News and Resources

Termination Letters

[youtube id=”-v3BLGFKMr4″ width=”600″ height=”400″] When an employer fires an employee, the company commonly faces a difficult decision – should the employee be issued a termination letter?  In most cases where the termination is simple and straightforward, we recommend that employers not send a termination letter. Occasionally, though, sending a termination letter is a good idea.  For example, where an employee already has threatened litigation or has accused the employer of discriminatory treatment.  In such a case, the employer should send a brief letter stating the decision succinctly and noting the reason for it.  A well-drafted letter may be just the piece of evidence that helps get a wrongful termination lawsuit dismissed down the road. If you need assistance deciding whether to send a termination letter – or whether to fire an employee in the first place – call Luchansky Law.  Our experienced Maryland employment lawyers will help you sort through the details and make the right decisions to protect your business.

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Employer Compliance with Federal Employment Law

[youtube id=”-nVSyo6H5r0″ width=”600″ height=”400″] Maryland employers need to ensure that every employment decision, including hiring, promotions and terminations, complies with federal anti-discrimination laws. Federal employment laws prohibit certain employers from discriminating against employees based on gender, race, age, religion, disability, genetic information and other categories.  Note, that in addition to merely complying with Equal Employment Opportunity laws—certain employers must also notify their employees of their EEO rights.  An employer may be required to post workplace notices regarding equal treatment or include a policy statement on equal employment opportunity in the employee handbook. If your business has government contracts, or receives federal funding, you will likely have additional notice requirements.  Furthermore, Maryland employment laws can create more rights for employees by expanding upon the list of protected categories and associated notice obligations. At Luchansky Law, we work closely with employers to create policies that are both practical for the business and are fully compliant with an employer’s EEO obligations.  Contact us today to see how we can implement the policies necessary to protect your business.

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Employment Agreements

[youtube id=”-5a5tNynwas” width=”600″ height=”400″] Employers want to avoid potential lawsuits from their employees. Maintaining written employment agreements with your employees is one way to do so. Written employment agreements spell out obligations and expectations for both the employee and employer, reducing the possibility of later employment law issues. What should a Maryland employer put in an employment agreement?  Luchansky Law typically recommends the following items: Description of the position: with the title and list of the primary job duties. Compensation: stating the base pay, whether a position is hourly or salary, and any potential bonus structure. Health insurance, vacation time, disability leave, holiday pay and other employment benefits. Disciplinary procedures and grounds for termination of employment. Depending on the nature of your business, you may want to include non-compete and non-disclosure clauses and “work for hire” provisions.  Each company will have different concerns, which is why Luchansky Law recommends carefully drafting these agreements. If you have any questions about Maryland employment law in general, or would like for us to review your current employment agreements, please contact Luchansky Law.

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Severance Agreements

[youtube id=”XMIeoO1oeoM” width=”600″ height=”400″] Maryland employers are often faced with the question: When employees are terminated, laid off or resign from my company, should I pay them severance? There are several factors to consider. Even though Maryland employment law generally does not require you to pay severance, you may unwittingly create your own obligation to do so if you develop a consistent pattern or practice of paying severance to departing employees.  If that happens, an employee whom you don’t want to pay severance might sue you claiming that you are obligated to pay, just like you paid all previous terminated, laid off or resigned employees. To avoid this unwelcome, obligatory severance-pay trap, an employer should consider paying severance only to its very good employees, as well as to very problematic employees.  The good employees – to reward them for their service and loyalty.  The problematic employees – to get them to sign a severance agreement that has a release of claims and perhaps a non-compete clause.  It may also be worth the extra investment for an employer to protect itself from expensive legal challenges from a litigious employee down the road. If you have questions about the legal aspects of managing your employees, call the Maryland employment lawyers at Luchansky Law.  We understand what you legally can do – and will help you decide what you should do – in managing your employees.

