News and Resources

Maryland Personnel Appeals

  One of the benefits of being a high level State employee is job security.  Employees in the State Personnel Management System within the Executive Branch may not be fired without just cause – and if these employees are fired, they are granted appeal rights.  But even these high level State employees must be careful – the State makes employees jump through specific hoops to exercise these rights, and if you miss a hoop, you could lose your rights.  This article describes one such hoop that is virtually invisible and easy to miss. In the case of Fisher v. Eastern Correctional Institute, 425 Md. 699, 43 A.3d 338 (2012), Vanessa Fisher was terminated from her position at the Eastern Correctional Institution in December 2008.  Fisher timely appealed to the head of her principal unit.  Her appeal letter concluded: “I await your response.” On February 5, 2009, having received no response, Fisher sent a second letter inquiring into “the status of this proceeding.”   On July 29, 2009, Fisher wrote again noting the lack of response and requesting a decision at the “earliest convenience.”  Fisher added: “If I have not received your decision by August 7, 2009, I shall assume you have decided to uphold the termination, albeit without written opinion, and file an appeal to the Office of Administrative Hearings.” On August 20, 2009, Fisher sent a letter to the Secretary of the Department of Budget and Management stating that she had assumed from the lack of response that “her appeal has been denied.” Fisher’s case eventually made its way up to Maryland’s highest court, the Court of Appeals. The Court engaged in a thorough analysis of the statutory language at issue, which I will kindly leave out here as it contains a boatload of legalese. An initial reading of the statutes at issue suggests that Fisher did not have to take any further action after her initial appeal. Although Fisher made strong arguments for her interpretation of the statutes, the Court ruled against her. The bottom line is, after an employee files the initial appeal, the employee must assume at the end of the fifteen-day period that the appeal has been denied and must take any further appeal within ten days thereafter. Fisher’s apparent vigilance in pursuing her appeal was unfortunately not successful. Don’t let this happen to you. The important lesson learned from this case is to never assume that “once the ball is in their court, I can rest on my laurels,” waiting for the government to make the next move. When dealing with government agencies, one must be vigilant every step of the way to avoid devastating procedural pitfalls. Contact the experienced Employment Lawyers at Luchansky Law today to help you navigate the complexities in pursuing your case.

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The Pregnancy Discrimination Act

The recently decided Supreme Court case of Young v. UPS involved a “disparate treatment” claim brought by a pregnant employee pursuant to the Pregnancy Discrimination Act.  Young, the employee, claimed that UPS, her employer, acted unlawfully in refusing to accommodate her pregnancy-related lifting restriction.   Generally, a “disparate-treatment” claim alleges that an employer intentionally treated a complainant less favorably than employees with the complainant’s qualifications but outside the complainant’s protected class.  A plaintiff can prove disparate treatment either (1) by direct evidence that a workplace policy, practice, or decision relies expressly on a protected characteristic, or (2) by using the burden shifting framework set forth in the McDonnell Douglas case, explained below. Liability in a disparate-treatment case depends on whether the protected trait actually motivated the employer’s decision.  However, an employer may implement policies that are not intended to harm members of a protected class, even if their implementation sometimes harms those members, as long as the employer has a legitimate, nondiscriminatory, nonpretextual reason for doing so. The Supreme Court, in Young v. UPS, held that an individual pregnant worker who seeks to show disparate treatment through indirect evidence may do so through application of the McDonnell Douglas framework. That framework requires a plaintiff to make out a prima facie case of discrimination by showing actions taken by the employer from which one can infer, if such actions remain unexplained, that it is more likely than not that such actions were based on a discriminatory criterion illegal under Title VII.  The burden of making this showing is not as onerous as succeeding on an ultimate finding of fact as to a discriminatory employment action.  Neither does it require the plaintiff to show that those whom the employer favored and those whom the employer disfavored were similar in all but the protected ways. Thus, the Court held, a plaintiff alleging that the denial of an accommodation constituted disparate treatment under the Pregnancy Discrimination Act may make out a prima facie case by showing, as in McDonnell Douglas, that she belongs to the protected class, that she sought accommodation, that the employer did not accommodate her, and that the employer did accommodate others similar in their ability or inability to work. The employer may then seek to justify its refusal to accommodate the plaintiff by relying on legitimate, nondiscriminatory reasons for denying her accommodation.  But, consistent with the Act’s basic objective, that reason normally cannot consist simply of a claim that it is more expensive or less convenient to add pregnant women to the category of those (“similar in their ability or inability to work”) whom the employer accommodates. If the employer offers an apparently “legitimate, nondiscriminatory” reason for its actions, the plaintiff may in turn show that the employer’s proffered reasons are in fact pretextual. The Court ruled that the plaintiff may reach a jury on this issue by providing sufficient evidence that the employer’s policies impose a significant burden on pregnant workers, and that the employer’s “legitimate, nondiscriminatory” reasons are not sufficiently strong to justify the burden, but rather—when considered along with the burden imposed—give rise to an inference of intentional discrimination. The plaintiff can create a genuine issue of material fact as to whether a significant burden exists by providing evidence that the employer accommodates a large percentage of nonpregnant workers while failing to accommodate a large percentage of pregnant workers. This approach, though limited to the Pregnancy Discrimination Act context, is consistent with the Court’s longstanding rule that a plaintiff can use circumstantial proof to rebut an employer’s apparently legitimate, nondiscriminatory reasons for treating individuals within a protected class differently than those outside the protected class. The Court held that the Pregnancy Discrimination Act requires courts to consider the extent to which an employer’s policy treats pregnant workers less favorably than it treats nonpregnant workers similar in their ability or inability to work. And—as in all cases in which an individual plaintiff seeks to show disparate treatment through indirect evidence—it requires courts to consider any legitimate, nondiscriminatory, nonpretextual justification for these differences in treatment. The Court noted that statutory changes made after the time of Young’s pregnancy may limit the future significance of its interpretation of the Pregnancy Discrimination Act. In 2008, Congress expanded the definition of “disability” under the ADA to make clear that “physical or mental impairment[s] that substantially limi[t]” an individual’s ability to lift, stand, or bend are ADA-covered disabilities. As interpreted by the EEOC, the new statutory definition requires employers to accommodate employees whose temporary lifting restrictions originate off the job, such as pregnancy. The Supreme Court “expressed no views on these statutory and regulatory changes.”

