Department of Fair Employment and Housing  

New Fairtimes

     Fourth Quarter 2010

DFEH REACHES HISTORIC MULTI-MILLION DOLLAR CLASS SETTLEMENT WITH VERIZON – On November 23, 2010, Los Angeles Superior Court Judge Anthony J. Mohr preliminarily approved a $6,011,190 settlement in Dept. Fair Empl. & Hous. v. Verizon (Seales) (Super. Ct. L.A. County, 2010, No. BC444066) for more than 1,000 current and former California employees to settle a class action lawsuit the DFEH filed challenging the company's family medical leave practices. The settlement covers Verizon's voice, data and video operations in California, which employ more than 7,000 people.  The class action lawsuit was precipitated by a more than two-year-long investigation into Verizon's practices under the California Family Rights Act (CFRA), which was conducted by the Department of Fair Employment and Housing's (DFEH) Special Investigations Unit (SIU).  The lawsuit alleges that from 2007 to 2010, Verizon denied or failed to timely approve class members' requests for leave for their own serious health condition, to care for a family member with a serious health condition, or to bond with a new child.  Settlement of the lawsuit—the largest in DFEH history—could result in payment to class members of over six million dollars, an amount equivalent to an entire year of DFEH Enforcement Division settlements.  Verizon also agreed to review and revise its leave policies and procedures, continue an existing internal review process that employees can invoke to appeal denials, train all California officers, managers, supervisors and human resources personnel on the procedures and submit regular updates to the DFEH regarding the company's compliance.  In settling the matter, Verizon did not admit to liability.  The settlement is subject to final court approval after class claims are filed.  In addition to the CFRA class action, the Department also settled two companion group actions with Verizon: 1) a $444,960 Fair Employment and Housing Act (FEHA) pregnancy discrimination group settlement for 42 employees denied time off for pregnancy-related medical reasons; and 2) a $467,466 FEHA disability discrimination group settlement for eight employees denied reasonable accommodation.  Together, the DFEH achieved a total of $6,923,616 plus affirmative relief in the three Verizon settlements.  For further information, see the press release or contact Annmarie Billotti.

DFEH PREVAILS IN FEHC PRECEDENTIAL DECISIONS – In Dept. Fair Empl. & Hous. v. Avis Rent-a-Car (Reed) (Oct. 19, 2010) No. 10-05-P, FEHC Precedential Decs. 2010 [2010 WL 4901733 (Cal.F.E.H.C.)], the Fair Employment and Housing Commission (FEHC) ruled in favor of the Department, concluding that the employer had unlawfully denied a reasonable accommodation to its salesperson, made unlawful inquiries about her disability, and committed other violations under the FEHA. The decision ordered the employer to pay $89,863.70 ($14,863.70 in lost wages and $50,000 in emotional distress to the employee, and $25,000 in administrative fine to the State), train its management staff, and post notices of the ordered relief.  See the decision.

In Dept. Fair Empl. & Hous. v. Lyddan Law Group (Williams)(Oct. 19, 2010) No. 10-04-P, FEHC Precedential Decs. 2010 [2010 WL 4901732 (Cal.F.E.H.C.)], a racial and sexual harassment in employment case, the FEHC ruled partially in favor of the Department on a previously unsettled point of law as to the DFEH's ability to bring a stand-alone cause of action for the employer's failure to take all reasonable steps to prevent discrimination or harassment (Gov. Code, § 12940, subd. (k)).  the Commission expressly held that the DFEH, in the exercise of its "police powers" established that the employer was liable for failing to comply with that provision.  The FEHC clarified that while there is no private cause of action for an independent (k) violation, its prosecution nonetheless remains "exclusively the province of the DFEH." (Dept. Fair Empl. & Hous. v. Lyddan Law Group, supra, 2010 WL 4901732 at *1 and *12.)  See the decision.

NOTABLE DFEH SETTLEMENTS – The DFEH continues to settle cases both pre- and post-accusation.  Below is a sample of this quarter's settlements.

