Articles Posted in Employment/EEO

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April 1 is the deadline for broadcast stations licensed to communities in Delaware, Indiana, Kentucky, Pennsylvania, Tennessee, and Texas to place their Annual EEO Public File Report in their Public Inspection File and post the report on their station website. 

Under the FCC’s EEO Rule, all radio and television station employment units (“SEUs”), regardless of staff size, must afford equal opportunity to all qualified persons and practice nondiscrimination in employment.

In addition, those SEUs with five or more full-time employees (“Nonexempt SEUs”) must also comply with the FCC’s three-prong outreach requirements.  Specifically, Nonexempt SEUs must (i) broadly and inclusively disseminate information about every full-time job opening, except in exigent circumstances, (ii) send notifications of full-time job vacancies to referral organizations that have requested such notification, and (iii) earn a certain minimum number of EEO credits based on participation in various non-vacancy-specific outreach initiatives (“Menu Options”) suggested by the FCC, during each of the two-year segments (four segments total) that comprise a station’s eight-year license term.  These Menu Option initiatives include, for example, sponsoring job fairs, participating in job fairs, and having an internship program.

Nonexempt SEUs must prepare and place their Annual EEO Public File Report in the Public Inspection Files and on the websites of all stations comprising the SEU (if they have a website) by the anniversary date of the filing deadline for that station’s license renewal application.  The Annual EEO Public File Report summarizes the SEU’s EEO activities during the previous 12 months, and the licensee must maintain adequate records to document those activities.

For a detailed description of the EEO Rule and practical assistance in preparing a compliance plan, broadcasters should consult The FCC’s Equal Employment Opportunity Rules and Policies – A Guide for Broadcasters published by Pillsbury’s Communications Practice Group. Continue reading →

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Yesterday, the FCC released its Fourth Report and Order, Order on Reconsideration, and Second Further Notice of Proposed Rulemaking in its Review of the Commission’s Broadcast and Cable Equal Employment Opportunity Rules and Policies docket, which was first opened in 1998.

The Report and Order portion of the document reinstates the requirement that broadcasters file FCC Form 395-B, the Annual Employment Report.  The FCC will then make the reports publicly available on a station by station basis on its website.

Since the FCC suspended use of the form in 2001 following adverse court decisions, it has been updated to require stations to first sort employees into ten job categories (Executive/Senior Level Officials and Managers, First/Mid-Level Officials and Managers, Professionals, Technicians, Sales Workers, Administrative Support Workers, Craft Workers, Operatives, Laborers and Helpers, and Service Workers), then indicate the number of employees in each of those job categories who are Male/Female; Hispanic/Latino; or Non-Hispanic White, Black/African American, Native Hawaiian/Other Pacific Islander; Asian, American Indian/Alaska Native, or Two or More Races.

In addition, the FCC will modify the Form 395-B to add “a mechanism to account for those who identify as gender non-binary.”  As a result, the form will require a new approval by the Office of Management and Budget before its use can resume.  The report will be due each year on September 30.  The data is to be taken from one payroll period between July and September, with the same payroll period used each year.  The Order indicates that the Media Bureau will announce filing procedures by a separate Public Notice when OMB clearance is received.

The FCC also amended its EEO rule and adopted some clarifications requested by state broadcasters associations twenty years ago in a Petition for Reconsideration, amending its rules to specifically state that the information in the Form 395-B “will be used only for purposes of analyzing industry trends and making reports to Congress. Such data will not be used for the purpose of assessing any aspect of an individual broadcast licensee’s or permittee’s compliance with the nondiscrimination or equal employment opportunity requirements….”  However, in seeking to defend the constitutionality of the requirement, the FCC pointedly noted that “any attempt by a non-governmental third party to use the publicly available Form 395-B data to pressure stations in a non-governmental forum would not implicate any constitutional rights of the station.”

