OSHA Orders $7.9 Million In Whistleblower Damages

 

Need more proof that retaliation doesn't pay? Check out this scenario. Workers raise safety concerns with their carrier and OSHA. Carrier files a defamation lawsuit against the workers. Workers file Whistleblower complaint with OSHA. OSHA investigation finds lawsuit was in retaliation for the workers' protected activity, and PRESTO! the carrier has to pay $7.8 million in compensation and attorneys fees.

And to top it off, OSHA orders the carrier to withdraw the lawsuit and give all its employees notice of their Whistleblower rights. Read about it here. The carrier this time happened to be an airline, but the same scenario would apply to a railroad carrier arrogant enough to do the same to its workers. And we all know there is no dearth of arrogant railroad managers out there who think they have a license to retaliate against employees who dare to raise safety and injury concerns. So get ready for a flurry of tough orders against rail carriers, now that the first wave of OSHA investigations under the relatively new Federal Railroad Safety Act are coming to a head.

Railroads Beware! Refusal to Cooperate Risks Devastating Adverse Inference

Q: What is the quickest way for a railroad to end up with a punitive damages Order against it?

A: Refuse to cooperate with an OSHA Federal Railroad Safety Act investigation.

Some railroads have decided to play cute with OSHA by refusing to produce documents on the ground that the FRSA does not give OSHA subpoena power. Sure, OSHA may lack explicit subpoena power under the FRSA, but railroads who think they can refuse to provide OSHA with documents as a result better think again. Why? Because OSHA has the ultimate power of "drawing an adverse inference."

Case in point. Metro-North Railroad has a dozen FRSA complaints against it. When OSHA met with the representatives of all the unions on Metro North, they told OSHA that virtually all employees who report an injury to Metro-North are subjected to some form of discipline. If true, this would indicate a systemic violation of the FRSA, with punitive damage implications.

So naturally OSHA wanted to investigate. OSHA sent a letter to Metro-North Deputy General Counsel Carol Sue Barnett with a list of the 297 injuries reported by Metro-North employees from July 2007 to July 2008, and asked "how many of these incidents resulted in charges being filed against the injured employee by Metro-North"? OSHA also asked for a copy of any disciplinary notices.

Here is Metro-North's response: "after carefully reviewing the statutory scheme, we have concluded that OSHA lacks authority to require the production of specific documents and/or the compilation of information." Translation: "Go pound sand OSHA, you don't have any subpoena power over us and you can't force us to help you establish a basis for punitive damages against us."

Big mistake. On March 23, 2009, Region I Regional Administrator Marthe Kent and Region II Regional Administrator Robert D. Kulick jointly sent a letter to Metro-North, and it didn't pull any punches: 

Because you have refused to respond to OSHA's request, we intend to proceed with our investigation. Without documents from Metro-North, our determinations in these cases will be made on the basis of evidence obtained from the complainants. Thus, your refusal to supply the requested information and failure to cooperate with this investigation may lead OSHA to draw an adverse inference against Metro-North. Moreover, OSHA has authority to impose punitive damages in cases where it finds reckless or callous disregard for federally protected rights, or intentional violations of federal law.

So OSHA now has put railroads on notice: refuse to cooperate, and OSHA will draw an adverse inference that will be fatal to any FRSA defense. Reliance on OSHA's lack of subpoena power will result in OSHA accepting all the complainant's allegations as true and applying every possible adverse inference against the railroad. This almost certainly will lead to a finding of systemic violations and an Order for punitive damages against the railroad.

So, OSHA has no FRSA subpoena power? No problem! OSHA simply will unleash the devastating power of adverse inferences against recalcitrant railroads. And as a result, railroad managers will have their heads handed to them on a punitive damages platter of their own making.

Whistleblowers, Your Time Has Come!

Looks like the Federal Railroad Safety Act  is just the beginning of a new wave of whistleblower protection statutes. The combination of a whistleblower friendly Obama Administration and the worst breakdown of financial regulation in decades is sure to result in a major expansion of whistleblower protection laws, and the legal press is taking notice.

In this session Congress is considering additional protections for federal employees , and another bill (the Private Sector Whistleblower Protection Streamlining Act) would establish a coherent system for protecting private-sector employees from retaliation when they report violations of law or threats to health and safety. A common element in these new whistleblower laws is that they give employees the right to go into federal district court to litigate their retaliation claims before a jury.