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ADA accommodations need only be “reasonable”

The Americans with Disabilities Act (“ADA”), in a nutshell, prohibits employers from discriminating against individuals on the basis of a disability.  42 U.S.C. § 12112(a).  Yet, this simple, well-intended proposition seems to create a countless number of disputes between employees and employers.  Let’s try to demystify some of these issues. For the purposes of the ADA, “discrimination” means not making “reasonable accommodations” to the physical or mental limitations of an otherwise qualified individual with a disability.  A reasonable accommodation can generally be any change in the work environment, or in the way things are customarily done, which enables an individual with a disability to enjoy equal opportunities.  29 C.F.R. pt. 1630 app. § 1630.2(o).  By way of example, providing a reasonable accommodation can mean: Making an employer’s existing facilities readily accessible to and usable by individuals with disabilities; Job restructuring; Part-time or modified work schedules; Reassignment to a vacant position; Purchasing or modifying equipment or devices; or Appropriate adjustments to training materials or employment policies. The spectrum of available accommodations is wide-ranging.  It is generally only limited to the extent the employer can demonstrate that the requested accommodation would impose an undue hardship on the operation of the business. Ultimately, however, an employee is not entitled to an accommodation of his or her own choosing.  Rather, an employee is only entitled to an accommodation which the ADA deems reasonable.  This principle was demonstrated in the recent case of Bunn v. Khoury Enterprises, Inc., 2014 U.S. App. LEXIS 9872 (May 28, 2014, 7th Cir.). Joshua Bunn, who is legally blind, sought an accommodation from his employer to allow him to perform his essential job functions.  In response, the employer reassigned Mr. Bunn to a position which he could perform despite his impaired vision.  The accommodation worked.  However, it was not the accommodation that Mr. Bunn wanted.  So he resigned and sued, claiming a failure to accommodate under the ADA. The Court disagreed.  To the contrary, the Court found that the job restructuring allowed Mr. Bunn to perform the essential functions of his job, even if the accommodation was not his preference: In short, it was exactly the kind of accommodation envisioned by the regulations applicable to the ADA . . . the undisputed facts show that Khoury did what it was required to do by law . . . In this area of the law, we are primarily concerned with the ends, not the means . . . Bunn’s apparent displeasure with the way in which Khoury decided on that accommodation, or with its failure to provide the exact accommodation he would have preferred, is irrelevant. Takeaways. For employees, know that you are entitled to reasonable accommodations for qualified disabilities.  If you feel that the accommodation provided by your employer is not reasonable, carefully document your attempts to resolve the issue. For employers, the ADA ultimately only requires that you act reasonably.  Avoid “failure to accommodate” claims by engaging in an interactive process and dialogue with your employees when they request an accommodation for a legitimate, qualifying disability.  However, know that you are not obligated to succumb to unreasonable requests or those which would place undue hardship upon your business. 

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Requesting FMLA leave before meeting the eligibility standards

As most of us know, the FMLA provides an employee with 12 weeks of leave during any 12 month period in which a “serious health condition” prevents the employee from performing the functions of his or her position.  However, there are eligibility requirements which an employee must satisfy in order to qualify for FMLA leave, one of which is that the employee must have worked for that employer for at least 12 months.  (Are you noticing a theme with the number 12?) Imagine a scenario where an employee began working for an employer on November 17, 2012.  Then on November 13, 2013 — 361-days later and a mere 4-days shy of the one-year anniversary for becoming FMLA eligible — the employee puts in a request for FMLA leave to begin on November 17, 2013 (i.e., the first day on which the employee becomes FMLA eligible).  Would it be illegal for the employer to then terminate the employee on November 16, 2013 (one-day before the employee qualifies for FMLA)?  This very scenario was addressed this month by a Federal Court in the case of Wages v. Stuart Management Corporation, 2014 U.S. Dist. LEXIS 63646 (May 8, 2014). In this case, Mrs. Wages (yes, the employee’s last name was actually “Wages”) gave her employer notice of her desire to take FMLA leave on November 13, when she was not eligible.  But the FMLA leave was not to commence until November 17, when Mrs. Wages would have been eligible.  And the company fired her in the interim (thereby ending Mrs. Wages’s entitlement to wages). The Court said, under the circumstances, the employer’s conduct was illegal: The determination of whether an employee . . . has been employed by the employer for a total of at least 12 months must be made as of the date the FMLA leave is to start. An employee may be on non-FMLA leave at the time he or she meets the 12-month eligibility requirement, and in that event, any portion of the leave taken for an FMLA-qualifying reason after the employee meets the eligibility requirement would be FMLA leave. *          *          * Defendant does not contend that Wages was not entitled to use sick leave, personal leave, or vacation time to cover her reduced time until she became FMLA-eligible. The only reason Wages was not able to reach her eligibility date is because Defendant fired her before she could do so. The Court therefore finds that Wages was an eligible employee under the framework established by the FMLA. You read that correctly.  The Court found that the employer interfered with Mrs. Wages’s FMLA rights by terminating her in advance of her otherwise qualifying for FMLA leave. Takeaways. At the outset, when an employee sues you to collect lost wages and the employee’s last name is “Wages,” be very concerned.  Something about this name just foreshadows a bad ending for the employer.  Settle quickly. In scenarios such as above, it may be unlawful for an employer to terminate an FMLA-seeking employee even before his/her one-year anniversary with the company if that employee can bridge the gap between FMLA-ineligible and FMLA-eligible by using accrued time off or other forms of leave. Also, if an employee seeks FMLA leave for a serious health condition, even if the employee will run out of accrued time off before becoming FMLA-eligible, terminating that employee could run afoul of the Americans with Disabilities Act as well.  The ADA requires reasonable accommodations for employees with disabilities.  And many FMLA “serious health conditions” qualify as disabilities too. 

