Big-Stakes Cases Hit Supreme Court

It may strike some people as ironic that nine individuals whose jobs are guaranteed for life call the shots in employment discrimination lawsuits as the Supreme Court begins to hear some big-stakes cases that could have a major impact on U.S. businesses. The cases revolve around racial and age discrimination.

The Roberts Court recently heard the first of several employment discrimination cases to be brought by employees this court term. The case, which was brought by an African American man who was fired by Cracker Barrel restaurant chain, could have a large impact on the amount of damages in discrimination cases and on the cost of litigation. The man had complained about a supervisor’s racist remarks and unfair treatment of black workers, which he says led to retaliation against him in the form of firing.

The case will test whether workers can sue for such retaliation under a law that dates back to the post-Civil War era. If a claim under that law is allowed, it will enable plaintiffs to avoid damage caps under Title VII of the Civil Rights Act of 1964, which is the primary job discrimination law in the country. The older law also allows plaintiffs substantially more time to file claims than Title VII allows, ostensibly after memories dim and witnesses disappear, detractors argue. The Cracker Barrel employee’s case had originally been brought under title VII but was dismissed for technical reasons.

Age discrimination cases also have a high profile on this term's docket. One case has already been decided. The case, which is the most important case for employers, involves a 51-year old woman who was laid off by a Sprint Nextel Corp. subsidiary. The Court decided she shuld be allowed to bring in testimony from other employees--who may have worked for other supervisors--that they were also discriminated against due to their age in an effort to prove that the company culture supported age discrimination. The far-reaching potential affects are clear--such testimony could also be supplied in other forms of discrimination.

Decisions in all of the employment discrimination cases the Court will hear this term are expected by the end of June. The financial—and ethical—implications for U.S. businesses are enormous. According to the EEOC, racial-discrimination complaints reached nearly 7,000 last year. In fact, the increase in complaints was so alarming that the agency introduced a campaign to improve education about racial discrimination in the workplace.

And as more seniors stay in the workplace longer (AARP research shows that in 2006, 38.6% of people over 55 continued to work and 16% of people over 65 stayed on the job), age discrimination will continue to be a hot potato for employers.