LEGAL TRENDS, June 2005

Legal Trends Spotlights New Civil Rights and Employment Cases.

In this issue of Legal Trends, we analyze a new age discrimination case decided by the Supreme Court, and other recent cases in employment law.

Civil Rights Law

Supreme Court Rules That Workers Can Sue Over Work Policies That Unintentionally Affect Older Workers.

In a recent ruling, the Supreme Court held that older workers can sue their employer over compensation or benefit plans that favor younger workers, even if there is no deliberate discrimination by the company. In a 5-3 ruling, the high court reasoned that the Age Discrimination in Employment Act not only covers intentional bias, but also those policies that appear neutral on their face, but adversely affect workers over 40.

Thirty middle aged police officers and dispatchers filed suit against the city of Jackson, Mississippi. They claimed that a performance-pay plan favored younger officers and discriminated against them. The AARP and a dozen other groups joined the Plaintiffs in urging the high court to strike down the policy. The city defended their policy, claiming that it was necessary to attract younger workers.

Justice John Paul Stevens wrote the opinion for the Court. In allowing the Plaintiffs to proceed on their claims, the Supreme Court followed an earlier decision that permitted aggrieved parties to challenge such "disparate impact" claims on the basis of sex or race. The Court, however, made it clear that employees must identify specific discriminatory practices, and that an employer could successfully defend its policies based on "reasonable factors" other than age.

We expect that with this decision, more older workers will have access to the courts regarding policies which disproportionately affect them.

GE Division CEO Claims Race Discrimination.

An African American Chief Executive Officer of General Electric Co.'s aviation division has filed a federal class action race discrimination lawsuit claiming that the company discriminates against blacks in pay and promotions.

Plaintiff Thomas Marcel is the head of GE Aviation Materials. In his suit, he claimed that in 2004, he achieved a profit growth of 162 percent. He further alleged that he reversed some long standing discriminatory practices and further questioned the company's attitudes toward its older workers. Thomas claimed that in retaliation for his actions, the company refused to promote him, gave him a negative performance evaluation, and attempted to undermine his authority with his subordinates.

Specifically, Thomas claims that he was paid less than similarly situated white employees at GE, and eight percent less than a white subordinate who reported to him. Thomas claims that he was also denied perks that were provided to another white counterpart. Thomas also claims that he was called "intimidating" and "arrogant" after he started with the company.

His suit alleges claims for breach of contract, tortious interference with contract, retaliation, intentional infliction of emotional distress, and a racially hostile work environment. Thomas is seeking $450 million for the class and various damages for his individual claims.

Judgments Entered In Favor Of Claims Representatives Against Farmers Insurance Exchange.

In what appears to be one of the largest judgments in a Fair Labor Standards Act case, United States District Court Judge Robert Jones held that Farmers' claims adjusters who handle automobile and property damage claims are entitled to overtime pay under the Fair Labor Standards Act, ("FLSA"). In November, 2003, the Court, in the liability phase, found that Farmers violated the FLSA. Recently, however, during the damages portion of the trial, the Court found that Farmers acted willfully, entitling the Plaintiffs to double damages. In January, the Minnesota class Plaintiffs were awarded just under $4,000,000. On May 2, 2005, class Plaintiffs in Illinois, New Mexico, Colorado, Washington, Oregon and New Mexico were awarded over $48 million.

Office News

Eugene K. Hollander was recently named as an Illinois Super Lawyer in the field of employment litigation. The organization Law & Politics conducted a statewide survey of 47,000 lawyers who were in practice for five years or more. The survey was published in the May, 2005 issue of Chicago Magazine.

Paul Ryan has just joined the firm as an associate attorney. Mr. Ryan is a 2000 graduate of the University of Michigan, and a 2004 graduate of Loyola University Chicago School of Law. Mr. Ryan concentrates his practice in general civil litigation, including employment claims and personal injury matters.

About the author:

Eugene Hollander is a trial attorney and currently heads his own law office in Chicago. Mr. Hollander has tried numerous cases in the state and federal courts. The Law Offices of Eugene K. Hollander is a full service law firm, concentrating its practice in employment discrimination claims, personal injury and medical malpractice suits, and various types of commercial litigation.

For more information, visit our web site at: http://www.ekhlaw.com/, or contact us directly at:

The Law Offices of Eugene K. Hollander
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Suite 2300
Chicago, IL 60602
(312)-425-9100
E-mail: EHollander@ekhlaw.com

Copyright © 2005 The Law Offices of Eugene K. Hollander. This publication may be considered advertising material under the Illinois Code of Professional Responsibility and is not intended to create any attorney-client relationship. The reader should not rely upon any statement or opinion as legal advice, but rather, should consider it as generally informative.

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