Employment Law: Can You Police Social Media?

Posted on 23, Oct | Posted by RMA

social mediaGuest blogger Mimi Soule specializes in employment law at the Soule Law Firm in Raleigh, North Carolina. This article was originally published on the website of Forrest Firm.

Lately, the National Labor Relations Board (NLRB) is taking a particularly active interest in employer polices regarding social media.

For those of us living and working in a Right-to-Work state like North Carolina (meaning that employees are not obligated to become members of a union organized in their workplace) where union activity may not be an everyday occurrence, the NLRB is not a familiar regulating administrative body. First and foremost, it is important for business owners to understand that, in general, the NLRB has the authority to regulate private-sector employers—with or without a union—with respect to matters directly or indirectly involving their employees’ right to form a union or discuss the formation of a union.

What does this have to do with an employer’s social media policy you ask? As you have likely read in the news, the NLRB recently issued several decisions citing employers for having overly-broad social media policies, which the NLRB feels restricted employees’ rights to discuss their working conditions—a right protected by federal law and which the NLRB feels unreasonably restricts employees’ ability to discuss the potential formation of a union.

Given these recent NLRB decisions, many employers felt that they were now prohibited from having a social media policy. This just isn’t accurate. Social media policies are indeed lawful; however, because of the recent NLRB decisions, the details of what an employer could regulate within its policy were anything, but clear.

So, what exactly can an employer regulate?

On May 30, 2012, the NLRB issued an Operations Management Memo that provided a summary of its recent decisions regarding social media policies, and, most importantly, at the end of the Memo, the NLRB provided a sample policy that it deemed lawful. A copy of the Operations Management Memo, dated May 30, 2012, is located on the NLRB website (http://www.nlrb.gov/news/acting-general-counsel-releases-report-employer-social-media-policies). Although the NLRB sample policy does not clarify all substantive matters, it does provide some additional and helpful guidance for employers:

  • Employers can continue to prohibit employees from posting information regarding an employer’s private, confidential information and trade secrets as well as confidential internal communications, such as business reports, policies and procedures.
  • Employers can prohibit their employees from representing in a post that they speak on behalf of the company. Employees can only express their own personal opinions.
  • Employers can require that employees be respectful, fair and courteous and to avoid posting statements that “could be viewed as malicious, obscene, threatening or intimidating, that disparage customers, members, associates or suppliers, or that might constitute harassment or bullying.”
  • Employers can require that employees be honest and accurate in their posts, to correct any known mistakes quickly, and never to post any information or rumors that the employee knows to be false about the company, any associates, members, customers, suppliers or competitors.
  • Employers can prohibit employees from posting comments that constitute “discriminatory remarks, harassment, and threats of violence or similar inappropriate or unlawful conduct.”
  • Employers can prohibit employees from using social media while at work or with employer-owned equipment.

For more information on this topic, please feel free to contact Mimi at msoule@soulelawfirm.com.

Mimi Soule is an established management counselor at Soule Law Firm in Raleigh, NC. She focuses her practice on assisting businesses with federal and state employment law compliance in an effort to mitigate litigation risks. Through her partnership with the Forrest Firm, Mimi advises our corporate clients on a host of employment relationship matters, including wage and hour compliance, family and medical leave, independent contractor classifications, handbook policies, effective hiring, firing and disciplinary procedures, and employment, release and non-compete agreements.

Mimi earned a bachelor’s degree in business from Wake Forest University, followed by her juris doctor degree at the Boston University School of Law.

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Massachusetts Lab Scandal

Posted on 12, Oct | Posted by Christine L. Peterson, CPP, ISP

HonestyOn Saturday, September 29, 2012, the News and Observer covered the story of Annie Dookhan, a chemist at a Massachusetts drug lab. This story underscores some of the devastation that can result when an organization doesn’t follow basic security principles which require both screening and guardianship. The lack of screening and guardianship at the Massachusetts state drug lab has already resulted in the arrest of Ms. Dookhan, the resignation of the state’s public health commissioner, the potential incarceration of innocent victims, and a political and law enforcement nightmare. As this case moves forward, Massachusetts will spend millions of dollars in investigative costs and reparations, and there is the potential for criminals to be freed due to the actions of Ms. Dookhan. Massachusetts Attorney General Martha Coakley said “Annie Dookhan’s alleged actions corrupted the integrity of the entire criminal justice system.” That is an understatement.

