In this past year (2015), the U.S. Supreme Court issued a number of important employment law decisions. Federal employment law agencies such as the Department of Labor, the Equal Employment Opportunity Commission (EEOC) and the National Labor Relations Board (NLRB) published rules and guidance that significantly impact employer compliance in a number of key areas.
In many instances, these positions go way beyond “cutting edge” and transcend into unprecedented interpretation of the “law.” Circuit Courts have begun to sharply criticize such interpretations of federal employment lawand to overrule administrative positions, at times awarding significant attorneys’ fees to employers that were vindicated on the appellate level.
To avoid unintended legal exposure and liability, employers should be sure to stay updated on all of the legal changes that took place in 2015. Below is a brief review on the issues we covered on our blog:
Sexual Orientation Discrimination:
In a novel ruling, the Equal Employment Opportunity Commission (EEOC) held that Title VII of the Civil Rights Act of 1964 prohibits sexual orientation employment discrimination in the workplace. Even though the courts have not yet sanctioned the EEOC’s position, the agency is likely to aggressively enforce its new interpretation.
Overtime Rules:
In July, the Department of Labor (DOL) published its highly anticipated proposals for updated overtime rules. The proposed rule would set the standard salary level at the 40th percentile of weekly earnings for full-time salaried workers ($921 per week, or $47,892 annually); increase the total annual compensation requirement needed to exempt highly compensated employees to the annualized value of the 90th percentile of weekly earnings of full-time salaried workers ($122,148 annually); and establish a mechanism for automatically updating the salary and compensation levels going forward to ensure that they will continue to provide a useful and effective test for exemption.
Worker Misclassification:
This summer, the Department of Labor (DOL) also published guidance on worker misclassification in which the agency suggested that “most” independent contractors should be legally classified as employees. The DOL’s broad interpretation of “employee” under the Fair Labor Standards Act (FLSA) suggests that worker misclassification will continue to be a top compliance concern.
Religious Discrimination:
In Equal Employment Opportunity Commission v. Abercrombie & Fitch Stores, Inc., the U.S. Supreme Court held that an employer can be held liable for failing to accommodate a religious practice under Title VII of the Civil Rights Act of 1964 even through the employee has not made an express request. Specifically, an applicant need only show that his need for an accommodation was a motivating factor in the employer’s decision. The decision made it easier for employees to prove religious discrimination in the workplace.
Pregnancy Discrimination:
In Young v. UPS, the U.S. Supreme Court held that employees could establish a prima facie discrimination case under the Pregnancy Discrimination Act case by providing sufficient evidence that the employer’s policies impose a significant burden on pregnant workers. Plaintiffs must also show that an employer’s ‘legitimate, nondiscriminatory’ reasons are not sufficiently strong to justify the burden, but rather—when considered along with the burden imposed—give rise to an inference of intentional discrimination. In the wake of the decision, the EEOC published revised guidance.
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