• Dept. Fair Empl. & Hous. v. Southgate Garden Homes Association, Inc. (Grey); DFEH Case No. H200708-W-0076; familial status discrimination in housing $115,000 plus affirmative relief.
• Dept. Fair Empl. & Hous. v.University of California, San Diego Medical Center (Sutton); DFEH Case No. E-200910-D-0094-00-pv; disability discrimination in employment; $40,000 plus affirmative relief.

• Dept. Fair Empl. & Hous. v. Urban Suburban Inc. et al. (Holdsworth); DFEH Case No. E200809-M-1316-00s/01s/02s; sexual harassment in employment; $22,500 plus affirmative relief.
• Felicia Checo/Northgate Gonzalez LLC, DFEH Case No. E-200910-S-0597-00fe; California Family Rights Act (CFRA) violation in employment; $40,000 plus affirmative relief.
• Ewing/Bay Area Legal Aid; DFEH Case No. E200910-M-0805-00-pev; disability discrimination and denial of accommodation in employment; $14,500 plus affirmative relief.

New Mediation Division'S SERVICES IN DEMAND – Since its May 1 inception to November 30, 2010, the DFEH Mediation Division has received over 600 referrals from the Department's Enforcement and Legal Divisions.  The Mediation Division has completed over 180 mediations, of which 120 were successful, and achieved settlements totaling more than $750,000.  In addition, the Division has entered into an MOU with Loyola Law School's Center for Conflict Resolution for additional mediation services; and continues its Volunteer Mediator Program with volunteer attorney mediators statewide.  Any party in the DFEH system may request mediation services.

Enforcement Division Meets and Exceeds Federal ContractS – In federal fiscal year 2009/10, the DFEH Enforcement Division's Employment Unit achieved 4,468 dual-filed employment cases, exceeding by 136 cases its fiscal year 2009/10 contract amount with the U.S. Equal Employment Opportunity Commission (EEOC).  Similarly, the DFEH Housing Unit achieved 860 dual-filed housing investigations, fully complying with its federal fiscal year 2009/10 performance requirements with the U.S. Department of Housing and Urban Development's (HUD). 

DFEH FINALIZES PROPOSED PROCEDURAL REGULATIONS – The DFEH held hearings on April 6 in Los Angeles and on May 26, 2010 in San Francisco on its first-ever Proposed Procedural Regulations.  The purpose of the rulemaking is to vet procedures for the DFEH administrative process.  In most cases, the proposed regulations capture and would replace the current DFEH Directives, which are not exempt from the rulemaking requirements of the Administrative Procedure Act. The DFEH has modified its proposed regulations in response to public comment.  The Notice of Modifications to the Text of the Proposed Regulationsand Modified Text of the Proposed Regulationsare posted on the DFEH Web site.  The Department accepted written comments between December 1, 2010 and December 16, 2010, and will soon forward the final draft regulations and accompanying statement of reasons for review by the Office of Administrative Law.  For further information, contact Annmarie Billotti.

DFEH OUTREACH IN THE COMMUNITY– In the fourth quarter of 2010, DFEH Director Phyllis Cheng made keynote and panel presentations at the: Central California Employment Round Table Breakfast Seminar; Jones Day California Labor and Employment Law Update Seminar; Southwestern Law School Labor & Employment Law Association Seminar; Community Associations Institute California Law Conference; Employment Round Table of Southern California's 2010 Annual Conference; and San Joaquin Human Resources Association Luncheon.  Other DFEH outreach included presentations at the: County of Orange EEO Access Office's Human Resources Leadership Forum; Communications Workers of America 2010 Union Stewards Conference; California State University Bakersfield; Valley View High School and Vista del Lago High School in Moreno Valley; Disability Rights Legal Center 2010 RespectABILITY Conference; APIDC (Asians and Pacific Islanders with Disabilities of California) Statewide Disability Conference; State Compensation Insurance Fund Seminar; Kern County Management Council event; Sierra High School in San Bernardino; Inland Fair Housing and Mediations Board meeting; Southern California Fair Housing Advertising Task Force meeting; Northern California Fair Housing Coalition meeting; Westwood College in Upland; Southern California Fair Housing Advertising Task Force; Northern California Fair Housing Coalition workshop; and California Rural Legal Assistance workshop.

