SUPREME COURT TO EXAMINE EMPLOYEES' RIGHT TO PRIVATE ELECTRONIC COMMUNICATIONS

Traditionally, employers have been allowed to play the role of private investigator when it comes to monitoring employees’ electronic communications over company provided devices. The rational is that the employer owns the equipment and, therefore, should be allowed to review its contents. Review of employee emails and text messages allows the employer to monitor efficiency, business disclosures, and proper use of company equipment. According to a 2005 survey conducted by the American Management Association, over half of employers review and retain employee emails and 84% have company email policies.  These statistics reflect the fact that employee monitoring is generally accepted and only minimally regulated.

The right to personal privacy is generally considered a liberty protected against government interference by the Constitution’s due process clause. The federal Electronic Communication Privacy Act of 1986 was designed to specifically protect personal electronic communications from interception by government entities without a warrant. Protection of electronic communications from interception by non-government entities is left to the states. Thus, the best protection of an employee’s right to privacy is found in tort law. California is the only state that recognizes a state Constitutional right to privacy. Invasion of privacy occurs when one intentionally intrudes upon the private activities of another and the invasion would be highly offensive to a reasonable person. Additionally, there must be a reasonable expectation of privacy. 

As technology has advanced, the number of lawsuits involving the wrongful interception of employees’ personal electronic communications has increased. In these cases, the courts will weigh the employee’s reasonable expectation of privacy against the employer’s legitimate business interests. In the past, courts almost always ruled in favor of the employer, but recent decisions have begun to shift this trend.

In the case of Stengart v. Loving Care Agency, Inc., et al, No. A-3506-08T1 (S.C.N.J. June 26, 2009), the employer intercepted an email from an employee to her attorney via a personal, password-protected Yahoo account. The Court rejected the notion that the employer could intercept private communications simply because it owned the computer used to make such communications. It stated that“property rights are no less offended when an employer examines documents stored in a computer as when an employer rifles through a folder containing an employee’s private papers.”  The Court further noted that the principles underlying the attorney-client privilege outweighed the employer’s interest in imposing a unilateral regulation.

Following in the footsteps of Stengart, Convertino v. US Department of Justice, No. 2004-CV-0236 (RCL) (D.D.C. Dec. 10, 2009) held that the Department of Justice (DOJ) could not intercept emails sent by an employee to his personal attorney because it violated the attorney-client privilege. The Court, citing In re Asia Global Crossing, Ltd., 322 B.R. 247, 258 (S.D.N.Y. 2005), stated that “the question of privilege comes down to whether the intent to communicate in confidence was objectively reasonable.” The employee in Convertino had a reasonable expectation of privacy because the DOJ policy did not ban personal use of email and employees were unaware that the DOJ regularly accessed and saved personal emails.

In the recent case of City of Ontario v. Quon, the 9th Circuit Court of Appeals considered an employees’ right to privacy when sending text messages. In this case, a police officer complained when the department intercepted text messages sent on a government-provided device. The official policy of the department contained no guarantee of employee privacy to text messages; however, the informal policy indicated that text messages would not be reviewed as long as employees paid for charges over the government allowance. The Court ruled that the informal policy gave the police officer a “reasonable expectation of privacy” and the department violated the officer’s fourth amendment rights. Unlike email that is paid for and stored on company equipment, the text messages were paid for by the employee and stored by the telephone company; therefore, the employee had a right to privacy.  On December 14, 2009, the US Supreme Court agreed to hear the case on appeal. The decision will have a great impact on employees’ privacy rights regarding electronic communications.

Until employee privacy rights become more defined, employees should exercise a high level of discretion when using electronic equipment provided by their employers.

Strategy:

1. Obtain a copy of your employer’s electronic communications policy. Generally, company policies are legally binding and must be adhered to by employees.

2. Do not assume a right to privacy while at work. To the extent possible, use company equipment for work purposes only.

3. If you have discovered that your personal emails, text messages, or other private communications have been reviewed or retained by your employer, contact an experienced California labor law attorney to discuss your rights.
 

Applying for Unemployment Benefits? Beware of Allegations of Misconduct

While companies continue to downsize their workforce in order to cut costs, they may try to avoid being hit with the additional expenses associated with layoffs. This includes payment of wages, overtime, and accrued vacation days as well as expensive severance packages. No doubt there is a similar incentive for employers to dodge the payment of unemployment benefits. The key for employees is know their rights and recognize when it is appropriate to appeal a denial.