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Increase in Minimum Wage Coming Soon for Maryland Workers

The recently concluded 2014 Maryland legislative session resulted in the passage of some important amendments to the Maryland Wage and Hour Law.  One such amendment is a long overdue increase in minimum wage. At present, Maryland’s minimum wage rate is identical to the federal minimum wage, which is $7.25 per hour.  However, Maryland’s minimum wage will gradually increase as follows: As of January 1, 2015, $8.00/hour; As of July 1, 2014, $8.25/hour; As of July 1, 2016, $8.75/hour; As of July 1, 2017, $9.25/hour; and As of July 1, 2018, $10.10/hour.  Stay tuned for further updates as they become available. 

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SETTLING LAWSUITS – The Importance of a Well-Drafted Settlement Agreement

Litigation can be emotionally and financially draining. By the time parties reach a settlement agreement, even one with which they are satisfied, they often are tempted to turn their attention elsewhere and ignore the details of the settlement agreement itself.  Resist the urge to bail before the settlement agreement is finalized. Here’s why. A well-drafted settlement agreement should contain – or at least consider containing – a number of crucial provisions that will avoid headaches in the future. When drafted crisply, clearly, and without ambiguity, these provisions will assure that the matter truly is resolved, now and into the future. The following are examples of provisions that must be carefully considered when drafting an agreement that resolves litigation: The Parties to the Agreement – In addition to the actual parties to the lawsuit, it is important to consider whether any other person should be made a party to the settlement agreement. A defendant may want to include potential claimants who are related to, but are not themselves, named in the Complaint. The Scope of the Claim Settled – The key provision of a settlement agreement for the defendant is the “release,” which releases the defendant from the plaintiff’s claims. Releases, however, only are as broad as the parties draft them to be. Pay attention to whether the release is a specific release limited only to the claims brought in the lawsuit, or a general release that extinguishes liability for all matters, whether related to the lawsuit or not. Payment Arrangements – If settlement involves the payment of money, it is worth investing the time into detailing in the agreement the logistics, form, and timing of the payments. Not only will these details avoid confusion, but they may also avoid later claims of default arising from poorly drafted payment terms. Legal Costs and Attorneys’ Fees for Enforcement – In cases involving potential fee-shifting, it is important to state in the settlement agreement whether the parties are responsible for their own attorneys’ fees. Moreover, consider whether the settlement agreement is to provide that in the event of a breach of the agreement, the non-breaching party is entitled to recover attorneys’ fees for its enforcement.  Confidentiality – One common benefit that enures to defendants from settling a case instead of going to trial is avoiding the potential publicity that a trial may bring. Including a confidentiality provision in the settlement agreement helps to keep the matter under wraps. Trade Secrets and Confidential Information/Company Property – Employers may want to use the settlement agreement as another opportunity to protect their proprietary information by including terms that underscore these obligations of a former employee. Nondisparagement – The last thing an employer wants after it pays a plaintiff to settle a case is for the former employee to post on line about what a bad employer the company is. A nondisparagement clause helps prevent this from occurring. Entire agreement – The settlement agreement should indicate that it supersedes any prior oral or written agreements. When involved in litigation, it is important to pay careful attention from the very outset all the way through the final disposition of the case. The attorneys at Luchansky Law are trial lawyers with an eye for detail. If you are facing a situation involving potential or actual litigation, contact Luchansky Law at 410.522.1020 to discuss the benefit of having strong, experienced advocates on your side.

