Sebec business claims state unfairly favors workers in labor issues

By Bill Pearson
Staff Writer

    SEBEC — After vacationing in Maine for several years, Bill Eckhardt decided the Pine Tree State was not only a nice place to visit, but a location where he’d like to live. So in 1991, he moved from Annandale, Va. to Sebec. A year later, he brought his full-service cleaning business to Maine and soon discovered the state’s reputation it earned for hospitality in becoming “Vacationland” wasn’t shared in the business community.

    Eckhardt began Country Pride Cleaning and Service in 1992. In the time since, he claims the state has been more of a hindrance than an asset. Eckhardt says the rules and regulations employers are forced to abide by make operating in Maine difficult. He believes the labor laws are slanted against businesses in favor of employees.
     His company has fired four employees since 2010 who have either filed for unemployment insurance, filed human rights violations against his business or both. In the past 18 months, two former employees — who won their unemployment cases, another who lost their case, but has brought human rights violations against him, and in the fourth case, Eckhardt lost the unemployment hearing, but later successfully filed a grievance against the Department of Labor hearing officer who ruled against him.
    These are the first human rights allegations brought against his company in its 35-year existence. Eckhardt believes it is not a coincidence that these claims have begun. As workers become more aware of labor laws, he thinks they are starting to figure out how to further exploit an already severely broken system.
    “It’s becoming a new form of welfare. They know how the system works. They receive legal advice from the state,” Eckhardt said. “I have to pay for my own legal advice, they get it for free, I’m not looking for special treatment, only a level playing field. Whether I win or lose, I’m thousands of dollars in legal fees which I have no means of recouping.”
    The Maine Human Rights Commission has not set a date for any of the hearings. Eckhardt indicated if he loses the case, he could be liable to pay as much as $50,000 per case.
    The three human rights claims were made based on Eckhardt firing three employees in 2010. The first case occurred when two employees — a husband and wife — arrived late at the jobsite. They were immediately sent home by the client’s human resources department.
    “They showed up late banged on the doors,” Eckhardt said. “They appeared to be intoxicated so that’s why they were terminated. It was later found out that the woman was using methadone which worked in her favor at the unemployment hearing.”
    When the case was reviewed by the MDOL,  the agency ruled in the employee’s favor. Eckhardt also testified he discovered the couple had filed false statements on their employment application. He did a background check on the couple which he claims produced a lengthy criminal record, but the Unemployment Commission found in the woman employee’s favor.
    The second case involves a sexual harassment charge against his company. The woman in the second case decided not to file for unemployment insurance, but has recently submitted a suit claiming sexual harassment. The case will be heard by the Maine Human Rights Commission.
    The third case involves a female employee who claimed she had high blood pressure. Eckhardt also claimed this employee failed to use the time clock and repeatedly left the work without notifying anyone.
    “It didn’t really work. She just wrote in her time in with a pen. She was being paid for hours she didn’t work which led to her termination,” Eckhardt said. “I treat people with dignity and respect until they give me a reason not to. Finally, we had enough of the situation and let her go.”
    A fourth employee was terminated for damaging a client’s walls. The employee used an improper cleaning fluid on the wall which stripped the paint off. The employee won her case in the unemployment hearing. Eckhardt decided against appealing the decision. He did file a grievance against the Department of Labor hearing officer who made the decision.
    “It was too late to do anything about it. The employee had already received all of the unemployment compensation coming to her,” he said. “I don’t know what the department did to the adjudicator. She is protected by the union. And I’m sure she is still presiding over others cases.”
    Maine labor laws provide employers with 17 instances to terminate an employee for cause. One of those is arriving on the work site under the influence of illegal drugs or being intoxicated. The employee in the first case was using methadone, under the supervision of a physician. Methadone, as a prescribed drug protected the employee under labor regulations.
    The MDOL is regulated by both state and federal jurisdiction. The department has a process in place to ensure there is fairness in all proceedings.
    The initial unemployment claim is first heard to determine whether enough evidence exists for a hearing to be held. The fact-finding session is conducted by a person with a legal background. The MDOL indicates that over 80 percent of these officers are licensed to practice law, but it isn’t a requirement.
    “The department looks for experience in handling administrative hearings and in the state’s Administrative Procedure Act which governs the way hearings are conducted,” said MDOL Director of Communications Julie Rabinowitz.
    If evidence exists, the case is presented to a chief hearing administrator at the Department of Labor. This case is heard by a licensed attorney. Either party can appeal the officer’s decision which is heard by the state’s Unemployment Commission which is an agency independent of the MDOL.
    The appeal’s hearing is considered to be “denovo” which is a legal term derived from Latin meaning. “from the beginning.” This requires both parties to present all of their records and witnesses as if the first hearing never happened.
    “This provides a lot of confusion because both parties often think once they submit materials then there not required to bring them for the appeal, but that’s not the case,” Rabinowitz said. “It is a totally different proceeding through an independent agency.”
    While DOL rules on labor provisions, the legislature along with federal government enact the laws. State Senator Doug Thomas (R-Somerset) has spoken to Eckhardt about his concerns. He has also heard from other local businessmen about troubles dealing with state agencies and making sense of the labor laws.
    “The methadone situation is just terrible. That shouldn’t be allowed at all. We are working on a bill to stop methadone from being covered under MaineCare. So that should help with that situation,” Thomas said. “Other than that, I try to direct constituents to the right people in Augusta. There are a lot of rules and it’s important to make sure their concern is heard by the right people.”
    Eckhardt believes the Maine economy lags behind other states due to the legislature having a “hostile” attitude toward business. In Virginia, he remembers a state government that worked to improve the economic climate. He described the “Old Dominion” as a “right to work” state which also has lower taxes and fewer regulations.
    “It’s no wonder nothing ever gets done in Maine. The legislative process is too convoluted and everybody blames everybody else for the state’s problems. Nobody wants to take any responsibility.”
    Country Pride Clean Service is a statewide company with units from Houlton to Kittery with 106 employees.