DFEH IN THE NEWS– The DFEH has been covered a half dozen times in the Daily Journal's Verdicts & Settlements this year.  In the last quarter, the Department was also covered in the Central Valley Business Times, Redwood Community Radio Station 91.1 FM (KMUD), and Positive Pro News SF Commons 29.  In addition, the Department produced a new "DFEH Legacy" video, which can be viewed on YouTube. 

DFEH Webinars– In an effort to conduct internal training for DFEH employees and other State agencies, as well as to lay the foundation to expand training to others outside of State government, the Department launched a monthly series of DFEH Legal Update Webinars.  These include "Leave Laws and Disability Discrimination" by Staff Counsel Megan Elsea; "Reasonable Accommodation" by Chief Counsel Susan Saylor; and "The DFEH Investigative Process and How to Avoid Litigation" by Chief of Enforcement Tim Muscat.  Although the webinars are not currently open to the public, the PowerPoint presentations are available on the carousel of the DFEH Web site.

EMPLOYER ROUND TABLE UPDATE– The DFEH's partnership with the California Employment Round Tables (CERT) continues.  In the past quarter, the Central California Employment Round Table (CCERT) held its successful "Disability in Employment Seminar" at Pardini's, Fresno.  The Employment Round Table of Southern California (ERTSC) held its 2010 Annual Conference and Award at the Westin Bonadventure Hotel, downtown Los Angeles.  The Northern California Employment Round Table (NCERT) is planning to host a webinar on class actions by DFEH Chief of Enforcement Tim Muscat on January 26, 2011.  The flyer and registration information will be forthcoming.

DFEH ON THE MOVE –Because of automation and new operational efficiencies, and in order to save on overhead expenses and to prevent the loss of jobs, the DFEH has reduced its offices from 10 to six physical locations since 2009.  Last year, the Department brought its Sacramento District Office and Elk Grove Housing District Offices back to Headquarters in Elk Grove, housing investigators in cubicles with ergonomic furniture.  The Los Angeles Regional Office also moved into smaller space with cubicles and ergonomic furniture for its investigators.  By November 2010, the DFEH Santa Ana and San Diego District Offices had been consolidated as well.  All affected employees, who wanted jobs, have obtained employment in another State agency or have voluntarily transferred to the Los Angeles Regional Office in downtown Los Angeles.  In December 2010, the DFEH Fresno District Office likewise moved to smaller space.  Continuing the Department's space and budget-saving measures, the new Fresno office has reduced rental space by over 2,000 square feet, houses investigators in cubicles, uses ergonomic systems furniture, and provides free and accessible parking in a one-story business complex.  The DFEH remains accessible to members of the public statewide through a toll free phone number at (800) 884-1684, by Videophone for the Deaf at (916) 226-5285, and by e-mail at contact.center@dfeh.ca.gov. In addition, complainants who wish to set an appointment for a telephone interview can do so through the Department's  Online Appointment System, exhaust their administrative remedies online through theAutomated Right-to-Sue System, and even request for an "instant intake" as appropriate.  

DFEH NAMED SARA FINALIST– The DFEH has been named a finalist for the "State Agency Recognition Award (SARA) for furthering the 'Best Practice' activity for Small Business and Disabled Veterans Business Enterprise by the Department of General Services for the 2010."

LEADERS AT THE DFEH –Read about the Director'sand Executive Staff'sbiographies, and see the Department's new organizational chart.

Department of Fair Employment and Housing

State of California|State and Consumer Services Agency

2218 Kausen Drive |Suite 100| Elk Grove|California| 95758

Telephone: 916.478.7251|Fax: 916.478.7329

To protect Californians from employment, housing and public

accommodation discrimination, and hate violence.