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Knowing What the Law Covers

Using a standard English dictionary when looking up a legal term can be a bad idea.  As an example, Webster’s dictionary defines discrimination as: The ability to understand that one thing is different from another.   So here’s the question.  Have I discriminated if I chose to wear my Ravens jersey over my Orioles jersey because I think I look better in purple?  The answer is yes.  Have I done something wrong?  That depends on who you ask.  But one thing is for sure, I have not done anything illegal. To be fair, Webster’s has another definition (it’s actually the first definition) for discrimination: The practice of unfairly treating a person or group of people differently from other people or other groups of people. However that definition is overbroad in a legal context.  The harsh reality is this – the law only protects certain groups from discrimination.  In fact, under some laws, certain people are not held accountable at all for their acts of discrimination. For example under Title VII of the Civil Rights Act of 1964, an employer is prohibited from discriminating  based on race, color, religion, sex and baccarat national origin.   This means that an employer cannot refuse to hire, terminate or discriminate in the form of compensation or classify his employees or applicants for employment in any way which would deprive individuals of employment opportunities.  However, if an individual were to file a Title VII claim of discrimination because he or she was discriminated against because of sexual orientation, they would be in a grey area of the law and the suit might get dismissed for failure to state a cognizable legal claim.  The reason is because discrimination on the basis of sexual orientation is not expressly protected under Title VII. It is important to note that regarding Federal sector employment, the Equal Employment Opportunity Commission (“EEOC”) has interpreted discrimination based on gender to include discrimination on the basis of sexual orientation.  In addition, Maryland has passed legislation protecting against discrimination based on sexual orientation.  See Md. Code 157, Art. 49B. The point?  Some types of discrimination are not protected by any law, so definitions matter.  Knowing what the law covers is the first step in protecting your rights.  If you feel that you have been a target of discrimination in the work place, contact the attorneys at Luchansky Law to arrange a consultation: (410) 522-1020.

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The Fine Line Between Simple and Gross Misconduct

In an earlier blog post, we stated that employers are increasingly challenging employees’ rights to unemployment benefits.  Employers seek to demonstrate that employees should be disqualified from receiving unemployment benefits for a number of reasons, including for the self-serving purpose of avoiding increases in their unemployment insurance tax rate.  In our last blog entry we discussed “simple misconduct,” which is the first level of disqualification an employer may prove in order to prevent an employee from receiving unemployment benefits.  Today, we discuss the next level of misconduct, which is “gross misconduct.”  Gross misconduct carries an even greater forfeiture of benefits than simple misconduct.  An employee guilty of gross misconduct will not be eligible for unemployment benefits until the employee finds new employment and earns 25 times his weekly benefit amount.  Gross misconduct is defined as misconduct that is willful, deliberate, or that consists of repeated violations demonstrating a disregard of the employee’s obligations.  This standard is distinct from simple misconduct, which does not have an intent requirement.  There are no hard and fast rules for determining what constitutes “deliberate and willful” misconduct.  In the case of DLLR v. Muddiman, the Court of Special Appeals held a portrait studio manager at a photo studio committed gross misconduct by repeatedly keeping cash on hand and ignoring the company policy to convert all cash receipts into money orders at the end of the workday.  The takeaway is that even though the employee may not have per se done anything wrong (that is, he was not stealing money or failing to show up for work), he was found to have committed gross misconduct by the mere fact that he was disregarding the employer’s work policies. However, as discussed in our prior blog on “simple misconduct,” the DLLR Board of Appeals found an employee committed only simple misconduct where the employee regularly violated the employer’s attendance policy in the face of warnings and was repeatedly late due to a need to care for a child who suffered from a mental disability.  See Bush v. Becton Dickinson and Company, 2084-BR-94. As evidenced the two cases above, the difference between simple and gross misconduct can be a close call, but the financial implications are major.  When your benefits are at stake you need an advocate fighting hard on your behalf. If you are interested in learning more about unemployment benefits, the process, or your rights, please contact our law firm to speak with an attorney. 

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