It’s time to roundup the bills related to computer technology that the Hawai‘i legislature is considering in its 2014 regular session. Click here for a chart summarizing the proposed legislation. Here are the highlights:
Social Media and Internet Account Passwords: Several bills to prohibit improper requests for access to personal social media accounts of employees and students were introduced in the 2013 session. None of the them passed. This year, HB2415 renews the effort to outlaw improper social media password requests.
Internet Sales Tax: HB1651 would require online companies with arrangements with Hawaii merchants for referral of business to collect use taxes on sales made in Hawaii. This bill would affect online retailers like Amazon, who allows local merchants to sell their products through Amazon Marketplace.
Restrictive Covenants: In an effort to encourage the development of technology business in Hawai‘i, a state with a relatively small geographic area, two bills (HB2617 and SB3126) would prohibit technology businesses from requiring employees to enter into noncompete agreements and restrictive covenants. “Technology business” is defined as “a trade or business that relies on software development, information technology, or both.”
Cybersquatting: SB2958 would put the burden on a cybersquatter to prove that it did not register a domain name in bad faith or with intent to use it in an unlawful manner, provided that the person claiming cybersquatting can demonstrate the potential of immediate and irreparable harm through misuse of the domain name.
Cybersecurity Council: SB2474 would establish the Hawai‘i cybersecurity, economic, education, anfrastructure security council.
Mobile Devices: Three bills (HB1509, HB1896, and SB2729) would make it a State offense to use a mobile electronic device while operating a motor vehicle. Certain counties already have similar laws.
3D Printing: In response to the rising availability of 3D printers, HB1802 would make it a crime to create, possess, sell, trade, or give another person a firearm made with digital manufacturing technology.
Computer crimes: A series of bills criminalizes various kinds of computer activity, including unauthorized access to a computer or network and damage to a “critical infrastructure computer” (HB1640); theft of a computer (HB1644); or personal electronic device for storing or retrieving personal information (HB2080); and revenge porn (SB2319).
With a single tweet, an employee of IAC (owner of websites like Match.com and Vimeo) went from relative obscurity to the target of an Internet inquisition. Before boarding a plane, Justine Sacco posted this message on Twitter: “Going to Africa. Hope I don’t get AIDS. Just kidding. I’m white!” The tweet went viral while Sacco was en route to South Africa, oblivious to the controversy brewing online. Death threats landed in her inbox. Someone opened a parody Twitter account for Sacco. A hashtag (#HasJustineLandedYet) was created to help people keep track the arrival of her plane. IAC quickly condemned Sacco’s tweet in a press release and on social media. The New York Times published an article about the controversy later the same evening. The next day, IAC fired her. Sacco issued an apology on Sunday.
Social media meltdowns are nothing new, but the story highlights four myths that can get professionals into social media trouble.
- “I’m a pro—I know what I’m doing.” Sacco worked as a communications director for IAC. One might expect a PR professional to be sensitive about what their public expression, but Sacco’s expertise apparently didn’t save her from posting a message that many found offensive. Before posting, think twice (or thrice) about how the message will be received by the public.
- “No one will ever find out.” Sacco’s Twitter account didn’t have many followers at the time she posted the controversial tweet—less than 200. Having a small following can create a false sense of security that the public will never see the contents of the account. But one doesn’t need to be an Internet rockstar to get into trouble. Posts can go viral if a follower shares it with someone else, who in turn shares it with another person, and so on …
- “No worries, it’s my personal account.” Just because a social media account is designated as personal doesn’t mean it should have no filter. Although Sacco used her personal Twitter account to make the infamous post, her account profile listed IAC as her employer. This made it easy for readers to associate IAC with Sacco’s post. As a result, IAC was involuntarily drawn into the controversy. The moral of the story is that the lines between personal and professional are very blurry on the Internet.
- “Just this one time.” Bad judgment on social media is seldom an isolated incident. Earlier in 2013, Sacco had tweeted: “I can’t be fired for things I say while intoxicated right?” Because social media extends brand management beyond official company channels, companies should keep track of employees who publicly identify their employer and periodically check if those employees regularly interact in ways that damage the company brand.