Sound familiar? So it does indeed look like the Federal Railroad Safety Act is forcing the railroad industry to blaze the trail that other private industries soon will be following.

 

 

NJ Transit Learns the High Cost of Retaliation

 

Here's stark confirmation that the cost of retaliation is punitive damages and broken management careers.

A jury in Newark, New Jersey, just found that the top manager in the NJ Transit Police Department, Chief Joseph Bober, retaliated against female officer Theresa Frizalone after she complained about discrimination. The jury awarded her $1.5 million in damages (with another $500,000 in attorney fees to come). $1 million of that is for punitive damages to send a message to the Railroad that such retaliation is totally unacceptable in our society and will not be tolerated by juries.

And what happened to Chief Bober? The day after the verdict, Bober was no longer working for NJ Transit. He had been Chief since 2002 and had been earning $159,000 a year. All that gone with a jury's finding of retaliation. So here's my question to managers like Bober: Is it worth it? Is whatever twisted satisfaction you gain from retaliating against your employees worth destroying your career while forcing your railroad to pay millions in punitive damages?

Unless railroad managers start getting it, such verdicts are only going to increase. The Federal Railroad Safety Act, 49 USC 20109, prohibits retaliation against employees who report injuries or complain about safety or security issues, and juries are free to award punitive damages against managers who violate that new law. So railroad managers are now on notice, and the choice is theirs to make. They can put their careers at risk by retaliating, or they can respect the rights of their employees to engage in activities protected under the FRSA.

FRSA's Sharp Teeth Starting To Bite Railroads

Talk about leveling the playing field. OSHA's FRSA Whistleblowers have sent another powerful message to rail management: sorry guys, but the days of business as usual are officially over. Supervisors are no longer free to retaliate at will against employees who raise safety concerns.

It all started when a Union Pacific Railroad Company welder performing work on adjacent railroad tracks asked for a lookout and tools to make the job safer. His reward? Instead of a thank you for trying to be safe, his supervisor abolished his job, forcing him to increase his daily commute by 131 miles and taking him away from his family for extended periods of time.

The welder filed a whistleblower complaint under the Federal Railroad Safety Act, and OSHA's investigation concluded the Railroad's abolishment of the position was illegal retaliation. In so ruling, OSHA's regional administrator stated a simple principle that will reverberate throughout the railroad industry:

"A supervisor does not have the right to abolish a job position because he becomes annoyed by a worker voicing safety concerns."

Wow. Amen and Hallelujah, brother.

But that's not all. OSHA ordered the Railroad to reassign the welder to his former position, reimburse him for his travel expenses, and pay compensatory damages for his personal hardship. And to top it off, the Railroad was ordered to provide whistleblower rights information to all its employees. For the OSHA Press Release, click here.

So now it is getting very real for the railroads. The FRSA has taken away the right of managers to retaliate at will against employees who get under their skin by reporting injuries or raising safety concerns. From now on, any railroad arrogant enough to ignore the FRSA will be forced to pay dearly for it.

FRA Gives CSX Last Chance to Stop Intimidation and Retaliation

 Some people just don't get it. CSX Transportation managers definitely fall into that group. In a lengthy Investigative Report released in March of 2008, the Federal Railroad Administration put CSX on notice that its management culture of harassment and intimidation intended to dissuade employees from reporting injuries had to stop. In response, CSXT made numerous representations to the FRA promising to change its behavior.

But guess what? The complaints of harassment and intimidation just kept flowing in to the FRA as if nothing had happened. By January of 2009, the FRA had had enough. On January 16th, the Acting Administrator of the FRA, Clifford C. Eby, issued a blistering three page letter to CSX Transportation President and Chief Executive Michael Ward. Eby pointed to the ongoing complaints despite the CSX's list of promises, and concluded: "It is clear that CSXT has failed to adequately address its culture of harassment and intimidation. . . . CSXT has not yet fulfilled its commitments made to FRA regarding harassment and intimidation. . . . the evidence shows that CSXT's response has been inadequate. In order to truly prevent any more instances of intimidation, CSXT must put forth a sustained good-faith effort to change its culture." For the FRA 01/16/09 letter, click here .

