Sexual Harassment and the #metoo Movement - November 1, 2018 - Association of ...

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Sexual Harassment and the #metoo Movement - November 1, 2018 - Association of ...
Sexual Harassment and the
                               #metoo Movement
                                                                                                               November 1, 2018

                    “Seyfarth Shaw” refers to Seyfarth Shaw LLP (an Illinois limited liability partnership).
Seyfarth Shaw LLP
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Sexual Harassment and the #metoo Movement - November 1, 2018 - Association of ...
Speakers

Laura Shelby                            Chelsea Mesa

Seyfarth Shaw LLP                       Seyfarth Shaw LLP
310-201-5203                            213-270-9725
lshelby@seyfarth.com                    cmesa@seyfarth.com

 ©2018 Seyfarth Shaw LLP. All rights reserved. Private and Confidential
Sexual Harassment and the #metoo Movement - November 1, 2018 - Association of ...
Agenda

01                            Introduction
                              Creating A Culture of Respect and Inclusion -- Best
02                            Practices for Preventing Sexual Harassment
                              Recent Legislative, Litigation & Employer
03                            Developments

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Sexual Harassment and the #metoo Movement - November 1, 2018 - Association of ...
Introduction:
      One Year Since #metoo - where are we now?

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Sexual Harassment and the #metoo Movement - November 1, 2018 - Association of ...
The Silence Breakers
                                                                         • Significant shift in focus on and
                                                                           awareness of sexual harassment in the
                                                                           workplace.
                                                                           – 100+ public, high-profile sexual
                                                                             harassment accusations made
                                                                             against celebrities, public figures,
                                                                             politicians and corporations.
                                                                           – #MeToo social media campaign.

                                                                         • In 2017: 70% of Americans describe
                                                                           sexual harassment as a “very serious
                                                                           problem.”
                                                                           – In 1998: 36% of Americans described
                                                                              sexual harassment as a “very serious
                                                                              problem.” (Source: CNN/Time)

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Sexual Harassment and the #metoo Movement - November 1, 2018 - Association of ...
Widespread, But Underreported

  •         Almost half of America’s working women say they have
            experienced sexual harassment at work.
  •         90% of workers who say they’ve experienced harassment
            never formally report it.

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Sexual Harassment and the #metoo Movement - November 1, 2018 - Association of ...
12/28/17
New York Times
Survey
•     1/3 reported their own
      work activity within the
      past year included
      “objectionable behavior
      or sexual harassment.”

•     1 in 25 men in the
      “average American
      workplace identifies
      himself as a harasser.”

•     Most Common Action:
      Gender Harassment –
      25%

•     Unwanted Sexual
      Attention – 10%

•     Least Common Action
      – Sexual Coercion – 2%

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Sexual Harassment and the #metoo Movement - November 1, 2018 - Association of ...
Spike in EEOC charges and recoveries

  • The EEOC has seen a material spike in charges and lawsuits,
    all driven by the #metoo movement.
    – Since 2017, there has been a 50% increase in workplace
      harassment lawsuits filed, the vast majority of which are
      sexual harassment cases.
    – The lawsuits resulted in total recoveries just shy of $70 million,
      up from $47.5 million.

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Sexual Harassment and the #metoo Movement - November 1, 2018 - Association of ...
Creating a Culture of Respect and Inclusion:
     Best Practices for Preventing & Addressing
     Sexual Harassment

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Sexual Harassment and the #metoo Movement - November 1, 2018 - Association of ...
The Bare Minimum of Best Practices

  • Acknowledgement that diversity and inclusion issues matter and
    have a positive impact on a workplace.
  • Ensure that management “walks the walk.”
  • Compliant discrimination, harassment, and retaliation policies.
    – updated regulations lay out specific requirements for what
      must be included.
  • Effective and updated harassment training program.
    – new laws reach more employers with fewer employees, and all
      employees of those employers.
  • Robust reporting and response process.
  • Hope for the best, prepare for the worst.

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Active                                                         • Provide training to all employees, not just
                                                                   management.
  Prevention –
                                                                 • Effective Anti-Harassment Trainings Accomplish
  Providing                                                        Three Goals:
  Communication                                                    – Educate and provide employees with more
  Skills and                                                         information about their employer’s anti-
  Interactive Training                                               harassment policy.
  as Part of your
  Respectful                                                             – Change employees’ attitudes about what type
  Workplace                                                                of behaviors in the workplace are wrong.
  Communications
                                                                         – Fulfill legal requirements to conduct
                                                                           mandatory training.

