Act Prohibits Credit Agency From Giving Employer Data
Q I have been a manager with my current employer over 10 years and am one of the highest in both position and salary. I have just become aware that my employer has recently checked my credit. I have not applied for any credit in the past few years, not even a credit card. I have no debts to speak of, and have given no one any reason, suspicion or authorization to violate my privacy in this manner. I have not asked my employer for any type of credit.
Is my employer’s action legal? Under what circumstances may such inquiries be made? Do I have any recourse?
--[Name withheld], Irvine
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A Assuming that you did not sign a written consent to have the information released to your employer, the California Information Practices Act prohibits a credit agency from providing financial information concerning you to your employer.
Under that act, you have a right to sue the agency to recover any actual damages that you have sustained from the release of your information to your employer, plus your attorneys’ fees and costs.
But before you take action, I would suggest that you try to clarify with your employer why the information was sought, and whether there are any concerns you can address. It may be more important to protect your job than to battle with the credit agency.
--Michael A. Hood
Employment law attorney
Paul, Hastings, Janofsky & Walker
To Be a Whistle-Blower or Not?
Q I am a shareholder and employee of a small publicly traded company. Essentially, the chief executive officer of the company is running the company for his personal benefit. He tries to boost the stock price temporarily with misleading financial information. He is also paying himself an excessive salary and running his personal expenses through the company.
As a minority shareholder, how do I protect myself besides selling the shares? Does the Securities and Exchange Commission set out guidelines for the conduct of a CEO? How does the “whistle-blowing” protection work for an employee?
--P.C., Irvine
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A You face a common whistle-blower’s dilemma. If you try to prevent improprieties or illegalities in the workplace, you may suffer adverse consequences.
It certainly appears the CEO of your company is violating the law. Intentionally misleading others with financial information may be a violation of SEC criminal and civil laws as well as fraud against shareholders.
If actual illegalities are occurring, or if you reasonably believe they are occurring, the executive or the company cannot retaliate against you for blowing the whistle. You will have legal recourse against them for all of your damages plus other penalties if they do.
You owe a duty to all of the shareholders to provide them with accurate information. You can either resign or adequately inform the other shareholders or directors of his improper actions. Indeed, you may have personal liability for the executive’s acts if you are an officer of the company. If you are not an officer, you can make a claim as a minority shareholder on behalf of all of the shareholders.
I would suggest that you initially advise the executive of the improprieties in writing. Keep a copy of your letter at home. Keep a journal of any harassment or retaliation that happens after that date. Consider gathering evidence that documents the illegalities.
Even though whistle-blowing protection laws can be effective, keep in mind that the “atmosphere” at the company will never be the same. The executive may not take the ultimate step of firing you, but he will probably resort to more subtle acts of harassment over a longer period of time to encourage you to quit.
If you ever lose your job, monitor what your former boss is saying about you to prospective employers. There are criminal penalties and triple damages that can be imposed for blacklisting you.
--Don D. Sessions
Employee rights attorney
Mission Viejo
When Sexual Harassment Is Alleged
Q I was recently accused of sexual harassment by a woman who works in my department. I have never harassed her in my life. In fact, I did everything I could to try to help her career. She was completely unreceptive to my suggestions for improvement, though, and I could see that she was going to develop into a problem. I think she understood that she was not cutting it, and is now using a bogus sexual harassment claim to keep from being fired.
Do I have any rights in this process? I have a family and a career, and now both could be in jeopardy because of these false accusations. I do not want to sit on the sidelines and watch my life get ruined while my employer treats her as if she has a valid grievance.
--[Name withheld], Irvine
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A There is no question that those who are accused of sexual harassment are put in a difficult position, both personally and professionally. When the accusations of harassment are unfounded, the hardship is particularly unjust.
As a legal matter, you do have rights. You have the right to have your privacy respected as much as is reasonably feasible. If your employer conducts an investigation, it should be as confidential as possible. Clearly, however, those with whom you work will likely know that an investigation is going on, and may even know that you are the subject of the investigation.
You also have the right not to be defamed. Allegations of sexual harassment can harm your personal and professional reputation. If the allegations are untrue, you may, depending on the circumstances, be able to bring a defamation lawsuit against the woman alleging harassment. Recognize, however, that unless she has filed a lawsuit against you alleging sexual harassment, bringing a lawsuit against her may simply fan the flames.
If she does file a lawsuit alleging sexual harassment and naming you individually as a defendant, your employer should provide for your defense.
You should also recognize that when your employer questions you about the allegations and/or reminds you of its policy against harassment, it is doing so because the law requires it to take all complaints of harassment seriously. It does not mean that your employer has prejudged you to be guilty.
--Josephine Staton Tucker
Employment law attorney
Morrison & Foerster
Do you have a question about an on-the-job situation? If so, please mail it to Shop Talk, Los Angeles Times, P.O. Box 2008, Costa Mesa, CA 92626; call (714) 966-7873 and leave a message, or send e-mail to shoptalk@latimes.com. Include your initials and hometown.
The Shop Talk column is designed to answer questions of general interest. It should not be construed as legal advice.