The FCC rejected arguments by broadcasters that the FCC should not collect this data at all, and that if collected, the FCC should not release it publicly or on a station-attributable basis due to the risk of third-party pressure on stations with regard to their employment practices, which was found to create unconstitutional harms in two separate cases by the United States Court of Appeals for the District of Columbia Circuit more than 20 years ago.  The FCC responded that it has a significant public interest in employment in the industry and that Congress, in the Communications Act of 1992 (which predated the court decisions) “ratified” the FCC’s authority to collect such data by mandating that the then-existing EEO regulations and forms as applied to television stations not be modified.  The FCC stated that public release of the data will ensure that it is accurate, maximize its utility, and alleviate concerns about the FCC’s accidental release of confidential data (by making it not confidential).  It claimed that there was no record evidence of Form 395-B data being used to pressure broadcasters (despite two court decision to the contrary), and stated that the Commission “will make every effort to dismiss as quickly as possible any petitions, complaints, or other filings that rely on a station’s Form 395-B filing….”

In the Further Notice of Proposed Rulemaking portion of the document, the FCC proposed reinstating and making the same sorts of changes to the Form 395-A as it adopted for the Form 395-B.  The Form 395-A is similar to the Form 395-B, but applies to MVPDs rather than broadcasters.

The two Republican Commissioners dissented from the item, saying that had the Commission simply agreed to broadcasters’ request that the information not be released publicly in an attributable manner, they would have voted in favor of reinstating the form.  Each pointed to foreseeable or existing record evidence of pressure likely to be placed on broadcasters by third parties that find fault with a station’s staff demographics after public release of the information, and concluded that the Order raises the same constitutional concerns as the prior FCC rules that were invalidated by the D.C. Circuit more than 20 years ago.

The new requirement will apply to Station Employment Units with five or more full time employees.  The FCC notes that stations should use the time they have while OMB is reviewing the modifications to the form to develop whatever surveys or recordkeeping procedures they will need to gather the information requested by the form.  The instructions to the currently-approved version of the form (to which the Order links) state that employee self-identification of racial and ethnic information is the preferred method.  If an employee refuses to  provide that information, the instructions state that employment records or “observer identification” can be used instead.

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February 1 is the deadline for broadcast stations licensed to communities in Arkansas, Kansas, Louisiana, Mississippi, Nebraska, New Jersey, New York, and Oklahoma to place their Annual EEO Public File Report in their Public Inspection File and post the report on their station website. 

Under the FCC’s EEO Rule, all radio and television station employment units (“SEUs”), regardless of staff size, must afford equal opportunity to all qualified persons and practice nondiscrimination in employment.

In addition, those SEUs with five or more full-time employees (“Nonexempt SEUs”) must also comply with the FCC’s three-prong outreach requirements.  Specifically, Nonexempt SEUs must (i) broadly and inclusively disseminate information about every full-time job opening, except in exigent circumstances, (ii) send notifications of full-time job vacancies to referral organizations that have requested such notification, and (iii) earn a certain minimum number of EEO credits based on participation in various non-vacancy-specific outreach initiatives (“Menu Options”) suggested by the FCC, during each of the two-year segments (four segments total) that comprise a station’s eight-year license term.  These Menu Option initiatives include, for example, sponsoring job fairs, participating in job fairs, and having an internship program.

Nonexempt SEUs must prepare and place their Annual EEO Public File Report in the Public Inspection Files and on the websites of all stations comprising the SEU (if they have a website) by the anniversary date of the filing deadline for that station’s license renewal application.  The Annual EEO Public File Report summarizes the SEU’s EEO activities during the previous 12 months, and the licensee must maintain adequate records to document those activities.