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The Maryland False Claims Act

The recently enacted Maryland False Claims Act allows a private individual to file a civil action on their own behalf and on behalf of the defrauded governmental entity. The individual may seek penalties, court costs and attorney’s fees. The law presents interesting new twists to the procedural requirements for filing a complaint in these cases. First, the complaint must be filed in camera (meaning, it is not publicly accessible and only the judge can view it) and shall remain under seal (same idea as “in camera”) for at least 60 days. Second, the complaint may not be served on the defendant until the complaint is unsealed and the court orders the complaint served. Finally, within 60 days after the government is served, the government may elect to intervene and proceed with the action. If the government does not elect to intervene and proceed with the action, before unsealing the complaint, the court shall dismiss the action. However, should the government elect to intervene, and upon a successful litigation, the individual may be awarded between 15 to 25 percent of the proceeds of the action or settlement, proportional to the amount of time and effort that the individual contributed, in addition to penalties, court costs and attorney’s fees. The law also provides for a cause of action where a company retaliates against an employee or contractor who investigates, initiates, testifies or assists in a False Claims Action. The employee may seek an injunction, reinstatement of seniority status, reinstatement of benefits and rights, two times the amount of lost wages and other benefits, reimbursement for costs and attorney’s fees, punitive damages, and any other relief necessary to “make the employee whole.” Contact the experienced Employment Lawyers at Luchansky Law today to assist you in pursuing a claim under the Maryland False Claims Act.

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The Inevitable Disclosure Doctrine

The Inevitable Disclosure Doctrine may at first sound like an indecipherable philosophical legalese run-on sentence. Therefore, we present to you the following close-to-home-hypothetical situation (any resemblance to actual people or events is entirely coincidental). If Cal Ripken Jr. were to, perish the thought, become a consultant for a Major League Baseball Club other than the Orioles, I surmise that Cal’s new employer would hope to gain insights into the Orioles’ inner strategies. Even if we were to believe that Cal, “in good faith” would not intentionally reveal any of the Orioles’ secrets, alas, some jurisdictions subscribe to “The Inevitable Disclosure Doctrine” which presumes that Cal will “inevitably disclose” his knowledge of (his former employer’s) secrets or confidential information. Yet, there is hope for Cal, because the Maryland Courts do not subscribe to “The Inevitable Disclosure Doctrine.” But wait: If I am a Maryland Employer, does that mean that an employee of mine, who is privy to my company’s trade secrets or confidential information, who leaves me to work for a competitor – – – can reveal all of my company’s trade secrets and confidential information to my competitor??? Yes. Unless the employee signs a non-compete and/or confidentiality agreement with your company. Contact the experienced Employment Lawyers at Luchansky Law to assist with you with drafting non-compete and confidentiality agreements today.

