Here is the latest issue of “This & That” Tuesday. I hope you find it to be informative and useful.

 

Announcements

You can always check out my website for upcoming speaking engagements that are guaranteed to be of value to business owners or for a list of topics that I can speak on at Chambers, Clubs, Business Associations, etc. More details about the events, topics and Human Resources 4U can be found on my website.

 

RockTenn Services Pays $500,000 to Settle Race Harassment Suit

RockTenn Services Company, Inc. an Atlanta-based manufacturing company will pay $500,000 to 14 employees and provide other significant relief to settle a racially hostile environment lawsuit brought by EEOC.  The consent decree settling the suit resolves the EEOC's claims against RockTenn.   The EEOC charged RockTenn with subjecting a class of African-American employees to race discrimination. According to company information, Rock-Tenn is one of North America's leading manufacturers of paperboard, containerboard and consumer and corrugated packaging.

 

According to the EEOC's suit, a class of  African-American employees were subjected to violent, racist graffiti, including  "KKK," swastikas, Confederate flags, "white power" and other racist  terms, including "die, n—-r, die."   RockTenn employees also saw hangman's nooses displayed at its Dallas paper mill.  Several employees were referred to by racist slurs including "n—-r."  Michael Scott, who filed a discrimination charge with the EEOC, was a called a "n—-r" by his supervisor.  Scott later discovered a noose at his work station.  The EEOC complained that RockTenn officials repeatedly ignored the complaints of racist graffiti even after it was reported to management on multiple occasions, including at monthly labor-management meetings.

 

"Racism in any form is bad enough, but racist graffiti that included Confederate flags and death wishes accompanied by vile racist epithets go far beyond the pale even of prejudice," said the EEOC Attorney.  "Terms like 'KKK' evoke violent and threatening attitudes towards African-Americans.  RockTenn should have immediately responded to the reports of racist graffiti instead of permitting their employees to work in an atmosphere full of these menacing, racist taunts. The EEOC filed suit after first attempting to reach a pre-litigation settlement through its conciliation process. 

 

The violations in this case are  especially odious in light of the multiple reports of racist graffiti made by  numerous employees.  The EEOC will continue to aggressively pursue employers that violate their workers' rights."

 

The two-year consent decree settling the case provides for an injunction against RockTenn that prohibits the company from further discriminating against any employee or harassing any employee on the basis of race.  RockTenn will pay $500,000 in monetary relief and will conduct annual anti-harassment and anti-discrimination training.  As part of the decree, RockTenn also agreed to implement an anti-graffiti policy, which requires the company to conduct weekly monitoring of its facilities and to also discipline any employee found to have created graffiti.

 

New IRS Mileage Reimbursement Rate

The IRS has announced that, effective January 1, 2013, the “optional mileage rate“ which may be used to calculate the costs of business travel for tax deduction purposes will be 56.5 cents per mile, a one-cent increase over the 2012 rate. Under California law, this rate is also presumed to be sufficient to reimburse employees for business use of their automobiles.

 

Under California Labor Code § 2802, employers are required to fully reimburse employees for any expenses necessarily incurred in carrying out their assigned duties. Employees may sue in court or file an administrative complaint with the California Labor Commissioner’s Division of Labor Standards Enforcement (“DLSE”) to recover unreimbursed expenses, as well as interest, litigation costs and attorneys’ fees. Employees may also recover penalties ($100 for an initial violation and $200 for subsequent violations) for failure to reimburse employee business expenses, under the Labor Code Private Attorneys General Act of 2004 (“PAGA”).

 

The DLSE generally accepts reimbursement at the IRS rate as a sufficient amount to reimburse all costs incurred by employees in using their vehicles for employer business. Although, employers are not required to use the IRS rate and may opt to use another method of reimbursement, such as a fixed monthly or weekly “gasoline allowance,” by using the IRS rate employers benefit from the presumption that employees have been fully reimbursed in the event of an employee claim to the contrary.(The IRS rate is calculated to include not only gasoline, but also wear and tear on the vehicle [depreciation], maintenance, repair and insurance costs.) The burden will then be on the employee to produce evidence (such as receipts) showing that the costs incurred in operating his or her vehicle was greater. If the employee is able to prove that reimbursement was insufficient to cover his or her actual costs, the employer must pay the difference.

 

What Should Employers Do?

Review any expense reimbursement policies or forms which incorporate the IRS rate to ensure that they reflect the updated rate.

 

Sutter Transfer to Pay $30K to Settle EEOC Race Harassment

Yuba City, CA based Sutter Transfer Service, Inc., a trucking company, and Fiveway, LLC, an earthmoving farming company, have agreed to pay $30,000 to an African-American driver and his white co-worker to settle a federal racial harassment lawsuit filed by the EEOC.

 

According to the EEOC, a black employee was targeted by his dispatcher with racially offensive comments and epithets such as "gorilla," "porch monkey," and the N-word.  Other truck drivers witnessed the racial harassment, and one white co-worker even complained to management, but the employers failed to take immediate and effective action and the harassment continued, said the agency.

 

"I was the only black truck driver working there but not the only one offended when our dispatcher was allowed to give out racist comments right along with work assignments.  No one should put up with discrimination!  I'm glad I exercised my rights and reported this to the EEOC." After an investigation by the EEOC and after first attempting to reach a voluntary settlement through conciliation, the EEOC filed the suit.

 

Under the consent decree resolving this lawsuit, Sutter Transfer Service and Fiveway will pay the employee and the complaining white driver a total of $30,000; provide annual anti-harassment training for all employees; revise equal employment opportunity and anti-harassment policies and complaint procedures; post a notice regarding the lawsuit; and report any complaints of harassment or discrimination to the EEOC for two years.

 

"All employees have the right to work in an environment free from hostility, intimidation, and ridicule.  In this case, the companies failed to live up to their responsibility to provide a workplace free of racial hostility." The EEOC stated. Employers that receive notice of racial harassment should take prompt and effective measures to investigate, stop any unlawful conduct, and discipline those found responsible.

 

Factoids

Salary increases 2012 (Towers Watson)

• Top performers:    4.75%
• Above Average:     3.85%
• Average:                3.4%
• Below average:     1.4%

Operating Expense vs. Salary

• 1-99 employees it's           40%
• 100-249 employees it's     39%

Target bonuses for non-executives

• 1-99 employees it's           2.5%

• 100-249 employees it's     4.0%