Employment Law for Human Resource Practice Case Analysis

Employment Law for Human Resource Practice Case Analysis

Table of Contents

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Instructions

Employment Law for Human Resource Practice Case Analysis

ONLY TEXT BOOK REFERENCES/CITATIONS. NO OUTSIDE MATERIAL.

Below is the format that should be used.

Case citation (Cite) not “site”.

“Chapter 20, Case #8. Page 830”(THIS IS AN EXAMPLE – NOT A REAL CASE)

Facts:(What happened in this case that is relevant to deciding the case?)

At the end of a meeting that covered a number of topics, the company president mentioned a new arbitration policy was being instituted, and that a pamphlet that outlined the process was available; but the pamphlet was not read to the employees, and not all employees picked up a copy.All employees who continued to work after the effective date of the new policy were deemed by management to have accepted the new policy.When one employee told the president he would not sign, he was told ‘not to worry about it.’ Thereafter, a new employee handbook was issued that included the arbitration program, but employees were not required to sign and submit the form to management.Later, when some employees filed suit for unpaid wages, the employer argued that they had to use arbitration because that was the company policy.

Legal Issue – (the question to be answered to resolve the case. One or two sentences, phrased as a question, with a question mark. (?)

Should the court enforce the arbitration agreement? Why or why not?

Analysis – (What are the relevant legal principles?Where is this referenced in the text (page number!), How will the court rule in this case, based on the legal principle in the text page(s) you referenced?) NOTE – the purpose here is to have TEXT-based references, not to do independent research.We are not teaching legal research in this course – just refer to where it is covered in the text, and it doesn’t have to be ‘formal’ citation.Just write it briefly, like – “Text, page 482”.

Ceiling Fans Direct, the employer, is presumed to be a manufacturer of fans employing workers in that activity, not as transportation workers.That is important to know, because transportation workers are not subject to the Federal Arbitration Act (FAA).With this presumption in place, the FAA controls the situation, and it is clear in both the statutory language (text, p 21) and in court decisions thereafter (Gilmer, Circuit City, at p 21) that the courts will defer to arbitration agreements.

The question then turns to whether the employees agreed to the change in policy, and if they did not, whether this matters or not.The facts in the case establish that the employees were told of the change in policy during the meeting with the president, and were given the opportunity to pick up a pamphlet.Moreover, when the employee handbook was updated, the new arbitration policy was included, although the employees were not required to sign and return the handbook acknowledgement form.

The failure of management to go through the process of reading and discussing the arbitration process at the first meeting on the topic, followed by the failure to even collect the signed acknowledgement of receipt of the handbooks from employees when the employee handbooks were updated raises a reasonable doubt about whether the employer demonstrated any objective interest about whether the employees agreed with the change in policy to incorporate arbitration.In fact, when one employee raised a concern to the president, the president’s response was ‘not to worry about it.’

The Federal Court in Nino v Jewelry Exchange (text page 22-24) concluded that an unconscionable contract would be present if management presented arbitration as a ‘take-it-or-leave-it’ proposition.When management failed to discuss arbitration in the first meeting, failed to seriously address the concerns of an employee raised with the president, and then didn’t even bother to collect the signed acknowledgements of receipts of the handbook that first presented the policy, it provides ample evidence that management is not concerned about the employees’ views on the topic, and in fact are demonstrating that ‘take-it-or-leave-it’ position that the court referenced in Nino.

For these reasons, the court in this case will uphold the position of Moran, and will not permit Ceiling Fans Direct to move the lawsuit to arbitration.The civil lawsuit by the employees will continue.

Application – (How can YOU use – especially in your business and professional life – what you’ve learned in this case?) NOTE – This section should not reference the case at all – just talk about how YOU will be able to use what you’ve learned here as an HR professional.

There are at least two useful elements in this case.The first is that it is almost always a mistake to not take seriously the concerns raised by any stakeholder in the workplace – don’t ‘blow them off’.The president did this.Moreover, the president didn’t use the original meeting as an opportunity to establish and lead a dialog about the benefits of arbitration – how the selection of an arbitrator who is knowledgeable about the specific industry could be so much more accurate and helpful than a judge who might be a divorce specialist, but know nothing about manufacturing fans.

Second, this case demonstrates how any employer must be careful to follow through on any documents that are distributed.It had the pamphlets, but didn’t make sure that everyone got a copy.It handed out the employee handbook, and even had an acknowledgement form in it, but didn’t bother to get the signed forms back.Those signed forms would have been powerful evidence that the employees knew about and acknowledged not only the employee handbook, but what was in it – including arbitration!The planning might have been there, but the execution failed to reap the benefit.

When I am in a position to lead this type of decision, I’ll follow the principles identified in this “Application” section of the case.

