1 of 1 HOUSE DOCKET, NO. 974 FILED ON: 1/17/2023 HOUSE . . . . . . . . . . . . . . . No. 3597 The Commonwealth of Massachusetts _________________ PRESENTED BY: David Henry Argosky LeBoeuf _________________ To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General Court assembled: The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: An Act to guarantee just cause job security. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :DATE ADDED:David Henry Argosky LeBoeuf17th Worcester1/17/2023 1 of 19 HOUSE DOCKET, NO. 974 FILED ON: 1/17/2023 HOUSE . . . . . . . . . . . . . . . No. 3597 By Representative LeBoeuf of Worcester, a petition (accompanied by bill, House, No. 3597) of David Henry Argosky LeBoeuf relative to protecting employees from discharges from employment except for just cause. Labor and Workforce Development. The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Third General Court (2023-2024) _______________ An Act to guarantee just cause job security. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows: 1 SECTION 1. Section 1 of chapter 149 of the General Laws, as appearing in the 2020 2Official Edition, is hereby amended by striking out, in lines 32 and 40, each time it appears, the 3word “shall” and inserting in place thereof, in each instance, the following words:- and section 4105E shall. 5 SECTION 2. Said chapter 149 is hereby further amended by inserting after section 105D 6the following section:- 7 Section 105E. (a) As used in this section the following words, unless a different meaning 8is required by the context or is specifically prescribed, shall have the following meanings: 9 “Biometric data”, a physiological, biological or behavioral characteristic, including but 10not limited to an iris scan, fingerprint, a hand scan, voiceprint and thermal or facial 11characteristics that can be used alone or in combination with each other, or with other 12information, to establish individual identity. 2 of 19 13 “Biometric technology” either or both of the following: (i) a process or system that 14captures biometric data of an individual or individuals; (ii) a process or system that can assist in 15verifying or identifying an individual or individuals based on biometric data. 16 “Bona fide economic reason” the full or partial closing of operations or technological or 17organizational changes to the business in response to a reduction in volume of production, sales 18or profit of 15 per cent or more over a period of 2 quarters either at the establishment where the 19discharge is to occur or across all establishments owned by the employer in within the 20commonwealth, but shall not include elimination of staff redundancy created by a merger or 21acquisition. 22 “Bona fide labor organization” a labor union (i) in which officers have been elected by 23secret ballot or otherwise in a manner consistent with federal law; and (ii) that is free of 24domination or interference by any employer and has received no improper assistance or support 25from any employer. 26 “Designated community group” a not-for-profit organization or bona fide labor 27organization that has the capacity to conduct worker outreach, engagement, education and 28information provision, as determined by the commissioner. 29 “Discharge” any cessation of employment, including layoff, termination, constructive 30discharge, reduction in hours and indefinite suspension. 31 “Electronic monitoring” the collection of information concerning employee activities, 32communications, actions, biometrics or behaviors by electronic means including, but not limited 33to, video or audio surveillance, electronic employee work speed data and other means. 3 of 19 34 “Employee work speed data” information an employer collects, stores, analyzes or 35interprets relating to an individual employee’s or group of employees’ pace of work, including, 36but not limited to, quantities of tasks performed, quantities of items or materials handled or 37produced, rates or speeds of tasks performed, measurements or metrics of employee performance 38in relation to a quota and time categorized as performing tasks or not performing tasks. 39Notwithstanding the preceding sentence, it does not include qualitative performance assessments, 40personnel records or itemized wage statements, except for any content of those records that 41includes employee work speed data. 42 “Employer” shall have the meaning ascribed to it by section 1 except that where an 43employee is employed by a staffing services agency to perform work for a third party client 44within the third party client’s usual course of business, both the staffing services agency and the 45third party client shall be jointly and severally responsible for compliance with the requirements 46of this subchapter. 47 “Geofencing technologies” the use of global positioning system or radio frequency 48identification technology to create a virtual geographic boundary, enabling software to trigger a 49response when a device enters or leaves a particular area. 50 “Just cause” the employee’s failure to satisfactorily perform job duties or to misconduct 51that is demonstrably and materially harmful to the employer’s legitimate business interests. 52 “Probation period” a defined period of time, not to exceed 30 days from the first date of 53work of an employee, within which employers and employees are not subject to the prohibition 54on wrongful discharge set forth in this section. 