An employee “whistleblower” suing for retaliatory discharge under Tennessee law must have reported the alleged misconduct to someone other than the person engaging in the alleged misconduct, the Tennessee Court of Appeals has ruled. Haynes v. Formac Stables, Inc., No. W2013-00535-COA-R3-CV (Tenn. Ct. App. Dec. 4, 2013). Where the plaintiff-employee’s complaint was to the owner of the company, who was a participant in the allegedly illegal activity, the Court found the employee failed to establish a claim and affirmed dismissal. Further, the intermediate appellate court declined to recognize an exception to the reporting requirement where the person engaged in the misconduct is the owner or manager of the employer.
Articles About Tennessee Labor And Employment Law
Non-Compete Agreements Enforceable against Two Former Executives, Tennessee Court Rules
Non-compete agreements are enforceable against former employees, according to Tennessee law, as long as the agreements are reasonable and necessary to protect the employer’s legitimate interests, the Court of Appeals of Tennessee has ruled. James F. Dill Jr. et al. v. Continental Car Club, Inc. et al., No. E2013-00170-COA-R3-CV (Tenn. Ct. App. Oct. 31, 2013). While the Tennessee court held the agreements restricting two former executives from competing throughout the United States against their former employer were enforceable, it declined to enforce the Florida choice-of-law provision in the agreements, finding the provision incompatible with Tennessee’s public policy. Such a provision identifies the state’s law which will apply if any dispute arises over the interpretation of an agreement.
Jury Finding Understaffing Caused Nursing Home Resident’s Death Supported by Evidence, Tennessee High Court Rules
“In an employment setting, if there is too much work required of too few employees, either the work will not get done or the quality of the work will be diminished,” a unanimous Tennessee Supreme Court stated, upholding a jury verdict against a nursing home’s corporate manager for the wrongful death of one of the home’s residents. Wilson v. Americare Sys. et al., 397 S.W.3d 552 (Tenn. 2013). Reversing the Tennessee Court of Appeals, the Court ruled the jury verdict was supported by sufficient evidence showing that the insufficient staffing levels led to deviations in the standards of care and ultimately caused the resident’s death. The Court returned the case to the Court of Appeals to review the $5 million punitive damages award against the management company.
Legal Alert: Tennessee Financial Institutions Should Be Aware of a Rise in ATM Accessibility Lawsuits
Executive Summary: Banks and other financial institutions in Tennessee should take note of a recent string of lawsuits filed in Tennessee challenging the accessibility of automatic teller machines (ATMs). The lawsuits, which seek class certification, have been brought by a visually impaired plaintiff claiming the defendant institution’s ATM lacks features required by recent changes to the Americans with Disabilities Act’s (ADA) guidelines for visually impaired individuals.
Legal Alert: Tennessee Governor May Be Open to New Protections for Employee Gun Ownership
Executive Summary: The Nashville Post recently reported that Tennessee Governor Bill Haslam may be open to legislative efforts to include additional protections for employee gun owners in 2014.
Tennessee Law on Service Dogs in Public Accommodations is Consistent with ADA, State AG Determines
Tennessee law previously required that a disabled person operating a guide dog first present for inspection credentials issued by an accredited school for training dog guides before admittance to a place of public accommodation and that a guide dog wear a harness and be held on a leash. The Tennessee General Assembly has eliminated these requirements, effective July 1, 2013, to make the law more consistent with the Americans with Disabilities Act’s directive on how a place of public accommodation must address the use of service animals by an individual with a disability. Tennessee Attorney General Robert E. Cooper, Jr., on July 26, 2013, confirmed that Tenn. Code Ann. § 62-7-112 does not conflict with the ADA. Opinion No. 13-59, “Admission of Service Dogs in Places of Public Accommodation.”
Unexpected Use of Tennessee Workplace Violence Act
A revision to the Tennessee Workplace Violence Act has seen an unexpected use — to seek a temporary restraining order to prohibit a co-employee’s access to the workplace. The Tennessee Workplace Violence Act (Tenn. Code Ann. § 20-14-101) was amended in 2011 to allow any employer or employee who has suffered unlawful violence, or a credible threat of violence, which can reasonably be construed to have been carried out at the workplace, to seek a temporary restraining order or injunction prohibiting further unlawful violence, or threats of violence, by that individual, or the organization that individual is affiliated with, at the workplace.
