Motivational programs and team-building exercises can be an effective way to increase employee productivity and morale. However, proper supervision over such activities is essential because of potential harassment issues and lawsuits that may result.

Jury Awards $1.7 Million to Spanking Victim

A Fresno jury recently awarded $1.7 million to an employee at a home security company, Alarm One Inc., who asserted sexual harassment and battery claims which arose out of a team-building exercise involving spanking. The motivational program at Alarm One encouraged sales teams to compete with each other. Losers of such competitions were subjected to pies being thrown at them, wearing baby diapers, and eating baby food. When salespeople arrived late to meetings they were spanked with a yard sign in front of the room of people who heckled, "Bend over, baby," and "You’ve been a bad girl."

The plaintiff was spanked on three occasions and subsequently quit her job because she was embarrassed and humiliated. She sued for sexual harassment and battery asserting the company knew about the spankings and did not properly investigate or stop the misconduct. The company only ended the spanking practice after another female employee was injured by a spanking.

Part of Alarm One’s argument was that the spankings were part of a voluntary team-building program and were intended to be fun. The jury, however, disagreed and awarded the plaintiff $1.7 million.

Lessons for Employers

• Conduct or comments that could be considered humiliating or embarrassing are never appropriate.
• Employees may not be comfortable with such exercises even if they appear to be having fun.
• Even if both men and women are subjected to the conduct, it does not mean there is not a potential harassment problem.
• Have proper supervision in satellite offices. Make sure the supervisors in satellite offices are well-versed and trained in what constitutes workplace harassment and how to prevent it from occurring. Frequent visits by HR or corporate officials to monitor office behavior is advisable.
• Take employee complaints seriously – even anonymous complaints.

OUT-OF-STATE EMPLOYERS CAN REQUIRE CALIFORNIA EMPLOYEES TO BRING EMPLOYMENT CLAIMS IN COURTS OUTSIDE CALIFORNIA

A recent decision from a California appellate court shows that employers can include forum selection and choice of law provisions in employment agreements that require employees to bring employment claims in courts outside of California. Whether such provisions are enforceable will depend on the circumstances of the case, the intent of the employer and employee in drafting the contract language, and each party’s level of sophistication.

ESKRIDGE LAW may be contacted by phone (310/303-3951), by fax (310/303-3952), or by e-mail (geskridge@eskridgelaw.net.) Please visit our website at www.eskridgelaw.net or www.employmentattorneys.net.

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