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 -----Original Message-----
From: 	"BNA Highlights" <bhighlig@bna.com>@ENRON  
Sent:	Tuesday, November 20, 2001 11:22 PM
To:	BNA Highlights
Subject:	Nov. 21 -- BNA, Inc. Daily Labor Report

______________________________

DAILY LABOR REPORT
Highlights & Table of Contents
November 21, 2001
______________________________

ISSN 1522-5968


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HIGHLIGHTS
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TITLE VII PUNITIVE DAMAGES NOT DEPENDENT ON COMPENSATORY
DAMAGES

Punitive damages may be awarded in cases under Title VII of
the 1964 Civil Rights Act regardless of whether a judge or
jury awarded any compensatory damages, the Second Circuit
rules, addressing an issue of first impression
("Cush-Crawford v. Adchem Corp., "2d Cir., No. 00-7617,
11/16/01). The appeals court affirms a jury verdict of
$100,000 in punitive damages but no other damages for Tonia
Cush-Crawford in her Title VII sexual harassment suit
against Adchem Corp. The statute allows a maximum of
$100,000 in total damages for companies of Adchem's size.

The statutory caps "strongly undermine the concerns that
underlie the reluctance to award punitive damages without
proof of actual harm," Judge Leval writes. Citing the
different purposes underlying the award of compensatory
damages and punitive damages, Leval also says it would be
improper for an employer who acted with malice or reckless
indifference to the employee's rights to escape the award of
punitive damages just because the employee was fortunate
enough to avoid suffering actual harm . . . . Page AA-1,
Text E-1

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7g6h0_

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7b7y7_


JUDGE REJECTS CHALLENGE TO FORD'S POLICIES FOR EXTENDING
FMLA LEAVE

Ford Motor Co.'s requirement that absent workers notify the
employer of the need to extend an approved medical leave
within five days of the expiration of the leave does not
violate the Family and Medical Leave Act, the U.S. District
Court for the Eastern District of Michigan rules ("Alexander
v. Ford Motor Co.,  "E.D. Mich.,  No. 01-70051,  11/5/01 ).

 A group of Ford employees sued challenging the company's
"five-day quit" procedures, as applied to those employees
seeking to extend an approved FMLA leave. Department of
Labor regulations interpreting the FMLA require the employer
to give employees two days to notify it of the need for an
extended leave, so Ford's more generous policy does not
violate the act, Judge Edmunds finds, granting Ford summary
judgment on the claim. . . . Page A-7

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7h9w6_


FEDERAL EMPLOYEES CAN BRING RETALIATION SUITS UNDER ADEA

Federal employees may bring retaliation claims against their
agencies under the Age Discrimination in Employment Act, the
District of Columbia Circuit rules ("Forman v. Small, "D.C.
Cir., No. 00-5256, 11/16/01). Although the ADEA provision
waiving sovereign immunity for federal employee suits does
not specifically mention retaliation claims, the language
requiring that federal agency personnel decisions "shall be
made free from any discrimination based on age" is broad
enough to do so, the court explains in a retaliation suit
brought by a curator for the Smithsonian Institution.

Unlike the express prohibitions applicable to private,
state, and local employers in ADEA Section 623(d), the
provision governing federal agencies, 29 U.S.C. Section
633a(a), does not by its terms prohibit retaliation.
"Congress's failure to mention 'retaliation' explicitly does
not undermine its intended breadth of the provision," the
court says. It is difficult to imagine, it adds, how a
workplace could be "free from any discrimination based on
age" if a federal agency could fire or take other action
adverse to an employee for complaining about age
discrimination. . . . Page A-1

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6d1f6_


WORKER'S CLAIM ADVANCES BASED ON REQUIRED REPORT TO
HARASSING BOSS

A machine shop worker at a Pennsylvania factory can proceed
with her sexual harassment claim against her former employer
because the company's internal policy required her to report
the actions to her supervisor--who was one of the alleged
harassers, a federal judge in Philadelphia rules ("Hare v.
H&R Industries Inc., "E.D.Pa., No. 00-CV-4533, 11/7/01).

Rejecting H&R Industries' motion for summary judgment, Judge
James McGirr Kelly of the U.S. District Court for the
Eastern District of Pennsylvania holds that former employee
Priscilla Hare presented enough evidence for her claims
under Title VII of the 1964 Civil Rights Act and the
Pennsylvania Human Relations Act to go to trial.

