US Equal Employment Opportunity Commission v. Hospital Housekeeping Systems of Houston, Inc.

Filing 60

CONSENT DECREE AND ORDER signed by District Judge Lawrence J. O'Neill on 2/24/2014. CASE CLOSED.(Lundstrom, T)

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UNITED STATES DISTRICT COURT

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FOR THE EASTERN DISTRICT OF CALIFORNIA

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U.S. EQUAL EMPLOYMENT
OPPORTUNITY COMMISSION,

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Case No. 1: 11-cv-1658-LJO-BAM
CONSENT DECREE AND ORDER

Plaintiff,
v.
HOSPITAL HOUSEKEEPING SYSTEMS
OF HOUSTON, INC., et al.,
Defendants.
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Plaintiff the U.S. Equal Enforcement Opportunity Commission (the “EEOC” or

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“Commission”) and Defendants Hospital Housekeeping Systems, Inc. and Hospital Housekeeping

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Systems, LLC (“Defendants” or “HHS”) (collectively, the “Parties”) hereby stipulate and agree to

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entry of this Consent Decree to resolve the Commission’s complaint against Defendants in U.S. Equal

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Employment Opportunity Commission v. Hospital Housekeeping Systems, Ltd., et al., Case No. 1:11-

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CV-1658 LJO-BAM (the “Action”). On September 28, 2011, the EEOC filed this Action in the

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United States District Court, Eastern District of California, for violations of the Americans with

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Disabilities Act of 1990 (“ADA”) and Title I of the Civil Rights Act of 1991. The Action alleges

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Defendants discriminated against Claimant/Real Party in Interest Angelica Jaime Cece by terminating

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Ms. Cece and denying her a reasonable accommodation because of an actual or perceived disability.

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Defendants deny and dispute all allegations asserted by the EEOC in this Action, and also deny and

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dispute any liability and damages asserted by the EEOC.

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I.

PURPOSES AND SCOPE OF THE DECREE

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The EEOC and Defendants (collectively, the “Parties”) agree that this Action should be fully

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and completely resolved by entry of this Decree. This Decree shall be binding on and enforceable

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against Defendants and their officers and managers.

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II.

RELEASE OF CLAIMS
A.

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This Decree fully and completely resolves all issues, claims and allegations raised by

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the EEOC against Defendants in this Action. This Decree shall be binding on and enforceable against

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Defendants and their parents, subsidiaries, officers, directors, agents, successors (defined as any

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corporate entity that acquires HHS, and does not include a Company that replaces HHS as a vendor

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providing housekeeping services to a hospital and does not prohibit HHS’s ability to voluntarily

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withdraw from any housekeeping contract), and assigns.
B.

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Nothing in this Decree shall be construed to preclude any party from bringing suit to

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enforce this Decree in the event that any party hereto fails to perform the promises and representations

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contained herein.

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C.

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Nothing in this Decree shall be construed to limit or reduce Defendants’ obligation to

comply fully with the ADA or any other federal employment statute.
D.

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This Decree in no way affects the EEOC’s right to bring, process, investigate, or

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litigate other charges that may be in existence or may later arise against Defendants in accordance with

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standard EEOC procedures.

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III.

JURISDICTION

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A.

The Court has jurisdiction over the Parties and the subject matter of this Action.

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B.

This Decree conforms with the Federal Rules of Civil Procedure and the ADA, and is

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not in derogation of the rights or privileges of any person.

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C.

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The Court shall retain jurisdiction of this action during the duration of the Decree for

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the purposes of entering any order, judgment, or decree that may be necessary to implement the

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Decree.

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IV.

A.

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EFFECTIVE DATE AND DURATION OF DECREE
The provisions and agreements contained herein are effective immediately upon the

date which this Decree is entered by the Court (“the Effective Date”).
B.

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Except as otherwise provided herein, this Decree shall remain in effect for three (3)

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years after the Effective Date.

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V.

MODIFICATION AND SEVERABILITY
A.

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This Decree constitutes the complete understanding of the Parties with respect to the

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matters contained herein. No waiver, modification, or amendment of any provision of this Decree will

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be effective unless made in writing and signed by an authorized representative of each of the Parties.
B.

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If one or more of the provisions of the Decree are rendered unlawful or unenforceable,

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the parties shall make good faith efforts to agree upon appropriate amendments to this Decree in order

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to effectuate the purposes of the Decree. In any event, the remaining provisions will remain in full

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force and effect unless the purposes of the Decree cannot, despite the Parties’ best efforts, be achieved.
C.

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By mutual agreement of the Parties, this Decree may be amended or modified in the

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interests of justice and fairness in order to effectuate the provisions of the Decree.

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VI.

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COMPLIANCE AND RESOLUTION
A.

