In Razak v. Uber Technologies, Inc., a Pennsylvania federal judge ruled last week that drivers for UberBLACK, the company’s higher-end limousine service, are properly classified as independent contractors. In granting Uber’s motion for summary judgment, this court was the first federal court to determine whether drivers for UberBLACK are employees or independent contractors under the Fair Labor Standards Act (“FLSA”) and similar Pennsylvania state laws.
Category: Employment Litigation
A New York Federal Court Takes A Novel Approach To Discretionary Employment Decisions In Partially Certifying A Financial Industry Gender Discrimination Class Action
On March 30, 2018, Judge Analisa Torres of the U.S. District Court for the Southern District of New York partially certified a class in Chen-Oster v. Goldman, Sachs & Co., a gender discrimination class action against Goldman, Sachs & Co. (“Goldman Sachs”). In so doing, Judge Torres not only departed from the Report and Recommendation of Magistrate Judge James C. Francis, but also extended beyond the U.S. Supreme Court’s reasoning in Wal-Mart Stores, Inc. v. Dukes, 564 U.S. 338 (2011).
Fair Pay Class Action Against Google Inc. Moves Ahead
Last week, a California state court in San Francisco ruled that a California Equal Pay Act class action against Google Inc. has survived the pleading stage. The California Equal Pay Act currently requires equal pay for employees who perform “substantially similar work” when viewed as a composite of skill, effort and responsibility. The 2016 amendment to the Equal Pay Act also prohibits employers from relying on the employee’s prior salary to justify a sex-based difference in salary. Plaintiffs allege in their amended complaint that Google relies on gender stereotypes and has a company-wide policy of relying on former salary history in setting pay and assigning jobs. These allegations were critical to the court’s decision to allow the case to proceed as a class action.
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New Jersey District Court Judge Discards Jury’s $50 Million Punitive Damage Award to Age Discrimination Plaintiff
About a year ago, we published an article on the firm’s LaborSphere blog about a $51.4 million jury award to a former Lockheed Martin employee who alleged age discrimination when he was let go as part of a company-wide reduction in force (“RIF”). At the time of the verdict, press coverage speculated that the multimillion dollar verdict was roughly five times more than any prior award, throughout the country, in a single-plaintiff discrimination case. Recently, U.S. District Court Judge Renee Bumb tossed out the $50 million punitive damages award because the plaintiff failed to show that Lockheed Martin’s upper management was involved in or indifferent to the discriminatory conduct.
How Can Employers Respond to Increased Risks of Well-Funded Harassment Litigation Stemming from the #MeToo Movement?
Cheryl Orr and Phil Lebel wrote an article for Risk & Compliance magazine titled “How Can Employers Respond to Increased Risks of Well-Funded Harassment Litigation Stemming from the #MeToo Movement?” They discuss the recent uptick in sexual harassment allegations in the wake of the #MeToo campaign, which began following allegations against producer Harvey Weinstein in October 2017.
Cheryl and Phil highlight litigation finance and funding firms that have invited individuals who believe they have been victims of sexual harassment in the workplace to share their stories, seek legal representation, and, in some cases, receive “angel” litigation funding. They state that “[i]f this is, in fact, the beginning of a groundswell of harassment claims, the impact to employers could be tremendous. An increase in sexual harassment claims…could mean rising litigation expenses. Moreover, in the current social and political climate, verdicts could be increasingly unpredictable as juries attempt to ‘correct’ larger social problems by punishing employers who are found liable.” The article also notes that lawmakers in several jurisdictions are facing voter pressure to address the perceived shortcomings in the current legal framework, as applied to sexual harassment cases.
Could A Litigation Finance Initiative Capitalize On #MeToo?
Since early October 2017, when the allegations against film producer Harvey Weinstein first surfaced in The New York Times and The New Yorker, there has been a steady stream of allegations of sexual harassment against high-profile individuals in the media, entertainment and political industries. Now, a Bay Area startup backed by Peter Thiel is looking to take advantage of a potential new wave of sexual harassment lawsuits.
On November 8, 2017, San Francisco-based litigation finance firm Legalist, Inc. launched a new initiative dubbed #MeToo Tales (“M2T”). According to its website, M2T is “a collaboration between Legalist and community organizers working to help victims of sexual harassment get justice.” M2T invites individuals who believe that they have been victims of sexual harassment in the workplace to share their stories confidentially on the initiative’s website or via a toll-free hotline. Legalist offers to pair claimants with its partner law firms and, for “eligible” individuals, to provide “angel” litigation funding of up to $100,000. Legalist recoups its funding by taking a portion of the proceeds from any successful litigation or settlement.
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