October 2008 LaborLines Update
October 23rd, 2008Employee who Denied Supervisor’s Demands for Sex Has no Retaliation Claim
The Seventh Circuit has held that a male employee who alleged he was terminated for denying his female supervisor’s demands for sex has no retaliation claim under Title VII of the Civil Rights Act of 1964.
The employee alleged that his supervisor threatened to fire him if he refused to continue their sexual relationship. When the employee rejected her ultimatum, the supervisor instigated a fight that led to the employee’s termination. The employee filed suit, alleging sexual harassment and retaliation in violation of Title VII.
A plaintiff claiming retaliation under Title VII must show 1) a statutorily protected activity; 2) an adverse action taken by the employer; and 3) a causal connection between the two.
The court, noting a circuit split about whether a person who rejects a supervisor’s sexual advances has engaged in protected activity, found that the employee failed to show that he engaged in protected conduct. There simply was no evidence that the employee believed that his supervisor’s actions were unlawful. The only statements the employee made to the supervisor were that they “were not good with each other” and he “was not messing with her anymore,” statements which do not indicate he believed he was being sexually harassed. (Source: Daily Labor Report).
Eleventh Circuit Finds Employee’s Claims Must be Submitted to Arbitration
In addressing a case in which an employee sued his former employer for alleged age and race discrimination, as well as retaliatory termination, the Eleventh Circuit Court of Appeals recently considered whether the claims brought should be resolved through the company’s arbitration policy or the federal courts.
In holding that the district court erred in denying the employer’s motion to compel arbitration, the court stated that it need “only apply basic contract interpretation principles in harmony with a general federal policy in favor of arbitration.” The court found that the employer’s arbitration policy was a valid and enforceable contract under Georgia state law, and the claims the individual presented were precisely of the type that he agreed to arbitrate through the company’s arbitration policy.
The Eleventh Circuit found that the district court erroneously held that the claims of retaliatory and discriminatory discharge brought were not the type of ongoing, workplace disputes amenable to “open door” resolution as contemplated by the company’s open door policy, and that the lower court further erred by finding the details of the open door policy were illusory and therefore inoperative. (Source: Daily Labor Report).
Texas Court finds Noncompete for Jet-Pack Flyer Unenforceable
In a case involving a confidentiality and non-compete agreement between a company utilizing a “Rocketbelt” – a personal rocket pack, and an employee, a Texas appeals court affirmed judgment for the employee, holding the employer take nothing.
In 2004, after the employee had worked with the company for some time, he signed a confidentiality and non-compete agreement with his employer. Working for the employer, the employee learned everything about the operation, maintenance, fuel manufacturing and fueling techniques of the Rocketbelt. Subsequently, the employee went to work for another company that was designing and building a different rocket pack. The employer then sued to enjoin the employee from violating the terms of the 2004 agreements.
The appellate court, in affirming the trial court’s holding that the employer take nothing, stated that for a non-compete agreement to be enforceable, it must be supported by consideration. While the employer argued that the employee received consideration in the form of continued opportunities to pilot the rocket pack, the appeals court disagreed, reasoning that if the mere opportunity to continue performing one’s job could be consideration, then an employer could spring a non-compete covenant on an existing employee and enforce such a covenant absent new consideration. Moreover, the employer’s act of permitting the employee to fly the rocket pack did not give rise to the employer’s interest in restraining the employee from competing. The employer also argued that the non-compete agreement was supported by the consideration of past and future provision of confidential information and training. The court found, however, that the information the employer provided the employee before he signed the non-compete agreement could not form the consideration for the agreement because past consideration was not competent consideration for contract formation. (Source: Daily Labor Report).