Clearly, the FRA's patience has run out. If CSX doesn't change its hostile management culture and change it quick, the FRA will step in and slap a compliance order on the CSX, putting the daily actions of CSX managers and supervisors under FRA oversight.

Meanwhile, whenever a CSX manager intimidates or retaliates against an injured employee, the new amendments to the Federal Railroad Safety Act allow that employee to file a FRSA retaliation complaint with OSHA's Whistleblower Office. And if OSHA does not promptly resolve the complaint, the employee can jump into federal court and have a jury award punitive damages of up to $250,000 against CSX. If the number of FRSA complaints coming out of places like CSX's West Springfield Yard in Massachusetts is any indication, federal juries are going to be very, very busy awarding punitive damages against railroads like CSX.

So while changing CSX's hostile management culture may be a tough nut to crack, the FRA and FRSA are like the pincer arms of a nutcracker, and CSX's nut is now caught firmly in that nutcracker's grip. With the increasing pressure being exerted by the FRA and the FRSA, it is only a matter of time before CSX's nut cracks wide open. 

The Real Meaning of Election of Remedies Under the FRSA

 

The coalition of unions on Metro-North Railroad, the Metro-North Labor Council, recently met with the top administrators and whistleblower investigators from OSHA's Regions 1 and Region 2. Every craft on the Railroad was represented by at least one rail labor official. The spokesman for OSHA was Region 2 Supervisory Investigator Michael Mabee. It was an illuminating meeting for both sides. The rail labor reps described their frustration with the Railroad's hostile management culture, and the OSHA administrators were able to clarify their role in applying this novel whistleblower statute.

Because it is new, the FRSA raises many questions. But undoubtedly one of the great unanswered questions presented by the FRSA is the meaning of subsection (f), entitled "Election of Remedies." There are no Administrative Law Judge or federal court decisions interpreting what the language of subsection (f) means. However, a pattern is beginning to emerge nationwide. Taking advantage of the void in case law, and desperate to deflect the force of the FRSA, the railroads obviously have gotten together and agreed to press a baseless interpretation of subsection (f): namely, that an employee's participation in the Railway Labor Act disciplinary process constitutes an "election of remedies" that eliminates the employee's rights under the FRSA. My response is, nice try guys, but that's not what the language of subsection (f) says either in isolation or when read in the full context of the FRSA statute.

We all know that when it comes to statutory construction, the plain meaning of the text controls. But we tend to forget another basic principle, namely that the statute is the text itself, not the title given to the section or to the subsections within the statute. And because the title is not part of the statute's text, it cannot be used to undo the plain meaning of the text. In pressing their baseless interpretation of subsection (f), the railroads are conveniently ignoring these basic principles of statutory interpretation.

Yes, FRSA subsection (f) is entitled "Election Of Remedies." But that subsection does not actually use the term "remedy" in its text. Nor does the phrase "election of remedies" appear anywhere in the text. The actual text of subsection (f) reads in full:

"An employee may not seek protection under both this section and another provision of law for the same allegedly unlawful act of the railroad carrier."

That is, an employee may not seek protection under both the FRSA and another statute for the same unlawful act of the railroad. The key phrases here are "may not seek protection" and "for the same allegedly unlawful act." Let's take a look at the plain meaning of that statutory language viewed on its own and in the full context of the other FRSA subsections.

UNLAWFUL ACT

For a railroad to file a disciplinary charge against an employee is not it itself an "unlawful act" (it is legal for a railroad to file disciplinary charges under the RLA, and it happens hundreds of times a day). Filing a disciplinary charge is only an "unlawful act" if it is done in retaliation for an employee engaging in activities specifically protected by the FRSA. That is, the act of disciplining is "unlawful" only if it is done with an intent to retaliate for the employee's protected activity. Absent such an intent to retaliate, there is no "unlawful act" for the FRSA to protect against.

TO SEEK PROTECTION

FRSA subsection (f) only states that an employee may not seek "protection" under the FRSA and another provision of law "for the same unlawful act." It does not say an employee may not seek remedies under both this section and another provision of law. Congress certainly could have stated that an employee can not seek remedies under both the FRSA and another law, but chose not to do so. Instead Congress only referred to protection under the FRSA. The only unlawful act that the FRSA can or does protect against is whistleblower retaliation. To seek protection from unlawful whistleblower retaliation means to invoke the protection of a whistleblower statute. Because an employee can seek protection under only one whistleblower protection statute, the employee must elect which whistleblower retaliation protection statute he is invoking.

