Client Alert - Employment Law Update
United States Supreme Court Continues Trend of Pro-Employee Decisions.
The U.S. Supreme Court recently issued a decision placing the procedural burden on employers to establish a common affirmative defense to claims under the Age Discrimination in Employment Act (ADEA). The case completed a five-for-five sweep of decisions in favor of employees in employment discrimination cases this term.
The case of Meacham v. Knolls Atomic Power Laboratory, Inc., No. 06-1505 (June 19, 2008) arose after the employer conducted a reduction in force. The layoffs were based on a scoring system that assessed the "performance," "flexibility," and "critical skills" of employees. However, of the 31 terminated employees, 30 were over 40 - the age at which protections under the ADEA begin to apply. Most of the former employees sued, arguing that even though the employer did not intentionally discriminate against older workers, it nonetheless violated the ADEA because the action had a disparate impact on older workers by disproportionately affecting them.
After various procedural stages, the U.S. Court of Appeals for the Second Circuit ruled that the plaintiffs' claims failed because they were unable to disprove the employer's defense that the scoring system it used constituted reasonable factors other than age. However, the Supreme Court reversed the decision, holding that the Second Circuit erred by requiring the plaintiffs to disprove the employer's assertion. Instead, it concluded that the employer bore the burden of proving the defense.
The National Federation of Independent Business said of the decision in the New York Times, "[it] will make it much harder for small business owners to defend themselves against allegations of violations of the Age Discrimination in Employment Act." Even Justice Souter, who wrote the majority opinion acknowledged, "there is no denying that putting employers to the work of persuading fact-finders that their choices are reasonable makes it harder and costlier to defend."
This term has seen the Supreme Court impose this burden on employers in age discrimination cases, make it easier for employees to bring such suits, and expand the evidence employees may use in them. The Court also allowed claims of racial discrimination under a statute that greatly expands the potential liability of employers of all sizes. More than ever, businesses face exposure when making decisions affecting their workforce. For information about minimizing these risks, or to seek counsel concerning your employment policies and practices in general, please contact Mr. Gonzalez at 312-558-9779 or at egonzalez@elvisgonzalezltd.com.
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