As we have discussed on our blog, the National Labor Relations Board (NLRB) has continued a campaign of enforcement actions against employers who, according to the NLRB, have unlawfully terminated employees for discussing working conditions on social media. As we reported, in the first of such "Facebook" enforcement actions to come before an NLRB administrative judge, the employer was ordered to reinstate five employees and to pay back their wages.On September 28, 2011, in the second "Facebook" case to reach an NLRB administrative judge, an employer was found to have been justified in terminating an employee car salesman for Facebook postings that mocked the employer and did not concern working conditions
On August 18, 2011, the Associate General Counsel of the National Labor Relations Board ("NLRB" or the "Board") issued a report analyzing the Board's recent social media enforcement actions. The report seeks to provide guidance to employers that want to ensure that their social media policies appropriately balance employee rights and company interests.
Banks and other financial institutions face unique issues when it comes to the use of social media. Faced with conflicts between social media platform rules, customer expectations, self-regulatory standards, and the strict regulations that govern the industry, guidance has been needed. The industry received some of that guidance recently through a whitepaper issued by BITS, the technology arm of The Financial Services Roundtable whose members are 100 of the largest financial institutions in the U.S.The report addresses the compliance, legal, operational, and reputational risks - and related mitigation strategies - of using social media in connection with a financial or banking operation. Regarding compliance, the report discusses the myriad of compliance areas relevant to banks, including marketing, privacy and security. For example, because social media web sites and web activities are deemed advertising by regulators, the report warns of the risks of failing to comply with various marketing laws and regulations applicable to the banking industry, including state Unfair and Deceptive Acts or Practices Acts and Prize and Gift Acts, as well as others that require additional steps for financial institutions, such as Truth in Lending, Truth in Savings, and FDIC membership rules. The paper predicts even stronger and more subjective requirements to come under the Dodd-Frank Wall Street Reform and Consumer Protection Act. Risks of non-compliance vary widely - from litigation and reputation risk, regulatory enforcement actions and in some cases civil money penalties.
We previously reported on our blog that a Connecticut ambulance company settled the National Labor Relations Board's (NLRB's) allegations that the company violated an employee's federal rights by firing her for criticizing a manager on Facebook. The NLRB continues its enforcement blitz with another Facebook firing complaint.
Yesterday we wrote on our blog about the NLRB's Facebook firing settlement. I was interviewed on Fox Live this morning about the case, its implications for employees and businesses, and other developments in workplace privacy. You can view the clip at http://video.foxnews.com/v/4531424/facebook-firing-case-settlement/?playlist_id=87937
The National Labor Relations Board (NLRB) has announced that settlement has been reached in the closely watched Facebook firing suit brought by the agency.We have previously reported on our blog that the NLRB filed an administrative complaint against a Connecticut ambulance company alleging that the company violated an employee's federal rights by firing her for criticizing a manager on Facebook. In the complaint, the NLRB took the position that union and non-union employees have a right to criticize their employers, management or working conditions, and cannot be punished for engaging in such protected activity. The NLRB also alleged that the company maintained overly-broad rules in its employee handbook regarding blogging, Internet posting, and communications between employees. The complaint asserted that an employee's right to criticize the employer and management is an extension of the federal right to discuss unionization and form unions.
2010 arguably was a breakout year for consumer privacy in the U.S., but the year also brought about significant changes to the legal landscape of employee privacy. Federal and state court decisions, state legislation and agency actions suggest that the U.S. may be moving towards a greater level of privacy protection for employees. Employers are well-advised to consider these developments in reviewing and revising policies that affect the privacy of their employees.