onset occurred, when, and the degree of distress. Further, information that evidences other stressors that could have produced the alleged emotional distress is also relevant.

Thus the Court ordered the EEOC to produce all SNS profiles, postings, or messages for the two employees for the prior 3 years “that reveal, refer, or relate to any emotion, feeling, or mental state, as well as communications that reveal, refer, or relate to events that could reasonably be expected to produce a significant emotion, feeling, or mental state.” The Court also ordered the EEOC to produce all photos of the two claimants for the same time period, “because the context of the picture and the claimant's appearance may reveal the claimant's emotional or mental status.” In response to the EEOC’s concerns about “privacy,” the court ruled that these concerns could be addressed through a protective order.

Simply Storage is the most recent of only a handful of cases dealing with SNS discovery, and this is clearly a developing area of employment law. Thus, while the employer in Simply Storage sought SNS data relevant to the issue of emotional distress, employers should not hesitate to seek SNS data relevant to other issues raised by the claims or defenses in suit.


Richard S. Zackin is a Director in the Gibbons Employment Law Department.