Beware—Proceed Cautiously—What the Missouri Employer Should Know About the Service Letter Statute and Defamation

Purpose of Statute

Missouri law protects the right of a discharged employee to request and receive an accurate service letter from his or her former employer. Section 290.140 of the Revised Statutes of Missouri was enacted to deter employers from damaging the employability of former employees by furnishing false or misleading information as to their service or false reasons for their discharge. Ryburn v. General Heating & Cooling, Co., 887 S.W.2d 604 (Mo. App. 1994).

Eligibility of Employee for Service Letter

If an individual is employed for at least ninety days by an employer with at least seven employees, he has the right, within one year from the date of discharge, to request a service letter from the former employer. R.S. Mo. § 290.140.1. The request must be made in writing and sent to the superintendent, manager, or registered agent (the “Agent”) of the former employer via certified mail, and must specifically reference Section 290.140 R.S. Mo.

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Two Bites at the Apple for Employees: Mandatory Arbitration Agreements

On January 15, 2002, the Supreme Court struck a blow to the strong federal policy favoring arbitration. It held that mandatory arbitration agreements do not foreclose or trump the Equal Employment Opportunity Commission‘s absolute right to seek victim specific relief (back pay, reinstatement, and punitive damages) on behalf of an employee in federal court.

Approximately ten percent of all employees sign mandatory arbitration agreements, which require them to bring all on-the-job disputes to binding arbitration and give up their right to sue in court. These types of agreements are increasingly more popular, and every day it seems a major employer announces that it is requiring employees to sign such agreements. Mandatory arbitration gives many benefits to employers including a reduction of overall litigation costs and settlement amounts. Employers also increasingly look to arbitration as a way of ensuring finality. However, the Supreme Court firmly rejected the notion that arbitration will solve all employment ills.

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Protecting Your Company’s Intellectual Property from Predation by Employees and Independent Contractors

The success of a company in the technology sector is largely dependent upon its intellectual property, which, in turn, is derived from investment in human capital. It is the company’s employees (as used herein, the term “employee” will include independent contractors and contract employees) who develop software, invent new products or techniques, and generate other types of trade secrets and confidential information. Today, because employees are more mobile than ever, it is extremely important that businesses take precautions to keep their intellectual property from being utilized by an employee who goes to work for a competitor.

Patent and copyright law provide an entrepreneur some rights in relation to employees involved in developing patented or copyrighted material. Additionally, an entrepreneur has some common law rights in its trade secrets and confidential information. However, in order for a business to fully protect its interests in intellectual property developed and utilized by it, it is important to implement written agreements
that specifically address the rights of the business and its employees relative to such inventions and information.

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Employer’s Liability for Sexual Harassment by Supervisors

Charges of Sexual Harassment Are a Small Business Nightmare – Statistics Bare This Out.

Last year, 15,222 charges of sexual harassment were filed with the EEOC and state FEPA’s with which the EEOC has work sharing agreements – 12.1% of them by males.

Last year, charging parties recovered some $50.3 million dollars through resolution of sexual harassment charges by these agencies. This does not include amounts received through litigation.

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Employment Manuals: An Ounce of Prevention

In few areas are employers more heavily regulated than in their employment relationships. At the federal level, such regulation includes: the Fair Labor Standards Act, the National Labor Relations Act, the Immigration Reform and Control Act of 1986, the Rehabilitation Act of 1973, the Americans with Disabilities Act, the Family and Medical Leave Act, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act, the Employee Retirement Income Security Act, and executive orders applicable to federal government contractors. At the local level, state common law and numerous statutes, regulations and ordinances affect virtually every aspect of the employment relationship, and in some cases, impose pre- and post employment obligations.

Some employers attempt to navigate this regulatory minefield without clearly defined written policies and procedures that take into account the federal, state and local laws applicable to their operations. The larger the employer, or the more jurisdictions encompassed by its operations, the more hazardous this becomes.

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