labor lawAdivision of labor law center

A recent court ruling highlights the danger of employers claiming an employee was “laid off” when, in fact, the employee was terminated for another reason.

Historically, many employers have made the mistake of claiming that they were merely “laying off” a troublesome employee. However, with today’s prevalence of lawsuits for wrongful termination, that tactic can backfire.

In a recent case before the 8^th Circuit Court of Appeals, a rental car company branch manager, Terri Wallace, was laid off 15 days after she complained that her supervisor was sexually harassing her.

Wallace dropped the sexual harassment suit before it reached the jury.  

However, under Title VII of the Civil Rights Act of 1964, it is illegal to retaliate against an employee who files a sexual harassment complaint in good faith. In this case, “good faith” means without the intention of fraud.

The employer, DTG Operations, Inc., initially claimed that Wallace was part of a company-wide lay off due to economic reasons. (more…)

 Missouri state law (Section 290.502.2) requires that the state’s minimum wage must be adjusted every year based on the latest cost of living.

In charge of making that change is the Director of the Department of Labor and Industrial Relations. Director Todd Smith said that in August of 2008, the Department predicted an increase of 40 cents for 2009/

“A review of the Consumer Price Index (CPI) for July 2008 confirms the Missouri minimum wage rate will increase to $7.05 effective January 1, 2009,” he predicted at the time.

That prediction has become a reality. The Missouri minimum wage, pegged to the cost of living, went up precisely 40 cents on January 1, 2009, increasing from $6.65 to $7.05 an hour. According to the Missouri Department of Labor and Industrial Relations, last year’s increase was a mere 15 cents per hour. The much higher rise in the cost of living has driven the dramatic increase in the Missouri minimum wage rate.

Those businesses that earn less than a half-million dollars annually (more…)

The Missouri minimum wage increases by 40 cents, from $6.65 to $7.05 per hour on January 1, 2009. The increase is larger than in previous years due to the high rate of inflation for the previous 12 months.

By contrast, last year’s increase was just 15 cents per hour according the Missouri Department of Labor and Industrial Relations.   Many pundits worry about the impact that such a large increase will have on smaller employers across the state. Especially when coupled with rising prices and declining sales, the 2009 Missouri minimum wage increase is a bitter pill for many employers to swallow.

“In August, the Department released preliminary data projecting (more…)

On April 23, the U.S. Department of Labor announced grants to train workers in Missouri and Connecticut totaling almost $2 million.

A $1.7 million employment grant was awarded to the state of Missouri to provide training assistance for workers who lost their jobs as a result of several recent mass layoffs. The mass layoffs included:

• Chrysler LLC in Fenton, Missouri
• Integram St. Louis Seating in Pacific, Missouri
• Yushin USA Ltd. in Kirksville, Missouri

“This $1.7 million grant will provide these Missourians with employment services to help in starting a new career in a growing industry,” said U.S. Secretary of Labor Elaine L. Chao.

All workers impacted by these layoffs have been certified for Trade Adjustment Assistance (TAA). TAA is a federal program that can provide additional benefits, beyond the normal unemployment insurance payments, to workers affected by mass layoffs or plant closures. Under TAA, workers can receive unemployment benefits for a year or more. In addition, TAA offers workers training in new skills to help them secure jobs in a different market sector, including tuition and benefits. In some cases, laid-off workers who earn less at their new job qualify for partial payments through TAA for up to 18 additional months, even while they are working.

The Missouri training grant is awarded to the Missouri Division of Workforce Development and will provide workers with services not covered under the TAA program. The grant will be used to provide a menu of services to workers, including assessment, career counseling and case management. Services and benefits already available to these workers under TAA may include training, job search allowances, relocation allowances and a health coverage tax credit, among others.

This grant benefits an area that has been hard-hit in recent months by various layoffs and plant closures. On Nov. 2, 2007, Chrysler LLC announced that it would be eliminating the second shift at its Fenton, Mo., plant, affecting approximately 1,078 workers.

This change triggered a domino-effect as Chrysler’s suppliers responded to changing market conditions.

On the heels of that announcement, Chrysler suppliers Integram St. Louis Seating announced that they would lay off 326 workers. Then Yushin USA Ltd. announced that they would be laying off about 100 workers.

Of the total announced, $958,608 will be released initially. Additional funding up to $1.7 million will be made available as the state demonstrates a continued need to serve workers affected by these layoffs.