The Parties agree that if the EEOC has reason to believe that Defendants have failed to

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comply with any provision of this Decree, the EEOC may bring an action before this Court to enforce

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the Decree. Prior to initiating such action, the EEOC will notify Defendants and their legal counsel of

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record, in writing, of the nature of the dispute. This notice shall specify the particular provision(s) that

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the EEOC believes Defendants have breached. Defendants shall have ninety (90) days to attempt to

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resolve or cure the breach. The Parties may agree to extend this period upon mutual consent.

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B.

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The Parties agree to cooperate with each other and use reasonable efforts to resolve any

dispute referenced in the EEOC notice.
C.

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After ninety (90) days have passed with no resolution or agreement to extend the time

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further, the EEOC may petition this Court for resolution of the dispute, seeking all available relief that

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the Court may deem appropriate.

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VII.

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MONETARY RELIEF
A.

In settlement of this lawsuit, Defendants shall pay to Claimant/Real Party in Interest

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Angelica Jaime-Cece the gross sum of $40,000.00 (forty thousand dollars and zero cents) (“Settlement

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Sum”). Defendants shall prepare and distribute a Form 1099 to Ms. Jaime-Cece and shall make the

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appropriate reports to the Internal Revenue Service and other tax authorities reflecting said payment.

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Defendants make no representations to the EEOC or Ms. Jaime-Cece as to Ms. Jaime-Cece’s tax

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liability, if any, on the Settlement Sum. The Parties agree that Ms. Jaime-Cece is fully and solely

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responsible for any and all tax liabilities with respect to the Settlement Sum (with the exception of

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employer-side FICA).

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B.

Defendants shall forward to Ms. Jaime-Cece, via certified mail, a check for the full

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amount of the Settlement Sum within ten (10) days of the Effective Date of this Decree. Within three

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(3) business days of the issuance of the settlement check, Defendants shall submit a copy of the check

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and related correspondence to Anna Y. Park, Regional Attorney, U.S. Equal Employment Opportunity

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Commission, 255 East Temple Street, 4th Floor, Los Angeles, California, 90012.

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VIII. GENERAL INJUNCTIVE RELIEF

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A.

Anti Discrimination

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Defendants, their officers, agents, and management, successors, assigns, and those in active

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concert or participation with them are hereby enjoined not to discriminate against any individual in the

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terms and conditions of employment on the basis of their disability.

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B.

Retaliation

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Defendants, their officers, agents, and management and those in active concert or participation

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with them are hereby enjoined not to engage in, implement or permit any action, policy or practice

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with the purpose of retaliating against any current employee of or job applicant to Defendants because

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he or she has in the past, or during the term of this Decree,

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Opposed any practice made unlawful under the ADA;

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2.

Filed a charge of discrimination alleging such a practice;

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3.

Testified or participated in any manner in any investigation (including, without

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limitation, any internal investigation undertaken by Defendants or proceeding in connection with this
Action or relating to any claim alleging a violation of the ADA;

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4.

Has been identified as a possible witness or claimant in this Action;

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Asserted any rights under this Decree;

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Sought and/or received any relief in accordance with this Decree; or

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Has been associated with an employee who has engaged in the activities set forth in

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Section VIII(B).

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IX.

INJUNCTIVE RELIEF

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A.

ADA Coordinator

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Within thirty (30) days after the effective date, Defendants shall designate an ADA

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Coordinator within their Company.

Defendants shall have sole authority to appoint the ADA

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Coordinator, and promise that this person will possess appropriate qualifications and experience for

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the responsibilities he/she is expected to employ (as set forth below). Defendants shall bear all costs

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associated with the selection and retention of the Coordinator and the performance of his/her duties.

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The ADA Coordinator’s responsibilities shall include the following:

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1. Implement and monitor Defendants’ compliance with the provisions of this Decree;

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2. Assist Defendants in monitoring and assuring the proper investigation of all complaints

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of disability discrimination and/or failure to reasonably accommodate (if any),

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including assisting Defendants in properly communicating with complainants regarding

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the complaint procedure, status of a complaint/investigation, results of an investigation,

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and any remedial action taken;
3. Ensure that all reports required by this Decree are accurately compiled and timely

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submitted; and

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4. Ensure compliance with the terms of this Decree.

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B.

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Within sixty (60) days after the Effective Date, Defendants agree to review (and revise, if

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necessary) their disability-related policies to ensure that the policies comply with the ADA and shall

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Policies and Procedures

include provisions:
1. Prohibiting discrimination based on a disability and explaining how an employee may
complain about disability discrimination;
2. Prohibiting retaliation for seeking a reasonable accommodation for a disability or
complaining about alleged disability discrimination;

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3. Requiring timely reasonable accommodations with regard to all terms, conditions,

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benefits, and privileges of employment, including requirement to engage in a good faith

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interactive process;

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4. Explaining an employee’s rights under ADA, including how to request a reasonable

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accommodation and a manager/supervisor’s responsibilities when receiving a request

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for accommodation; and

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5. Confirming Defendants commitment to engage in the interactive process with all
employees related to their requests for reasonable accommodation;

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Within ninety (90) days of the Effective Date, Defendants shall ensure that hard copies of the

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Policy are available in all of Defendants’ California locations and in its corporate Human Resources

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Department in Austin, Texas. Also, the online version of the Policy must include a contact name and

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email address designating a person within Defendants’ organization who can answer any follow up

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questions related to the Policy.

