Environmental compliance has been an important issue for large, multi-national companies for many years, and in recent years it has taken on added importance for their suppliers. Case in point: Walmart, Procter & Gamble, IBM – many Fortune 500 companies – are requiring that their vendors audit and quantify the greenhouse gas (GHG) emissions in their supply chains. Indeed, many of these high-profile organizations have undertaken ambitious plans for reducing their carbon footprint. (A big driver of this activity is stronger environmental regulation and pressure from environmental organizations, customers, investors and the like.) For example, in early 2010 Walmart announced a goal to eliminate 20 million metric tons of GHG emissions from its global supply chain by the end of 2015. Procter & Gamble has the stated objective of generating 100% of its energy from renewable resources – with a target of generating 25% of that by 2020.
Audit, Compliance and Risk Blog
GHG Auditing and Environmental Compliance — Are You Prepared?
Posted by Jon Elliott on Tue, Oct 16, 2012
Tags: Corporate Governance, Audit Standards, Health & Safety, Environmental risks, Environmental
The Public Company Accounting Oversight Board (PCAOB) was created by the U.S. Congress as a result of passage of the Sarbanes-Oxley Act of 2002 (SOX). Some believe that the PCAOB has been sleeping, because its recent activity has not been very visible. But as discussed below, the board is addressing many complex and sometimes highly controversial changes to the auditing profession.
Tags: Corporate Governance, SEC, Accounting & Tax
Understanding Insurance Law (Rule Number One: Words Rule)
Posted by Barry Zalma on Fri, Sep 28, 2012
A picture may be worth a thousand words. But words – or lack thereof – can be worth millions. Never more so than when courts are deciding the level of coverage and the amount of payout policyholders are entitled to from insurance companies. So, when it comes to understanding insurance law you need to make sure you understand rule number one: words rule.
Tags: Corporate Governance, Business & Legal, Environmental risks, Environmental, Insurance, Insurance Claims
New Accounting Principles for State and Local Government Pensions
Posted by Ron Pippin on Fri, Aug 31, 2012
The liability associated with a company’s defined benefit pension has always been hard to measure and, as a result, controversial. Companies in the private sector in the United States were forced to “bite the bullet” on this issue many years ago—in fact, it was in 1985 when Ronald W. Reagan was president.
Tags: Corporate Governance, Business & Legal, SEC, Accounting & Tax, Audit Standards, GAAS, GAAP
Greenhouse Gas Emissions: Answering Stakeholders Concerns
Posted by Jon Elliott on Fri, Aug 10, 2012
Increasingly, your approach to climate change issues provides an important basis for your customers’ and other stakeholders’ purchasing and investment decisions with your organization. They may research how your organization manages its greenhouse gas (GHG) emissions (your ‘carbon footprint’) because, if you provide them with goods and services, the GHG emissions associated with your activities may be attributed to them.
Tags: Corporate Governance, Environmental risks, Environmental, EPA
Is Your Board’s Compensation Committee Up to Standard?
Boards of directors are responsible for corporate governance of their companies, although the companies’ executives oversee most day-to-day activities. To ensure that these executives perform properly, the boards oversee them, and establish compensation and incentives intended to encourage and reward appropriate activities. State corporation laws and federal and state securities laws, have traditionally left boards to decide how to meet these responsibilities.
Tags: Corporate Governance, SEC
Scenario: A female employee informs you she’s pregnant, and you recall that one of her previous pregnancies ended in miscarriage, so you decide to transfer her to a less demanding assignment at the same pay grade. The pregnant employee objects on the grounds that the new assignment is less interesting, and carries lower prestige.
If you then ordered this employee to accept the transfer, you could possibly find yourself in court, as the County Sheriff’s Office did in Hillsborough, Florida. You might also be found guilty of pregnancy discrimination in violation of federal and state law, and ordered to compensate her with back pay, as well as pay additional damages for inflicting emotional distress on the woman you thought you were helping. This spring the Eleventh Circuit Court of Appeals did just that, affirming a jury verdict awarding $80,000 in back pay plus $10,000 compensation for emotional distress, based on prevailing employment law, and pregnancy discrimination.