And in fact that is how OSHA applies the FRSA.  After OSHA receives a FRSA complaint, it requires the employee to fill out and return an "Election of Remedies" form. The form requires the employee to elect the protection of one specific whistleblower protection statute. The explanatory cover letter that accompanies the form quotes FRSA subsection (f) and then points out that because the employee's complaint could be investigated by OSHA "under several different" whistleblower laws, the employee must chose the whistleblower law under which he wants OSHA to proceed. The Railway Labor Act is not one of the laws listed for election by the employee. Once the employee elects a specific whistleblower law, OSHA does not concern itself with whether a Railway Labor Act matter is pending because the RLA is not a whistleblower protection statute. OSHA proceeds with its whistleblower retaliation investigation regardless of whether any RLA process is unfolding at the same time.

THE RAILWAY LABOR ACT IS NOT A WHISTLEBLOWER PROTECTION STATUTE

The Railway Labor Act has no whistleblower protection provision, 45 USC 151 et seq. It is not a whistleblower protection statute. The purpose of a Railway Labor Act disciplinary proceeding is to interpret and apply the collective bargaining agreement, not to protect whistleblowers. A RLA proceeding can only rule on the merits of the underlying collective bargaining agreement disciplinary charge. It can not and does not address whether the railroad acted unlawfully by retaliating for whistleblower activity protected by the FRSA. The final result of a RLA proceeding is not based on any finding of whistleblower retaliation.

SUBSECTION (f) MUST BE HARMONIZED WITH SUBSECTIONS (g) and (h)

The United States Supreme Court has stressed time and again that statutory construction is a "holistic endeavor." The language of a statute only has meaning within the context of the broader statute, and courts "must not be guided by a single sentence or member of a sentence, but look to the provisions of the whole law, and to its object and policy." A statute's text must be examined in the context of the plain meaning of its related statutory provisions.

Here, there are three FRSA subsections that must be read together and harmonized: subsection (f) entitled Election of Remedies, subsection (g) entitled No Preemption, and subsection (h) entitled Rights Retained by Employee.

Subsection (g) states that "Nothing in this section preempts or diminishes any other safeguards against discrimination, demotion, discharge, suspension, threats, harassment, reprimand, retaliation, or any other manner of discrimination provided by Federal or State law." The phrase "nothing in this section" means the entire FRSA section and all its subsections. "Nothing in this section" means nothing in subsection (f) can be used to preempt or diminish such safeguards. The Railway Labor Act is a federal law that contains such safeguards. Thus nothing in the FRSA can preempt or diminish an employee's safeguards under the Railway Labor Act. The text of (f) must be read in conjunction with (g). The two subsections must be harmonized so as to avoid a fatal conflict that cancels out one or both subsections. Read together, those two subsections lead to the unavoidable conclusion that the FRSA operates in addition to the RLA, not in place of it. The protections of the FRSA are in addition to the safeguards of the RLA. The two federal statutes are like two locomotives that each operate on their own parallel separate track, co-existing rather than competing to occupy the same single track.

This interpretation is reinforced by the language of subsection (h): "Nothing in this section shall be deemed to diminish the rights, privileges, or remedies of any employee under any Federal of State law or under any collective bargaining agreement." Again, the phrase "nothing is this section" is all-inclusive and unlimited in scope. Its plain meaning must be applied to every subsection within the FRSA. And subsection (h) plainly states that nothing in the FRSA shall be deemed to diminish the remedies of any employee under the Railway Labor Act or any collective bargaining agreement. This is in fact the only place where the word "remedies" appears in the actual text of the FRSA. And it is used in the context of a sweeping declaration that nothing in the FRSA shall be interpreted to diminish the remedies of any employee under the Railway Labor Act.

The language of subsection (f) must be read in light of the transcendent "nothing in this section" language of subsections (g) and (h). The meaning of (g) and (h) is plain: subsection (f) cannot be interpreted to diminish any employee's rights and remedies under the Railway Labor Act. The FRSA's protection against whistleblower retaliation exists in addition to the collective bargaining remedies available to an employee under the RLA. That interpretation harmonizes the plain meaning of all three subsections. The railroads' baseless interpretation of subsection (f) improperly ignores the force and effect of subsections (g) and (h) and relegates them to dead letters.