Generally, all employees who have lost their job “through no fault of their own” are entitled to collect unemployment benefits provided that they are:

(1) Completely unemployed or working less than full-time,
(2) Ready and looking for work,
(3) Have worked within the last 18 months

One exception is if the employee has been “discharged for misconduct connected with his or her most recent work.” (Unemployment Insurance Code, Section 1256) The Employment Development Department (EDD), not the employer, determines what behavior rises to the level of misconduct. As defined by the California Court of Appeals, misconduct is “a substantial breach by the claimant of an important duty or obligation owed to the employer, willful or wanton in character, and tending to injure the employer.” (Maywood Glass Co. v. Stewart (1959) 170 Cal.App.2d 719) Examples of misconduct include the sale of drugs on the employer’s premises, theft of company property, and assault of other employees. On the other hand, many legitimate reasons for termination such as tardiness, poor work performance, and ordinary negligence are not misconduct.  If misconduct is established, it must also be the direct and proximate cause of the employee’s termination. (Precedent Decision P-B-192). The employer bears the burden of proof in cases involving misconduct. (Prescod v. California Unemployment Insurance Appeals Board (1976) 57 Cal.App.3d 29)

Because disqualification under section 1256 is fact-specific and largely subjective,
it is often misunderstood by employees and taken advantage of by employers. Companies may attempt to avoid payment by camouflaging a financially induced layoff as a case of wrongdoing or “misconduct” on the part of the employee. Employees should be particularly aware of claims of misconduct based on violation of company policy because there is the added element of “reasonableness.” According to Labor Code, Section 2856,

An employee shall substantially comply with all the directions of his or
her employer concerning the service on which he or she is engaged, except
where such obedience is impossible or unlawful, or would impose new and unreasonable burdens upon the employee.

“Disobedience of a lawful and reasonable instruction of the employer, related to the employer’s business, is misconduct.” (Precedent Decision P-B-190) The reasonableness requirement was addressed in Precedent Decision P-B-183. In that case, the employer demanded that the claimant stop discussing the possibility of opening his own business. The claimant refused and was discharged. The Appeals Board held that the employer’s demands were unreasonable as there was no evidence the claimant’s discussions disturbed the employer’s business; accordingly, the claimant’s actions did not constitute misconduct.

If you believe you are entitled to unemployment benefits, do not assume that an initial denial or contest by your employer is the final word. The time to appeal a decision of an administrative law judge is usually only a few days; therefore, it is in your best interest to contact a California labor law attorney as soon as possible. A knowledgeable attorney can provide an unbiased analysis of your situation and walk you through the entire process. Be aware that all testimony given an unemployment hearing can be used in other proceedings. If you have a possible claim for wrongful termination or personal injury, it is especially wise to prepare your testimony with counsel. Finally, do not forget to continue to file your weekly claim forms with the EDD while your appeal is being processed. If you are successful in court, you will only be compensated for those weeks in which you filed weekly claim forms.
 

TICK TICK TOCK: CALIFORNIA EMPLOYEES WAITING FOR FINAL WAGE CHECKS ENTITLED TO PENALTIES

Most people during the holiday season excitedly open their mailboxes in the hopes of finding cheerful greeting cards. Sadly, this is not the case for so many hard-working California employees who have lost their jobs this year. Many of these workers are checking their mailboxes not with a joyful spirit, but rather an anxious anticipation of receiving their much needed final wage checks. The good news is that employers will have to pay for causing this type of stressful delay.

Under the California Labor Code, discharged employees are entitled to immediate payment of wages for time worked. “Discharged” employees include those who have completed a specific assignment or period of work for which they were hired.  In the case of a termination, all “wages earned and unpaid at the time of discharge are due and payable immediately.” (Labor Code Section 201) In the event of resignation, payment must be made within 72 hours. (Labor Code Section 202)
Failure to issue payment within the aforementioned time constraints may subject the employer to a “waiting time” penalty. For each day wages go unpaid, the employer will be accessed an amount equal to the employee’s daily rate of pay for up to a maximum of thirty days. (Labor Code Section 203) The inability of an employer to pay wages will not preclude the accrual of penalties.

While application of this penalty may seem straightforward, there are several nuances that all employees should understand. First and foremost, employees will not be awarded penalties where they avoid or refuse to receive payment of wages; for example, secretly leaving the workplace and failing to provide the employer with future contact information. Employers are not required to pay wages without question. If a “good faith dispute” exists concerning the amount of wages due and owing to an employee, the employer may delay payment without penalty. As the California Department of Industrial Relations explains:

A "good faith dispute" that any wages are due occurs when an employer presents a defense, based in law or fact which, if successful, would preclude any recovery on the part of the employee. The fact that a defense is ultimately unsuccessful will not preclude a finding that a good faith dispute did exist. However, a defense that is unsupported by any evidence, is unreasonable, or is presented in bad faith, will preclude a finding of a "good faith dispute". Labor Code Section 203 and Title 8, California Code of Regulations, Section 13520

When a “good faith” defense is asserted, employees are still entitled to immediate payment of the portion of wages not in dispute. If the employer delays payment of undisputed wages, waiting penalties will still be accessed. (Labor Code Section 206)

Employees must also be aware that they only have a fixed amount of time in which to file a claim to collect wages and waiting time penalties. If both final wages and penalties are being claimed, the statute of limitations is four years. On the other hand, if only waiting time penalties are being claimed, then the statute of limitation is one year. 
Consequently, if you are waiting for payment of final wages or believe you may be entitled to penalties, you should not wait to take action.

