Posted On: November 30, 2010

Novartis $152.5 Million Sex-Bias Settlement Approved

A federal judge approved a mammoth $152.5 million settlement in a gender discrimination class action against one of New Jersey's largest employers, Novartis. The suit was filed in 2004 by Amy Velez and four other women who claimed they faced discrimination over pay and promotion decisions as well as for pregnancy. The case was certified as a class action on behalf of more than 5,600 women who worked in sales jobs at Novartis since July 15, 2002. On May 17, 2010, a jury found Novartis liable for discrimination and awarded $3.4 million in damages to 12 of the women and $250 million in punitive damages to a group of 5,600 employees.

In accordance with the settlement, Novartis will pay $60 million in back pay to the class and $40 million in compensatory damages. Additionally, Novartis has agreed to implement measures to protect female workers’ rights. More specifically, the drug maker has agreed to revise its sexual harassment policies and training, strengthen its employee complaint process, hire an outside specialist to help it identify gender pay disparities in the company, and revise its performance management process.

This firm has seen more gender and pregnancy discrimination cases since the economy began its downturn. If you have been unfairly denied a promotion or pay increase because of your gender, you may have a claim for unlawful discrimination. An attorney specializing in employment law can help you understand your rights.

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Posted On: November 15, 2010

Senate Republicans Kill the Equal Pay Act Amendments

Senate Republicans voted against the Paycheck Fairness Act of 2010, killing the legislation which had been passed by the House of Representatives over two years ago. The bill, which would have updated and expanded the Equal Pay Act of 1963, had wide popular support, as well as the support of 58 Senate Democrats. The bill was two votes shy of a filibuster-proof majority.

President Obama, speaking about the bill, stated that he was "deeply disappointed" that "a minority of Senators" prevented the Act from being brought up for a debate and receiving a vote. Said the President: [a]s we emerge from one of the worst recessions in history, this bill would ensure that American women and their families aren’t bringing home smaller paychecks because of discrimination. It also helps businesses that pay equal wages as they struggle to compete against discriminatory competition. But a partisan minority of Senators blocked this commonsense law. Despite today’s vote, my Administration will continue to fight for a woman’s right to equal pay for equal work."

Now that the Republicans have added six senate seats, it is unlikely that any new anti-discrimination legislation will be passed for several years. In my opinion, these politicians have emboldened and encouraged those who would discriminate against women. Fortunately, here in New Jersey, we have strong laws against discrimination. If you are a female who feels you are being paid less than your male colleagues, contact a knowledgeable NJ employment attorney to discuss your options.

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Posted On: November 9, 2010

NLRB Backs Employee Who Was Fired After Making Derogatory Posts About Boss on Facebook

For the first time ever, the National Labor Relations Board (“NLRB”) issued a complaint that an employer engaged in unfair labor practices for firing an employee who made derogatory posts about her supervisor on Facebook, on her own computer during off-work hours.

The NLRB issued the complaint against American Medical Response of Connecticut, an ambulance company, for firing medical technician Dawnmarie Souza after she criticized her supervisor online. It also stated that the company’s blogging and internet posting policy in its employee handbook was too broad. The handbook stated that “[e]mployees are prohibited from making disparaging, discriminatory or defamatory comments when discussing the Company or the employee’s superior, co-workers and/or competitors.” The NLRB stated that fundamental labor laws allow an employee to criticize supervisors and talk with other employees.

The NLRB is an independent federal agency with authority over most private sector employers. Therefore, the outcome of this case could have significant implications for employment and privacy laws and employers should look to see if they need to amend their policies.

We would still caution employees to be careful about what they post on their Facebook and other social media sites. There have been several recent cases where employers have successfully asked a court to force employees to reveal what they have on their personal websites. This is an area of the law that is constantly changing so if you have any questions on whether you are in compliance, you should consult an employment attorney.

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