NATIONAL WORKRIGHTS INSTITUTE

ANNUAL REPORT

2002

 

 

 

 

 

 

 

Bringing Human Rights to the Workplace

 

 

              PREFACE

 

 

The National Workrights Institute was founded with the vision of bringing human rights to the American workplace for the first time in history.  While the United States has generally done a good job of protecting individuals from government abuse compared to most other countries, we have deliberately failed to protect human rights in the world of work.  We have made this tragic mistake in the erroneous belief that protecting human rights on the job would disrupt industrial efficiency and lower our standard of living.  The truth is that protecting human rights is completely consistent with high productivity and prosperity.  Our failure to recognize this has made us both poorer and less free.

 

The Institute’s efforts (both as part of the American Civil Liberties Union and now as an independent organization) have done much to increase workplace human rights.  Our work was integral in the creation of 43 new state laws improving legal protections regarding:

 

 

The year 2002 was a challenge to all human rights groups, including the National Workrights Institute.  Congress was consumed by national security issues arising out of 9/11, and the war in Afghanistan.  Initiatives to improve human rights, including the Institute’s, received little attention.  When human rights issues were considered, they were often trumped by security concerns.  This state of affairs has continued into 2003, especially because of the war in Iraq.

 

Even in this difficult situation, however, the Institute was able to make progress.  We did so primarily by seeking out other creative opportunities to advance workplace human rights.  The Institute also moved forward in Congress on the one issue, genetic discrimination,  that was not eclipsed by 9/11.

 

                                                            

                                                         Lewis L. Maltby

                                                         President

                                                         National Workrights Institute

 

 

         GENETIC DISCRIMINATION

 

 

Breakthroughs in genetic science are bringing us closer to the day when there will be cures for breast cancer, Huntington’s disease, Alzheimer’s and other genetically linked illnesses.  These same breakthroughs may usher in a dark new era in employment discrimination as employers attempt to reduce medical expenses by screening out applicants whose genetic makeup puts them at increased risk for future disease.

 

Ten years of leadership by the Institute’s staff have helped the public understand the importance of this threat and helped employers understand that such discrimination is wrong.

 

State Legislation

 

The fruits of this effort can be seen in the 38 state laws outlawing genetic discrimination in employment.  The Institute contributed to these laws by:

 

·        Writing the model statute on which many of them are based

·        Creating educational materials for state activists and legislators which have been used throughout the country

·        Testifying in support of legislation (and helping state activists draft their own testimony)

·        Conducting training for state legislators on genetic issues under the auspices of the National Conference of State Legislators (NCSL).

 

In some cases, the Institute has been the primary moving force behind the legislation.  For example, in Michigan, the Institute formed a partnership with the ACLU, helped draft and  persuade the sponsors to introduce it, provided training to legislative staff and local activists, testified in favor of the bill, and provided responses to challenges from the bill’s opponents.

 

In addition, Institute President Lewis Maltby served as chair of NCSL’s Committee on Genetic Issues in Employment.  After two years of intense effort, this blue ribbon group issued a comprehensive guide to genetic employment issues for state legislators.

 

This guide will accelerate the enactment of new state laws by making it easier for state legislators to draft such legislation.  It will also improve the quality and effectiveness of genetic discrimination legislation.  Genetic discrimination is a complex issue with many difficult scientific, policy and legal issues.  Drafting an effective statute is a challenge, which many of the initial state laws did not meet.  Having the NCSL report in the hands of state legislators will greatly improve the effectiveness of future laws.

 

Federal Legislation

           

The Institute has contributed to the progress of federal genetic discrimination legislation through our continued leadership of the Coalition for Genetic Fairness, a group of 62 civil rights and disability rights organizations.  Institute Legal Director Jeremy Gruber took the lead in creating this group in 2000.  The Coalition’s continued action on the Daschle/Slaughter bill (S.318/H.R. 602) and the Snowe bill (S.1995) (the Republican alternative) helps keep this issue moving forward in Congress.

