August 15, 2024

Understanding Retaliation Claims: A Case Study

In the recent case DOL v. Bevins & Son, Inc., et., al., a Vermont court addressed allegations of unlawful retaliation against employees who received back wages after a settlement with the Department of Labor (DOL). The outcome provides valuable insights for all employers on how to avoid retaliation claims and ensuring compliance with labor laws. 

Bevins & Son, a Vermont-based construction and excavation business, faced allegations of retaliating against employees who participated in a DOL investigation. The DOL investigation was initiated after an employee, Riley Bockus (Bockus), complained about unpaid overtime. Following the investigation, Bevins & Son agreed to pay back wages and damages to several employees, including Bockus. 

Key Allegations: 

  1. Retaliatory Termination: Employee Bockus was terminated after threatening to report unpaid overtime to the labor board or the DOL. After his termination, Bockus promptly filed a complaint with the DOL’s Wage and Hour Division (WHD).  
  2. Public Disparagement: After an investigation and subsequent settlement, the DOL issued a press release stating that Bevins & Son terminated a worker for asking to be paid in compliance with the Fair Labor Standards Act (FLSA). The release generally described the terms of the settlement and did not name any workers. The release was picked up by a local news station which aired a TV news segment and published an online story concerning the DOL’s investigation. Neither story mentioned any employee names.  

Shortly thereafter, Bevins & Son’s company secretary/treasurer, posted on Facebook, referencing the newscast and urging people to “please google the disgruntled employee whom [sic] was fired and contributed to the story Riley Bockus (his word and character will be seen).” This post led to multiple public comments including one that revealed Bockus’ prior criminal history.i 

  1. Misleading Statements: Bevins & Son’s company president, also publicly claimed on Facebook that employees had returned the settlement money to him, implying that the settlement was unnecessary. 

In denying the company’s motion to dismiss, the court emphasized that defendant Bevins & Son’s actions could be seen as retaliatory under the FLSA, which protects employees from discrimination for participating in protected activities, such as filing complaints or participating in investigations. 

What Does it Mean? 

The Bevins & Son case emphasizes the importance of understanding and respecting employees’ rights under labor laws, particularly the FLSA. The case also highlights the serious consequences of voicing employment-related opinions on social media. 

Here are four key takeaways: 

  1. Avoid Retaliation: Employers should refrain from any form of retaliation against employees who exercise their rights under labor laws. This includes not only adverse employment actions like termination but also public disparagement via social media or any action that could harm the employee’s reputation or future employment prospects. 
  2. Respect Confidentiality: Employers should respect the confidentiality of employee complaints and settlements. As evidenced by the Bevins & Son case, publicly discussing these matters can be seen as retaliatory and lead to serious legal issues.
  3. Provide Training: Employers should provide regular training to company leadership, managers and supervisors on labor laws and the risks of discussing work-related issues on social media. This can help prevent unintentional violations and foster a culture of compliance. 
  4. Establish Clear Policies: Employers should have clear policies and procedures in place for handling employee complaints, investigations, and settlements. This includes an anti-retaliation policy that is closely followed and encourages employees to report issues without fear of retaliation. 

By keeping these practices in mind, employers can help mitigate legal risks, foster a fair and compliant workplace, and maintain a positive employer-employee relationship.