4 of 19 55 “Progressive discipline” a disciplinary system that provides for a graduated range of 56reasonable responses to an employee’s failure to satisfactorily perform such employee’s job 57duties, with the disciplinary measures ranging from mild to severe, depending on the frequency 58and degree of the failure. 59 “Reduction in hours” a reduction in an employee’s hours of work totaling at least 15 per 60cent of the employee’s regular schedule or 15 per cent of any weekly work schedule. 61 “Seniority” a ranking of employees based on length of service, computed from the first 62date of work, including any probationary period, unless such service has been interrupted by 63more than 6 months, in which case length of service shall be computed from the date that service 64resumed. An absence shall not be deemed an interruption of service if such absence was the 65result of military service, illness, educational leave, leave protected or afforded by law, or any 66discharge based on a bona fide economic reason or that is in violation of any local, state or 67federal law, including this section. 68 “Short-term position” employment pursuant to a written contract that specifies that the 69position is to end after a specified period of time, not to exceed 6 months, where the employer 70can show that the work or need in question is expected to end. 71 “Short-term educational position” employment with a specific educational purpose, 72pursuant to written contract that specifies that the position is to end after a specified period of 73time, not to exceed 3 years, where the employer can show that the position in question is 74expected to end. 75 “Staffing services agency” any employer engaged in the business of contracting 76employees to provide services, for a fee, to or for any third party client. 5 of 19 77 “Third party client” any person that contracts with a staffing services agency for 78obtaining employees. 79 (b) An employer shall not discharge an employee who has completed such employer’s 80probation period except for just cause or a bona fide economic reason. 81 (c) In determining whether an employee has been discharged for just cause, the fact- 82finder shall consider, in addition to any other relevant factors, whether: 83 1. The employee knew or should have known of the employer’s policy, rule, practice or 84performance standard that is the basis for progressive discipline or discharge; 85 2. The employer provided relevant and adequate training to the employee; 86 3. The employer’s policy, rule, practice or performance standard, including the utilization 87of progressive discipline, was reasonable and applied consistently; 88 4. The employer impermissibly relied on electronic monitoring; 89 5. The employer disciplined or discharged the employee based on that employee’s 90individual performance, irrespective of the performance of other employees; 91 6. The employer undertook a fair and objective investigation into the job performance or 92misconduct; and 93 7.The employee violated the policy, rule or practice, failed to meet the performance 94standard or committed the misconduct that is the basis for progressive discipline or discharge. 95 (d) Except where termination is for an egregious failure by the employee to perform their 96duties, or for egregious misconduct, a termination shall not be considered based on just cause 6 of 19 97unless (1) the employer has utilized progressive discipline; provided, however, that the employer 98may not rely on discipline issued more than one year before the purported just cause termination, 99and (2) the employer had a written policy on progressive discipline in effect at the workplace or 100job site and that was provided to the employee. Except where termination is for an egregious 101failure by the employee to perform their duties, or for egregious misconduct, an employer shall 102provide 14 days’ notice of any discharge for just cause or bona fide economic reason. Within 5 103days of such notice, the employer shall provide a written explanation to the employee of the 104precise reasons for their discharge including a copy of any materials, personnel records, data or 105assessments that the employer used to make the discharge decision. If the employer is relying on 106data collected through electronic monitoring to make the discharge decision, the employer shall 107also provide any aggregated data collected on employees performing the same or similar 108functions at the same establishment for the 6 months prior to the discharge in question. In 109determining whether an employer had just cause for discharge, the fact-finder may not consider 110any reasons proffered by the employer but not included in such written explanation provided to 111the employee. Where an employer fails to timely provide a written explanation to an employee, 112the discharge shall not be deemed to be based on just cause. 113 (e) The employer shall bear the burden of proving just cause or a bona fide economic 114reason by a preponderance of the evidence in any proceeding brought pursuant to this 115subchapter, subject to the rules of evidence as set forth in the civil practice law and rules or, 116where applicable, the common law. 117 (f) In any action or proceeding brought pursuant to this section, if an employer is found to 118have unlawfully discharged an employee in violation of this section the relief shall include an 119order to reinstate or restore the hours of the employee, unless waived by the employee, and, in 7 of 19 120any such proceeding where an employer is found to have unlawfully discharged an employee in 121violation of this section, the employer shall be ordered to pay the reasonable attorneys’ fees and 122costs of the employee. 