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WHISTLEBLOWER NEWSLETTER

Office of Administrative Law Judges - United States Department of Labor


March 1, 1995


The following is a quick summary of important recent decisions and other matters of interest.

AFTER ACQUIRED EVIDENCE

The United States Supreme Court ruled in McKennon v. Nashville Banner Publishing Co., 1995 U.S. LEXIS 699 (1995), that an employee discharged in violation of the ADEA is not barred from all relief, when, after discharge, the employee's employer discovers evidence of wrongdoing that would have lead to the employee's discharge on lawful and legitimate grounds.

BURDEN OF PROOF AND PRODUCTION; COMPLAINANT'S BURDEN IN REGARD TO PRIMA FACIE CASE VERSUS ULTIMATE BURDEN OF PERSUASION

In Brown v. Besco Steel Supply, 93-STA-30 (Sec'y Jan. 24, 1995), the Secretary found that the Complainant's statement that he was fired was sufficient to establish the adverse action element of a prima facie case, but also found that the Complainant failed establish his ultimate burden of persuasion on that element where there was persuasive evidence that the Respondent believed that the Complainant had resigned voluntarily.

COVERAGE UNDER THE UNDERLYING STATUTE; REASONABLE BELIEF TEST

In Minard v. Nerco Delamar Co., 92-SWD-1 (Sec'y Jan. 25, 1994), the Secretary held that where the complainant has a reasonable belief that the substance that he or she raised safety concerns about is hazardous and regulated as such, he or she is protected under the SWDA, even if the complainant is mistaken about the governing law.

DAMAGES; LOSS OF JOB OPPORTUNITY NOT REQUIRED IN BLACKLISTING CASE

The Secretary ruled that damages or a loss of an employment opportunity is not required for recovery in a blacklisting case. Earwood v. Dart Container Corp., 93-STA-16 (Sec'y Dec. 7, 1994).

DIRECTED VERDICT AT END OF COMPLAINANT'S CASE

In Carroll v. Bechtel Power Corp., 91-ERA-46 (Sec'y Feb. 15, 1995), the Secretary held that to survive a motion for directed verdict at the end of the complainant's case, the complainant need only present sufficient evidence to create a rebuttable presumption that he or she was unlawfully discriminated against.

DISCOVERY REGARDING CONTINUING VIOLATIONS/SUMMARY DECISION

The Secretary ruled that summary decision is improper if a Complainant has not been afforded adequate discovery concerning his or her theory of continuing violation. Flor v. United States Dept. of Energy, 93-TSC-1 (Sec'y Dec. 9, 1994).

FRONT PAY VERSUS REINSTATEMENT AS A REMEDY

The Secretary ruled that reinstatement is the usual remedy in employment discrimination cases, and rejected the ALJ's recommendation of front pay based on hostility between the Respondent and the Complainant where the record did not document that hostility. Nolan v. AC Express, 92-STA-37 (Sec'y Jan. 17, 1995) (remanded for addition factfinding on this issue). See also Dutile v. Tighe Trucking, Inc., 93-STA-31 (Sec'y Oct. 31, 1994) (ALJ must inquire into reasons if a complainant does not seek reinstatement).

PILOT PROJECT FOR OSHA HANDLING OF NUCLEAR AND ENVIRONMENTAL WHISTLEBLOWER COMPLAINTS

On January 18, 1995, the Department published in the Federal Register a Secretary's order, establishing a pilot project to delegate responsibility for handling nuclear and environmental whistleblower complaints to OSHA. The pilot project will last until December 31, 1995, and will be confined to the Dallas Region, Southwest Division (excluding New Mexico), unless modification is made as provided in the Secretary's order. 60 Fed. Reg. 3655 (1995).

RECONSIDERATION; SECRETARY'S AUTHORITY

The Secretary ruled that he will follow Bartlik v. United States Dept. of Labor, 34 F.3d 365 (6th Cir. 1994), and not entertain motions to reconsider for cases that arise in the Sixth Circuit, Gillilan v. Tennessee Valley Authority, 89-ERA-40 (Sec'y Nov. 29, 1994), but that in cases arising in other circuits, he will assume that he has the inherent authority to reconsider. Crosier v. Westinghouse Hanford Co., 92-CAA-3 (Sec'y Dec. 8, 1994).

SETTLEMENTS; EXEMPTION FOUR TO FOIA

The Office of Administrative Law Judges determined in a letter responding to a FOIA request relating to Irick v. Arizona Public Service Co., 95-ERA-2 (Sec'y Jan. 26, 1995), that Exemption Four may protect certain terms of a settlement agreement under the National Parks & Conservation Association v. Morton, 498 F.2d 765 (D.C. Cir. 1974) test.

SETTLEMENT; SECRETARIAL REVIEW NOT REQUIRED IN CERCLA COMPLAINTS

In Lepore v. East Bay Municipal Utility District, 94-CER-3 (Sec'y Feb. 15, 1995), the Office of Administrative Appeals issued a Notice of Case Closing, stating that because CERCLA does not make the Secretary a party to settlements, the action could be dismissed by stipulation of the parties pursuant to Fed. R. Civ. P. 41(a)(1)(ii).

SETTLEMENT; SEVERANCE OF VOIDED CONFIDENTIALITY PROVISION PERMISSIBLE WHERE SETTLEMENT AGREEMENT INCLUDED SAVINGS CLAUSE

In Tankersley v. Triple Crown Services, Inc., 92-STA-8 (Sec'y Feb. 1, 1995), the Secretary approved a settlement agreement even though he voided and severed a confidentiality provision that may have restricted the Complainant from voluntarily communicating with state or federal agencies, where the parties had included a savings clause in the agreement. Cf. Maktal v. Secretary of Labor, 923 F.2d 1150 (5th Cir. 1991) (Secretary may not eliminate a "material term" of a proposed settlement without consent of other parties).

TIMELINESS OF COMPLAINT; DATE OF DISCOVERY OF ADVERSE ACTION

The Secretary ruled that the date a Complainant learned of a former supervisor's derogatory remarks could be used as the date from which the timeliness of a complaint is calculated. Flor v. United States Dept. of Energy, 93-TSC-1 (Sec'y Dec. 9, 1994).


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