RUBRIC
Excellent Quality 95-100%	Introduction 45-41 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.		Literature Support 91-84  points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.			Methodology 58-53 points Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score 50-85%	40-38 points More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.		83-76  points Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.			52-49  points Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
Poor Quality 0-45%	37-1 points The background and/or significance are missing. No search history information is provided.		75-1 points Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.			48-1 points There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
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Employment Law for Human Resource Practice Case Analysis

ONLY TEXT BOOK REFERENCES/CITATIONS. NO OUTSIDE MATERIAL.

Below is the format that should be used.

Case citation (Cite) not “site”.

“Chapter 20, Case #8. Page 830”(THIS IS AN EXAMPLE – NOT A REAL CASE)

Facts:(What happened in this case that is relevant to deciding the case?)

At the end of a meeting that covered a number of topics, the company president mentioned a new arbitration policy was being instituted, and that a pamphlet that outlined the process was available; but the pamphlet was not read to the employees, and not all employees picked up a copy.All employees who continued to work after the effective date of the new policy were deemed by management to have accepted the new policy.When one employee told the president he would not sign, he was told ‘not to worry about it.’ Thereafter, a new employee handbook was issued that included the arbitration program, but employees were not required to sign and submit the form to management.Later, when some employees filed suit for unpaid wages, the employer argued that they had to use arbitration because that was the company policy.

Legal Issue – (the question to be answered to resolve the case. One or two sentences, phrased as a question, with a question mark. (?)

Should the court enforce the arbitration agreement? Why or why not?

Analysis – (What are the relevant legal principles?Where is this referenced in the text (page number!), How will the court rule in this case, based on the legal principle in the text page(s) you referenced?) NOTE – the purpose here is to have TEXT-based references, not to do independent research.We are not teaching legal research in this course – just refer to where it is covered in the text, and it doesn’t have to be ‘formal’ citation.Just write it briefly, like – “Text, page 482”.

Ceiling Fans Direct, the employer, is presumed to be a manufacturer of fans employing workers in that activity, not as transportation workers.That is important to know, because transportation workers are not subject to the Federal Arbitration Act (FAA).With this presumption in place, the FAA controls the situation, and it is clear in both the statutory language (text, p 21) and in court decisions thereafter (Gilmer, Circuit City, at p 21) that the courts will defer to arbitration agreements.

The question then turns to whether the employees agreed to the change in policy, and if they did not, whether this matters or not.The facts in the case establish that the employees were told of the change in policy during the meeting with the president, and were given the opportunity to pick up a pamphlet.Moreover, when the employee handbook was updated, the new arbitration policy was included, although the employees were not required to sign and return the handbook acknowledgement form.

The failure of management to go through the process of reading and discussing the arbitration process at the first meeting on the topic, followed by the failure to even collect the signed acknowledgement of receipt of the handbooks from employees when the employee handbooks were updated raises a reasonable doubt about whether the employer demonstrated any objective interest about whether the employees agreed with the change in policy to incorporate arbitration.In fact, when one employee raised a concern to the president, the president’s response was ‘not to worry about it.’

The Federal Court in Nino v Jewelry Exchange (text page 22-24) concluded that an unconscionable contract would be present if management presented arbitration as a ‘take-it-or-leave-it’ proposition.When management failed to discuss arbitration in the first meeting, failed to seriously address the concerns of an employee raised with the president, and then didn’t even bother to collect the signed acknowledgements of receipts of the handbook that first presented the policy, it provides ample evidence that management is not concerned about the employees’ views on the topic, and in fact are demonstrating that ‘take-it-or-leave-it’ position that the court referenced in Nino.

For these reasons, the court in this case will uphold the position of Moran, and will not permit Ceiling Fans Direct to move the lawsuit to arbitration.The civil lawsuit by the employees will continue.

Application – (How can YOU use – especially in your business and professional life – what you’ve learned in this case?) NOTE – This section should not reference the case at all – just talk about how YOU will be able to use what you’ve learned here as an HR professional.

There are at least two useful elements in this case.The first is that it is almost always a mistake to not take seriously the concerns raised by any stakeholder in the workplace – don’t ‘blow them off’.The president did this.Moreover, the president didn’t use the original meeting as an opportunity to establish and lead a dialog about the benefits of arbitration – how the selection of an arbitrator who is knowledgeable about the specific industry could be so much more accurate and helpful than a judge who might be a divorce specialist, but know nothing about manufacturing fans.

Second, this case demonstrates how any employer must be careful to follow through on any documents that are distributed.It had the pamphlets, but didn’t make sure that everyone got a copy.It handed out the employee handbook, and even had an acknowledgement form in it, but didn’t bother to get the signed forms back.Those signed forms would have been powerful evidence that the employees knew about and acknowledged not only the employee handbook, but what was in it – including arbitration!The planning might have been there, but the execution failed to reap the benefit.

When I am in a position to lead this type of decision, I’ll follow the principles identified in this “Application” section of the case.

 

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