Now I understand that the information in the media is just the tip of the proverbial iceberg, but what can we learn from the surface details that might have prevented this disaster?

Lesson #1: The importance of thorough background screening cannot be overstated.

Two opportunities are often missed. First, was there a pre-employment system in place to verify information that was provided by the applicant and to look for omissions? It has been reported that the organization believed Ms. Dookhan had an advanced degree but she did not. Did anyone verify this information?

Second, did the agency have in place a system in place to verify information that would have a direct bearing on an employee’s position or fiduciary responsibilities post-employment? Life does not end when employment begins. People grow, they change, and circumstances change. Life happens. Employees being promoted or given a change in status should also have an updated background investigation.

Lesson #2: Remember the 10-10-80 rule for fraud.

The general rule of thumb in fraud investigations is that 10% of people would commit fraud at any opportunity, 10% of people would not commit fraud no matter the circumstances, and 80% of people can be swayed one way or the other based on circumstances and conditions. According to the News and Observer story, the only motive that authorities have found so far is the desire of Ms. Dookhan to be viewed as a good worker. Was she part of the 10% or 80%? She’s probably part of the 80% who make decisions based on outside forces which are relative to that person’s situation.

Protection of agency or company assets requires guardianship in the form of oversight. What kinds of protocols in the form of policies and procedures were in place to keep this from happening? Is the same kind of thing happening with other chemists at the agency? Did she work in a bubble with no protocols or collaboration? Did she have no supervision? Were there no quality controls in place?

This article should be an “a-ha moment” for all of us in business, public or private. This is a classic example of a motivated person seeing an opportunity to gain position and presteige within an organization by manipulating the facts. The result is fraudulent information, destroyed lives, damaged careers, sullied reputations, and millions of tax and insurance dollars.

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Yahoo chief executive Scott Thompson steps down

Posted on 15, May | Posted by Tasha D. Dyson

Based on experience with some of our clients, there seems to be an assumption that applicants for C-level positions are somehow immune from falsifying information and are above reproach. The assumption seems to be that since an applicant has worked at “Alpha Company”, there is no need for “Beta Company” to do a thorough background investigation. The faulty logic is that Alpha would not have hired him unless his background was clean, so Beta can rest assured.

Did anyone do a background investigation before hiring Mr. Thompson? Probably not. Mr. Thompson had previously worked at the executive or upper management level at Paypal, Inovant (a subsidiary of Visa), and Barclays Global Investors. Although the reasons for his departure also included a company in transition and possible health reasons, the accusations of a falsified resume is what made headlines.

Trust, but verify. For the cost of one education verification search (about $10 to $30), Yahoo now needs a new CEO and four other executives who approved his hiring.

Yahoo chief executive Scott Thompson steps down
The chief executive of tech firm Yahoo has stepped down amid accusations he included a fake computer science degree on his CV.

Scott Thompson was replaced by Yahoo’s global media head Ross Levinsohn.

Yahoo shares rose 1.7% on Monday morning as news of the changes hit the trading floor.

The firm is also reportedly close to agreeing a truce with activist shareholder Daniel Loeb, who discovered Mr Thompson’s mistake.

Mr Loeb, a hedge fund manager who lobbied for Mr Thompson’s dismissal, is set to be appointed a company director.

He will also be able to appoint two other new directors, while Yahoo has named Fred Amoroso as the new chairman of its board.

On Monday the Wall Street Journal reported that Mr Thompson, 54, told Yahoo’s board late last week he had been diagnosed with thyroid cancer.

Mr Thompson was diagnosed in recent days and is due to begin treatment, the newspaper said, adding that discovery of the illness had influenced Mr Thompson’s decision to resign.

No confirmation of the report was available.