NO DOUBLE RECOVERY OF REMEDIES

This interpretation of the FRSA's election of remedies subsection--namely that at most it only requires an election between whistleblower protection statutes--is consistent with OSHA's handling of FRSA complaints and with the harmonization of subsections (g) and (h). It also does not lead to any double recoveries. That is because the remedies listed by the FRSA are tailored to the practical reality of an employee's condition. The FRSA generally states that a prevailing employee "shall be entitled to all relief necessary to make the employee whole." 49 U.S.C. 20109(e)(1). If reinstatement is not needed or already has been accomplished, then it is not required under the FRSA. And if there is no back pay to be awarded or if the employee already has been made whole, then there is no double recovery for that remedy. The Railway Labor Act does not provide any remedy for compensatory damages or for punitive damages, so no double recovery is possible there. Because the FRSA exists in addition to--instead of in place of--the RLA, and because the flexible relief under the FRSA is tailored to each employee's individual situation, double recovery is easily avoided.

 

New FRSA Amendment Protecting Medical Treatment Alters the Balance of Power

 The FRSA (Federal Railroad Safety Act, 49 USC 20109) just keeps getting better and better. The FRSA is now amended to provide that:

A railroad may not deny, delay, or interfere with the medical treatment of an employee who is injured during the course of employment. In particular, a railroad may not discipline or threaten to discipline an employee for following the orders or treatment plan of a treating physician. (The full text of this amendment is available after the jump).

This is a fundamental shift in the balance of power between rail management and rail labor. Think about it. Up to now, whenever an employee reports a FELA on-the-job injury, railroads like Metro North, LIRR, New Jersey Transit, Massachusetts Bay Commuter Railroad, and Amtrak order the injured employee to travel long distances to the railroad's medical facility, even if such travel violates the treatment plan of the employee's treating doctors. Once there, the employee is given a perfunctory lookover by a non-physician and sent back home. This is a form of harassment designed to discourage employees from reporting injuries in the first place. And if the employee follows his doctor's orders and stays home, the railroad charges the employee with insubordination and disciplines him, up to and including firing.

Here's a recent example. True story, I'm not making this up. An injured employee in Connecticut was ordered to report immediately to the Metro North medical facility in Grand Central Terminal. His treating doctor faxed down a note confirming that his patient required three days of bed rest. Metro North refused to accept the note because, and I quote, "It doesn't say that you can't travel on a train" (apparently Metro North now allows beds in its commuter trains). Metro North told the employee he is not excused from the appointment and "You will be disciplined if up don't show up."

Well, railroads can no longer play that game. The FRSA now prohibits a railroad from disciplining an employee for following the orders or treatment plan of his treating doctor. So when an employee has a note from his doctor stating he can not travel, the railroad can not force him to travel to its medical facility. Or if the treating doctor says no light duty, the railroad can not force the employee to work light duty. Or if the treating doctor says his patient needs more treatment before returning to work, the railroad can not force him back to work. 

Another form of abuse is when railroads routinely "deny, delay, and interfere with an injured employee's medical treatment" by arbitrarily declaring his on-the-job injury "non-occupational." This means the railroad will not pay for the medical treatment prescribed by the employee's treating doctor. This forces the employee to try to have his regular medical insurance pay for his treatment, but such insurance is not supposed to cover on-the-job injury medical expenses. Many medical insurance plans limit the doctors you can see, and all require various out-of-pocket co-payments. As a result, this inevitably denies, delays, or interferes with the employee's medical treatment. And the railroad improperly evades payment of the medical expenses by placing it on the backs of the insurance company and the employee.

Metro North Railroad is notorious for this abuse, and in fact the Metro North Labor Council has been investigating this arguably fraudulent conduct by the Railroad for some time. Now, railroads like Metro North will be sued under the FRSA whenever they declare an on-the-job FELA injury to be "non-occupational," with the prospect of punitive damages up to $250,000 for each occurrence.

There is more to this powerful amendment to the FRSA (keep tuned, details to follow). But one thing is clear: in the eternal struggle between rail labor and management, the balance of power has now shifted over to labor's side when it comes to controlling the course of an employee's medical treatment. Start spreading the word so labor can enforce its new won rights to the fullest extent allowed by law. 