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Active                                                         • In-depth partnerships with HR
  Prevention –                                                     Representatives to reinforce active prevention
                                                                   messages as well as enhancing investigation
  Providing                                                        and complaint processing techniques.
  Communication
  Skills and
  Interactive Training                                           • Providing communication skills training for all
  as Part of your                                                  employees.
  Respectful
  Workplace
  Communications                                                 • Providing bystander intervention techniques
                                                                   and trainings (including tailored “scripts”) for
                                                                   all employees.

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Current
  Harassment                                                             • Employers with more than 50 employees
                                                                           must provide managers with sexual
  Training
                                                                           harassment training.
  Requirements
                                                                         • Must be interactive, last at least 2 hours
                                                                           and be taught by an expert.
                                                                         • Must be given within 6 months of
                                                                           hiring/promotion and every 2 years.
                                                                         • Must include:
                                                                           – federal and state law
                                                                           – responding to and reporting complaints
                                                                           – retaliation
                                                                           – harassment policy
                                                                           – effects of harassment
                                                                           – recent addition of specific scenarios,
                                                                             including gender identity and
                                                                             expression, and sexual orientation

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“Abusive
                                                                         • AB 2053 (amending Gov’t Code 12950.1)
  Conduct                                                                  requires employers with 50 or more
  Prevention”                                                              employees to train managers on
  (Bullying)                                                               prevention of “abusive conduct” as part of
  Training                                                                 biennial sexual harassment prevention
                                                                           training.
                                                                         • “Abusive conduct” means malicious workplace
                                                                           conduct that a reasonable person would find
                                                                           hostile, offensive, and unrelated to employer’s
                                                                           legitimate business interests.
                                                                           – (1) repeated infliction of verbal abuse--the use of
                                                                             derogatory remarks, insults, and epithets,
                                                                           – (2) verbal or physical conduct that a reasonable
                                                                             person would find threatening, intimidating, or
                                                                             humiliating, or
                                                                           – (3) the gratuitous sabotage or undermining of
                                                                             work performance
                                                                         • Single act not enough unless especially
                                                                           severe and egregious.

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NEW LAW - Effective 1/1/19
 Sexual Harassment: Training to (Nearly) All
• SB 1343:
      – Employers with 5 or more employees must provide by 1/1/20
        (then once every 2 years) sexual harassment training within 6
        months of assuming any position to:
            All supervisory employees: at least 2 hours
            All nonsupervisory employees: at least 1 hour
            Can be completed in shorter segments, totaling the 1 or 2 hours.
      – Seasonal and temporary employees hired to work fewer than 6
        months must be trained within 30 days of hire or within the first
        100 hours worked.
      – DFEH must make available:
            Online training courses employers may use.
            Informational posters, fact sheets, and online training courses in
             multiple languages and for download/streaming online.

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Active                                                                 • Leadership from the top
  Prevention –                                                             – Visible accountability and leadership
                                                                             from the top
  Company Culture
                                                                         • Climate/culture surveys
                                                                         • Incentives/disincentives for policy
                                                                           violations
                                                                         • Fear of retaliation
                                                                         • Wrap-Around Messaging
                                                                         • Cascade of Respect-Focused
                                                                           Communications
                                                                         • Audit existing non-harassment policy

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Active
                                                                         • Some employers are focusing on “Gateway
  Prevention –                                                             Conduct,” small incidents that can devolve into
                                                                           more egregious conduct if unaddressed.
  Providing
                                                                         • Some employers are focusing on building
  Communication                                                            consensus regarding the relative ease of
  Skills and                                                               intervention and enhancing employees’ skills to:
  Interactive Training                                                     – Spot a colleague’s discomfort
  as Part of your
                                                                           – Support colleagues, using a step-up/speak-up
  Respectful                                                                  model
  Workplace
                                                                           – Employ distraction/extraction strategies
  Communications
                                                                           – Know when/how to call-in reinforcements

                                                                         • Intervention language may include phraseology
                                                                           targeted to specific organizations and
                                                                           environments to eliminate barriers of unease and
                                                                           reluctance to appropriately, safely, and
                                                                           collectively “check” others’ conduct, including
                                                                           peers at the C-Suite level.
                                                                           – Simple, user-friendly and targeted language
                                                                              can prove surprisingly effective

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Active                                                         • Encourage and simplify internal reporting.
  Prevention –
                                                                 • Ensure multiple, wide-open reporting
  Effective Reporting                                              channels and robust response protocols.
  Channels and                                                     – Rapid Response Team and Plan
  Response
                                                                   – Hotlines
                                                                   – HR Structures
                                                                   – Open door options
                                                                   – EEO coordinators

                                                                 • Confidentiality of Reporting and
                                                                   Investigations.

