Legal Update – October 2024

News

By:  Claire Sweetman

Washington State UPS Driver Wins Hostile Work Environment Claim

On September 12, 2024, the U.S. District Court for the Eastern District of Washington ruled in favor of a UPS driver in his hostile work environment claim.[1] The UPS driver, Tahvio Gratton, was awarded a jury verdict of $237.6 million: $39.6 million for emotional distress and $198 million in punitive damages. Gratton, a Black man, alleged that he was laid off in favor of white drivers with less seniority than him, repeatedly called “boy” by a supervisor, and given a less desirable route and worse truck.[2] Gratton filed grievances in 2018, 2020, and 2021 alleging racial discrimination. He was fired in 2021 following a sexual harassment investigation into whether he touched a female employee’s back.[3] UPS alleged that Gratton was fired because he assaulted a female coworker, and not in retaliation for raising his previous grievances. Ultimately, the jury found for Gratton and determined that he had been subjected to a hostile work environment.[4]

President Biden Signs “Good Jobs” Executive Order

On September 6, 2024, President Biden signed an Executive Order (EO) on Investing in America and Investing in American Workers, referred to as the “Good Jobs EO.”[5]  The Good Jobs EO is aimed at articulating the standards of a “good job” in modern times, and provides incentives to employers to encourage “high labor standards.” These standards are known to include collective bargaining agreements, project labor agreements, and community benefits agreements.[6]

The Good Jobs EO also asks that agencies selecting projects for federal financial assistance to prioritize projects that advance the administration’s Investing in America agenda. This includes projects that:

  • Provide a clear plan for efficient project delivery by promoting positive labor-management relations;
  • Enhance worker productivity by promoting family-sustaining wages;
  • Supply critical benefits that promote economic security for workers, such as paid leave (including paid sick, family, and medical leave); health care; retirement benefits; and child, dependent, and elder care;
  • Promote and expand access to and put in place policies that combat discrimination that limits employment in high-quality jobs for workers from underserved communities;
  • Strengthen workforce development by expanding worker access to high-quality training and portable credentials that lead to good jobs;
  • Promote and protect worker health and safety through policies that encourage supplemental safety training, worker and union participation in the design and implementation of workplace safety and health management systems, and disclosure of occupational safety and health violations.[7]

The Good Jobs EO also created a new “Investing in Good Jobs Task Force” to help coordinate policy development related to high labor standards.[8] The Secretary of Labor will serve as a co-chair of the Task Force, along with the Director of the National Economic Council. The Task Force will also include other members of President Biden’s Cabinet.[9]

The EO foreshadows potential changes under a potential Harris Administration. Employers should be on the lookout for additional regulations including wage increases, leave and care benefits, and a prioritization of union participation.[10]

[1] https://www.seattletimes.com/seattle-news/former-ups-driver-wins-238-million-verdict-in-suit-over-firing-in-wa/#:~:text=Former%20UPS%20driver%20wins%20%24238%20million%20verdict%20in%20suit%20over%20firing%20in%20WA,-Sep.&text=A%20Black%20UPS%20driver%20won,work%20environment%20before%20being%20fired.

[2] Id.

[3] Id.

[4] Id.

[5] https://www.foley.com/insights/publications/2024/09/president-biden-signs-good-jobs-executive-order/

[6] Id.

[7] Id.

[8] Id.

[9] Id.

[10] Id.

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