Employee Survival Guide®

Patricia Olivieri's Big Win Against Stifel and Defeating Forced Arbitration in Sex Discrimination Cases.

• Mark Carey • Season 5 • Episode 18

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This episode is part of my initiative to provide access to important court decisions  impacting employees in an easy to understand conversational format using AI.  The speakers in the episode are AI generated and frankly sound great to listen to.  Enjoy!

What if a groundbreaking law could redefine how we handle sexual harassment claims in the workplace? Join us as we unravel the gripping case of Olivieri v. Stiefel, a corporate drama wrapped in legal intrigue and power struggles. Patricia Olivieri, a former client services associate, is not just fighting against alleged sexual harassment but is also challenging the constraints of her prior arbitration agreement, thanks to the new Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA). Discover how this pivotal legislation might enable her to bypass arbitration and take her allegations of misconduct and retaliation straight to court, setting a legal precedent that could impact corporate accountability across the nation.

In this episode, we dive deep into the allegations against Olivieri's manager, Neil Eiler, whose inappropriate behavior pushed Olivieri to her limits. From graphic discussions to unwanted physical contact, her journey through reporting and retaliation reveals a complex narrative of workplace harassment. As Stiefel's internal investigation unfolds, led by HR's Zach Anderson, we explore the nuances of legal accrual and the implications of the EFAA on Olivieri's case, especially after her return from maternity leave. This episode promises to shed light on how these developments could transform workplace harassment litigation, exposing the tensions and tactics within corporate walls.

Click here to read the case decision Olivieri v. Stifel, Nicolaus & Co. 112 F.4th 74 (2d Cir. 2024)

The Second Circuit Court of Appeals affirmed a lower court's decision in Olivieri v. Stifel, rejecting the defendants' motion to compel arbitration. The case centers on whether the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA) applies to the plaintiff's claims of retaliatory hostile work environment. The court determined that the plaintiff's claims, which accrued after the EFAA's enactment due to the continuing violation doctrine, fall under the EFAA's purview, thus rendering the arbitration agreement unenforceable. The court addressed and rejected arguments concerning the EFAA's retroactive application and the definition of "sexual harassment dispute." The ruling confirms the plaintiff's right to pursue her case in federal court.

If you enjoyed this episode of the Employee Survival Guide please like us on Facebook, Twitter and LinkedIn. We would really appreciate if you could leave a review of this podcast on your favorite podcast player such as Apple Podcasts. Leaving a review will inform other listeners you found the content on this podcast is important in the area of employment law in the United States.

For more information, please contact our employment attorneys at Carey & Associates, P.C. at 203-255-4150, www.capclaw.com.

Disclaimer: For educational use only, not intended to be legal advice.

john:

You know I always thought legal cases were just like a bunch of boring paperwork and just stuffy courtrooms, you know.

sue:

Yeah.

john:

But I came across this case Olivier v Stiefel and wow, it's really something else. It's like corporate drama. Oh really, power dynamics.

sue:

Right.

john:

And a brand new law that could, like, totally change how we handle these sexual harassment claims at work. Wow, so you wanted to do a deep dive on this case, right? Yeah, that's what we're going to do. We're talking about Patricia Livieri. She worked as a client services associate at Stiefel. It's a financial firm and she's suing them, alleging some pretty serious stuff Okay, sexual harassment and retaliation. But what makes this case even more interesting, I think, is that it all comes down to this new law called the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, efaa for short. This law could actually let Olivieri skip over this arbitration agreement that she signed before and just take her case straight to court. So let me set the scene here. Olivieri is saying that her manager, this guy, neil Eiler, was constantly behaving inappropriately, and we're talking like graphic discussions about his sex life.

sue:

Oh, wow.

john:

Watching porn where she could see. No way and even touching her inappropriately.

sue:

Seriously.

john:

Yeah. And she also claims that Eiler used his position you know his power to manipulate her. He gave her a bonus that was much bigger than what anyone else got, which you know. That's a red flag. Now Olivier didn't just stay quiet about this. She reported Eiler's behavior to a supervisor, robert Cotignato. But here's the thing Cotignato at first tried to like downplay everything, even said that Olivier was doing a great job. So it's even weirder that he hesitated, you know.

sue:

Yeah, that's strange.

john:

So what happened next? Well, it kind of turned into this big mess Olivier is trying to report the harassment, isla is trying to make her look bad and Cote-N-Gado is stuck in the middle. It's like crazy. So Stiefel finally starts an internal investigation. It was led by an HR employee, zach Anderson, yeah, but it quickly became a he said, she said situation.

sue:

Yeah.

john:

Which you know didn't really help. Right and here's where it gets really interesting Stiefel actually pressured Olivieri to move to a different department.

sue:

Yeah.

john:

Even though it could have hurt her career.

sue:

Really.

john:

Yeah, and to make it seem better, they offered her a wait for it, a pay cut.

sue:

What I know. Right, that's crazy. Like, come on, does that even seem fair?

john:

No, not at all.

sue:

So this is where the EFAA comes in. Remember this law passed right in the middle of all this, when Stiefel was trying to force Olivieri into arbitration.

john:

Right right.

sue:

Okay, so this is where the legal idea of a cruel is important, right?

john:

Yeah, a cruel basically means like when does a legal claim officially start?

sue:

OK, so like the starting line of a race.

john:

Yeah, exactly.

sue:

Yeah.

john:

But sexual harassment cases can be a little tricky. It's not just one incident, so every new instance of harassment kind of resets the clock for when you can file a claim. So it's not just about the first time, it's about the whole pattern.

sue:

Exactly, and in Olivieri's case that's really important, because some of the alleged harassment happened before the EAA and some happened after.

john:

So that's where the timing gets messed up.

sue:

Yeah, it makes things complicated. It's not clear if the EFA applies to her whole case or just the part after the law was passed, okay, so that's why everyone's making a fuss about when this law came in. Exactly.

john:

Really changes things, doesn't it?

sue:

Yeah, and we haven't even gotten to what happened after Olivieri came back from maternity leave, which was, you know, right when the EFA started.

john:

Oh, I bet things didn't get any better.

sue:

Well, Olivier says that Stiefel actually started retaliating even more after she got back, like they were trying to get her to quit.

john:

Seriously. Yeah, what did, they do.

sue:

Well, they kept changing her job responsibilities which can make it hard to succeed, you know and they started limiting her access to like important stuff she needed for work, and they didn't include her in company events or like share important information with her.

john:

So they basically made it impossible for her to do her job.

sue:

Pretty much.

john:

That's just wrong.

sue:

It seems that way. Yeah, and there's more. They even changed how they handled her PTO. They started taking away tiny bits of it, even for, like, short absences, and they didn't do that for other employees.

john:

Wow, so they're adding insult to injury. I mean, what does this say about how Stiefel was handling this whole thing? Were they just clueless, or was it something worse?

sue:

That's a great question and it's something we'll look at more as we keep going with this deep dive. But before we do that, let's talk about this motion to compel arbitration. Just to be clear, this is basically Stiefel asking the court to make Olivieri settle her dispute privately instead of going to court.

john:

Right, so they want to keep it all behind closed doors.

sue:

Yeah.

john:

But why?

sue:

What's the advantage for Stiefel Well, there are a few reasons why companies like arbitration. First, it's usually faster and cheaper than a trial and it's more private which companies like because it avoids bad publicity.

john:

But wouldn't that be bad for Olivieri? Wouldn't she want people to hear her story?

sue:

Yeah, that's a good point and that's one of the big criticisms of arbitration that it's not transparent and can benefit the more powerful party.

john:

Which would be Stiefel in this case. So is Stiefel trying to silence Olivieri and sweep this whole thing under the rug?

