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Headlines



Supreme Court Puts Age Discrimination Burden of Proof on Cos.
The Supreme Court made it easier for employees to prove they have suffered discrimination because of their age. In a 7-1 ruling, the court said that when older workers are disproportionately affected by an employment decision, the employer bears the burden of explaining whether there was a reasonable explanation other than age for the company's action.
(Source: The Washington Post (free reg. req'd), 2008-06-19) Read the full article
EEOC Losing Employees at Same Time Workload is Increasing
The body that enforces federal laws prohibiting employment discrimination could experience mission failure if the agency does not find a way to keep pace with its workload, the Government Accountability Office warns. The Equal Employment Opportunity Commission has lost more than a quarter of its mission-critical staff since 2000, and since 2004, the EEOC's workload has grown by 10 percent.
(Source: FederalTimes.com, 2008-06-23) Read the full article
Court Says Cos. Can't Read E-Mails, Text Messages Without Consent
A federal appeals court sharply limited the ability of employers to obtain e-mails and text messages sent by employees on company-financed accounts. The text message portion of the ruling, issued by the U.S. 9th Circuit Court of Appeals, will affect all employers who contract with an outside provider for messaging, as most do.
(Source: Los Angeles Times (free reg. req'd), 2008-06-19) Read the full article
Study Finds Internet Use at Work Might Not Hamper Productivity
It's no secret that people sneak in some personal e-mail and Web surfing when they're supposed to be working, but a new study attempts to shatter perceptions that these Web surfers are just slackers trying to avoid work. In fact, it turns out everyone does it, from senior managers to entry-level employees -- and researchers figure that means management attempts to clamp down on Internet use may be missing the mark.
(Source: USA Today (free reg. req'd), 2008-06-18) Read the full article
Employers Offer Different Benefits in 2008 in Changing Economy
Despite recent challenges to the economy, employers are managing to maintain a balance in employee benefits, according to the 2008 Employee Benefits Survey from the Society for Human Resource Management at its 60th Annual Conference. Benefits that declined in 2008, such as health screening programs; stock options; paid family, adoption, paternity leave; and legal assistance were balanced by benefits that have increased in popularity this year, including allowing personal use of company-provided cell phones and communication devices; on-site vaccinations; fitness center membership reimbursement or subsidy; and Roth 401(k) savings plans.
(Source: Insurance Journal, 2008-06-23) Read the full article
Jury Faults Employer After Man Returns from Active Duty
A federal jury in Connecticut ruled that an employer was at fault for not offering an employee his old job back after he returned from two years of active duty in the Air Force Reserve. The jury concluded that the employer had violated the worker's rights under the Uniformed Services Employment and Re-employment Rights Act, or USERRA, which requires employers to reinstate an employee returning from a military tour to a job that reflects the employee's previous salary, status and seniority.
(Source: The New York Times (free reg. req'd), 2008-06-21) Read the full article
High Court to Hear Case on Maternity Leave's Effect on Pensions
The Supreme Court agreed to decide whether decades-old maternity leaves should count in determining pensions. The case before the court involves four AT&T Corp. employees who each took at least one maternity leave between 1968 and 1976.
(Source: The Washington Post (free reg. req'd), 2008-06-23) Read the full article
Supreme Court Eases Employers' Health Benefits Requirement
Until now, employees who felt wrongly deprived of benefits could expect little help in court unless they could show that their plan administrators had behaved in an arbitrary, capricious or unprincipled way. Justice Stephen G. Breyer, writing for the majority, eased that requirement, but stopped well short of setting out specific new rules for when and how employees could challenge adverse benefits decisions.
(Source: Sarasota Herald-Tribune, 2008-06-20) Read the full article
Only 33% of Employers Offering Defined-Benefit Retirement Plans
The percentage of employers offering defined benefit pension plans and traditional indemnity health benefits is continuing to erode, according to the Society for Human Resource Management's annual employee benefits survey. Today, just 33 percent of employers offer defined benefit retirement plans, down from 40 percent in 2007, the survey found.
(Source: Financial Week, 2008-06-24) Read the full article
Obese Employees Costing Companies $45 Billion a Year
In their capacity as health insurance providers, employers pay heavily for obesity's spread. Obesity accounted for 27 percent of the rise in medical costs from 1987 to 2001, according to research by Kenneth Thorpe, a professor of public health at Emory University, and three colleagues. Obesity costs companies $45 billion a year, according to a report by the Conference Board and RTI International, a research institute.
(Source: The New York Times (free reg. req'd), 2008-06-22) Read the full article
Chicken Producer to Pay $2.6M to Settle Hourly Workers Lawsuit
Chicken producer Sanderson Farms Inc. said it will pay $2.6 million to former and current hourly workers that claimed the company owed them compensation. The employees filed suit against Sanderson Farms claiming they were entitled to compensation for time spent walking to and from their workstations and donning and doffing protective gear.
(Source: BusinessWeek, 2008-06-23) Read the full article
Jury Awards Man $10M in Punitive Damages in Age Bias Lawsuit
A Morris County, N.J., jury has returned a $10 million punitive damages verdict in an age discrimination suit against Avaya Inc. of Basking Ridge, N.J. The verdict, believed to be a record in New Jersey in an age bias case, came a day after the jury awarded $743,000 in compensatory damages to Nicholas Saffos of Yorktown Heights, N.Y.
(Source: law.com, 2008-06-19) Read the full article
Headlines
I'll (Never) Be Your Beast of Burden? Supreme Court Puts Yoke on Employers in Layoff Cases
Ryan McCabe Poor
Ryan Poor

No business wants to lay off employees.  But, in tough economic times the belt occasionally tightens.  When that happens, how do you decide who is laid off?  If you are smart, you use some facially-neutral criteria based on your business needs, like performance or seniority.  Is that good enough?  Maybe, but only if you are able to carry the burden of proving that your criteria do not have an unfair impact on the basis of age.

Read the entire article on employee layoffs.

Work Comp Corner

OSHA's "Hit" List

OSHA notified 14,000 workplaces in the United States that they had excessive injuries, defined as 5.4 or more lost or restricted work days (DARTs) per 100 employees.  If you receive such a letter, your worker's compensation premiums are probably out of control.  The attorneys at Ice Miller are available to help you determine the best course of action.

Please contact Ann Stewart if you have any worker's comp questions.