123 (g) A discharge shall not be considered based on a bona fide economic reason unless 124supported by an employer’s business records showing that the closing, or technological or 125reorganizational changes are in response to a reduction in volume of production, sales or profit. 126 (h) Discharges of fast food employees based on bona fide economic reason shall be 127conducted in reverse order of seniority in the fast food establishment where the discharge is to 128occur, so that employees with the greatest seniority shall be retained the longest and reinstated or 129restored hours first. In accordance with this section, an employer shall make reasonable efforts to 130offer reinstatement or restoration of hours, as applicable, to any employee discharged based on a 131bona fide economic reason within the previous twelve months, if any, before the employer may 132offer or distribute shifts to other employees or hire any new employees. In accordance with this 133section, an employer shall make reasonable efforts to offer reinstatement or restoration of hours, 134as applicable, to any employee discharged based on a bona fide economic reason within the 135previous 12 months, if any, before the employer may offer or distribute shifts to other employees 136or hire any new employees. 137 (i) Employers may not rely on data collected through electronic monitoring in 138discharging or disciplining an employee unless the employer can establish before each use that 139(i) there is no other practical means of tracking or assessing employee performance; (ii) the 140employer is using the least invasive form of electronic monitoring available; and (iii) the 141employer previously provided notice to the employee of that monitoring as required by this 8 of 19 142section. Employers cannot establish the practical necessity for electronic monitoring without 143previously filing with the department an impartial evaluation from an independent auditor that 144said electronic monitoring is effective in undertaking its designated task. Employers who have 145established practical necessity for using data from electronic monitoring for tracking and 146assessing employee performance may not rely solely on such data but must also use other means 147of assessment such as manager observation or interviewing clients, customers or other 148employees to solicit feedback. Employers may use data gathered through electronic monitoring: 149 1. To record the beginning or end of a work shift, meal break or rest break; 150 2. For non-employment-related purposes; 151 3. To discharge or discipline an employee in cases of egregious misconduct or involving 152threats to the health or safety of other persons; or 153 4. Where required by state or federal law. 154 Employers may not use data for discipline or discharge if such data is gathered using 155biometric technologies, video or audio recordings within the private home of an employee, apps 156or software installed on personal devices or geofencing technologies. 157 When discharging or disciplining employees, employers may rely on electronic employee 158work speed data to determine whether an employee has met a quota, so long as it measures total 159output over an increment of time that is no shorter than one day. 160 Employers may not discipline or discharge an employee based on failure to meet a daily 161quota if the employee did not complete their entire shift. 9 of 19 162 Employers using electronic monitoring to measure increments of time within a day 163during which an employee is or is not meeting performance standards may not record or rely on 164such data in discharging 165 or disciplining an employee unless it is gathered during a periodic performance review 166and so long as the employee subject to the performance review has been given at least seven 167days advance notice of the exact timing of such review. 168 Such reviews can occur not more than once a quarter and can occur for a duration of time 169not longer than 3 hours. 170 An employer or agent thereof that is planning to electronically monitor an employee for 171the purposes of discipline or discharge shall provide the employee with notice that electronic 172monitoring will occur prior to conducting each specific form of electronic monitoring. Notice 173shall include, at a minimum, the following elements: 174 1. Whether the data gathered through electronic monitoring will be used to make or 175inform disciplinary or discharge decisions, and if so, the nature of that decision, including any 176associated benchmarks or performance standards; 177 2. Whether the data gathered through electronic monitoring will be used to assess 178employees’ productivity performance or to set productivity standards, and if so, how; 179 3. The names of any vendors conducting electronic monitoring on the employer’s behalf; 180 4. A description of the dates, times, and frequency that electronic monitoring will occur; 10 of 19 181 5. An explanation for why there is no other practical means of tracking or assessing 182employee performance and how the specific monitoring practice is the least invasive means 183available; 184 6. Notice of the employees’ right to access or correct the data; and 185 7. Notice of the administrative and judicial mechanisms available to challenge the use of 186electronic monitoring. 