Article by Scott I. Zucker, Esq.
Self Storage Legal Network

Over the last few months, the country has certainly seen a significant renewed focus on the issue of sexual harassment in the workplace. Many would have said that the problem wouldn't spread to the self storage industry, but just as quickly a story was released about a self storage operator in Oklahoma that was accused of sexual harassment against seven woman who were his tenants.

Sexual harassment is a form of sex discrimination as outlined under Title VII of the Civil Rights Act of 1964. There are two recognized forms of sexual harassment, one being a type of "quid pro quo" scenario where a supervisor demands a subordinate tolerate sexual harassment as a condition of keeping their job (or tenancy). The second is the existence of a hostile or abusive work environment where conduct can be either verbal or physical, is frequent and is improperly tolerated.

From a legal perspective the discussion should be about workplace education and training as well as proper procedures for reporting claims and managing the investigation and discipline regarding such claims. The business liability exposure to these claims is such that not only can the perpetrator be liable, but the company can as well, depending on what the company knew about the conduct and what it did to stop the harassment. Companies must have a sexual harassment policy in place for their business, no matter what the size. Although only companies with fifteen or more employees are subject to the federal laws for Title VII claims, smaller companies may still be held liable under applicable state laws relating to sexual harassment liability. There must be sufficient training relating to sexual harassment so that employees can be educated about proper behavior in the workplace as well as the procedures in place in case an incident occurs.

The EEOC'S Guidelines encourage employers to take all steps necessary to prevent sexual harassment from occurring, such as affirmatively raising the subject, expressing strong disapproval, developing appropriate sanctions, informing employees of their right to raise and how to raise the issue of harassment under Title VII, and developing methods to sensitize all concerned. An employer's anti-harassment policy should make clear that the employer will not tolerate harassment based on race, sex, religion, national origin, age, disability, or genetic information, or harassment based on opposition to discrimination or participation in complaint proceedings. The policy should also state that the employer will not tolerate retaliation against anyone who complains of harassment or who participates in an investigation. An effective preventive program should include an explicit policy against sexual harassment that is clearly and regularly communicated to employees and effectively implemented. The employer should affirmatively raise the subject with all supervisory and non- supervisory employees, express strong disapproval, and explain the sanctions for harassment. The employer should also have a procedure for resolving sexual harassment complaints. The procedure should be designed to "encourage victims of harassment to come forward" and should not require a victim to complain first to the offending supervisor. 

It is recommended that, if an employee believes that he or she has been subject to sexual harassment, the situation should first be addressed with the harasser, if possible. If that does not suffice, the employee should be able to report the incident to their supervisor or to the appropriate human resource representative. Claims and witness statements should also be prepared in writing and all inquiries and investigations should be treated confidentially. Once reported, the company must expeditiously investigate the matter, including seeking the cooperation of the police if the matter is criminal.

It is recommended that, if an employee believes that he or she has been subject to sexual harassment, the situation should first be addressed with the harasser, if possible. If that does not suffice, the employee should be able to report the incident to their supervisor or to the appropriate human resource representative. Claims and witness statements should also be prepared in writing and all inquiries and investigations should be treated confidentially. Once reported, the company must expeditiously investigate the matter, including seeking the cooperation of the police if the matter is criminal.

If the employee does not obtain a sufficient remedy after reporting the harassment, they must be given the right to pursue their claims with the EEOC, without the risk of retaliatory treatment. It makes sense to wait to see if the company corrects the harassment behavior before an employee files a charge with the EEOC. However, if management does not act promptly to investigate a complaint and undertake corrective action, then it may be appropriate to file a charge. The deadline for filing an EEOC charge is either 180 or 300 days after the last date of alleged harassment, depending on the state in which the allegation arises. This deadline is not extended because of an employer's internal investigation of the complaint.

Finally, employees who violate the sexual harassment policy must be subject to appropriate discipline including the risk of termination.

If the employee does not obtain a sufficient remedy after reporting the harassment, they must be given the right to pursue their claims with the EEOC, without the risk of retaliatory treatment. It makes sense to wait to see if the company corrects the harassment behavior before an employee files a charge with the EEOC. However, if management does not act promptly to investigate a complaint and undertake corrective action, then it may be appropriate to file a charge. The deadline for filing an EEOC charge is either 180 or 300 days after the last date of alleged harassment, depending on the state in which the allegation arises. This deadline is not extended because of an employer's internal investigation of the complaint.

Finally, employees who violate the sexual harassment policy must be subject to appropriate discipline including the risk of termination.

Scott Zucker is a partner in the law firm of Weissmann Zucker Euster Morochnik & Garber P.C. in Atlanta, Georgia.  Scott specializes in business litigation with an emphasis on real estate, landlord-tenant and construction law.  Scott is a frequent lecturer at national conventions and is the author of Legal Topics in Self Storage: A Sourcebook for Owners and Managers.  He is also a partner in the Self Storage Legal Network, a subscription-based legal service for self storage owners and managers. Scott can be reached at 404-364-4626 or at scott@wzlegal.com.

 

Contact your state senators to support Senate Bill 14 on Limited Lines Insurance

The self storage industry began in the early 1970s. It became clear before long that there was no easy solution to nonpayment and abandonment situations. By the mid-1990s, 48 states had adopted some form of lien law, often calling these new sections “The Self-Service Storage Facility Act. Kansas has been at the forefront of lien law modernization, having made modernization changes in 2012. 

The effort this year addresses tenant insurance. Currently 25 states formally allow for some form of “pay with rent insurance,” wherein the facility owner can offer and bill the insurance with rent payments. These lf storage industry has identified that states without a specific provision regarding tenant insurance leads to ambiguity and perhaps a legal vulnerability.

Here are six key points to remember about Limited Lines Insurance:
 
✓ Limited lines insurance agent and producer licenses are mechanisms for consumers to obtain needed ancillary insurance coverage, usually connected to specific goods or services from businesses that do not hold general producer licenses
 
✓ Limited lines are common solutions for insurance in industries such as travel, rental cars, mobile electronics and self storage.
 
✓ Limited lines allows self storage facilities to offer consumers an affordable insurance option if they do not hold a homeowners or renters insurance policy that may cover contents within a storage unit.

✓ Insurance departments typically require some basic training for employees (owners/managers/rental agents) regarding insurance coverage sold by limited lines insurance producers 

✓ Limited lines licenses enable the licensed facility to provide their customers' needed protections and receive compensation/commission.  The licensed facility may compensate employees of the facility a nominal fee as long as the compensation/ fee is not solely based on the sale of insurance.

✓ 25 states currently allow self-storage limited lines insurance: Arizona, Arkansas, California, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Michigan (exemption), Minnesota (exemption), Massachusetts, Missouri, North Carolina, New York, Ohio, Oregon, South Carolina, Tennessee, Texas, Washington, New Jersey, Utah and Virginia.

Nationally, the Self Storage Industry has more than 50,600 facilities across the United States. Kansas is the 27th largest with a little more than 700 facilities. The Kansas Self Storage Owners Association has 110 members throughout the state. We would like your support on this in reaching out to your state senators. Encourage your neighboring facilities to join the association and help protect our industry. Help spread the word on this Call To Action.

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