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CLIENT ALERT

February, 2008

Employer Alert

U.S. SUPREME COURT to Decide Two New Employment
Discrimination Cases This Term

The U.S. Supreme Court will decide two employment law cases this term that will be important to employers. In Meacham v. Knolls Atomic Power Laboratory, the Court will decide in an Age Discrimination in Employment Act (ADEA) case, which side has to prove that the business justification asserted by the employer in support of termination exists and is reasonable. As the economy worsens, employers executing a reduction in force must make difficult decisions about which of their employees to dismiss. The ADEA protects employees against age-related discrimination beginning at age 40 but allows employers to take actions that impact upon older workers as long as the differentiation is based on reasonable factors other than age. To support a lawsuit, an employee may claim that almost any employment action, including one based on a well established policy, is discriminatory.

In Meacham, a federal research lab carried out a reduction in force. All but one of the 31 employees dismissed, were over 40. The criteria considered by the employer were employee flexibility and criticality of skills. Regardless of the outcome of the Meacham case, employers must document legitimate business reasons for all employment decisions to protect against potential litigation.

In the other case, Crawford v. Metropolitan Government of Nashville, the Supreme Court will consider whether Title VII of the Civil Rights Act of 1964 protects employees from retaliation for accusations of discrimination made during an internal investigation. In Crawford, an employee of 30 years was sexually harassed by her supervisor. She did not report the harassment; however, in a subsequent internal investigation of the supervisor by the employer, she testified that he harassed her. No action was taken against the supervisor but the employee, and two other women who also testified, were dismissed shortly after cooperating in the internal investigation. On appeal, the Supreme Court will decide whether the existing protection against discrimination for those who file a formal charge of discrimination with the EEOC extends to protect an employee who cooperates in an internal investigation of discrimination.

This Laddey, Clark & Ryan, LLP Client Alert provides information of general interest to our readers. It is not intended, and should not be used, as a substitute for consultation with legal counsel. If you have any questions regarding specific issues raised in this Employer Alert, you may contact Thomas Ryan, Esq. or Linda Day, Esq. of Laddey, Clark & Ryan�s Employment and Labor Practice Group at (973)729-1880.

The Employment and Labor Practice Group

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