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Active
                                                                         Some employers are considering:
  Prevention –
                                                                         • Eliminating sexual harassment and equal
  Effective                                                                pay complaints from mandatory arbitration
  Reporting                                                                agreements.
  Channels and                                                           • Publication of statistics regarding usage
                                                                           and resolution of allegations brought
  Response                                                                 through the Company’s internal complaint
                                                                           mechanism and third-party federal, state,
                                                                           and local agencies.
                                                                         • Providing board audit committees with
                                                                           regular reports regarding its policy, training,
                                                                           and effectiveness of its investigations
                                                                           regarding sexual harassment.
                                                                         • Narrowing the scope of confidentiality and
                                                                           non-disparagement provisions in traditional
                                                                           settlement and release agreements for
                                                                           sexual harassment complainants.
                                                                         • Moving complaint mechanisms and/or
                                                                           organization of complaints to an outside
                                                                           organization or counsel.

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Responding to Allegations of Harassment
  Common Questions & Concerns

  • What do you do when faced with new sexual harassment
    allegations regarding conduct that occurred many years ago?

  • What should you do when you learn about alleged misconduct
    by an employee that took place when that employee worked for
    a different organization?

  • How do you handle sexual harassment allegations against
    workplace “superstars”?

  • Concerns about negligent hiring and/or negligent retention.

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Appropriate Responses to Allegations of
  Harassment

    • Employer’s actions in response to
      complaints send powerful signals
      about culture and tolerance of
      harassment.

    • Obligation to promptly and thoroughly
      investigate charges.

    • Keep detailed documentation of
      investigation.

    • Develop a media strategy.

    • Assess the impact – isolated or
      systemic?

©2018 Seyfarth Shaw LLP. All rights reserved. Private and Confidential   21
Responding to
  Sexual
  Harassment                                                              If allegations of sexual harassment are
  Claims                                                                   not new, same rules apply: prompt,
                                                                           thorough investigation and effective
                                                                           remedial measures, if necessary.

                                                                          Document, Document, Document

                                                                          Statute of limitations (one year to file
                                                                           with DFEH)

                                                                          Do you investigate stale claims beyond
                                                                           all statute of limitations and involving
                                                                           former employees?

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Responding to
  Sexual                                                             What if the accuser or accused is still in the
  Harassment                                                          workplace?
  Claims                                                               • Obligation to protect others from
                                                                          harassers
                                                                       • Obligation to protect company from
                                                                          lawsuits by other potential victims

                                                                     Now cases are tried in the media, on social
                                                                      media, and even some fake news
                                                                       • Complaints may come after headlines

                                                                     Will #MeToo change the
                                                                      definition/application of severe or pervasive
                                                                      standard?

                                                                     Reputational risk – what is our internal and
                                                                      external response?

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Addressing                                                        • How does it affect your brand? Your
  Reputational                                                        Customers?
  Risks                                                                 Think about the different responses from
                                                                         companies and alleged harassers that
                                                                         you have seen.

                                                                    • Create an internal response and
                                                                      communication to try to head off the media
                                                                      blitz.

                                                                    • Engage a PR firm – think before you speak
                                                                      to media….discoverable.
                                                                        Focus message on positive
                                                                          developments/progress company has
                                                                          made in gender equality, diversity, EEO
                                                                          areas.
                                                                        Be careful to avoid reviving time-barred
                                                                          harassment claims by giving them new
                                                                          defamation or retaliation claims (e.g.
                                                                          calling the accuser a liar, etc.)
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Addressing                                                        • What if the accused is a key leader?
  Reputational                                                         Dealing with shareholders or
  Risks                                                                  powerful internal stakeholders
                                                                       Obligations to disclose to the Board,
                                                                         etc.

                                                                    • Don’t ignore the impact on other
                                                                      employees, morale, etc.