Cost-cutting

Yahoo has already acknowledged that Mr Thompson, who took up his post in January, does not have a computer science degree.

When the news emerged Yahoo initially defended its chief executive, calling the discrepancy on his resume an “inadvertent error”. But it then came under mounting pressure from shareholders, employees and corporate governance experts to investigate the matter.

Mr Thompson’s exit comes amid broader reorganisation within the troubled internet giant, which has seen four full-time chief executives over the last five years.

The chairman of the board, Roy Bostock, and four other directors are leaving the company immediately. All of them had approved the hiring of Mr Thompson.

In addition to the three seats allocated to Mr Loeb and his board appointees, Michael Wolf, a former executive at MTV Networks, and Harry Wilson, a restructuring expert, are to join the board.

Mr Levinsohn, who takes over as interim head of Yahoo, acknowledged the disruption in an internal letter to employees.

“This may seem like a great deal of news to digest, but as you are all keenly aware, Yahoo is a dynamic, global company in a dynamic, global industry, so change – sometimes unexpected and sometimes at lightning speed – is something we will continue to live with and something we should embrace,” he wrote.

Upheaval

Mr Levinsohn is expected to address Yahoo employees at a meeting on Monday afternoon.

In April the company announced plans to make 2,000 employees redundant, a cutback of about 14% of staff, in an effort to save $375m (£233m) a year.

Mr Thompson also had plans to shut down or sell off about 50 of Yahoo’s products and services.

Before joining Yahoo Mr Thompson served as president of online payments firm PayPal from 2008.

He took over as chief executive from Tim Morse, who had held the Yahoo role on an interim basis after Carol Bartz was sacked in September 2011.

Besides its search engine, Yahoo’s key products include Yahoo News, photo-sharing site Flickr and a webmail platform.

But the company has struggled to match the advertising revenue generated by rivals Google and Facebook.

Yahoo’s stock has languished since it passed up a $44bn takeover bid from Microsoft in 2008.

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Government Files First Criminal Charges In BP Oil Spill

Posted on 25, Apr | Posted by Michael R. Epperly, Esq.

As businesses have evolved and grown, so have the ways we communicate. It is no longer as simple as a letter, meeting, or a phone call. We send emails, have video chats, communicate with instant messages, and send text messages at an exponential rate. Have you ever stopped to consider how your company would respond to a preservation letter or discovery request covering every communication device in the company? More importantly, have you ever considered how effective your response would be?

In April, the first criminal charges were handed down in connection with the 2010 BP oil spill. Interestingly, they are not related to any of the acts that led to the explosion. Rather, they relate to the failure of a BP engineer to preserve text messages related to his observations following the explosion. This engineer is now charged with criminal obstruction of justice. The facts that led to these charges are summarized here.

It is times like this where we have the opportunity to learn from others mistakes. Reevaluate how communications between employees, management, and customers takes place in you environment. Determine from your legal counsel if new policies need to be written for maintaining emails, text messages, and other forms of communication and for how long. Finally, identify a consultant who can help collect this data should the need arise.


Government Files First Criminal Charges In BP Oil Spill
By Eyder Peralta

“The first criminal charges in connection with the BP oil spill have been filed against a former BP engineer named Kurt Mix,” NPR’s Carrie Johnson reports exclusively.

Carrie just told our Newscast unit that Mix has been charged with obstruction of justice for allegedly deleting text messages after the spill. The texts were related to the amount of oil gushing into the Gulf. Mix will make his first appearance in court today.

Carrie adds that there has been an expectation that criminal charges would be brought against individuals, but this is the first person charged since the spill happened two years ago.

These are preliminary charges and a law enforcement official says there are more charges to come, Carrie reports.

Update at 12:59 p.m. ET. Operation Top Kill:

The Justice Department has now made the arrest and charges public, issuing a press release on its website. Essentially the Justice Department claims that Mix, who at the time was “a drilling and completions project engineer for BP,” deleted hundreds of text messages even after he was notified that he was legally obligated to preserve them.