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New Maryland Law: Default Lien on Employer for Unpaid Wages

The recently enacted Maryland Lien for Unpaid Wages law allows employees who are owed wages by their employer to file a lien against their employer. The employee simply notifies the employer of their intent to claim a lien and the employer is then required to file a Circuit Court Complaint to avoid default judgment. Fortunately, under this new law, “wages” does not include commissions. Moreover, an employee who wishes to establish a lien for unpaid wages must satisfy three requirements in notifying the employer: the notice must be served on the employer within the general three year statute of limitations governing civil actions; the notice must satisfy the service of process requirements under the Maryland Rules of Civil Procedure; the notice must contain information that provides the employer with adequate notice of the wages claimed and the property against which the lien for unpaid wages is sought. To avoid default judgment, an employer must dispute the claim by filing a Complaint in the Circuit Court for the County where the property is located. The Complaint must be filed within 30 days after the employee’s notice is served. The Complaint must include some basic information as well as a statement of any defense to the lien. Once the Complaint is filed, the Circuit Court will determine whether to issue an order establishing a lien for unpaid wages within 45 days after the date on which the Complaint was filed. The Court’s decision is based on a preponderance of the evidence in which the employee has the burden of proof to establish the lien for unpaid wages. Either the employer or employee may request an evidentiary hearing. If the Court issues an order establishing a lien, the employee is entitled to Court costs and reasonable attorney’s fees. However, if the court determines that the employee’s claim was frivolous or made in bad faith, the employer may be awarded Court costs and reasonable attorney’s fees.

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Maryland Minimum Wage Law Updates

On July 1, 2015, the minimum wage in Maryland increased to $8.25 per hour. However, in Montgomery County and Prince George’s County, the current minimum wage is $8.40 per hour. On October 1, 2015, the Montgomery County and Prince George’s County minimum wages will increase to $9.55 per hour.

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“Ban the Box?” Am I Required to Hire Criminals?

“Ban the Box” laws, so called from the question (or box to be checked) on an employment application that asks an applicant about their criminal background, prohibit the use of a check-box on job applications indicating whether or not the applicant has a criminal record. In 2014, Maryland lawmakers instituted legislation that encourages Maryland employers to “think outside the box.” Baltimore City, Montgomery County and Prince George’s County, respectively, passed ordinances affecting an employer’s ability to inquire into a job applicant’s criminal history. Baltimore City: Employers covered are those with 10 or more full-time employees. The ordinance prohibits inquiry into a job applicant’s conviction history until after a conditional offer of employment. Ironically, a “conditional offer” is defined as an offer that is conditioned solely on 1) the results of the employer’s subsequent inquiring into or gathering information about the applicant’s criminal record; or (2) some other contingency expressly communicated to the applicant at the time of the offer. The ordinance does not modify or waive any requirements and limitations of any Federal or State law on access to or the use of criminal records. Additionally, the ordinance does not apply to facilities servicing minors or vulnerable adults. Employers should take note that any person aggrieved by an alleged violation of the ordinance may file a complaint with the Baltimore Community Relations Commission. The Commission may award: (1) back pay for lost wages caused by the violation; (2) reinstatement; (3) compensatory damages, which may include: (i) compensation for humiliation, embarrassment, and emotional distress; and (ii) expenses incurred in seeking other employment; and (4) reasonable attorney’s fees. Any employer who violates the ordinance is guilty of a misdemeanor and, on conviction, is subject to a fine of not more than $500 or imprisonment for not more than 90 days or both fine and imprisonment for each offense. Well, that leaves me with the question: is an employer required to disclose to an applicant that it was criminally charged for violating this ordinance? Montgomery County: The ordinance covers employers that have 15 or more full-time employees. Employers may not conduct an investigation of an applicant’s conviction history until after the conclusion of the first interview. Employers are permitted to ask follow-up questions about an applicant’s criminal history voluntarily disclosed by the applicant and questions about the applicant’s employment history shown on the applicant’s resume. If the employer intends to rescind a conditional offer, the employer must notify the applicant of the intention to rescind the offer and state the items that are the basis for the intention to rescind the offer. The employer must provide the applicant with a copy of the background check, specify the disqualifying information and give the applicant seven days to review the information. An applicant who finds false information or mistaken identity in the report is provided an opportunity to respond with evidence proving the mistake within seven days. Applicants may file a complaint with the director of the human rights commission. Job applicant complainants are not provided with damage awards, however, a civil penalty of up to $1,000 is slapped onto an employer who violates the law. Exemptions are provided for employers hiring for a position that requires a federal government security clearance. The law also makes exceptions for any positions currently required by state or federal law to have completed background checks, like childcare workers, teachers, and those working with vulnerable populations. The ordinance went into effect on January 1, 2015. Prince George’s County: This ordinance applies to employers with 25 or more full-time employees in the County. Similar to Montgomery County, an employer is not permitted to inquire about a job applicant’s arrest or conviction record until after a first job interview. In making an employment decision based on a person’s record, employers are only allowed to consider offenses that specifically demonstrate unfitness for the desired position. If an employer decides to rescind an offer based on the applicant’s criminal record, the employer must notify the applicant of its decision, specify the information on which its decision is based and provide copy of the criminal background check to applicant.