Hare's evidence showed that the company's policy was
ineffective and that her failure to pursue it was
reasonable, the court holds, and she also presented evidence
that her subsequent termination resulted from harassment. .
. . Page A-2

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7c2x6_


NO DENIAL OF BENEFITS TO DEPRESSED HARASSER, DIVIDED COURT
DECIDES

A Michigan probation officer allegedly unable to continue
working because of depression arising from his suspension
for sexually harassing female public defenders, may not be
denied workers' compensation based on his status as a sex
harasser, a divided Michigan Court of Appeals rules ("Daniel
v. Corrections Dep't, "Mich. Ct. App., No. 224423, 11/2/01).

Tony Daniel's conduct was not willful and intentional and
the depression he faced is too attenuated to find that it
occurred by reason of his acts, Judge Danhof holds in
reversing the judgment of the workers' compensation board
and trial court. Calling Daniel an "unsympathetic" and
"difficult" employee is not enough to disqualify him from
receiving benefits, the appeals court says. The state
workers' compensation law was designed to remove the focus
on the consideration of the fault of the claimant, the court
says.

In dissent, Judge O'Connell says that allowing a serial
sexual harasser to profit from his misconduct was
"untenable" and a result never contemplated under the state
workers' compensation law.  . . . Page A-5

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y5z9h3_


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TODAY'S EVENTS
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UNEMPLOYMENT: Weekly data on initial claims for unemployment
benefits released, 8:30 a.m., Labor Department.

________________

ALSO IN THE NEWS
________________


LEADING INDICATORS: The index of leading economic indicators
increased by 0.3 percent in October, after a 0.5 percent
drop in September and a 0.1 percent decrease in August,
according to figures released by the Conference Board. . . .
Page D-1

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7a7r3_

EMPLOYMENT: Reflecting layoffs related to the September
terrorist attacks and their aftermath, unemployment rates
climbed in 33 states during October, according to the Bureau
of Labor Statistics. . . . Page D-2

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7h0g3_

RETAIL FOOD STORES: United Food and Commercial Workers
members employed at eight stores operated by the Great
Atlantic and Pacific Tea Co. in Connecticut approve a new
three-year contract. . . . Page A-3

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7a3y8_


____

TEXT
____

SEXUAL HARASSMENT: Second Circuit decision in "Cush-Crawford
v. Adchem Corp. ". . . Page E-1

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7b7y7_

NLRB: NLRB's weekly summary of cases. . . . Page E-5

http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7g8h3_


_________________

TABLE OF CONTENTS
_________________

LEADING THE NEWS

SEXUAL HARASSMENT
   Punitive damages may be awarded in cases under Title VII
   of the 1964 Civil Rights Act regardless of whether a
   judge or jury awarded any compensatory damages, Second
   Circuit rules . . . Page AA-1,  Text E-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7g6h0_

   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7b7y7_


____

NEWS
____

AGE DISCRIMINATION
   Federal employees may bring retaliation claims against
   their agencies under the Age Discrimination in Employment
   Act, D.C. Circuit holds, allowing a Smithsonian
   Institution employee to proceed with the retaliation
   portion of his age bias claim . . . Page A-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6d1f6_

APPROPRIATIONS
   While the pending defense appropriations bill included
   $1.5 billion for Labor Department national emergency
   grants when it was marked up by the House Appropriations
   Committee, a proposal offered by the Bush administration
   appears to have reallocated that funding to a different
   grant program . . . Page A-8
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7h0b6_

ERISA
   Pipeline inspector did not waive his right to bring a
   lawsuit for employee benefits under the Employee
   Retirement Income Security Act when he signed a
   "consultant" agreement stating that he was an
   "independent contractor" not entitled to benefits, a
   federal district court in Louisiana rules, refusing to
   dismiss the inspector's action . . . Page A-4
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6z6t0_

FMLA
   Ford Motor Co.'s requirement that absent workers notify
   the employer of the need to extend an approved medical
   leave within five days of the expiration of the leave
   does not violate the Family and Medical Leave Act,
   federal district court in Michigan rules . . . Page A-7
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7h9w6_

PENSIONS
   CORRECTION: An article on the Internal Revenue Service's
   Revenue Procedure 2001-55, reported at 219 DLR A-6,
   11/15/01, should have said it extends the remedial
   amendment period for all individually designed qualified
   retirement plans by two months, from Dec. 31 to Feb. 28 .
   . . Page A-8
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6y7r8_