In one instance on Oct. 4, 2010, Justice claims that Mix allegedly deleted about 200 messages exchanged with a BP supervisor. In it, Mix admits that a maneuver called Top Kill, in which BP injected heavy fluids into the well to try to stop the flow of oil, was failing.

“Too much flowrate – over 15,000,” one of the text messages read, according to Justice, which also said some of those messages were recovered forensically.

At time, Justice adds, BP’s public estimate was 5,000 barrels of oil per day, “three times lower than the minimum flow rate indicated in Mix’s text.”

The Justice Department says if Mix is convicted of the charges he faces a maximum penalty of 20 yeas in jail and a $250,000 fine for each of the two counts of obstruction of justice.

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FedEx Settles Charges of Causing, Aiding and Abetting Unlicensed Exports

Posted on 2, Mar | Posted by Christine L. Peterson, CPP, ISP

cargo planeIn 2010, Michael R. Epperly, Esq. who heads RMA’s Corporate Compliance consulting arm, wrote an insightful article that addressed the corporate compliance challenges that American companies face in the global marketplace. Through his experience as legal counsel, investigator, and consultant he is acutely aware of the importance of a solid corporate compliance program to an organization and the penalties that can result from not having an effective program. In today’s business environment, your company’s corporate compliance program also needs to include vendors and partners.

To read Mike’s original article, go to Corporate Compliance & Ethics.


FedEx Settles Charges of Causing, Aiding and Abetting Unlicensed Exports

WASHINGTON – The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced today that FedEx Express (FedEx), Memphis, TN, has agreed to pay a $370,000 civil penalty to settle allegations that it committed six violations of the Export Administration Regulations (EAR) relating to FedEx’s provision of freight forwarding services to exporters.

BIS alleged that on two occasions in 2006, FedEx caused, aided and abetted acts prohibited by the regulations when it facilitated the attempted unlicensed export of electronic components from the United States to Mayrow in Dubai, United Arab Emirates. The exports to Mayrow were thwarted when delivery was halted at BIS’s direction. On June 5, 2006, BIS had issued a General Order imposing a license requirement with a presumption of denial for the export or reexport of any item subject to the EAR to Mayrow General Trading and related entities. The General Order was issued based on information that Mayrow and the related entities were acquiring electronic components and devices that were being used in Improvised Explosive Devices deployed against Coalition forces in Iraq and Afghanistan.

BIS also alleged that in December 2005, FedEx caused, aided and abetted acts prohibited by the regulations when it facilitated the unlicensed export of flight simulation software to Beijing University of Aeronautics and Astronautics, a/k/a Beihang University, an organization listed on the U.S. Department of Commerce’s Entity List and located in the People’s Republic of China. The Commerce Department’s Entity List contains a list of names of foreign persons – including businesses, research institutions, government and private organizations, and individuals – that have been determined through an interagency review process to have engaged in activities contrary to U.S. national security and/or foreign policy interests. These persons are restricted from receiving items subject to U.S. jurisdiction.

Lastly, BIS alleged that on three occasions in 2004, FedEx caused, aided and abetted acts prohibited by the regulations when it facilitated the unlicensed export of printer components from the United States to end users in Syria. Facilitating the export of commodities to Syria without the required U.S. Department of Commerce export license was prohibited under General Order No. 2 as set forth in Supplement 1 to part 736 of the EAR.

The Commerce Department Assistant Secretary for Export Enforcement David W. Mills said, “It is vital that every stakeholder in the U.S. exporting chain remain vigilant in its efforts to prevent prohibited transactions that may be detrimental to our national security, and each will be held accountable if it fails to do so.”

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Penn State: Clery Act Implications

Posted on 30, Nov | Posted by Michael R. Epperly, Esq.

legal issuesEarlier this month, the U.S. Department of Education (DOE) announced that it would launch its own investigation into the now infamous Penn State football scandal. This investigation will focus on whether the university failed to comply with the Jeanne Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act (the Clery Act) – the federal law which, among other things, requires colleges and universities to accurately disclose the number of crimes that occurred on campus each year.