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Additional 2019 Legal Updates –
           Harassment and Gender-Related Laws

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NEW LAW - Effective 1/1/19
   Sexual Harassment Omnibus Bill
 SB 1300 adds Government Code section 12923, codifying certain case holdings
 regarding the standard of proof on sexual harassment:
 1. First, a plaintiff does not have to prove a tangible decline in their productivity; it is enough
    to show that harassment made it more difficult to do the job. (approving concurrence in
    Harris v. Forklift Systems (1993)).

 2. Second, a single incident of harassing conduct is enough to create a triable issue
    regarding the existence of a hostile work environment (rejecting Brooks v. City of San
    Mateo (2000)).

 3. Third, existence of a hostile work environment depends on totality of circumstances, so a
    discriminatory remark (even if not part of employment decision or made by a non-decision
    maker) may be relevant. (affirming Reid v. Google, Inc.’s (2010) rejection of “stray
    remarks doctrine.”))

 4. Fourth, the standard for harassment does not depend on type of workplace (disapproving
    Kelley v. Conco Companies (2011)).

 5. Fifth, “harassment cases are rarely appropriate for disposition on summary judgment.”
    (affirming decision of Nazir v. United Airlines, Inc., (2009)).
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NEW LAW - Effective 1/1/19
   Sexual Harassment Omnibus Bill (cont’d)
  SB 1300 also:
  1. Expands acts of nonemployees to all harassment (removing the “sexual”
     limitation) (Gov’t Code § 12940(j)(1)).
  2. Prohibits an employer from, in exchange for a raise, bonus or as a condition of
     employment/continued employment, requiring an employee to sign*:
              • A release of FEHA claims or rights.
              • A nondisparagment agreement or other document prohibiting disclosure of
                information about unlawful acts in the workplace. (Gov’t Code § 12964.5).
  3. Prohibits recovery of fees and costs unless the court finds the action was
     frivolous, unreasonable, or groundless when brought or that the plaintiff
     continued to litigate after it clearly became so. (Gov’t Code § 12965).

  4. Authorizes (but does not require) an employer to provide bystander
     intervention training to its employees. (Gov’t Code § 12950.2)

  * Does not apply to a negotiated settlement agreement to resolve an underlying FEHA claim
  brought by the employee in court, before an administrative agency, ADR forum, or through
  an employer’s internal complaint process.
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NEW LAW - Effective 1/1/19
   Sexual Harassment: Ban on Confidentiality Provisions
   •        SB 820, The “Stand Together Against Non-Disclosure (STAND) Act”:
                 Prohibits provisions in settlement agreements entered into on or after January 1,
                  2019, that prevent the disclosure of factual information related to claims filed in civil
                  or administrative complaints involving sexual assault, sexual harassment, and
                  workplace harassment or discrimination based on sex.
                Expressly authorizes inclusion of provisions:
                 - Precluding disclosure of settlement payments.
                 - Upon the request of the claimant, if the opposing party is not a government
                     agency or public official, that protects the claimant’s identity and facts that could
                     lead to the discovery of the claimant’s identity.
                 Adds Code of Civil Procedure § 1001.

   •        SB 3109 makes void and unenforceable a provision in a contract or settlement agreement
            entered into on or after January 1, 2019, that waives a party’s right to testify in an
            administrative, legislative, or judicial proceeding concerning alleged criminal conduct or sexual
            harassment on the part of the other contracting party, or the other party’s agent’s or
            employees. This applies only when the party has been required or requested to attend the
            proceeding pursuant to court order, subpoena, or administrative agency or legislative written
            request.
                  Adds Civil Code § 1670.11.

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Contracts RECAP
   Not Allowed:
   • Requiring employees sign releases of liability as a condition of continued
     employment or in exchange for a raise or bonus. (SB 1300)
   • Settlement agreement provisions that prohibit the disclosure of factual information
     related to sexual assault, sexual harassment, and sex-based workplace
     harassment/discrimination claims filed in civil or administrative complaints. (SB 820)
               •       Allowed:
                         • Provisions precluding disclosure of settlement payments.
                         • Upon the request of the claimant, if the opposing party is not a government
                           agency or public official, provision that protects the claimant’s identity and facts
                           that could lead to the discovery of the claimant’s identity.
   • Contract/settlement agreement provisions that waive a party’s right to testify in an
     administrative, legislative, or judicial proceeding about alleged criminal conduct or
     sexual harassment by the other contracting party, his/her agents or employees. (SB
     3109)
       • if the party has been required/requested to attend the proceeding by court
         order, subpoena, or administrative agency/legislative written request.