RETAIL FOOD STORES
   UFCW members employed at eight stores operated by the
   Great Atlantic and Pacific Tea Co. in Connecticut approve
   a new three-year contract that raises wages, reduces the
   company's health and welfare contribution level, and
   increases employees' pension benefits . . . Page A-3
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7a3y8_

SAFETY & HEALTH
   Agreement aimed at protecting workers clearing the World
   Trade Center site in New York City is signed by OSHA, the
   contractors working on the site, and the unions providing
   labor . . . Page A-2
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6j9u0_

   Texas drilling services contractor is responsible for the
   off-duty negligence of an employee who fell asleep while
   driving home after working the graveyard shift on an oil
   rig, a state district court jury decides . . . Page A-4
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6m0j0_

SEXUAL HARASSMENT
   Machine shop worker at a Pennsylvania factory can proceed
   with her sexual harassment claim against her former
   employer because the company's internal policy required
   her to report the actions to her supervisor--who was one
   of the alleged harassers, federal judge in Pennsylvania
   rules . . . Page A-2
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7c2x6_

STATE EMPLOYEES
   Facing a growing budget deficit and worsening state
   economy, the California State Employees Association
   agrees to send to a membership vote a proposed contract
   offer the union had rejected for the past six months as
   representing a loss in pay for covered employees . . .
   Page A-6
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6z5x5_

STATE LAWS
   Legislation signed by acting New Jersey Gov. DiFrancesco
   (R) (A. 1624) increases the administrative penalties for
   violations of the state's Law Against Discrimination for
   the first time in almost two decades . . . Page A-7
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7j1u1_

WARN ACT
   Lawsuit alleges that Dole Food Co. violated the Worker
   Adjustment and Retraining Notification Act by failing to
   give adequate notice to workers at company facilities in
   Tulare and Kern counties that they were losing their jobs
   . . . Page A-6
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6k3t5_

WORKERS' COMPENSATION
   Michigan probation officer allegedly unable to continue
   working because of depression arising from his suspension
   for sexually harassing female public defenders may not be
   denied workers' compensation based on his status as a sex
   harasser, divided Michigan appellate court rules . . .
   Page A-5
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y5z9h3_


_____________

ECONOMIC NEWS
_____________

EMPLOYMENT
   Reflecting layoffs related to the September terrorist
   attacks and their aftermath, unemployment rates climbed
   in 33 states during October, Labor Department's Bureau of
   Labor Statistics reports . . . Page D-2
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7h0g3_

LEADING INDICATORS
   Conference Board says index of leading economic
   indicators increased by 0.3 percent in October, after a
   0.5 percent drop in September and a 0.1 percent decrease
   in August . . . Page D-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7a7r3_

TRADE BALANCE
   U.S. trade deficit in goods and services shrank
   dramatically in September, but the improvement was due
   largely to a one-time insurance payment related to the
   Sept. 11 terrorist attacks rather than a trend, Commerce
   Department data show . . . Page D-10
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7j5m1_


____

TEXT
____

SEXUAL HARASSMENT
   Second Circuit decision in "Cush-Crawford v. Adchem
   Corp." . . . Page E-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7b7y7_

NLRB
   NLRB's weekly summary of cases, dated Nov. 23, 2001 . . .
   Page E-5
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7g8h3_


______________

TABLE OF CASES
______________

Alexander v. Ford Motor Co. (E.D. Mich.) . . . Page A-7
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7h9w6_

Cush-Crawford v. Adchem Corp. (2d Cir.) . . . Page AA-1,
Text E-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7g6h0_

   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7b7y7_

Daniel v. Corrections Dep't (Mich. Ct. App.) . . . Page A-5
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y5z9h3_

Escoto v. Nabors Drilling (Tex. Dist. Ct.) . . . Page A-4
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6m0j0_

Forman v. Small (D.C. Cir.) . . . Page A-1
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6d1f6_

Hare v. H&R Indus. Inc. (E.D.Pa.) . . . Page A-2
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y7c2x6_

Quevedo v. Dole Food Co. Inc. (E.D. Cal.) . . . Page A-6
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6k3t5_

Stewart v. Project Consulting Servs. Inc. (E.D. La.) . . .
Page A-4
   http://pubs.bna.com/ip/BNA/dlr.nsf/id/a0a4y6z6t0_

   ___________________________________________________________
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