 

Despite broad bipartisan support for legislation banning workplace genetic discrimination, success will require difficult discussions with the business community and their allies in the White House and Congress.  The Institute is the only progressive organization that has established a working dialogue with these groups.  This dialogue is necessary for the negotiations to be successful.  For example, Gruber is the only member of the civil rights community who has been able to establish a dialogue with the White House Domestic Policy Council Office (which is responsible for employment and insurance issues).

 

As this report goes to press, the Senate Health, Education, Labor and Pensions        Committee has passed a strong bipartisan genetic discrimination bill and sent it to the floor.

 

 

           ELECTRONIC SURVEILLANCE

 

 

Federal Legislation

 

Electronic surveillance is the area in which our Congressional efforts were most damaged.  In the spring of 2000, Senator Schumer and Congressmen Canady and Barr introduced the Notice of Electronic Monitoring Act (NEMA).  The Institute worked extensively with Schumer’s staff and played a major role in drafting this legislation.  The Institute’s participation made the legislation much stronger.  For example, Congressional attention was initially focused on employers monitoring e-mail (in part because of a New York Times story on this practice in which Institute Legal Director Jeremy Gruber was extensively quoted).  The Institute was able to persuade the sponsors that all forms of electronic monitoring should be covered by the bill.

 

After hearings (at which Institute President Lewis Maltby testified) and extensive discussions with the business community, the objections to NEMA were understood and we knew how to address them without sacrificing the Act’s objectives.  At the beginning of 2001, Senator Schumer was negotiating with Senator Hatch in an effort to reach a bipartisan bill.

 

These efforts came to a halt with 9/11.  Senator Schumer, as the senior senator from New York, was required to spend so much time dealing with the fallout that NEMA (along with many other projects) was forced off the agenda.

 

The Institute responded by seeking new Congressional sponsors and exploring strategies for introducing NEMA as an amendment to other privacy legislation, such as the reauthorization of the Fair Credit Reporting Act.

 

In early 2003, Senator Schumer’s office informed the Institute that they were ready to re-introduce NEMA.  We worked closely with Schumer’s staff to redraft NEMA to incorporate the lessons learned in the 2000 campaign, and expect the bill to be reintroduced shortly.

 

 

General Accounting Office

 

We also used the time that the lapse in Congressional interest made available to lay the foundation for stronger legislative initiatives in the future.  For over a year, the Institute worked with the U.S. General Accounting Office on a report to

Congress on computer privacy in the workplace.  Institute staff had numerous discussions with GAO staff highlighting the shortcomings in workplace privacy today and how they could be improved.  We also shared much of our independent research with the GAO.

 

The GAO’s draft report in August of 2002 was a great disappointment.  The one positive point was the report’s recognition that current common law privacy protection is virtually non-existent (which GAO staff learned from a report prepared by the Institute).  This corrects previous reports from many sources that overestimate the strength.  This correction will make it harder for those who oppose NEMA to claim that legal protection is already in place.  In many other important areas, the report was badly flawed.

 

The Institute worked overtime to correct these flaws.  We provided extensive critical comments, which we followed up by telephone.  We also enlisted the efforts of other GAO advisors and then Representative Patsy Mink (the member of Congress who requested the report).

 

Unfortunately, the final report (issued October 28) made only modest improvements.

The Institute responded by forming a coalition of privacy groups to send a joint letter to the GAO and Congress, pointing out the shortcomings of the report.  Our letter was signed by the ACLU, Electronic Frontier Foundation, EPIC, Center for Democracy and Technology and Robert Ellis Smith (publisher of the Privacy Journal).  This letter demonstrates emphatically that the GAO report does not represent the views of the privacy community.  Making this point is essential to minimize the harm the report will do to our efforts to enact NEMA.

We are now beginning an effort to produce a better report from another government agency, probably the National Research Council.  We will seek a member of Congress to initiate this process.  If this is successful, we will work closely with the sponsor’s office throughout the process to ensure that the final report is valuable and constructive. 

 

 

State Legislation

 

The Institute also used the hiatus in federal efforts to increase our efforts to enact state legislation.  At the beginning of 2002, the only state with laws providing any protection for workplace privacy was Connecticut.  This law, which requires employers to give employees notice of all monitoring programs, was passed as the result of a joint program between the Institute and the Connecticut ACLU.