Tennessee Enacts Prevailing Wage, Wage Theft Legislation
A new Tennessee law prohibits local governments from requiring private employers to provide more generous health insurance benefits, leave policies, hourly wage standards or prevailing wage standards than that required by state or federal law as a condition of doing business in the locality. Signed by Governor Bill Haslam, the new law (H.B. 501) is effective immediately. Any such local laws already enacted are unenforceable.
Legal Alert: AG Opinion Provides Guidance on Tennessee’s Safe Commute Act
Executive Summary: On May 28, 2013, Tennessee Attorney General Bob Cooper released an Opinion addressing the question of whether Tennessee’s Safe Commute Act “prohibits an employer from terminating an at-will employee who brings a firearm or firearm ammunition onto the employer’s property?” According to the Attorney General, it does not.
New Tennessee Law Targets Worker Misclassification in Construction Industry
Tennessee Governor Bill Haslam has signed into law a bill allowing the Tennessee Department of Labor and Workforce Development to impose penalties on construction companies that avoid paying workers’ compensation premiums by misclassifying workers. The bill’s sponsor, State Senator Bill Ketron, said the Department needed specific authority to address workers’ compensation premium fraud and avoidance. The measure (S.B. 833), signed on May 16, 2013, adds the following provision (Section 50-6-411) to state law, effective July 1, 2013:
Legal Alert: Tennessee’s Safe Commute Act May Impact Workplace Weapons Policies
Executive Summary: On March 14, 2013, Tennessee governor Bill Haslam signed into law the “Tennessee Safe Commute Act.” The new law, which takes effect July 1, 2013, will allow handgun carry permit holders to store firearms and ammunition in their vehicle no matter where they are parked. With approximately 375,000 Tennesseans who hold handgun carry permits, the new law potentially will have a wide-ranging impact. However, conflicting statements by sponsors of the legislation raise questions regarding the new law’s application with respect to an employer’s ability to establish and enforce a policy prohibiting guns in the workplace.
Amendment to Tennessee Wage Law Gives State Labor Department Exclusive Enforcement Authority
An amendment to Tennessee’s Wage Regulations Act eliminating private suits for state wage-hour violations and giving the state Department of Labor exclusive power to enforce the law has been signed by Governor Bill Haslam. Previously, aggrieved workers could initiate a civil court proceeding; now, they must bring their complaints to the Department. The amendment, signed on April 23, 2013, also provides for an award of reasonable expenses, including attorneys’ fees and disbursements, for claims brought under the Act (TCA Title 50, Chapter 2, Part 1 and Title 50, Chapter 4, Part 1) in certain circumstances. The Act protects wage earners from unfair practices regarding pay.
Workers’ Comp Appropriate for On-Call Health Care Worker Injured on Way Home, Tennessee Court Finds
An on-call surgical technician injured while driving home after assisting with an emergency surgery at a hospital was eligible for workers’ compensation benefits, the Supreme Court of Tennessee has decided. Shannon v. Roane Med. Ctr., Tenn., No. E2011-02649-WC-R3-WC (Mar. 13, 2013). The Special Workers’ Compensation Appeals Panel of the Court determined the evidence established that the employee falls within an exception to the rule under the Tennessee Workers’ Compensation Act that bars compensation when the employee is injured while going to or from work.
New Tennessee Attorney General’s Opinion Opens Door to Wage Claims by Employees Serving Jury Duty
As a general rule, the Fair Labor Standards Act does not require an employer to pay an employee’s travel time between home and their regular place of work.
Tennessee Adopts Worker-Verification Law
Tennessee has joined the increasing number of states attempting to curtail the employment of unauthorized aliens by passing its own employment eligibility verification law. The Tennessee Lawful Employment Act (SB 1669, HB 1378), signed by Governor Bill Haslam on June 7, 2011, requires employers to use the E-verify program, with exceptions, as soon as January 1, 2012.