What did the employer do wrong, and why?
The case is Holland v. Gee.[i] Lisa Holland had worked for three years as a data processing telecommunications technician (DP Tech) in the Sheriff’s Office, where David Gee was the County Sheriff. In November 2006, three years after joining the Office, Holland disclosed her pregnancy to her supervisor, Teresa Sterns. Sterns later testified:
‘I’ve thought about this quite a bit, and I’m sure that part of my decision was that as a mother, with knowing the history of her miscarriage, knowing how my pregnancy was rather difficult, I — I can only assume that part of that decision was that I felt it was — it was to be nice and to give Lisa a desk job. Concerned [sic] with her pregnancy was part of my reasoning. It was not the official reasoning, but it was certainly part of what I felt was — was right.’
At trial, several co-workers testified that the Help Desk tasks are less technical and more administrative, involving telephone conversation, rather than on-site visits. Accordingly, some of the Help Desk DP Techs had lower pay grades than that of Ms. Holland, and at least one co-worker testified that he would have considered such a transfer to be a demotion.
Ms. Holland objected to the move but was transferred anyway; she was eventually terminated for what the Sheriff characterized as performance and morale issues.
The Court opinion relates a range of conflicting testimony about who said what, who did or didn’t do what, and the reasons for what occurred. Throughout the case the Sheriff’s Office denied any discriminatory intent, and offered its own testimony to contend that each decision was based on reasons that were non-discriminatory. However, management employees offered differing recollections of what had transpired, and why. In fact some of them changed their stories during the course of the investigation, trial, and court appeal.
What did the federal court decide, and why?
This case was tried in federal court under Title VII of the Civil Rights Act of 1964 (which prohibits a wide range of workplace discrimination, including discrimination “based on sex”), under the federal Pregnancy Discrimination Act of 1978, and under comparable Florida state law.
Because there was no clear written evidence of discrimination, the trial court followed precedent for dealing with the circumstantial evidence. It reviewed the plaintiff’s initial ‘prima facie’ case arguments, followed by the defendant’s counter-arguments, in order to determine if it was even possible that discrimination had occurred. In this case, neither side won at the preliminary stage, as both sides presented extensive testimony, and both cross-examined opposing witnesses vigorously. The trial judge decided that neither side had provided enough evidence to win as a matter of law, and let the matter go to a jury to decide.
The jury believed and agreed with plaintiff Ms. Holland’s arguments that discrimination occurred. The trial judge denied motions by the defendant, the Sheriff’s Office, and on appeal the Eleventh Circuit upheld these determinations.
Court cites earlier landmark decision
In upholding the jury’s decision the Eleventh Circuit cited back to the U.S. Supreme Court’s 1991 pregnancy discrimination decision in International Union v. Johnson Controls. In that landmark decision, the Supreme Court found that based on employment law and pregnancy discrimination, the employer’s “fetal protection policy” discriminated against pregnant and “fertile” females by denying them work in its battery assembly areas, presumably to prevent their exposure to lead. In that decision, the court found the employer’s policy was motivated at least in part by a desire to avoid the costs of exposure-reducing measures in the workplace. In the current case, the Eleventh Circuit did not dispute that the Sheriff’s Office motivations might be “benign,” but did reaffirm the Supreme Court’s observation that “[c]oncern for a woman’s existing or potential offspring historically has been the excuse for denying women equal employment opportunities.”
Implications of the court’s decision on pregnancy discrimination
The Holland v. Gee decision reaffirms that employers cannot change working conditions for pregnant employees, even if the decision is based on a belief that these employees need safer or easier working conditions. Instead, this Court decision reaffirms decades of precedent requiring that the workplace must generally be safe for all employees. The decision does not reach the equally important point that the employee may have the right to request such an accommodation, particularly if that individual’s pregnancy produces a temporary disability that triggers the Americans with Disabilities Act.