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NEW LAW - Effective 1/1/19
    Sexual Harassment: Defamation Protection
    • AB 2770 amends Section 47 of the Civil Code to extend defamation
      privilege to:
          1.          A complaint of sexual harassment made by an employee, without
                      malice, to his/her employer based on credible evidence.

          2.          Communications between the employer and “interested persons,”
                      without malice, regarding a complaint of sexual harassment.

          3.          Answers, without malice, by a current or former employer or its agents
                      to a prospective employer’s inquiry as to whether the employer would
                      rehire the employee and whether the decision to rehire, or not, would
                      be based on a determination that the former employee engaged in
                      sexual harassment.

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VETOED
   Sexual Harassment: Ban on Contractual Limitations on Disclosure &
   Forum Waivers
      AB 3080 would have added two sections (432.4 and 432.6) to the Labor Code
      that do the following, and a section (12953) to the Government Code that would
      have made it an unlawful employment practice for an employer to violate those
      Labor Code sections:
            –        Prohibited an employer from, as a condition of employment, continued
                     employment, receipt of any employment-related benefit, or as a condition of
                     entering into a contractual agreement, prohibiting an applicant for employment,
                     employee, or independent contractor from disclosing to any person instances of
                     sexual harassment suffered, witnessed, or discovered in the work place or in
                     performance of the contract.
            –        Prohibited mandatory arbitration of FEHA and Labor Code claims.
            –        Prohibited retaliation against an employee who refuses to sign an agreement
                     waiving his/her right/forum/procedure for a violation of FEHA / Labor Code.
      Would have applied to agreements entered into, modified, or extended on or after
      1/1/19.
                    The Governor stated he was compelled to veto this bill because it “plainly
                                            violates federal law.”
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NEW LAW - Effective 1/1/19
    Gender Equity: Women on Boards
    SB 826: California-based publicly held corporations with principal executive offices in
    CA must, by the following deadlines:

    1. Required Deadlines To Have Certain Number Of Females On Board Of Directors.

    2. California Secretary of State Must Report Results.

    3. Fines. The Secretary of State may impose fines:

          – $100k for failure to timely file board member information with Secretary of State.

          – For each director’s seat not held by a female during at least a portion of the
            calendar year:
                 $100k for first violation and
                 $300k for subsequent violations.

                                                                            Adds sections 301.3 and 2115.5 to the Corporations Code.

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NEW LAW - Effective 1/1/19
   Pay Equity Clarifications
      AB 2282. Amends Labor Code §§ 432.3 and 1197.5.
      1. Employer, upon reasonable request, must provide the pay scale for a
      position to an applicant applying for employment.
            “pay scale” means a salary or hourly wage range.
            “reasonable request” means a request made after an applicant has completed an
             initial interview with the employer.
            “applicant” or “applicant for employment” means an individual who is seeking
             employment with the employer and is not currently employed with that employer
             in any capacity or position.

      2.          Employers are not prohibited from asking about salary expectations.

      3.          Employers may make a compensation decision based on an employee’s
                  current salary as long as any wage differential resulting from that
                  compensation decision is justified by one or more of the permitted
                  factors (seniority, merit system; quantity/quality of production; bona fide
                  factor other than sex, training, education, experience).
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NEW LAW - Effective 1/1/19
    Time Off / Paid Family Leave

    AB 2587 removes the application of vacation leave to the waiting period
    under the paid family leave program, consistent with the removal of the
    7-day waiting period for these benefits.
            Amends § 3303.1 of the Unemployment Insurance Code.

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Lactation Accommodations
• NEW LAW - Effective 1/1/19
      – AB 1976 requires employers to make reasonable efforts to provide a room or
        location (that is not a bathroom, deleting “toilet stall” and inserting “bathroom”)
        for lactation. Authorizes a temporary lactation location if certain conditions are
        met. Provides a narrow undue hardship exemption.

• VETOED - SB 937 would have required employers to:
      – Provide a lactation room with prescribed features and access to a sink and
        refrigerator (or another cooling device suitable for storing milk) in close proximity
        to the employee’s workspace.
      – Develop and distribute to employees a lactation accommodation policy.
      – Maintain accommodation request records for three years and allow employee
        and Labor Commissioner access to the records.
      – Deem the denial of break time/space for lactation a failure to provide a rest
        period under Labor Code section 226.7.

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Thank you!
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