The Loxedose Company near Chicago transfers computer models into hard physical copies. Computer programmers design the representation, and machines sculpt the product line by line from the bottom to the top by adding levels of materials that adhere and are durable.
Two managers who founded the company celebrate individual and company successes. For example, Founders Day, August 25, features all 30 members of the company (or whoever is available) helping blow out the company birthday cake. Labor Day features a camping trip for those interested, at a manager’s cabin at the largest lake in the area. Halloween features most employees wearing a costume, unless they are out on a sales or delivery run.
Thanksgiving features a turkey lunch, whether vegetarians like it or not.
The managers believe that everyone should be working together and celebrating together. Accordingly, Christmas is not only a great year-end celebration but also a super holiday party. Traditionally, gifts are exchanged, Christmas carols are sung, and computer-designed trophies are given to the employees with bonus checks attached. Employees have to be present to receive the prizes made from Loxedose computer designs and materials.
This year, Loxedose hired a married couple, Omar and Judy, to be a part of the sales staff. Omar is from Saudi Arabia and is studying at a university in Chicago. His wife is an American who attends the same university.
Judy joined the Islamic faith when she married Omar. She was a Christian early in her life and then was unchurched through many years before she met Omar.
The Christmas party is a mandatory meeting and celebration. Employees have to be there to pick up their trophy along with their $200 bonus check.
Whereas Judy was OK with going to the celebration this year, Omar was not because Christmas is a Christian celebration. Judy decided to go to the Christmas party without Omar to pick up Omar’s statue along with hers.
The party started just fine with an exchange of presents, a birthday cake for Jesus, and a bunch of thank-yous from top management. When it came to giving out the celebratory statues and money, the managers stated you had to be there to receive these gifts. Omar and Judy were mentioned together so Judy started picking up both statues when the company managers insisted Omar had to be there to receive his statue. Judy protested, saying this gathering was part of a Christmas celebration that was not part of Omar’s religion. Omar’s statue and money remained at the celebration.
Judy and Omar protested to management that they were discriminating based on religion because the bonus based on performance was distributed through the Christmas party and not offered if the employee didn’t attend. All employees should have an equal right to get the bonus. Furthermore, not everyone will always be able to attend the parties because of illnesses, family matters, and other issues.
The managers proposed creating a new employee handbook policy associated with celebrations, awards, and religion. The following choices were suggested in a company meeting:
1. Celebrations within the company are important because they bring the employees together beyond the basic job. Employees will be required to attend Christian celebrations during work hours because that is the dominant religion.
2. Celebrations within the company are important because they bring the employees together beyond the basic job. Employees will be required to attend celebrations unless there are religious reasons or other reasons approved by management.
3. Celebrations within the company are important because they bring the employees together beyond the basic job. However, no celebrations shall be related to any, or for any, religious holiday, in order to respect the beliefs of those who do not celebrate as such. Anyone missing any party needs prior approval from management.
4. Celebrations within the company are optional. However, rewards will be provided for performance at a December party. If no reward is received at the party, it will be delivered to the employee the next day.
5. No statues or awards will be given at company celebrations. They will be mailed to employees or added to payroll automatically.
Top management strongly opposes the last two proposals because they would actually destroy the effect of providing awards in front of everyone.
They prefer the second proposal because everyone would need to contact management and management would have control of who would be at the celebration. Omar and Judy do not like the fact that they would be forced (in Proposal 2) to reject the Christmas party because it is Christian. They much prefer Proposal 3, which eliminates religion-related celebrations. Top management does not like Proposal 3 because it thinks religion-based celebrations are an important part of life.

Questions 

1. Does the current policy pass the OUCH test?
2. Does management have a legal defense to discriminate by requiring attendance at religious-based events? Which defense is management using for keeping the policy?
3. Which employment law or laws does this case involve? How would the law(s) that you identified apply in this case?
4. Which employee handbook proposal should the company incorporate (if any) and why?
5. How effective in the company’s culture is giving out awards in front of everyone else?
6. Should religious parties be optional? Mandatory? Offered? Not offered?