 

We now have legislative efforts underway in 6 states:

 

 

·        New Jersey

·        Pennsylvania

 

In 4 of these states, legislation has been drafted and introduced.  In New York and New Jersey, we have drafted the legislation, but are still looking for sponsors.

 

In September 2002, Delaware enacted a new statute requiring employers to give notice of electronic monitoring.  This was particularly gratifying since the Institute was able to make a substantial contribution without providing a great deal of hands-on assistance.  Our model bill on employer notice (which was the basis of NEMA) is now so well known and respected that the sponsors of the Delaware legislation learned of it and used it on their own.  We did not have to spend staff time teaching the sponsors about the issues and why our model best addresses them.

 

 

Business Outreach

 

The Institute also continued our dialogue with the business community.  In many cases, employers are willing to change to alternative methods of data gathering that are far in advance of anything lawmakers are considering.  For example, hundreds of employers have abandoned web access monitoring systems that give management a list of the websites visited by each employee.  Instead, they are using web access software that limits the amount of time employees can spend on non-work related sites.  With this method, monitoring completely disappears.

 

One example of Institute/business dialogue during 2002 was our participation in HR magazine’s February feature article about how employers should set appropriate limits on their monitoring policies.  Another is Lewis Maltby’s presentation to members of management at a conference held by Privacy and American Business.

 

 

           CIVIL RIGHTS ENFORCEMENT

 

 

Courts in several states have begun to deny plaintiffs in employment discrimination cases access to critical witnesses.  These courts have ruled that every employee of the defendant employer is represented by the employer’s counsel.  The American Bar Association’s ethical rule (Rule 4.2) prohibits an attorney from speaking directly with an adverse party when they are represented by counsel.  The combination of these two makes it an ethical violation for an attorney representing a victim of employment discrimination to interview co-workers who may be critical witnesses.  But without this corroboration, it is almost impossible for the employee to make her case.  In many cases, a plaintiff without corroboration will not get past summary judgment.

 

The Institute has been working in partnership with the NAACP Legal Defense Fund and the National Employment Lawyer’s Association to solve this problem.  Our strategy was to work with the ABA to modify the wording of Rule 4.2 in a manner that rules out this harmful interpretation.  Specifically, we worked with the ABA’s Ethics 2000 Commission to help produce a proposed modification.  This effort was successful.  A group of Commission members, however, submitted a minority report that, if accepted, would have made the problem worse.

 

Our coalition responded by mounting an intense lobbying program.  We contacted every state delegation to the national House of Delegates meeting, explained our position, and requested the opportunity to meet with them.  We also attended the meeting (held in Philadelphia) and attempted to talk our way into state caucus meetings.  We were ultimately able to meet with 17 state delegations.  Meanwhile, the authors of the minority report were conducting their own campaign.

 

On February 5, 2002, the ABA House Delegates rejected the minority report, and accepted our proposed language for modifying Rule 4.2.

 

This is a great victory, but it is not yet complete.  This issue is controlled by state law; the ABA rules carry great weight, but they are only a guide.  The Institute continues to work with the NAACP Legal Defense Fund and NELA to make sure the correct decision is made when this issue arises before state courts or legislatures.

 

 

           EMPLOYER USE OF CRIMINAL RECORDS

 

 

Employers have always made use of criminal records in the hiring process.  In some cases, this is completely appropriate.  Few of us would care to have our children driven to school by a bus driver who had recently been convicted of drunk driving.  Many people, however, have been turned away from jobs because of past convictions that are minor, many years in the past, and/or unrelated to the nature of the job.  Some employers have official policies against hiring anyone with any criminal conviction under any circumstances.  Eli Lilly, for example, fired Kimberly Kelly from her position as a pipe insulator because prior to joining the company she had bounced a $60 check and was found guilty (without a hearing) of passing a bad check.

 

One reaction by employers to 9/11 is increasing their use of criminal records.  Companies that supply criminal records to employers report that their business has increased at least 30% since September 2001.  It appears that the number of companies with zero tolerance policies may be increasing even faster.

