Category Archives Issue 462

A federal court in Hawaii has dismissed in part a complaint filed by the Equal Employment Opportunity Commission (EEOC) against farmers and a recruiting company that allegedly mistreated Thai workers. EEOC v. Global Horizons, Inc., No. 11-00257  (D. Hawaii, decided November 8, 2012). The court granted the motion to dismiss “insofar as the Court holds that a 300-day limitations period applies to claims brought by Plaintiff under 42 U.S.C. § 2000e-6” relating to allegations of pattern or practice of discriminatory treatment because of national origin, race, retaliation, and/or constructive discharge. The remainder of the claims, to the extent they did not involve unlawful employment practices allegedly occurring more than 300 days before a charge was filed with EEOC, are not time-barred and will proceed. EEOC alleges that defendant Global Horizon promised Thai men temporary visas to work high-paying agricultural jobs in the United States, but took their passports, provided substandard housing…

A federal court in California has dismissed putative class claims filed against H.J. Heinz Co. LP by a factory worker alleging that the company denied employees full wages by improperly rounding their time records while also purportedly penalizing and disciplining workers for “clocking in past scheduled start times or clocking out before scheduled end times.” Mendez v. H.J. Heinz Co., L.P., No. 12-5652 (C.D. Cal., decided November 13, 2012). The plaintiff sought to represent putative statewide and nationwide Fair Labor Standards Act (FLSA) classes and alleged violations of the California Labor Code—failure to pay all wages, failure to pay minimum wages owed, failure to timely pay wages at separation, failure to provide accurate wage statements—and violation of the California Business and Professions Code. He also asserted a claim for violation of the FLSA on behalf of the nationwide class. The court agreed with the defendants that the plaintiff failed to…

The First Circuit Court of Appeals has determined, as a matter of first impression, that Starbucks Corp. violated a Massachusetts law prohibiting restaurant tips to be shared with employees who have managerial responsibilities, because the “upscale coffee house” chain allowed tips collected in tip jars by the cash registers of its Massachusetts shops to be shared by shift supervisors and baristas. Matamoros v. Starbucks Corp., Nos. 12-1189, -1277 (1st Cir., decided November 9, 2012). Massachusetts apparently amended a tip-sharing law in 2004. Under the earlier version, the courts applied a “primary duty” test to decide whether an employee could participate in a tips pool—if the primary duty was to serve customers, he could participate; if the primary duty was to manage, she was ineligible. After amendment, the legislature clearly defined a “wait staff employee” as someone, among other matters, “who has no managerial responsibility.” The court agreed with the plaintiffs…

The Los Angeles City Council has reportedly approved a resolution endorsing the international “meatless Mondays” campaign, which aims to reduce meat consumption for health and environmental reasons. According to news sources, in a unanimous 12–0 vote, the council approved the resolution endorsing the campaign and encouraging residents to give up meat for one day a week. The resolution apparently makes Los Angeles the largest city to adopt the campaign started in 2003 in conjunction with the Johns Hopkins Bloomberg School of Public Health. Other U.S. cities that have reportedly endorsed meatless Mondays include Washington, D.C., San Francisco and Raleigh, N.C. Introduced by Councilwoman Jan Perry and Councilman Ed Reyes, the resolution cites statistics showing that more than one half of Los Angeles County residents are overweight. The campaign claims that cutting meat consumption can reduce the risk of cancer, heart disease, diabetes, and obesity. See The Los Angeles Times, November 12,…

The Irish food and drink industry has reportedly rejected government proposals to impose a sugar tax on soft or “fizzy” drinks, calling the tax a “discriminatory” measure that “would have no health benefits and would further hit already hard-pressed Irish consumers.” Commenting on the issue, Food and Drink Industry Ireland (FDII) cited the “fat tax” initiative in Denmark that was reversed this week after authorities found it did not change consumer behavior but instead led to higher inflation and an increase in cross-border shopping. As FDII Director Paul Kelly explained, “Fiscal measures specifically aimed at altering behavior are complex to design and can be highly unpredictable. Ireland already imposes high taxes on many foods. While most foods are exempt from VAT, the standard rate of 23% applies to confectionery items like sweets, chocolate, crisps, ice-cream and soft drinks. An additional tax on sugar or soft drinks would leave Irish consumers…