187 Notice of the specific form of electronic monitoring shall be clear and conspicuous. A 188notice that states electronic monitoring “may” take place or that the employer “reserves the 189right” to monitor shall not be considered clear and conspicuous. 190 An employer who engages in periodic electronic monitoring of employees for the 191purposes of discipline or discharge shall inform the affected employees of the specific events 192which are being monitored at the time the monitoring takes place. 193 Notice of periodic electronic monitoring may be given after electronic monitoring has 194occurred only if necessary to preserve the integrity of an investigation of illegal activity or 195protect the immediate safety of employees, customers or the public. 196 An employer shall provide additional notice to employees when an update or change is 197made to the electronic monitoring or in how the employer is using it. 198 Employers shall provide a copy of the disclosures required by this section to the 199department at the time they are required to be disseminated to employees. 11 of 19 200 (j) An employer shall ensure that any data collected through electronic monitoring that 201may be used for the purposes of discipline or discharge is accurate and, where relevant, kept up 202to date. 203 A current employee shall have the right to request a copy of employee work speed data 204that may be used for the purposes of discipline and termination at least once every seven days. 205 Employers using electronic monitoring to collect employee work speed data for the 206purposes of discipline or discharge must provide employees the opportunity to supplement that 207data to record any increments of time during which they are not performing work-related tasks 208and to record the reason that they are not performing work-related tasks during that time. Such 209opportunity must be made available to employees both at the time of data collection and after. 210 Employers must give employees the option to record reasons for not performing tasks 211that include, at a minimum, the following: using the bathroom, taking meal breaks, responding to 212an emergency, injury, illness, fear of injury, disability, complying with local, state or federal 213laws or exercising workplace rights under local, state or federal laws. 214 Employers using electronic monitoring to collect employee work speed data for the 215purposes of discipline or discharge must provide employees with the opportunity to review and 216request correction of such data both at the time of its collection and after. An employer that 217receives an employee request to correct inaccurate data that collected through electronic 218monitoring shall investigate and determine whether such data is inaccurate. 219 If an employer, upon investigation, determines that such data is inaccurate, the employer 220shall: 12 of 19 221 (i) Promptly correct the inaccurate data and inform the employee of the employer’s 222decision and action. 223 (ii) Review and adjust, as appropriate, any disciplinary or discharge decisions that were 224partially or solely based on the inaccurate data and inform the employee of the adjustment. 225 (iii) Inform any third parties with which the employer shared the inaccurate data, or from 226which the employer received the inaccurate data, and direct them to correct it, and provide the 227employee with a copy of such action. 228 If an employer, upon investigation, determines that the data is accurate, the employer 229shall inform the employee of the following: 230 (i) The decision not to amend the data. 231 (ii) The steps taken to verify the accuracy of the data and the evidence supporting the 232decision not to amend the data. 233 (k) On or after January 1, 2022, any person or organization representing persons alleging 234a violation of this subchapter by an employer may bring an arbitration proceeding. In addition, 235the department may, to the extent permitted by any applicable law including the civil practice 236law and rules, provide by rule for persons bringing such a proceeding to serve as a representative 237party on behalf of all members of a class. Such a proceeding must be brought within 2 years of 238the date of the alleged violation. If the arbitrator finds that the employer violated the provisions 239of this subchapter, it shall (i) require the [fast food] employer to pay the reasonable attorneys’ 240fees and costs of the employee, (ii) require the employer to reinstate or restore the hours of the 241fast food employee, unless the employee waives reinstatement, (iii) require the employer to pay 13 of 19 242the city for the costs of the arbitration proceeding, and (iv) award all other appropriate equitable 243relief, which may include back pay, rescission of discipline, in addition to other relief, and such 244other compensatory damages or injunctive relief as may be appropriate. 