For a detailed description of the EEO Rule and practical assistance in preparing a compliance plan, broadcasters should consult The FCC’s Equal Employment Opportunity Rules and Policies – A Guide for Broadcasters published by Pillsbury’s Communications Practice Group. Continue reading →

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Pillsbury’s communications lawyers have published FCC Enforcement Monitor monthly since 1999 to inform our clients of notable FCC enforcement actions against FCC license holders and others.  This month’s issue includes:

  • TV Broadcaster Faces $150,000 Fine for Failure to Negotiate Retransmission Consent in Good Faith
  • Sponsorship ID and Political File Violations Lead to $500,000 Consent Decree for Radio Broadcaster
  • $26,000 Fine for Georgia Radio Station EEO Rule Violations

 FCC Finds That TV Broadcaster Failed to Negotiate Retransmission Consent in Good Faith

Responding to a complaint by a cable TV provider, the Federal Communications Commission found that a broadcaster failed to negotiate retransmission consent for its New York TV station in good faith.  The enforcement action involves a Notice of Apparent Liability for Forfeiture (NAL) proposing a $150,000 fine against the broadcast licensee.  The licensee was represented in the negotiations by another broadcaster who provides services to the station at issue.

Under Section 325 of the Communications Act of 1934, as amended (the Act), TV stations and multichannel video programming distributors (i.e., cable and satellite TV providers) have a duty to negotiate retransmission consent agreements in good faith.  In a 2000 Order, the FCC adopted rules relating to good faith negotiations, setting out procedures for parties to allege violations of the rules.  The Order established a two-part good faith negotiation test.  Part one of the test is a list of objective negotiation standards, the violation of any of which is deemed to be a per se violation of a party’s duty to negotiate in good faith.  Part two of the test is a subjective “totality of the circumstances” test in which the FCC reviews the facts presented in a complaint to determine if the combined facts establish an overall failure to negotiate in good faith.

In this case, the cable provider complained that the broadcaster, through its negotiator, proposed terms for renewal of the parties’ agreement that would have prohibited either party from filing certain complaints with the FCC after execution of the agreement.  For its part, the broadcaster did not dispute that it proposed the terms in question, but argued that (1) “releasing FCC-related claims or withdrawing FCC complaints is not novel,” (2) “parties typically agree to withdraw good faith negotiation complaints once retransmission consent agreements have been reached,” and (3) no violation could have occurred since the proposed term was not included in the final agreement reached.

The FCC disagreed, stating that its 2000 Order made clear that proposing terms which foreclose the filing of FCC complaints is a presumptive violation of the good faith negotiation rules.  The FCC also disagreed with the broadcaster’s contention that terms not included in a final agreement could not violate the good faith rules.  Finally, while the licensee argued that it was not responsible for actions taken by the party negotiating on its behalf, the FCC reiterated that licensees are responsible for the actions of their agents, and the licensee in this case delegated negotiation of the agreement to its agent.

Relying upon statutory authority and its Forfeiture Policy Statement, the FCC arrived at a proposed fine of $150,000.  The Forfeiture Policy Statement establishes a base fine of $7,500 for violating the cable broadcast carriage rules, and the FCC asserted that the alleged violations continued for 10 days (the time period from first proposing the terms at issue and the signing of the agreement without them), yielding a base fine of $75,000.  The FCC then exercised its discretion to upwardly adjust the proposed fine to $150,000, asserting that the increase was justified based on the licensee’s financial relationship with a large TV company, its prior rule violations, and the FCC’s view that a larger fine was necessary to serve as a meaningful deterrent against future violations.

Repeated Violations of Sponsorship ID and Political File Rules Lead to $500,000 Consent Decree

A large radio station group entered into a consent decree with the FCC’s Media Bureau, agreeing to pay a $500,000 civil penalty for two of its stations’ violations of sponsorship identification laws and the Political File rule.