sue:

That's a good question. To understand what's really going on, we need to look closer at the EFAA and how it affects cases like this. But first there's one more thing Stiefel did that you might find interesting.

john:

Okay, what else happened?

sue:

Remember Cotignato.

john:

The supervisor Olivieri reported the harassment to.

sue:

Yeah, the one who tried to downplay it all. Well, get this. Yeah, the one who tried to downplay it all, Well get this. Even though he's named in Olivieri's lawsuit, Cudignato was involved in discussions about her medical accommodation after she came back from leave.

john:

Wait a minute. So the guy she's suing for enabling the harassment was involved in decisions about her medical needs.

sue:

That's what Olivieri says, and it definitely raises questions about how serious Stiefel was taking her concerns.

john:

Wow, I can't imagine how frustrating that must have been for her.

sue:

Yeah, it's not a good look and it makes you wonder how effective a company's internal processes can really be, especially in these sensitive situations, you know, when there's power imbalance. Something to think about it's a fun one we continue this deep dive Okay.

john:

All right.

sue:

You know, this whole thing with Codignato really shows something important about this case. It's not just about what happened to Olivieri.

john:

This could like change how companies everywhere deal with these situations. You mean the EFAA, how it could change things for these kinds of claims.

sue:

Exactly Before the EFAA, a lot of employees were stuck with these arbitration agreements. They signed them when they were hired, often without even knowing what they were agreeing to.

john:

Yeah, I could see that You're excited about the new job, maybe a little overwhelmed with all the paperwork. You don't really think about what all the fine print could mean later on.

sue:

Right and these agreements. They basically stopped people from going to court, forcing them into private arbitration.

john:

So even for something like sexual harassment they couldn't have a trial. It would all happen in secret.

sue:

That's how it was for a lot of people. But the EFAA it changes that system. It lets employees choose to not do arbitration for sexual harassment and assault claims.

john:

That's a big change, right. It makes things more fair, gives survivors more options, more control.

sue:

Absolutely In this case, Olivier Vestifel. More fair, give survivors more options, more control. Absolutely In this case, Olivier v Stiefel. It's one of the first real tests of the EFAA in court.

john:

So how important is this ruling really? Is this like a landmark case, or are there loopholes that companies can use to get around the EFAA?

sue:

That's the big question, isn't it the court saying Olivier can go to trial? That sets a precedent. It shows that these arbitration agreements aren't always going to work not for sexual harassment claims.

john:

So others in similar situations might follow Olivieri's lead.

sue:

It's possible and it might even make companies rethink using these agreements, especially with the EFAA. Now, no one wants to be the next Stiefel right.

john:

It makes you wonder, if Stiefel had just taken Olivieri's complaint seriously, if maybe this whole legal fight could have been avoided.

sue:

That's a good point. It shows how important it is to create a work environment where people feel safe to speak up, where their concerns are heard and taken seriously.

john:

Yeah, because even with the EKA, going through a legal battle like this is tough. It takes a lot of courage and energy.

sue:

Absolutely. It can be so draining and stressful, not to mention expensive.

john:

Think about what Olivieri had to go through, not just the harassment, but everything after Trying to get justice.

sue:

It must have been incredibly difficult. It's important to remember that even when someone wins a case like this, there's a cost.

john:

Yeah.

sue:

There's a toll it takes, but hopefully her case will help pave the way for others.

john:

It's like David and Goliath, isn't it? One person against a huge company, and the EFA is her weapon.

sue:

I like that. It shows how powerful the law can be, how individual stories, acts of courage can impact us all.

john:

But it starts with the people knowing right, Knowing their rights, knowing about laws like the EFA that can protect them.

sue:

knowing their rights, knowing about laws like the EFAA that can protect them Exactly, and that's what we're here for to break down these complex legal issues, explain what they mean for you, the listener, and hopefully help you stand up for yourself and others.

john:

So what's the most important thing here? What should people listening to this take away about the EFAA and what it means for them?

sue:

I think the biggest thing is read your employment agreements carefully, understand what you're agreeing to, especially about things like arbitration. Don't just sign without thinking.

john:

Don't be afraid to ask questions.

sue:

Exactly. If something seems off or you don't know what it means, get legal advice. It's better to know up front than to be stuck later because of something you didn't understand.

john:

Knowledge is power, and knowing about the EFA could mean the difference between being silenced and having your voice heard.

sue:

Well said, but you know, there's another side to all this that we haven't really talked about.

john:

What's that?

sue:

Well, we've talked about the law, but what about the people? How does this affect people's lives, their careers?

john:

That's a good point. We get so focused on the legal stuff that we forget about the real people involved.

sue:

Exactly. Laverie's experience isn't unique. There are so many others who have been harassed, silenced, retaliated against.

john:

It makes you wonder how many cases we never even hear about, how many people just suffer in silence because they don't know their rights or are afraid to speak up.

sue:

It's a sad thought and it shows how important it is to create a culture where people feel safe coming forward, where they know they'll be supported and believed.

john:

And that's not just on companies, is it? It's on all of us to challenge these behaviors, to speak up when we see something wrong, to create a society where harassment and retaliation aren't tolerated.

sue:

You're absolutely right. This is bigger than one case, one law. It's about creating a world where everyone feels safe and respected and empowered to speak their truth.

john:

It's just, it's sad to think how many people are out there going through something like this, like Olivier went through it's really tough. But it is kind of inspiring too to see someone like her stand up for herself like that. You know, fight back.

sue:

It takes a lot of courage.

john:

Even when it's hard.

sue:

Yeah.

john:

Especially when it feels like everyone's against you.

sue:

Yeah, definitely.

john:

And she didn't back down, not even when they tried to use that arbitration agreement to silence her.

sue:

Yeah.

john:

She saw right through it. She knew they just wanted to keep things quiet, protect the company, even if it meant she didn't get justice. Exactly that's why this EFA is so important. It gives people like Olivieri a real chance. It makes things more fair. Make sure these cases can be heard. You know, publicly Makes you wonder how many other cases might have turned out differently if the EFA had been around sooner.

sue:

Yeah, who knows, but it's definitely possible.

john:

And that's why we keep talking about these things, raising awareness about the EFAA and what it all means.

sue:

Exactly.

john:

Because this isn't just about one case right. It's about changing the whole culture at work, Making harassment and retaliation completely unacceptable. That's about changing the whole culture at work, making harassment and retaliation completely unacceptable.

sue:

Yeah.

john:

That's the goal, absolutely, and it starts with all of us speaking up when we see something wrong.

sue:

Yes.

john:

Supporting people who share their experiences and demanding that people in power you know are held accountable.

sue:

It's about respect.

john:

Yeah, it's about creating a culture of respect where everyone feels safe and valued, Exactly. And you know we have to remember the law is just one part of it.

sue:

Right.

john:

Real change takes all of us working together to make workplaces better and fairer for everyone.

sue:

Couldn't agree more.

john:

So, as we finish up our deep dive into Olivier Vestifel, let's keep the big picture in mind. This case isn't just about a legal fight. It shows us that power dynamics are everywhere, especially at work, and that we all need to know our rights and feel like we can speak up.

sue:

It's so important.

john:

It's a reminder that staying silent only protects the people doing wrong.

sue:

Yeah.

john:

But speaking out that can start real change, absolutely. So if you're ever in a situation that feels wrong, remember, patricia Olivieri. Remember that you have options, you have rights, you don't have to be quiet.

sue:

You have a voice.

john:

The EAA is a powerful tool, but it's up to all of us to use it and to build a world where we don't even need laws like this anymore.

sue:

That's the goal.

john:

Until next time, keep diving deep and keep fighting for a better world.

sue:

See you next time.