245 A person or organization bringing an arbitration proceeding under subdivision a must 246serve the arbitration demand, and any amendments thereto, on the employer either in person or 247via certified mail at the current or most recent workplace or job site where each employee named 248in the arbitration demand is or was employed, or pursuant to the rules of civil procedure. Such 249arbitration demand must include a general description of each alleged violation but need not 250reference the precise section alleged to have been violated. 251 The parties to an arbitration proceeding shall jointly select the arbitrator from a panel of 252arbitrators. The number of arbitrators on the panel shall be determined by the department. The 253arbitrators on the panel shall be chosen by a committee of eight participants established by the 254department and comprised of: 255 1. Four employee-side representatives, including employees or advocates; and 256 2. Four employer-side representatives, including employers or advocates. 257 If an insufficient number of employee-side and employer-side representatives agree to 258participate in the committee pursuant to this section, the department shall consult with those that 259have agreed to participate and select individuals to fill the requisite number of openings on the 260committee. 261 If the committee established pursuant to this section is unable to select a sufficient 262number of arbitrators for the panel as determined by the department, the department shall select 14 of 19 263the remaining arbitrators. If the parties are unable to agree on an arbitrator, the department shall 264select an arbitrator from the panel. The department shall provide interpretation services to any 265party requiring such services for the arbitration hearing. 266 The arbitration hearing shall be held at a location designated by the department or a 267location agreed to by the parties and the arbitrator. Except as otherwise provided in this chapter, 268such arbitration shall be subject to the labor arbitration rules established by the American 269Arbitration Association and the rules promulgated by the department to implement this section. 270In case of a conflict between the rules of the American Arbitration Association and the rules of 271the department, the rules of the department shall govern. Any rules promulgated by the 272department implementing this section shall be consistent with the requirement that in any 273arbitration conducted pursuant to this section, the arbitrator shall have appropriate qualifications 274and maintain personal objectivity, and each party shall have the right to present its case, which 275shall include the right to be in attendance during any presentation made by the other party and 276the opportunity to rebut or refute such presentation. 277 If an employee brings an arbitration proceeding, arbitration shall be the exclusive remedy 278for the wrongful discharge dispute and there shall be no right to bring or continue a private cause 279of action or administrative complaint under this subchapter, unless such arbitration proceeding 280has been withdrawn or dismissed without prejudice. 281 Each party shall have the right to apply to a court of competent jurisdiction for the 282confirmation, modification or vacatur of an award, pursuant to applicable case law, to review of 283legally mandated arbitration proceedings in accordance with standards of due process. 15 of 19 284 (l) A discharged fast food employee who loses a shift on a work schedule as a result of 285discharge, including employees whose employment is terminated for any reason, shall be entitled 286to schedule change premiums for each such lost shift pursuant to this section. 287 (m) This section shall not apply to any employee: 288 1. Who is currently employed within a probation period; 289 2. In a short-term position discharged at the end of the contract of employment provided 290that the employer does not hire another employee to perform similar work for 180 days after the 291end of the short-term contract or in a short-term educational position at the end of the contract of 292employment; 293 3. Who is employed in the construction industry; or 294 4. Who is covered by a valid collective bargaining agreement if such agreement (a) 295expressly waives the provisions of this subchapter and (b) provides comparable terms and 296conditions for the discharge or laying off of employees, including, but not limited to, provisions 297to challenge the justification for a discharge or layoff. 298 Limit or otherwise affect the applicability of any right or benefit conferred upon or 299afforded to an employee by the provisions of any other law, regulation, rule, requirement, policy 300or standard including but not limited to any federal, state or local law providing for protections 301against retaliation or discrimination. 302 (m) Any person, including any organization, alleging a violation of this section may bring 303a civil action, in accordance with applicable law, in any court of competent jurisdiction. 