Section 317(a)(1) of the Act and Section 73.1212(a) of the FCC’s Rules require broadcast stations to identify the sponsor of any sponsored content broadcast on the station.  This requirement applies to all advertising, music, and any other broadcast content if the station or its employees received something of value for airing it.  The FCC has said that the sponsorship identification laws are “grounded in the principle that listeners and viewers are entitled to know who seeks to persuade them . . . .” Continue reading →

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Given that the name of this site is CommLawCenter, our focus is generally on communications law and regulation.  More accurately, however, our focus is on legal developments that affect the media and telecom industries, even when they emanate from entities other than Congress or the FCC.  This is particularly true where a change in non-communications laws could have an outsize impact on the communications industry.  For that reason, we have in the past written about changes involving a variety of employment matters, including who is entitled to overtime pay and when does an intern need to be paid?

Because of that industry focus, being a good communications lawyer often requires more subject matter versatility than most lawyers will ever need.  However, it is certainly helpful to also have access to the excellent group of employment lawyers at Pillsbury, which brings me to today’s topic–last week’s release by the Department of Labor of a new final rule replacing the prior test for determining whether a worker is an employee (entitled to overtime and other benefits) or an independent contractor under the Fair Labor Standards Act.

The new DOL rule restores the six-factor “economic realities” test used during the Obama administration, which generally makes it harder to classify a worker as an independent contractor by focusing on the degree to which the worker is economically dependent on the “employer.”  This replaces the two-factor test adopted by the DOL during the Trump administration, which focused principally on two factors–the employer’s degree of control over the work and the worker’s opportunity for profit and loss.

The six factors of the new test are:

  1. The opportunity for profit or loss depending on the worker’s managerial skill
  2. Investments by the worker and the potential employer in the work being produced
  3. The degree of permanence of the work relationship
  4. The nature and degree of the worker’s control over the work
  5. The extent to which the work performed is an integral part of the potential employer’s business
  6. Whether the work performed requires special skills or initiative

A far more detailed description of the new test and how each of these factors enters into the determination (and may interact with a state’s own employment laws) can be found in a pithy advisory from Pillsbury’s employment team on the subject: Employers Face Greater Misclassification Risk Under Resurrected Federal Independent Contractor Rule, Opening Door to Substantial Liability.  It is well worth the read, particularly given the substantial costs and penalties faced by businesses found to have misclassified employees as independent contractors.  It is also time to review your prior classifications of workers as independent contractors to make sure they still hold up under the new rule.

 

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This Pillsbury Broadcast Station Advisory is directed to radio and television stations in the areas noted above, and highlights upcoming deadlines for compliance with the FCC’s EEO Rule.

December 1 is the deadline for broadcast stations licensed to communities in Alabama, Colorado, Connecticut, Georgia, Maine, Massachusetts, Minnesota, Montana, New Hampshire, North Dakota, Rhode Island, South Dakota, and Vermont to place their Annual EEO Public File Report in their Public Inspection File and post the report on their station website. 

Under the FCC’s EEO Rule, all radio and television station employment units (“SEUs”), regardless of staff size, must afford equal opportunity to all qualified persons and practice nondiscrimination in employment.

In addition, those SEUs with five or more full-time employees (“Nonexempt SEUs”) must also comply with the FCC’s three-prong outreach requirements.  Specifically, Nonexempt SEUs must (i) broadly and inclusively disseminate information about every full-time job opening, except in exigent circumstances,[1] (ii) send notifications of full-time job vacancies to referral organizations that have requested such notification, and (iii) earn a certain minimum number of EEO credits based on participation in various non-vacancy-specific outreach initiatives (“Menu Options”) suggested by the FCC, during each of the two-year segments (four segments total) that comprise a station’s eight-year license term.  These Menu Option initiatives include, for example, sponsoring job fairs, participating in job fairs, and having an internship program.

Nonexempt SEUs must prepare and place their Annual EEO Public File Report in the Public Inspection Files and on the websites of all stations comprising the SEU (if they have a website) by the anniversary date of the filing deadline for that station’s license renewal application.  The Annual EEO Public File Report summarizes the SEU’s EEO activities during the previous 12 months, and the licensee must maintain adequate records to document those activities.