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C.

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Within thirty (30) days of the Effective Date, Defendants shall ensure that it has posted the

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Notice of Entry of Decree (attached to this Decree as Attachment A) in a conspicuous place accessible

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to all employees in Defendants’ California locations and its corporate Human Resources Department

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in Austin, Texas. Within thirty (30) days of the Effective Date, Defendants shall submit to the EEOC

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a statement confirming the posting of the Notice of Entry of Decree.

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D.

Posting of Notice of Entry of the Decree

Training

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Within sixty (60) days of the Effective Date, Defendants shall provide training, lasting at least

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one hour in duration, to all salaried managers at Defendants’ California locations and to all Human

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Resources employees at Defendants’ corporate office in Austin, Texas. The training shall cover the

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Policy, employee’s rights pursuant to the ADA, the ADAAA, what constitutes a request for a

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reasonable accommodation pursuant to the ADA and ADAAA and Defendants’ obligations to engage

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in the interactive process. The training must be live and interactive. All persons required to attend

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such training shall verify their attendance in writing. This training must also be given, within sixty

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(60) days of the hire date, to any new salaried manager at Defendants’ California locations or new

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Human Resources employee at Defendants’ corporate offices in Austin, Texas.

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Within sixty (60) days of the Effective Date, Defendants shall provide an additional training to

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all hourly employees at Defendants’ California locations.

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employee’s rights pursuant to the ADA, the ADAAA, and Defendants’ procedures for complaining

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about disability discrimination and request for reasonable accommodation. This training may be

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provided by video. This training must also provide a mechanism by which employees may direct

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specific questions related to the subjects covered in the training (e.g., a website or specific email

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address). All persons required to attend such training shall verify their attendance in writing. This

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The training shall cover the Policy,

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training must also be given, within sixty (60) days of the hire date, to any new hourly employee at

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Defendants’ California locations.

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Within ninety (90) days of the Effective Date and annually thereafter through the term of the

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Decree, Defendants shall produce to the EEOC documents verifying the occurrence of all training

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sessions conducted as required under this Decree, including the written training materials used, a

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description of the training provided, a list of the individuals who conducted the training, and a list of

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the names and job titles of attendees at each training session.

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E.

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Defendants through the ADA Coordinator shall provide the following reports annually

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Reporting

throughout the term of the Decree:
1.

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The attendance lists for all training sessions required under this Decree that took
place during the previous twelve months; and

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2.

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An description of all disability discrimination and/or failure to reasonably

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accommodate complaints made since the submission of the immediately

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preceding report hereunder, which shall include the names of any complaining

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individuals (and those about whom they have complained); the nature of the

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complaint; the dates of the alleged discrimination or failure to reasonably

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accommodate; a brief summary of how each complaint was resolved; and the

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identity of the employee(s) who investigated and/or resolved each complaint. If

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no results have been reached as of the time of the report, the result shall be

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included in the next report.

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X.

MISCELLANEOUS PROVISIONS
A.

During the term of this Decree, Defendants shall provide any potential successor-in-

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interest (not to include any Company that replaces HHS as a vendor providing housekeeping services

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to a hospital and does not prohibit HHS’s ability to voluntarily withdraw from any housekeeping

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contract) with a copy of this Decree within a reasonable time of not less than thirty (30) days prior to

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the execution of any agreement for acquisition or assumption of control of Defendants’ business, or

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any other material change in corporate structure. Defendants shall simultaneously inform the EEOC

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of any such agreement for acquisition, assumption of control, or other material change in corporate

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structure.

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B.

During the term of this Decree, Defendants shall assure that each of its officers,

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managers, and supervisors is aware of any term(s) of this Decree which may be related to his or her

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job duties.

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C.

Unless otherwise stated, all notices, reports and correspondence required under this

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Decree shall be delivered to the attention of Anna Y. Park, Regional Attorney, U.S. Equal

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Employment Opportunity Commission, 255 East Temple Street, 4th Floor, Los Angeles, California,

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90012; facsimile number [phone].

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XI.

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COSTS AND ATTORNEYS’ FEES
Each party shall bear its own costs of suit and attorneys’ fees.

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ORDER

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The provisions of the foregoing Consent Decree are hereby approved and entered, and

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compliance with all provisions thereof is HEREBY ORDERED. The Court shall retain jurisdiction

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over the above-entitled action for the duration of this Consent Decree.

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The Clerk of the Court is directed to close this action.

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IT IS SO ORDERED.
Dated:

/s/ Lawrence J. O’Neill

February 24, 2014

UNITED STATES DISTRICT JUDGE

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