Strategy:

1. At the time of discharge, remind your employer that they are obligated to immediately pay your earned wages and accrued vacation.
2. If your employer attempts to delay payment or disputes what is due and owing, ask for a specification of the amount of wages disputed and not disputed. Request immediate payment of any undisputed wages and remind them of the possibility of waiting time penalties.
3. If your employer makes a latter attempt to pay your wages, do not avoid or refuse payment as this may preclude you from collecting penalties.
4. Keep the envelope that your wages came in as proof of date you received your final check.
5. Finally, be aware of the statute of limitations. Immediately contact an experienced California labor attorney to discuss your rights and legal remedies.
 

Top 5 Things to Remember When Leaving Your Job

Whether by layoff, termination, or decision to explore greener pastures, leaving a job is a stressful and emotional time.  Making the right decisions and avoiding career damaging mistakes are critical.  Having represented the rights of well over eight hundred clients we have seen how powerful a little knowledge is and unfortunately how devastating ignorance can be.   Presented below  are the five critical steps you can take to protect your future. .  
 
Request a copy of your personnel file
 
Before your departure from the company, pay a visit to the human resources department and request a copy of your personnel file.  This file should include performance reviews, awards, contractual agreements and other items that may be beneficial to you in your future job search.  If your employer refuses to provide this information, remind them that you have a legal right to any documents that you have signed.  It is also wise to keep a copy of all company policies, employee manuals, and other data that is non-proprietary.  This information is critical in the event of a dispute involving your rights to unpaid overtime or for wrongful termination, etc.
 
Collect recommendations and references
 
Prior to your departure, request a written letter of recommendation from your immediate supervisor or other higher ranking individual.  Also obtain the name and number of a person in the company who prospective employers may contact for a positive reference.  Remember that anyone who has witnessed your work and thinks you do a good job can serve as a reference, including supervisors, managers, colleagues, co-workers, and subordinates. Be sure to obtain their personal contact information including home address, phone number, and email so you can reach them in the event that that they leave the company.   If you offer to serve as a reference for them and provide your contact information, they may be more willing to reciprocate. 
 
Keep in mind  that even individuals outside of your company may serve as references.  Perhaps the most important word to remember is “network.”  Take a few minutes to call or email people in your industry with whom you’ve established a good working relationship.   As Laura T. Coffey points out, the more contacts you have in the industry, the better your chance of finding work quickly.    
 
Protect your benefit plans
 

Obtain a copy of your employer’s health insurance policy and find out what it covers.  It is possible that you may continue coverage under your existing plan for a few months pursuant to COBRA, but this is likely to be costly.  It is wise to look into the cost of personal health insurance and shop around for the best price.  Also access your retirement plan.  You may be able to take your pension as a lump sum or transfer your money to an individual retirement account (IRA).  
 
 
Remove all personal items 
 
If you anticipate leaving your job, begin removing all personal items from your office.  At the time of termination, you may be escorted off the premises without time to pack your belongings.  Someone may do this for you later, but this is not guaranteed.  Don’t forget to check your computer.  If you have created any personal files or installed software, copy and delete them.  Be careful not to take anything that may be considered proprietary, such as customer lists, proposals, financial reports, etc.  You certainly don’t want to begin your job search with accusations of theft or violation of contract.    

Evaluate your severance package and release
 
Although employers are not required to offer severance benefits, they may do so in order to smooth things over with exiting employees.  Severance benefits may include up to six months salary, extended health insurance coverage, payment for accrued sick days, and outplacement services, among others.  However, these benefits do not come cheap.  Employers will usually condition payment on the employee’s signature of a release that waives all claims against the employer.  Promises of non-disclosure and non-competition are often common.  You should never sign such a release without first talking to a labor law attorney. .  If you are owed any past wages for unpaid overtime or for any other reason you could easily lose those rights which could be substantial. These contracts are drafted for the sole benefit of the employer and are legally significant.  Therefore, it is important that you have a labor law attorney review the release before signing.  A knowledgeable labor law attorney will protect your rights and may be able to negotiate more favorable terms. 
 
If you have any questions or concerns about your employment rights upon leaving an employer, do not hesitate to an experienced California labor law attorney.  Some attorneys will review your situation without charge, in which case you can have peace of mind and protect your rights without any cost to you.