For a detailed description of the EEO Rule and practical assistance in preparing a compliance plan, broadcasters should consult The FCC’s Equal Employment Opportunity Rules and Policies – A Guide for Broadcasters published by Pillsbury’s Communications Practice Group. Continue reading →

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Pillsbury’s communications lawyers have published FCC Enforcement Monitor monthly since 1999 to inform our clients of notable FCC enforcement actions against FCC license holders and others.  This month’s issue includes:

  • Seven-Figure Fine Imposed on Pirate Radio Brothers
  • $25,000 Fine Proposed for Kansas Radio Station EEO Rule Violations
  • Satellite Company Enters $150,000 Consent Decree for Orbital Debris

FCC Affirms Largest-Ever Pirate Radio Fine

The FCC affirmed a $2,316,034 fine against two brothers operating a pirate radio station in Queens, New York.  The penalty followed a March 2023 Notice of Apparent Liability for Forfeiture (NAL), which we wrote about here.

In the NAL, the FCC set out the details of the brothers’ pirate radio activities, including that they had been illegally operating since 2008.  The Preventing Illegal Radio Abuse Through Enforcement Act (known as the PIRATE Act and enacted in 2020) expanded the FCC’s authority to take enforcement action against radio pirates, and the fine proposed in March was the first issued under the FCC’s newly-expanded authority.  Illegal broadcast operations can interfere with licensed communications and pose a danger to the public by interfering with licensed stations that carry public safety messages, including Emergency Alert System transmissions.

In this case, the FCC’s investigation documented 184 days of pirate broadcasts.  With a $20,000 base fine for each willful and knowing violation, plus upward adjustments for intentional conduct and a history of rule violations, the FCC arrived at a fine of $21,307,568, but then reduced it to the statutory maximum of $2,316,034.  The brothers are jointly and severally liable for the fine, which means that each brother is responsible for paying the full fine and the FCC can recover the total fine from either brother or both.  Payment of the penalty is due within 30 days of the release date of the Forfeiture Order.

Kansas Radio Licensees Face $25,000 Fine for EEO Violations

Two related radio companies, licensees of a combined nine Kansas radio stations, received an NAL for various violations of the FCC’s Equal Employment Opportunity (EEO) rules.  The NAL proposed a $25,000 fine.

The FCC’s EEO rules prohibit broadcasters from discriminating in hiring on the basis of race, color, religion, national origin, or gender and, in many cases, require broadcasters to conduct and document broad job vacancy recruitment efforts.  The nine stations are run by the same two principals and operate as two Station Employment Units.  A Station Employment Unit (SEU) is a “a station or a group of commonly owned stations in the same market that share at least one employee.”  The FCC Enforcement Bureau’s investigation into the SEUs’ EEO compliance appears to have stemmed from the FCC’s processing of the stations’ license renewal applications, during which FCC staff reviews a station’s compliance with the FCC’s various rules throughout the station’s license term. Continue reading →

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This Pillsbury Broadcast Station Advisory is directed to radio and television stations in the areas noted above, and highlights upcoming deadlines for compliance with the FCC’s EEO Rule.

October 1 is the deadline for broadcast stations licensed to communities in Alaska, American Samoa, Florida, Guam, Hawaii, Iowa, the Mariana Islands, Missouri, Oregon, Puerto Rico, the Virgin Islands, and Washington to place their Annual EEO Public File Report in their Public Inspection File and post the report on their station website. 

Under the FCC’s EEO Rule, all radio and television station employment units (“SEUs”), regardless of staff size, must afford equal opportunity to all qualified persons and practice nondiscrimination in employment.