 

Such policies are arbitrary and unfair.  If zero tolerance were to become an industry standard (as drug testing has), the 43 million Americans with criminal convictions would be unable to work.  This would not only be devastating to these people and their families, but would severely damage the U.S. economy.  Moreover, zero tolerance policies fall most heavily on Blacks and Hispanics, in violation of federal civil rights laws.

 

 

Department of Justice

 

The Institute now has a foothold to combat this abuse.  We were invited to participate in a study of the use of criminal records sponsored by the Department of Justice, through an organization named SEARCH.  The final report will receive a great deal of attention from Congress, the Bush Administration, state legislators, and many others.

 

SEARCH’s original focus was to identify obstacles that hinder employers’ access to criminal records so they can be eliminated.  The Institute, through persistence, has convinced the other members of the project and the Department of Justice to expand the project to include the ways employers use criminal records.  The final report will caution employers, lawmakers, and the public about the legal and ethical shortcomings of zero tolerance.

 

To further reduce the improper use of criminal records, the Institute suggested to SEARCH the need for an educational program for employers on this subject.  SEARCH has agreed with this idea, and has filed a grant request with the Department of Justice.

 

 

Employer Education

 

The Institute has also taken the first small step in our own education program.  In November, New York Employment Law & Practice (a leading journal for New York employment lawyers) published Lewis Maltby’s article on the legal risks for employers who adopt a zero tolerance policy.  We plan to reach even larger audiences by writing and placing articles in leading national publications such as Business Week and HR magazine.  The third step in this program is to produce materials for the websites of business organizations such as the American Management Association, Society for Human Resource Management (SHRM), and Business for Social Responsibility.  We are currently seeking financial support for this program.  

 

 

           RIGHT TO ORGANIZE

 

 

Hobbes Act

 

A significant segment of American employers have never accepted the right to organize, despite the fact that it has been part of federal law for 67 years.  These employers regularly sponsor legislation designed to undermine the right to organize while ostensibly promoting some positive goal.

 

This year’s attempt was a proposal to reduce picket line violence (which is rare) by subjecting workers who commit an assault during a strike to 20 years in federal prison under the Hobbes Act (which outlaws extortion from companies by threat of violence).  Employer agents, such as security guards, would not be covered.

 

The Institute worked with the Steelworkers’ Union and progressive members of Congress to fight this proposal.  Hearings were held on September 26, 2002 by the House Subcommittee on Employer-Employee Relations of the Education and the Workforce Committee. 

 

Institute President Lewis Maltby testified before the Subcommittee.  Rather than challenge the chair, Maltby agreed that it was important to reduce workplace violence and described what would be needed to address the most common sources of violence.  These include:

 

·        requiring better physical protective barriers for convenience store clerks and taxi drivers

·        improving the substance and enforcement of OSHA regulations

·        strengthening whistleblower protection laws.

 

Some members of the Subcommittee responded positively to these suggestions.  This shifted the focus of the hearing away from the minor problem of union violence to more serious problems of workplace violence that the sponsors were not anxious to discuss.  In part because of this experience, little more was heard regarding Hobbes Act “reform”. 

 

 

Right to Work

 

Under federal law, unions are required to represent all members of the bargaining unit.  Employees are not required to join the union, but they are required to pay their proportionate share of the costs of obtaining the benefits that they receive.  This is only fair.  Since all employees receive the higher wages and benefits negotiated by the union, all employees should share the costs of negotiating the contract.

 

Some employers, however, have created an organization to upset this balance.  The National Right to Work Foundation sponsors state legislation which would allow employees to accept the benefits of union membership without paying their share of the costs.  These so-called right to work laws undermine unions by denying them a legitimate source of income.

 

The Right to Work Foundation’s most recent campaign took place in New Hampshire.  The Institute realized that it was critical to refute the sponsors’ claim that the bill protected freedom of association, and that labor was not the right party to undertake this responsibility.  We presented the issue to the New Hampshire American Civil Liberties Union.  The ACLU was happy to set the record straight, but did not have the staff time during a legislative session to work on the issue.  The Institute produced draft legislative testimony, op-ed pieces, and letters to the editor for the ACLU so that they could weigh in on the issue.

