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Supreme Court Makes it Easier To Sue for Age Discrimination


Proving that a company fired an older worker because of bias can be very difficult. Often there is a lack of convincing proof that the worker was terminated specifically because the employer had a bias against older workers. Not many employers say in front of a room full of witnesses, "We're getting rid of Joe because he's old."

But recently the U.S. Supreme Court expanded the rights of older workers. The court said companies can be sued under federal law when their policies or practices have a disproportionate effect on workers 40 or older - regardless of whether the employer intended to discriminate against them.

These so-called "disparate impact" claims make it easier to prove age bias, although the court did place limitations on this type of lawsuit.

To prove a disparate impact, the court said workers must show that a specific employment practice or requirement adversely affected older workers. For example, it's not enough to show only that layoffs disproportionately affected older workers as compared to younger workers. Instead, plaintiffs have to show that a specific policy unfairly affected older workers.

Also, a company can defend itself if its policy had some reasonable justification that had nothing to do with age.

Example: Suppose a company requires all employees to demonstrate a certain level of computer skills. Such a policy might well have a disparate impact on older workers who are less familiar with computers. Of course, if the employees' jobs require using computers, then the rule might be justified. But if the

 

employees' jobs involve manual labor and computers aren't really necessary, then the rule might be illegal.

Companies could also get into trouble if they require employees to meet certain tests for strength, agility or eyesight that aren't strictly necessary for the job.

In the Supreme Court case, the City of Jackson, Miss. found that its starting salaries for police officers were less than the regional average, so it adopted a plan that gave new employees proportionately bigger raises than more senior employees. The senior employees claimed that this policy had a disparate impact on older workers.

However, the Supreme Court said that the workers hadn't identified a specific practice that had hurt them, as opposed to a general salary plan. Also, the court said that raising starting salaries to the local average was a reasonable justification for the plan.

Future lawsuits will help define what is a "reasonable factor other than age," and what is required to demonstrate a "specific" employment policy or practice.


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Fired Employee Who Could Perform Job Can Sue for Discrimination


As long as an employee could perform his job - even if his job performance didn't meet the employer's reasonable expectations - he should be able to seek compensation for job discrimination.

That's the message from a recent decision by the New Jersey Supreme Court.

In that case, a man was hired to fill a managerial position with a flatware importer. He worked for several years before suffering a stroke. After a recovery period, he told his employer that he was ready to return to work, but he was terminated and replaced by his assistant.

The man sued for discrimination. The employer argued that his claim lacked

 

merit because he was not able to prove that he met its reasonable expectations for job performance.

But the court didn't agree with company. It said all the man had to prove to have his case considered by a jury was that he was performing his job prior to being fired.

The court stressed that the man, prior to his stroke, had never been told that his job was at stake or that he was not performing well.

A majority of courts in other states have also rejected the argument that plaintiffs must demonstrate that they are meeting the "legitimate expectations" of employers.


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Jury Verdicts in Non-Compete Cases On the Increase


A $43 million jury verdict against an Ohio title insurance company for violating a competitor's non-compete agreement with a former executive has raised eyebrows around the country.

While the huge verdict captured the headlines, the case also reflects a trend that juries are increasingly awarding damages based on violations of non-compete contracts.

These agreements limit employment options for workers when they leave a company. When a business competitor causes an employee to disregard the restrictions, and also works with the employee to aggressively compete with the former employer - as apparently happened in the Ohio case - a violation of the non-compete may very well result.

In the past, non-compete cases typically involved sales professionals

 

and customer lists. But more and more companies are increasingly relying on non-compete agreements as a way to protect their trade secrets and intellectual property.

An individual who signed a non-compete is probably better off revealing that to a prospective new employer early on in the interview process as a way to avoid potential problems.

Former employers sometimes have trouble enforcing non-competes that include time frames that are too long or cover too wide a geographic area.

But where a non-compete is reasonable and another company clearly encourages an employee to violate it, the Ohio case shows that the other company could be on the wrong end of a serious lawsuit.