In addition, those SEUs with five or more full-time employees (“Nonexempt SEUs”) must also comply with the FCC’s three-prong outreach requirements.  Specifically, Nonexempt SEUs must (i) broadly and inclusively disseminate information about every full-time job opening, except in exigent circumstances,[1] (ii) send notifications of full-time job vacancies to referral organizations that have requested such notification, and (iii) earn a certain minimum number of EEO credits based on participation in various non-vacancy-specific outreach initiatives (“Menu Options”) suggested by the FCC, during each of the two-year segments (four segments total) that comprise a station’s eight-year license term.  These Menu Option initiatives include, for example, sponsoring job fairs, participating in job fairs, and having an internship program.

Nonexempt SEUs must prepare and place their Annual EEO Public File Report in the Public Inspection Files and on the websites of all stations comprising the SEU (if they have a website) by the anniversary date of the filing deadline for that station’s license renewal application.  The Annual EEO Public File Report summarizes the SEU’s EEO activities during the previous 12 months, and the licensee must maintain adequate records to document those activities.

For a detailed description of the EEO Rule and practical assistance in preparing a compliance plan, broadcasters should consult The FCC’s Equal Employment Opportunity Rules and Policies – A Guide for Broadcasters published by Pillsbury’s Communications Practice Group.

Deadline for the Annual EEO Public File Report for Nonexempt Radio and Television SEUs

Consistent with the above, October 1, 2023 is the date by which Nonexempt SEUs of radio and television stations licensed to communities in the states identified above, including Class A television stations, must (i) place their Annual EEO Public File Report in the Public Inspection Files of all stations comprising the SEU, and (ii) post the Report on the websites, if any, of those stations.  LPTV stations are also subject to the broadcast EEO Rule, even though LPTV stations are not required to maintain a Public Inspection File.  Instead, these stations must maintain a “station records” file containing the station’s authorization and other official documents and must make it available to an FCC inspector upon request.  Therefore, if an LPTV station has five or more full-time employees, or is otherwise part of a Nonexempt SEU, it must prepare an Annual EEO Public File Report and place it in its station records file.

These Reports will cover the period from October 1, 2022 through September 30, 2023.  However, Nonexempt SEUs may “cut off” the reporting period up to ten days before September 30, so long as they begin the next annual reporting period on the day after the cut-off date used in the immediately preceding Report.  For example, if the Nonexempt SEU uses the period October 1, 2022 through September 20, 2023 for this year’s report (cutting it off up to ten days prior to September 30, 2023), then next year, the Nonexempt SEU must use a period beginning September 21, 2023 for its report.

Deadline for Performing Menu Option Initiatives

The Annual EEO Public File Report must contain a discussion of the Menu Option initiatives undertaken during the preceding year.  The FCC’s EEO Rule requires each Nonexempt SEU to earn a minimum of two or four Menu Option initiative-related credits during each two-year segment of its eight-year license term, depending on the number of full-time employees and the market size of the Nonexempt SEU.

  • Nonexempt SEUs with between five and ten full-time employees, or that are located in “smaller markets,” must earn at least two Menu Option credits over each two-year segment.
  • Nonexempt SEUs with 11 or more full-time employees and which are not located in “smaller markets” must earn at least four Menu Option credits over each two-year segment.

The SEU is deemed to be located in a “smaller market” for these purposes if the communities of license of the stations comprising the SEU are (1) in a county outside of all metropolitan areas, or (2) in a county located in a metropolitan area with a population of less than 250,000 persons.

Continue reading →

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August 1 is the deadline for broadcast stations licensed to communities in California, Illinois, North Carolina, South Carolina, and Wisconsin to place their Annual EEO Public File Report in their Public Inspection File and post the report on their station website. 

Under the FCC’s EEO Rule, all radio and television station employment units (“SEUs”), regardless of staff size, must afford equal opportunity to all qualified persons and practice nondiscrimination in employment. Continue reading →

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June 1 is the deadline for broadcast stations licensed to communities in Arizona, the District of Columbia, Idaho, Maryland, Michigan, New Mexico, Nevada, Ohio, Utah, Virginia, West Virginia and Wyoming to place their Annual EEO Public File Report in their Public Inspection File and post the report on their station website.

Continue reading →