France’s National Assembly has reportedly rejected a proposed tax on palm oil that appeared to be a go earlier in the week. On November 12, 2012, the French Senate voted 186-155 against the so-called “Nutella tax,” which aimed to impose a 300 percent tax on palm oil, a key ingredient in the beloved hazelnut-chocolate spread that is high in saturated fats. Arguing that palm oil poses a threat to public health, lawmakers initially proposed the measure as part of a larger bill focused on financing the national health care system and encouraging manufacturers to use healthier alternatives. According to news sources, Nutella® is 20 percent palm oil, so had the tax passed, the price of the popular spread would have likely increased by about 0.06 Euros per kilo, or about three-and-one-third cents per pound. But the anticipated price increase apparently upset French consumers, who have traditionally been among Nutella’s® most…

Danish lawmakers have killed a controversial “fat tax” one year after its implementation, finding that the tax’s negative effect on the economy and small businesses far outweighed any health benefits. According to news sources, nations such as Germany, Switzerland and the United Kingdom have held up the tax, which applies to foods containing more than 2.3 percent saturated fat, as a potential model for addressing obesity and other health concerns. But in Denmark, the tax has become a source of pain for consumers, food producers and retailers as the nation’s economy struggles. The Danish tax ministry has evidently said that fat and sugar taxes have drawn criticism for increasing prices for consumers and companies alike, and putting Danish jobs at risk, as well as for encouraging Danes to travel across the border to buy cheaper foods. As the tax ministry thus stated, “The suggestions to tax foods for public health…

The Food and Drug Administration (FDA) has issued a notice about a new system of records involving information collected from those required to submit user fees to the agency. The notice outlines the types of information collected relating to fees assessed under the Freedom of Information Act, Animal Drug User Fee Act, Animal Generic Drug User Fee Act, and Food Safety Modernization Act, among others. The notice also pertains to fees assessed under the authority of the Federal Food, Drug, and Cosmetic Act, such as “color additive certification fees and export certificate fees.” According to FDA, this information is unclassified and can be used for “routine purposes,” a term that FDA further elaborates in the notice. As FDA notes, “[t]he Privacy Act allows FDA to disclose information without an individual’s consent if the information is to be used for a purpose that is compatible with the purpose(s) for which the…

The U.S. Senate has approved a bill (S. 743), as amended by the House, that will strengthen whistleblower protections applicable to federal employees. According to the Government Accountability Project’s Food Integrity Campaign, the new legislation, if signed into law as expected by President Barack Obama (D), will protect previously vulnerable employees, such as a Food Safety and Inspection Service (FSIS) district office manager who reports complaints by FSIS poultry inspectors that a company has increased line speeds making it impossible for workers to remove all potentially contaminated fowl from the line. The new law would also protect a Food and Drug Administration (FDA) inspector who exposes falsified Salmonella records at a produce operation and an FDA researcher whose findings on a controversial food ingredient are stifled by management. See Food Integrity Campaign News Release, November 13, 2012; FoodQualityNews.com and Meatingplace.com, November 15, 2012.

Senators Dick Durbin (D-Ill.) and Richard Blumenthal (D-Conn.) have reportedly called for a meeting with Food and Drug Administration (FDA) Commissioner Margaret Hamburg after reports surfaced that the agency has received adverse event reports indicating that the caffeinated energy supplement 5-Hour Energy® may have been linked to the deaths of 13 people in the past four years. The product has apparently been mentioned in 90 filings submitted to the agency; the reports include more than 30 that purportedly involved serious injuries such as heart attacks, convulsions and a spontaneous abortion. The senators have questioned the safety of energy drinks in three letters to the agency in recent months; their latest letter states, “[W]e request a meeting with you on the steps FDA is taking regarding highly caffeinated energy drinks and to ensure they are safe for their intended use and in combination with other energy drink ingredients.” The senators also…

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