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continuing Commentary and
Review on Employment Law and Cases Former Employees Who Have Received Their Retirement Benefits May Sue For The Reduced Value Of The Benefits Employees who have received their lump-sum retirement benefits may sue for breaches of fiduciary duty that reduced value of those benefits, the First Circuit ruled recently in Evans v Akers (No. 07-1140). The key issue, the court explained, was whether a former employee, despite having already received pay-out of their benefits, was a "participant" of the retirement plan within the federal ERISA law. A "participant" in an ERISA plan includes a former employee that has colorable claim that she will prevail in a suit for benefits under Supreme Court precedent. A right to benefits, the court continued, includes an entitlement to prudent management. Because the plaintiffs were participants in the plan when its value was reduced by imprudent management, they could sue to recover the reduced amount of their benefits. Robert L. Abell Employee Fired For Reporting Co-Employee's Illegal Acts May Sue An employee fired for reporting a co-employee's illegal acts relating to their employment may sue for wrongful termination and retaliatory discharge, the Mississippi Supreme Court ruled recently in DeCarlo v. Bonus Stores, Inc. (No. 2007-FC-02287-SCT). DeCarlo learned that the company CEO was defrauding the company. He reported this information to the company's CFO and several members of the company's board of directors. He was fired and filed a wrongful termination lawsuit for retaliatory discharge. The court ruled that his claim presented an exception to the employment-at-will doctrine and that a wrongful termination claim arose from a "discharge in retaliation for reporting a co-employee's illegal acts that relate to the employer's business." Robert L. Abell Cancer Survivor Protected from Disability Discrimination A breast cancer survivor qualifies for protection by the Americans With Disabilities Act (ADA), the D.C. Circuit held in Adams v. Rice (No. 07-5101). The protection arose, the court concluded, because the illness and treatment had caused an enduring impairment to the plaintiff's "major life activity" of sexual relations. The plaintiff, Adams, earned a position with the United States Foreign Service, one that required a medical clearance. Her medical clearance was revoked when she later reported a diagnosis of stage-one breast cancer. She underwent a successful treatment program, which included reconstructive surgery. Despite being cancer-free, her medical clearance was not reinstated and her job was lost. Adams claimed this violated her rights under anti-disability discrimination laws. The court ruled that Adams had established that, despite being cancer-free, she continued to suffer a disability because of an ongoing impairment to her ability to engage in sexual relations. To reach that conclusion the court had to first decide whether engaging in sexual relations qualified as a "major life activity." Based on statutory text, Supreme Court precedent and applying a "hefty dose of common sense" the court concluded that "engaging in sexual relations qualifies as a major life activity." While this case is testament first to Adams's bravery and the "common sense" of the court majority is to be acknowledged, it also serves as an illustration of how Supreme Court and other court rulings have so limited the Americans With Disabilities Act that its protections are ever difficult to define. Adams lost her job with the State Department because it regarded her as a liability (or at least a potential liability) since she was a breast cancer survivor. That she qualified for protection from disability discrimination in her employment as a Foreign Service officer based only on an ongoing impairment to her ability to engage in sexual relations indicates that Congress should act and restore a healthy dose of common sense to the protections afforded by the Americans With Disabilities Act by effectively repealing a number of misguided Supreme Court decisions. Robert L. Abell Pregnancy Discrimination Act Prohibits Firing Woman For Absences Related to Receipt Of In Vitro Fertilization Treatments The Pregnancy Discrimination Act
would be violated if a woman was fired because of absences caused by
her receipt of in vitro fertilization treatments, so ruled
the federal Seventh Circuit Court of Appeals in
Hall v. Nalco
Company (No. 06-3684 decided 7/16/08). This is the first
federal appeals court to decide this issue. Robert L. Abell Overtime and Wage Enforcment Lax, Government Reports Overtime and minimum wage enforcement actions of the Fair Labor Standards Act have gone wanting by the Labor Department's Wage and Hour Division, according to two reports released today by the Government Accountability Office. To review the reports click here and here. In one inexcusable example, a truck driver was not paid overtime even though he worked 55 hours a week; his complaint sat idle for 17 months before an investigator was assigned and, when one was assigned, he did nothing until dropping the case because the statute of limitations was about to expire. Enforcement actions declined to 29,584 from 46,758 ten years earlier. What's the upshot: the number of investigators declined throughout the Bush Administration, the number of enforcement actions declined and, according to Representative George Miller of California, "the problem of wage theft is only getting worse because of weaker enforcement." Robert L. Abell Sixth Circuit Sets Summary Judgment Standard In Mixed-Motive Cases An employment discrimination
plaintiff to defeat summary judgment on a mixed-motive claim need
only present sufficient evidence of (1) an adverse employment
action; and, (2) a protected characteristic (race, color, religion,
sex, age, national origin, disability) was "a motivating
factor," the Sixth Circuit ruled in
White v. Baxter Healthcare Corp. (No. 07-1626 decided July 3,
2008). The Court specifically rejected application of the
McDonnell Douglas burden-shifting framework. Robert L. Abell Wal-Mart Found Liable for Underpaying Workers The St. Paul Pioneer Press reports that a Minnesota state court judge has ruled that Wal-Mart violated wage and hour laws by shortening workers' meal and rest breaks and forcing them to work off the clock, see "Judge: Wal-Mart Owes Minnesota Workers $6.5 Million for Off-Clock Work, Lost Breaks." $6.5 million was awarded to cover the workers' back pay. The employees claimed that they were forced to work through their mandated by law breaks and that managers sometimes recorded breaks on their time cards that they never took. A further trial is scheduled in the fall to determine possible punitive damages and other penalties. The Minnesota case follows other similar decisions against Wal-Mart in Pennsylvania, California and Colorado. About 70 similar cases remain pending against Wal-Mart in various courts around the country. Robert L. Abell |
ROBERT L.
ABELL 866-578-5302 TOLL FREE
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Robert L. Abell is a
Personal Injury and Accident lawyer for Lexington, Winchester, Paris,
Georgetown, Frankfort, Versailles, Nicholasville, Richmond, Lancaster, Stanton,
London, Corbin, Shelbyville, Danville, Lawrenceburg, Williamstown,
Jeffersontown, Louisville, Harrodsburg, Campbellsville, Liberty, Bardstown,
Covington, Columbia, Elizabethtown, Newport, Pikeville, Ashland, Morehead,
Jackson, Cynthiana and other communities located in central and eastern Kentucky
and Fayette County, Scott County, Clark County, Madison County,
Laurel County, Powell County, Morgan County, Breathitt County,
Harrison County, Woodford County, Bourbon County, Jessamine County,
Mercer County, Boyle County, Anderson County, Shelby County,
Jefferson County, Owen County, Franklin County, Grant County, Boone
County, Kenton County and elsewhere in Kentucky. |
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