16 of 19 304 Such court may, in the case of a public enforcement action, order payment of the civil 305penalties, and in any action may order compensatory, injunctive and declaratory relief, including 306the following remedies for violations of this chapter: 307 1. Payment of schedule change premiums withheld; 308 2. An order directing compliance with the recordkeeping, information, posting and 309consent requirements; 310 3. Rescission of any discipline issued; 311 4. Reinstatement of any employee terminated; 312 5. Payment of back pay for any loss of pay or benefits resulting from discipline or other 313action taken; 314 6. An order directing compliance with the requirements of this section; 315 7. Other compensatory damages and any other relief required to make the employee 316whole; and 317 8. Reasonable attorney's fees. 318 For each violation of this section, the court shall order reinstatement or restoration of 319hours of the employee, unless waived by the employee, and shall order the employer to pay the 320reasonable attorneys’ fees and costs of the employee. The court may, in addition, grant the 321following relief: $500 for each violation, an order directing compliance with this section, 322rescission of any discipline issued, payment of back pay for any loss of pay or benefits resulting 17 of 19 323from the wrongful discharge, punitive damages, and any other equitable relief as may be 324appropriate. 325 (n) A civil action under this section shall be commenced within 2 years of the date the 326person knew or should have known of the alleged violation. 327 (o) Except where the action seeks the imposition of civil penalties, any person filing a 328civil action shall simultaneously serve notice of such action and a copy of the complaint upon the 329department. Failure to serve a notice does not adversely affect any plaintiff's cause of action. 330 An employee need not file a complaint with the department; however, no person shall file 331a civil action after filing a complaint with the department unless such complaint has been 332withdrawn or dismissed without prejudice to further action. 333 No person shall file a complaint with the department after filing a civil action unless such 334action has been withdrawn or dismissed without prejudice to further action. 335 The commencement or pendency of a civil action by an employee does not preclude the 336department from investigating the employer or commencing, prosecuting or settling a case 337against the employer based on some or all of the same violations. 338 Notwithstanding the foregoing subdivisions, the comptroller or any current or former 339employer may initiate a public enforcement action seeking to recover civil penalties and 340injunctive and declaratory relief as a relator on behalf of the department for a violation affecting 341current or former employees by giving written notice to the department, in such manner as the 342department may prescribe by rule, of the provisions of this title alleged to have been violated, 343including the facts and theories to support the alleged violation. Notwithstanding the preceding 18 of 19 344sentence, where a current or former employee is represented by a bona fide labor organization, 345no organization other than such labor organization may initiate a public enforcement action in 346relation to any violation by which they were affected. Within 65 calendar days of the postmark 347date of the notice, the department shall notify the relator if it intends to open an investigation. 348Within 60 calendar days of that decision, the department may investigate the alleged violation 349and take any enforcement action authorized by law. If the department determines that additional 350time is necessary to complete the investigation, it may extend the time by not more than 60 351additional calendar days and shall notify the relator of the extension. If the department 352determines that no enforcement action will be taken, does not respond to the notice, or if no 353enforcement action is taken by the department within the time limits prescribed, a public 354enforcement action for civil penalties may be commenced in court. The department may 355intervene in a public enforcement action for civil penalties brought under this subdivision and 356proceed with any and all claims in the action as of right within thirty days after the filing of the 357public enforcement action, or for good cause, as determined by the court, at any time after the 30 358day period after the filing of the public enforcement action. 359 Any civil penalties imposed as a result of an enforcement action described in this section 360shall be distributed 65 per cent to the department, and 35 per cent to the relator to be distributed 361to the employees affected by the violation, except that if the department intervenes in the action, 36275 per cent of the penalties shall be distributed to the department and 25 per cent to the relator, 363including a service award that reflects the burdens and risks assumed by the relator in 364prosecuting the action. The share of penalties recovered for the department under this subsection 365shall budgeted into a separate account. Such account shall be used solely to support the 366department’s worker protection education and enforcement activities, with 25 per cent of these 19 of 19 367penalties reserved for grants to designated community groups for outreach and education about 368rights under the commonwealth’s labor standards. 369 The right to bring an action as a relator under this section shall not be contravened by any 370private agreement. If any part of an employee relator’s claim under this part is ordered or 371submitted to arbitration, or is resolved by way of final judgment, settlement or arbitration in 372favor of the employee, the employee relator retains standing to maintain an action for violations 373suffered by other employees in any forum having jurisdiction over the claim. 374 SECTION 3.This act shall take effect 180 days after passage.