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Woman Not Pregnant But Can Still File Discrimination Claim


Even though a woman wasn't pregnant, she could still make a pregnancy discrimination claim.

So said a federal appeals court recently, which indicated that a woman's potential to have children is enough to satisfy the federal Pregnancy Discrimination Act.

The woman, an obstetric nurse, resigned due to complications with her pregnancy. After the baby was born, she then applied with her former employer for a part-time nursing position, but her application was denied.

She sued, alleging that she had been asked by the employer's personnel

 

manager whether she was pregnant again, or intended to have more children. She also claimed to have been told by the personnel manager that her former supervisor would not rehire her because of complications in scheduling caused by her past pregnancy.

The employer argued that the plaintiff was not protected by the law because she was not pregnant at the time her job application was denied.

But the federal appeals court said the woman could file a claim because the federal law prohibits an employer from discriminating against a woman because of her capacity to become pregnant.


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Age Bias Law Applies To Apprenticeship Programs


People can't be turned down for apprenticeship programs just because they're over 40.

A federal court recently upheld the authority of the Equal Employment Opportunity Commission to extend the federal age bias law apprenticeship opportunities.

The case involved a number of individuals 40 and over who applied for admission to a seafaring apprenticeship program in Maryland. After they were

 

rejected, they complained to the EEOC, which said officials of the apprenticeship program violated federal law by accepting applications only from individuals aged 17 to 35.

The court said the federal law protecting older workers extends to a variety of workplace relationships, including apprenticeship programs. An apprenticeship is the "entry" point to the workforce, the court noted.


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Employees Who Smoke May Not Have a Job Anymore


Companies are looking for ways to trim health care costs, including firing workers who smoke - not just at the workplace, but anywhere.

A Michigan-based company recently put in place a "no tobacco" policy that said workers who didn't quit smoking would be fired. As a result, about a dozen employees quit smoking, while four others left the company rather than take a breath test for carbon monoxide.

Other companies have stopped hiring smokers and have imposed surcharges on smokers' health premiums. And some are enticing workers with lower health policy deductibles if they lower their blood pressure, reduce their cholesterol or lose weight.

But these types of policies still have to comply with federal laws, such as the Americans with Disabilities Act and the medical records privacy act, as well as state laws that prohibit discrimination in employment based on smoking or other

 

lifestyle choices.

Some states have laws specifically protecting smokers, or protecting against invasion of privacy in off-work behavior. Some states also prohibit discrimination against overweight workers.

But a number of states have few if any protections for lifestyle activities.


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Office Romances Can Be a Problem


The recent firing of Boeing's CEO for having an affair with an employee has brought renewed attention to the issue of office romances.

Romantic relationships between a supervisor and a subordinate are generally frowned upon in the workplace. More and more companies have created policies forbidding such affairs because they can lead to many problems.

One is that a relationship may sour and lead to a charge of sexual harassment. Employers also worry that the workers involved may be less productive on the job. And other workers who are aware of the relationship may perceive favoritism, which can undercut workplace morale.

While most policies prohibit supervisors from dating a direct subordinate, they are generally silent on other romances. But even those relationships can spell trouble, especially if a company believes the relationship clouds the judgment of

 

those involved or reflects badly on the company.

The firing of Boeing's CEO is an example of a company deciding a consensual relationship between two executives conflicted with the company's goals. The CEO was asked to resign because his extramarital affair was at odds with Boeing's effort to implement a code of ethical conduct.

The line between employees' business and personal lives is often unclear. Some employees have sued their companies after being terminated because of an office romance claiming a violation of a right to privacy.

Another emerging trend involves companies asking employees involved in romantic relationships to sign an affidavit saying the relationship is consensual. These so-called "love pacts" are aimed at minimizing liability risks if the office affair sours and the spurned party - often a woman subordinate - files a sexual harassment claim.



This newsletter is designed to keep you up-to-date with changes in the law. For help with these or any other legal issues, please call our firm today.

The information in this newsletter is intended solely for your information. It does not constitute legal advice, and it should not be relied on without a discussion of your specific situation with an attorney.

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