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The Inside Story on the FRSA's First Punitive Damages Order

Last month, the first reported Order imposing punitive damages against a railroad for violating the FRSA anti-retaliation law came to light. It concerned retaliatory conduct by Amtrak in Seattle, but the OSHA Whistleblower Office Press Release announcing the Order provided few details about what actually happened.

Well, my curiosity was piqued. I managed to get my hands on OSHA's Findings and Final Investigation Report, and the details are very telling.

The employee was working in the King Street Station in Seattle. In the rail yard north of Holgate Street she stepped off a platform onto a parking area that was not properly maintained (potholes, uneven ground, rocks) and twisted her left ankle on a rock. She reported the injury to her supervisor, who saw her swollen ankle, and she booked off injured. Amtrak immediately charged her with violating the usual vague all-encompassing "safety" rules (including Amtrak's "Standards of Excellence," whatever that is), and held a disciplinary hearing. Initially she was fired, but that was reduced to a 30 day suspension without pay.

The employee filed a FRSA retaliation complaint, and OSHA Whistleblower's office investigated. OSHA found Amtrak's managers had "a mind-set that employees are always at fault when they are injured on the job" and "engaged in intimidation by assessing severe punishment against employees who report injuries, which sends a chilling effect to all employees not to report injuries for fear of losing their employment." OSHA ordered Amtrak: to pay the employee her back wages along with punitive damages; to expunge the discipline from her file; and to not retaliate or discriminate against her in any manner in the future.

To me, the most remarkable thing about this case is how typical the scenario is: an employee reports a FELA on-the-job injury, and the railroad reacts by filing bogus disciplinary charges against the employee. This happens every day on railroads all over the country. The fact punitive damages were ordered for such a common situation bodes ill for railroads like Metro North, the LIRR, NJ Transit, MBCR, Amtrak, and CSX where the management culture encourages such knee jerk disciplinary retaliation against employees who report injuries. The FRSA is designed to change that culture by enforcing the free and unfettered reporting of injuries. And punitive damages are the hammer that will force such a cultural change. So railroad managers beware: you now are on notice that trying to discipline an employee who reports a railroad injury will put you squarely in the crosshairs of a FRSA punitive damage action.

Railroad Workers Gain New Protection Against Retaliation For Injuries


As the saying goes, knowledge is power. Here's an amazing new law that every rail worker should know about. The Federal Railroad Safety Act (FRSA), 29 U.S.C. Section 20109, hands employees a shield and a sword to fight back against rail managers who heretofore have retaliated against workers with impunity.

The FRSA prohibits retaliation whenever employees engage in certain "protected activity." For example, when a worker reports an on-the-job injury or occupational illness, the railroad is now prohibited from discrimination or retaliating in any way against that worker. Now, if an employee reports his own or a co-workers on-the-job injury and then his railroad disciplines, reprimands, fires, lays off, demotes, intimidates, denies promotion or benefits, or in any other way retaliates against that employee, the employee can file a complaint with OSHA that ultimately can lead to a federal court jury award making the employee whole and awarding punitive damages of up to $250,000.

This is the first time that rail workers have had the potential to win punitive damages against their employer railroad. Punitive damages are designed to "send a message" to a defendants by punishing them for a pattern of unaccepatable conduct. When a railroad retaliates against employees who report injuries on a system-wide basis, this new FRSA law allows juries to impose punitive damages that will discourage the railroad from continuing its course of retaliatory conduct.

There is a very short window of days within which employees can file their initial OSHA complaint: 180 days from the time the railroad indicates a desire or intent to discipline the employee. For example, this means 180 days from the date a railroad notifies a worker that it will be conducting a disciplinary hearing or trial. Failure to file the OSHA complaint within that 180 days is fatal to the worker's claim.

When an employee invokes this new law, it is as if he dons a suit of armor against any future retaliation. It protects him against any future attempt by his railroad supervisors or managers to get back at him for filing the complaint. And his co-workers who talk to OSHA about the complaint also gain the same suit of armor protecting them from such future retaliation. This is true even if the original OSHA complaint does not result in any formal action against the railroad. It is true even if the worker's injury does not qualify as a FELA injury. So this really is a game changing law that helps level the playing field for rail workers, and every employee should be familiar with it.