Although much of the media attention has focused on the knowledge of Joe Paterno and others associated with the university, an equally important question – at least from a Clery perspective – is how DOE will view Sandusky’s own knowledge of the crimes he is alleged to have committed. (more…)

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Rusty Gilmore and Mike Epperly Speak at American Society of Women Accountants

Posted on 27, Oct | Posted by RMA

Computer SecurityMike Epperly and Rusty Gilmore presented Digital Evidence: Preservation, Recovery and Continuity at the Raleigh Chapter of the American Society of Women Accountants on October 27, 2011.

The American Society of Women Accountants is a professional organization whose purpose is to advance the interest of women in all fields of accounting and finance. With more than 100 national chapters and 4,000 members, the ASWA provides professional resources and networking opportunities for members on a national, regional, and local spectrum. ASWA members work at all levels of the accounting profession, from individual practitioners to entry- and top-level positions in industry, government, and major accounting firms. ASWA members tap into an extensive knowledge base of accounting and finance professionals with technical expertise to provide solutions for the most complex issues. Members communicate both virtually and in-person through online discussion forums, national and regional conferences and chapter meetings. The majority of our members have attained professional certifications such as CPA, CMA, CIA, and CFP.

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Rusty Gilmore Presents at Chamber U

Posted on 14, Sep | Posted by RMA

Data DestructionRusty Gilmore presented Digital Evidence: Preservation, Recovery and Continuity on Wednesday, September 14, as part of the Chamber U program of the Greater Durham Chamber of Commerce.

Data thefts cost U.S. businesses hundreds of billions of dollars each year. Do you know where your data is? Do you know how it can be accessed? Do your employees know how to protect your company’s data? There are countermeasures that every business should have in place to protect itself against industrial espionage. Is your business doing everything it should to protect its data?

Chamber U is a free, innovative initiative of the Greater Durham Chamber of Commerce designed to address critical topics and to help prepare Chamber members to meet the ever-changing demands of the workplace. These once-a-week (each Wednesday at 8:30 a.m.) educational opportunities provide members with valuable tools and information they can take back to their businesses and utilize to help them achieve the success they desire. The program provides individualized growth and development opportunities for entry level to executive leadership covering the entire gamut from “nuts & bolts” to “visionary thinking.”

The Greater Durham Chamber of Commerce is a bold, dynamic organization that serves the needs of businesses, non-profits and government agencies of all sizes. Established in 1906, the Chamber has been an integral part of the Durham community for more than 100 years. Businesses, organizations, and agencies choose to be a part of the Greater Durham Chamber of Commerce because it is a thriving, pro-active business leadership organization. They recognize that by working together through the Chamber they can help build a prosperous, healthy community for businesses and residents.

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Mike Epperly and Rusty Gilmore Present at Lunch and Learn

Posted on 23, Aug | Posted by RMA

Delete KeyMike Epperly and Rusty Gilmore presented Digital Evidence: Preservation, Recovery and Continuity at Ward and Smith in Raleigh, NC, on August 23, 2011.

Ward and Smith, P.A., is a full service North Carolina business law firm with offices in Raleigh, Wilmington, New Bern, Greenville, and Asheville. Ward and Smith has attorneys practicing in the following major practice groups: Appellate; Business; Business Litigation; Community Associations; Construction; Creditors’ Rights; Dealer/Distributor and Franchising; Environmental; Family Law; Financial Institutions; Government Representation; Health Care; Housing Authorities; Immigration; Intellectual Property; International; Labor and Employment; Litigation; Nonprofit Organizations; Personal Injury and Wrongful Death; Real Estate; Real Estate Development; Securities; Tax; Technology; Trust and Estates; Trust and Estates Litigation; Zoning and Land use Planning.

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Corporate Compliance & Ethics

Posted on 3, Aug | Posted by RMA

We have always known that businesses must either operate within the confines of the law or risk prosecution by the government. In the early days, when there were relatively few rules that applied to business conduct, it was much easier to discern the scope of allowable behavior. However, several decades ago, this began to change. Now, the “rules of the game” are more numerous and significantly more complex. (more…)

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