On the same day, the U.S. Department of Labor announced a $250,000 Regional Innovation Grant to assist the state of Connecticut in developing regional talent development strategies. These plans will specifically focus on increasing the technical and engineering skills of Connecticut workers. The project covers the eastern Connecticut region, as well as Worcester County in Massachusetts and Washington County in Rhode Island.

“Eastern Connecticut is working across state boundaries to ensure area workers have opportunities to build the kinds of technical skills that are in demand,” said acting Assistant Secretary for Employment and Training Brent R. Orrell. “The $250,000 this grant provides will help bring together business and education leaders to address skills shortages and establish plans for long-term talent development.”

The grant goes to the Eastern Connecticut Workforce Investment Board. It will be implemented by the newly formed Engineering and Technical Skills Task Force.

Members of the Skills Task Force will collaborate with area educational partners to analyze the region’s capacity to offer engineering and technical skills training programs and issue recommendations to address existing and emerging skills gaps.

Normally, when a grant such as this identifies employer needs and a plan to train workers, it is followed by a larger training grant, such as the one in Missouri.

The project also will support plans to increase the number of engineering degree programs, and strengthen connections between employers and potential workers through internship and apprenticeship programs.

A $250,000 Regional Innovation Grant to Missouri will aid displaced workers in Kansas, Arkansas and Oklahoma, as well.

The Missouri grant from the U.S. Department of Labor will help establish talent development strategies in the Quad states region, including southwest Missouri, northwest Arkansas, southeast Kansas and northeast Oklahoma.

“The project this $250,000 grant supports will help the Quad States region create talent development strategies that incorporate the assets of these states and address the needs of emerging industries,” said Deputy Assistant Secretary for Employment and Training Douglas F. Small.

The area has been lagging in jobs and economic development for some time.

According to the U.S. Department of Labor, the grant, awarded to the Workforce Investment Board of the Southwest Region Inc., will enable the region to map its assets and conduct a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis. Using the SWOT analysis and other studies, the region will link local governments, educators, business associations and economic development agencies to develop synchronized talent development strategies.

The project will begin with the establishment of the Quad States Regional Transformation leadership group, which will jointly develop strategies that position the area as a regional transportation and logistics hub. The project will encompass approximately 40 counties in the four-state region.

Other grants recently announced by the U.S. Department of Labor include a $5.5 million grant to aid laid-off workers in the mortgage industry in California, and a grant for economic development in the Cedar Valley region of Iowa.

Regional Innovation Grants are drawn from National Emergency Grant funds to assist state workforce agencies and local workforce investment boards, as well as their key partners, in the design and development of comprehensive and strategic regional plans focused on talent development that is aligned with the demands of the 21st century economy.

Missouri Emergency Grants

National Emergency Grants (NEG) are awarded when a plant closes or lays off many workers which creates a need that the state can not handle. For example, in 2007, an Emergency Grant of $250,000 was given to SI WORKS, a new program for twenty southern Illinois counties to aid economic development and to improve job opportunities.

These grants are awarded by the U. S. Department of Labor at the discretion of the Labor Secretary. Current Labor Secretary, Elaine L. Chao has awarded several grants in the past couple of years. In addition to the SI WORKS grant, Ms. Chao awarded over one million dollars to Missouri employees who were displaced when the O’Sullivan Industries Plant in Lamar, Missouri closed its doors.

The NEGs are awarded on a time-limited basis, offering financial assistance for “significant dislocation events”. This money serves to temporarily increase state and local service levels to handle the event.

When one of these events occurs, a state should initiate the grant process immediately, to ensure the funds will be available. Any discretionary funds held by the state should be included in its resources. Most state and local employment agencies can provide information on grant application policies.

Several types of NEGs exist, and are each awarded for a specific situation.

When a company lays off 50 or more workers, or when layoffs are industry-wide within a region, or when the layoffs total fewer than 50 but severely affect a rural community or small town, a Regular NEG could be awarded.

Employees eligible for Trade Realignment Assistance (TRA) or for Trade Adjustment Assistance (TAA) who are in danger of losing their healthcare insurance may be awarded a Trade-Health Coverage Infrastructure grant.

Trade-WIA Dual Enrollment grants are awarded when 50 or more workers in areas affected by federal trade policies are laid off.

Regional Innovation grants pertain to partnerships between business and government and non-profit agencies. These grants are often used to train laid-off workers for new jobs and boost the local economy.

Disaster grants are awarded to communities struck by hurricanes, floods, wildfires, earthquakes, blizzards or other natural disasters.