 

Adding a civil rights theme to what had been perceived as a fight between labor and management helped bring about the bill’s overwhelming defeat.

 

 

           ALTERNATE DISPUTE RESOLUTION

 

 

One of the tragedies of employment law is that the few laws we have are too seldom enforced.  Litigation has become so expensive that the plaintiffs’ bar will not take cases in which the employee has less than $75,000 in provable damages.  This means that over 90% of employees who seek legal assistance from the private bar are unable to obtain an attorney.  Agencies such as the EEOC are able to help some people, but cannot begin to shoulder the entire load.  The sad truth is that most people who have a legitimate case against their employer under current law never obtain representation and never receive justice.

 

Many employers (at least 20%) now have arbitration systems (because of their own concerns about the costs of litigation).  Almost all of these systems, however, are completely involuntary.  Employees must “agree” to use the arbitration system as a condition of employment.  To make matters worse, the courts have not required private arbitration to meet due process standards.

 

Most organizations either ignore the limitations of the civil justice system and fight to maintain the status quo, or ignore the shortcomings of current arbitration and promote it blindly.

 

The Institute follows a unique path that recognizes the need for arbitration while simultaneously working to reform it.  For example, the Institute:

 

·        helped write the ABA’s Due Process Protocol for Employment Arbitration, and played a major role in convincing the dispute resolution industry to comply with it

·        filed an amicus brief in the Supreme Court in Circuit Cities v. Adams arguing that the Federal Arbitration Act should not be interpreted in a manner that allows employers to force arbitration upon unwilling employees.

·        testified in favor of legislation sponsored by Senator Kennedy (S. 2435) that would have banned arbitration as a condition of employment.

 

At the same time, the Institute has opposed attempts to eliminate employment arbitration by:

 

·        conducting groundbreaking research demonstrating that employees who take their cases to arbitration do as well or better than those who go to court.

·        speaking to many journalists about the benefits of arbitration.  Recent examples include the Washington Post (September 2002), Chicago Tribune (September 2002), and Forbes (November 2002).

 

 

           LABOR-HUMAN RIGHTS COOPERATION

 

 

In the face of the superior political power of employers, it is important that the communities that want to improve employee rights work together effectively.  Unfortunately, Labor and the civil rights community have not worked well together in the past.  Many have called for better cooperation, but the situation remains unchanged.

 

At the beginning of 2002, the Institute created a new model of Labor-human rights cooperation.  This process began with a candid analysis of why co-operation has been so difficult.  We then shaped the new model in a manner that overcomes these problems. 

 

In June, we launched a new organization in Michigan based on this model, the Workplace Justice Committee.  Our partners in the Committee are the ACLU, the United Auto Workers, and the United Food and Commercial Workers.  The individual members scarcely knew each other at first, but now have a good working relationship and a common agenda.  We are preparing to introduce legislation on electronic monitoring and a living wage ordinance.

 

If we are successful in Michigan, we will replicate the model in other states.

 

 

              WEBSITE

 

 

Public education is the foundation of the Institute.  We have always been active with the print and electronic media, averaging at least 250 interviews annually.  Last June, we added a new dimension to our public education program with the opening of our website (www.workrights.org). 

 

The results have been excellent.  Many leading civil rights organizations have set up reciprocal links to our site.  We receive a steady stream of contacts from workers, journalists, employment attorneys, unions, and academics that have learned of the Institute through the website.

 

 

              THE FUTURE

 

 

The coming year promises to be even more challenging than the last, especially with all three branches of the federal government dominated by individuals who oppose our policies.  We believe, however, that through diligent and creative effort, we can find opportunities to expand workers’ human rights.  As Ira Glasser (the legendary executive director of the ACLU) once said, “the tide of history is with us, but only if we keep swimming”.

 

 

 

 

 

 

 

 

 

NATIONAL WORKRIGHTS INSTITUTE

 

 

166 Wall  Street

Princeton, New Jersey  08540

Tel: (609) 683-0313  Fax: (609) 683-1787

www.workrights.org

 

Lewis L. Maltby, President

Jeremy E. Gruber, Legal Director