The Sacco incident teaches that the value of training on good social media practices cannot be overemphasized. The old adage about an ounce of prevention is no less true in the digital age.
Social media can be risky business. Whether an organization embraces or ignores social media, it or its employees probably already have a presence on a social network. That simple reality can be costly for an organization without proper measures in place to deal with the risks of social media misconduct. Readers of this blog are familiar with cases where business saw their reputations marred by employees who post embarrassing photos online about work mishaps or found themselves in legal trouble for firing an employee who vented on Facebook about a co-worker.
To help organizations manage the risks of social media activity, I’m proud to introduce SM Safety, a new line of services offered by my law firm. The approach of SM Safety can be summarized in three words, each corresponding to a level of service that meets a particular need: checkup, plan, and audit.
A SM Safety Checkup is a low-cost way to ensure that an existing social media policy is legally compliant and effective.
A SM Safety Plan is for organizations who need assistance with preparing a new social media policy or enhancing an existing policy.
A SM Safety Audit is a comprehensive review of an organization’s overall presence in the social media space to identify exposure to legal risks due to social media use.
Each SM Safety service is offered for a flat fee. To learn more about SM Safety or to obtain a quote, visit the SM Safety Services page on this site.
Facebook comments about condition of company vehicles are protected under the NLRA; a Facebook rant about fake problems with the company car, not so much – Butler Medical Transport, LLC, 2013 WL 4761153 (N.L.R.B. Div. of Judges)
A recent decision by a National Labor Relations Board (NLRB) Administrative Law Judge (ALJ) gives employers insight on when they can and cannot fire an employee for their social media conduct outside of work. Particularly interesting is the fact that this decision involved two separate terminations, one of which the ALJ found illegal, and the other not.
The Norvell Termination
William Norvell worked as an emergency medical technician for an ambulance company, Butler Medical Transport (Butler). While on his personal computer at home, Norvell read a post by a co-worker (Zalewski) on her Facebook page stating that she had been fired. Zalewski attributed the firing to a patient report to management that she complained about the condition of Butler’s ambulances. Several people, including another Butler employee, posted comments inquiring into the incident, to which Zalewski responded with more posts about the patient’s report. Norvell responded to Zalewski with this comment:
“Sorry to hear that but if you want you may think about getting a lawyer and taking them to court.”
Another person posted a comment suggesting that Zalewski find a job with another ambulance company. After Zalewski asked where the company was located, Norvell posted the location and added, “You could contact the labor board too.”
Butler’s HR director obtained hard copies of these posts, and in consultation with the COO, decided to terminate Norvell. The HR director told Norvell that he was being terminated for violating Butler’s bullet point list of work rules, one of which prohibited employees from using social networking sites that could discredit Butler or damage its image.
The ALJ determined that Norvell’s Facebook posts were protected concerted activity. By advising Zalewski to see a lawyer or contact the labor board, Norvell was “making common cause” with a co-worker about a matter of mutual concern to the employees, i.e., the condition of Butler’s ambulances. Norvell’s posts had protected status even though they were accessible to people outside of the company because Section 7 of the National Labor Relations Act (NLRA) extends to employee efforts to improve the terms and conditions of employment through channels outside of the employer-employee relationship. The ALJ did not find posts to be so disloyal, reckless, or maliciously untrue as to lose their protected status. The termination of Norvell based on his Facebook posts therefore violated Section 8(a)(1) of the NLRA.
The Rice Termination
Another Butler employee, Michael Rice, posted this comment on Facebook:
“Hey everybody!!!!! Im fuckin broke down in the same shit I was broke in last week because they don’t wantna buy new shit!!!! Cha-Chinnngggggg chinnng-at Sheetz Convenience Store,”
Butler terminated Rice for making this post. At the trial hearing before the ALJ, Butler produced maintenance records showing that Rice’s vehicle was not in disrepair when he made the post. Rice had also testified at his unemployment insurance hearing that his post referred to a private vehicle rather than a Butler ambulance. There being no evidence to the contrary, the ALJ determined that Rice’s post was not protected by Section 7 because it was maliciously untrue and made with the knowledge of its falsity. As a result, Rice’s termination was not illegal.