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Contract Drafting Tips for Maryland Businesses

[youtube id=”d8uHGmHZQD0″ width=”600″ height=”400″] Employers are always looking for new ways to be more cost effective and efficient. One area in which companies often try to save money is in the drafting of legal documents. They don’t want to pay fees for standard documents like employment agreements, employee handbooks, or non-compete agreements. They try to keep it simple and avoid what they perceive as legal mumbo-jumbo. However, drafting legal documents is not nearly as easy as it looks.  Good legal drafting requires understanding the business issues, strong writing skills and a thorough knowledge of Maryland employment law.  You can endanger your company with sloppy contract language.

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The Fairness for All Marylanders Act

The Fairness for All Marylanders Act of 2014 added gender identity to the list of protected classes against which employment discrimination is prohibited. Currently, under Maryland law, the complete list of protected classes include: race, color, religion, sex, age, national origin, marital status, sexual orientation, gender identity, genetic information, and disability. Under The Fairness for All Marylanders Act, “gender identity” is defined as: “The gender-related identity, appearance, expression, or behavior of a person, regardless of the person’s assigned sex at birth, which may be demonstrated by: (1) consistent and uniform assertion of a person’s gender identity; or (2) any other evidence that the gender identity is sincerely held as a part of the person’s core identity.” Notably, Maryland employers are not prohibited from establishing and requiring an employee to adhere to reasonable workplace appearance, grooming, and dress standards that are directly related to the nature of the employment of the employee and that are not precluded by any provision of state or federal law, as long as the employer allows the employee to appear, groom, and dress consistent with the employee’s gender identity. The Maryland Commission on Civil Rights (MCCR) serves as the enforcement agency for these laws.

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Attorney Fees for Employers in a Lawsuit

[youtube id=”k0vxzIr_c8Q” width=”600″ height=”400″] Many employers believe that if they get involved in a lawsuit and win, then the loser has to pay the employer’s attorneys’ fees.  The unfortunate reality is that in most cases, that is not true.  In most employment lawsuits, the deck is stacked against the employer when it comes to attorneys’ fees.  For example, if an employee sues an employer for unpaid wages or discrimination and wins, the employee can recover his or her attorneys’ fees from the employer.  If the employer wins those same lawsuits, however, it does not get to recover its attorneys’ fees from the employee. There is one area where the attorney fee “playing field” is equal: written agreements.  An employer may insert into its written agreements that if the employer prevails in litigation, the loser must pay the company’s reasonable attorneys’ fees.  Common examples are non-compete agreements.  If an employee leaves and violates his or her non-compete, a well-drafted agreement will provide that an employee who loses that lawsuit must pay the company’s legal fees.  The same applies to confidentiality agreements, employment agreements, severance agreements, and for independent contractors, contractor agreements.  A company’s contracts with its vendors and customers also should provide that the employer can recover your attorneys’ fees if it is forced to sue the other party, and wins. Consequently, it is crucial to have an experienced Maryland employment law firm review your company’s contracts — to probe for this issue and a variety of other red flags.  At Luchansky Law, our experienced Maryland employment lawyers review companies’ existing agreements and suggest improvements.  We also draft new contracts for companies that don’t yet have them – such as Employee Handbooks, Separation Agreements and Releases, Vacation Policies, and Non-Compete Agreements.  If your company is using contracts that have not been reviewed by a lawyer, or if you need new written agreements to be drafted, contact the experienced Maryland employment lawyers at Luchansky Law.

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