What will you do?
Employers make decisions on behalf of employees for a variety of reasons, but the reasons for such decisions are moot when the results tread on employment law and/or pregnancy discrimination or other discrimination. As an employer, it is important to understand the implications of your employment decisions before making them. Here are some employment law and pregnancy discrimination issues to consider in order to protect your company from accusations of running a discriminatory workplace.
Anti-discrimination Policy Implementation Checklist
Does my organization have a policy prohibiting discrimination, including sex discrimination, based on pregnancy?
Does my organization have a policy prohibiting discrimination, including discrimination based on disability?
- If so, does the policy affirm the organization’s willingness to offer appropriate accommodations to qualified employees with a disability, including temporary disability (which can occur during pregnancy, or during or after serious illnesses)?
Does my organization provide training to supervisors and managers in legal duties regarding employment law to avoid discrimination, and do the organization’s policies comply with these duties and procedures to ensure compliance?
Download the checklist Sex Discrimination Policy: Best Practices for Employers
About the Author
Jon Elliott is President of Touchstone Environmental and has been a major contributor to STP’s product range for over 25 years. He was involved in developing 16 existing products, and writes quarterly updates for them all. Go to the STP Publishers website for a copy of his book, Workplace Violence Prevention: A Practical Guide.
Mr. Elliott has a diverse educational background. In addition to his Juris Doctor (University of California, Boalt Hall School of Law, 1981), he holds a Master of Public Policy (Goldman School of Public Policy [GSPP], UC Berkeley, 1980), and a Bachelor of Science in Mechanical Engineering (Princeton University, 1977).
Mr. Elliott is active in professional and community organizations. In addition, he is a past chairman of the Board of Directors of the GSPP Alumni Association, and past member of the Executive Committee of the State Bar of California's Environmental Law Section (including past chair of its Legislative Committee).
You may contact Mr. Elliott directly at: tei@ix.netcom.com.
Tags: Corporate Governance, Employer Best Practices, Employee Rights, EEOC, Title VII
Workplace Violence Prevention Begins With a Formal Policy
Posted by Jon Elliott on Wed, Jun 06, 2012
Does your organization have a formal workplace violence prevention policy? Requirements that employers protect their employees against workplace violence are expanding throughout North America. For example, public agencies in New York have been required to do so since 2009 (S 6441), and most employers in Ontario have required the same since 2010 (Bill 168), while Manitoba revised longstanding requirements in 2011.
Tags: Corporate Governance, Business & Legal, Employer Best Practices, Health & Safety, Employee Rights, Workplace violence
Disability Benefits Denied: Claimant Can Work in ‘Own Occupation’
Posted by Barry Zalma on Mon, Jun 04, 2012
Disability insurers are often chastised for not accepting an insured’s disability claim and denying them insurance benefits. At the same time, some individuals attempt to recover from their disability insurer even when they are able to perform the duties of their occupation. And when contracts are written in such a way that even the most erudite advocate cannot determine their meaning unequivocally, it is no wonder so many such cases end up in litigation, as in the following case from Arkansas.
Tags: disability claim denied, Corporate Governance, Health & Safety, Insurance Claims, Disability benefits
EEOC Broadens Protection Against Sex Discrimination in Transgender Appeal
Posted by Jon Elliott on Tue, May 29, 2012
For nearly 50 years, Title VII of the Civil Rights Act of 1964 has prohibited “employment” discrimination based on any of several characteristics, including “sex” (gender). In 1964, Congress was essentially concerned with gender-specific jobs, pay discrimination for jobs performed by both genders, and male supervisors abusing their female subordinates by demanding sexual favors, among other abuses.
Tags: Corporate Governance, Business & Legal, Employer Best Practices, Employee Rights, EEOC, Title VII