Legality of Work Rules
Also under scrutiny was the legality of two of Butler’s work rules, one prohibiting the “unauthorized posting or distribution of papers,” and the other requiring employees to acknowledge that they “will refrain from using social networking sights [sic] which could discredit Butler Medical Transport or damages its image.” Butler argued that the rules were not official company policy because they were stated in a bullet point list. The ALJ rejected the argument as making a distinction without a difference. Butler relied on the bullet point rules in terminating Norvell and Zalewski, and new employees were required to acknowledge receipt of the list. As such, employees could reasonably understand that they would be disciplined for failing to follow the rules on the list. The ALJ found that the rules violated Section 7 activity because they prohibited employees from communicating to others about their work conditions.
LegalTXTS Lesson: This case doesn’t break new ground, but it does contain a few important reminders for employers grappling with how far they can go in regulating the social media activity of employees.
1. A policy by any other name … is still a policy. Butler’s failure to convince the ALJ that the bullet point list was not company policy should serve as a reminder that if a company communicates a rule to its employees in writing, expects them to follow the rule, and disciplines them if they don’t, the rule is effectively a policy. It doesn’t matter that the rule appears in a document whose title doesn’t include the word “policy,” or that the wording of the rule is informal.
2. Write it right. Given how easily a supposedly informal rule could qualify as a policy, a company should take care in articulating its work rules in the form of an official written policy. Consult with counsel to make sure the wording doesn’t inadvertently violate the law.
3. Don’t go overboard. The NLRB has consistently frowned upon work rules that flat out prohibit employees from posting content on social media that damages the reputation of their employer, or worse yet, bars them completely from speaking to others about work-related issues, whether on social networking sites or other media. (For examples, see the related posts below). Reject categorical bans on employee speech in favor of rules that focus on creating or avoiding specific results.
4. Context matters. Before disciplining an employee for a social media post, understand the context in which the post was made. Is the post about a work-related issue that other employees have discussed before? Does the post call for co-workers to take action? Asking such questions helps management determine if the post is protected under the NLRA.
NLRB dishes out confusion on social media policies
NLRB sanctions employees who fire employees for online “protected concerted activity”
DirectTV’s work rules invalidated by NLRB
FC 250 Grand Marshal, Paula Deen (Photo credit: Bristol Motor Speedway & Dragway)
Lisa Jackson’s discrimination and sexual harassment lawsuit against Paula Deen settled last Friday, but not before Deen tried to remove Jackson’s attorney, for publicly disparaging her on social media. A court order filed hours before the settlement reveals that in March, Deen’s lawyers filed a motion for sanctions against Matthew C. Billips, the lawyer who represented Jackson (read the motion here). The motion alleges that Billips made offensive remarks about Deen on Twitter. Some of the more eyebrow-raising tweets included:
“I’ve been doing Paula Deen, in a strongly metaphorical sense”
“I plan on undressing [Deen]” (in reference to an upcoming deposition of Deen)
“Now talk about fun, suing Paula Deen is a hoot!”
In another Twitter conversation about Deen’s diabetes, Billips allegedly referred to Deen’s food with the hashtag #buttercoatedbuttercookies.
Based on Billips’ tweets and his discovery practices, Deen’s lawyers asked the court to disqualify him from continuing to represent Jackson. As the August 23 court order shows, the judge declined to disqualify Billips, but it was open to imposing some form of sanctions against him. The judge has indicated that the settlement will not stop the court from sanctioning Billips despite Deen’s lawyers attempt to withdraw their sanctions motion in light of the settlement. Billips has 20 days as of Friday to show why he should not be sanctioned.
This cautionary tale that teaches litigants (and their attorneys) not to discuss pending cases on social media. Posts on social networks like Facebook and Twitter can be publicly accessible, are potentially discoverable, and can be the basis for a defamation lawsuit. There’s little to be gained and much to lose by talking about a lawsuit online. For that reason, lawyers now commonly instruct their clients in their retainer agreements not to discuss the case with anyone on social media, even family and friends. Lawyers would do well to follow their own advice.