In Whitten v. Fred’s, Inc., the Fourth Circuit issued an important ruling in a sexual harassment case.  The Court concluded that the company-defendant could held liable for sexual harassment by its manager, even if the manager did not have the authority to fire the harassed worker.   Although the Court was addressing state law claims, South Carolina anti-discrimination law mirrors federal law, and the Court based its decision on federal case law.  So, it seems that its decision would apply to federal Title VII claims as well.

The plaintiff Clara Whitten was an assistant manager at Fred’s, a department store.  Matt Green worked with Whitten as the store’s manager.  After being transferred to Green’s store, Whitten only worked two days at the store before she felt compelled to quit because of sexual harassment from Green.  Whitten alleged that Green rubbed his genitals against Whitten on two separate occasions, that Green punished her by changing her schedule and giving her undesirable tasks because Whitten did not want to spend any time alone with Green, and that Green was verbally abusive. Read more…

Categories: Judicial Decisions Tags: Bankruptcy, Case Commentary, Constructive Discharge, Fourth Circuit, Labor and Employment, Sexual Harassment, Title VII

In Boucher v. Shaw, the Ninth Circuit Court of Appeals ruled that individual managers/owners — in this case a hotel’s CEO, CFO, and labor/employment manager — may be held liable for unpaid wages, vacation, and holiday pay under the Fair Labor Standards Act (FLSA).  The FLSA allows suits to be brought against individuals, in addition to the employer-company itself, in certain cases.  Specifically, individuals can be on the hook if they “exercise control over the nature and structure of the employment relationship,” such as the managers here.   Significantly, the court also held that even though the company had gone into bankruptcy, the claims against the individual managers could proceed all the same.  The bankruptcy affects claims against the company, but not claims against the individual managers.  This is an important principle for workers who are cheated out of wages by failing companies.

Categories: Judicial Decisions Tags: Bankruptcy, Case Commentary, Fair Labor Standards Act, FLSA, Labor and Employment, Lost Wages, Manager Liability, Ninth Circuit