By Jim Ryan and Janaki Chadha

Warning: This report contains derogatory language

An outside investigation into Multnomah County Commissioner Loretta Smith determined she likely bullied staffers on cultural issues and that "it was assumed" staffers would use vacation time to work campaign events.

Smith told an employee she "better not be pregnant," made references to Muslims being terrorists and swore at staffers, former employees told the investigator from labor and employment law firm Fisher & Phillips.

The report, the product of an investigation launched after a staffer lodged complaints against Smith, says several staffers have "raised serious concerns about their interactions" with Smith and that the commissioner denies wrongdoing.

Smith maintained that stance Friday, saying in a statement that the report finds the "wild claims" lodged against her were "unsubstantiated."

Then-policy analyst MeeSeon Kwon initially filed a complaint against Smith in January, alleging Smith bullied her and other employees about their weight and appearance, forced her to use vacation time to work events for Smith's campaign and that Smith misused her county credit card. A former employee followed suit the next month.

Following Kwon's complaint, county human resources officials launched an investigation. The Skanner and Willamette Week reported about the ensuing report earlier Friday.

In April, Multnomah County gave Kwon a settlement that included six months of paid administrative leave that will run until Sept. 8 and $23,820 for attorney's fees and 10 months of health insurance. Kwon will also get a recommendation letter from Marissa Madrigal, chief operating officer for the county, before leaving her position.

Smith said she plans to respond in writing to an email informing her and County Chair Deborah Kafoury of the investigation results. Smith wrote that she plans to air her concerns about "how the entire matter was handled, including the motivations behind it," and that she's "glad these allegations have been put to rest."

Email to Smith

"Based on the investigator’s findings I recommend that Commissioner Smith review and seek training on the county code, personnel rules and administrative procedures identified in the report. Department Human Resources, Talent Development, and the County Attorney are available internal resources for training.

More specifically, the Commissioner should familiarize herself with the recently updated county administrative procedure FIN-3 as it relates to purchases, required documentation and timelines. The requirement that elected officials comply with administrative procedures on expenses and reimbursements is codified in county code section 3.00(B).

Personnel rules 3-40 and 3-47 state the county’s commitment to providing a workplace that is free of illegal bias, prejudice, discrimination, harassment or retaliatory conduct, and to assure that the work environment is respectful, professional, safe, accepting of cultural differences, and free from inappropriate and abusive workplace behavior. These principles apply to all county employees, including those of elected officials, and the Commissioner is strongly urged to create a workplace that reflects those values."

— Travis Graves, Chief Human Resources Officer and Department of County Management Deputy Director, in an email to Multnomah County Commissioner Loretta Smith and County Chair Deborah Kafoury

Smith also indicated in an interview for the investigation that she thinks the inquiry was unwarranted because the county and Kwon came to a settlement and that Saba Saleem, who lodged the second complaint, isn't a current employee who has a current problem.

Excerpts from the report:

Misuse of county resources/funds

Kwon and Saleem allege, in part, that Smith directed staffers to use vacation days to work her campaign events. The report finds staffers weren't "expressly ordered to use vacation time" to work campaign events, but that "it was assumed" doing so was part of their responsibilities.

"There was no intentional misconduct, but there was no real effort to clear up any ambiguity," the report says. Smith likely violated a county rule because she and her chiefs of staff weren't clear that events weren't required, according to the report.

In fiscal year 2017, though March, Smith submitted documents to the county stating she lost 27 of 47 purchasing card receipts, according to the report.

The investigator didn't find any violation of county purchasing card policies and practices.

Unprofessional conduct toward staff

Former employees said Smith would take out frustrations on staffers, "using profanity and questioning their competence."

"Suck your stomach in, you look pregnant. You better not be pregnant," one former employee alleged Smith said.

Another former employee alleged Smith said, "You dress like a college student."

A human resources manager said Smith had a reputation for shouting at staffers and the highest rate of staff turnover among the commissioners.

Smith "may have been harsher in her treatment of female staffers, using derogatory statements and profanity in these interactions," the report says.

She violated county rules that, according to the report, state workers need to keep a professional and respectful environment.

Discriminatory/harassing conduct

One of the former employees contends Smith made many complaints about staffers' weights, referred to another commissioner as a "bitch" and asked a mixed-race employee, "What are you? You have those high cheek bones."

Another former employee claimed Smith made references to Muslims being terrorists and Hispanics being "illegals."

The report says the allegations, like others referenced earlier in the report, are tough to confirm because the people leveling them said Smith made the statements in one-on-one encounters. "That said, there does appear to be a pattern that indicates that Commissioner Smith likely shared her personal cultural or ethnic views with her staff in what she likely believed were personal conversations. To the extent that this happened, such conduct was inappropriate given that these conversations occurred in the workplace."

The report says "no employees raised contemporary complaints with Human Resources about inappropriate behavior." Most who raised concerns when interviewed for the report said they were apprehensive about bringing concerns to human resources staffers because Smith "is fairly influential, and they did not challenge her."

"Instead, several of the staff left the Commissioner's office to take other jobs rather than report their concerns."

The report says it appears Smith "likely made personal statements that bordered on bullying to some staffers on cultural issues."

Smith was one of 11 people interviewed as part of the investigation, according to the report. Six of the people interviewed are former employees. Kwon is listed as one of the former employees.

Kafoury said in a statement that she's "pleased the county's process has been followed, an investigation has been conducted and we can move forward."

The outside investigation cost the county more than $11,350, a county spokeswoman said in an email, and the commissioner's attorney costs through May 20 totaled over $3,700.

The financial settlement with Kwon notes that it should not "be construed as an admission of liability on the part of Multnomah County, it officials, or employees."

— Jim Ryan and Janaki Chadha