Legal Law

Seven labor lessons to be learned from a recent Supreme Court ruling

It seems that labor and employment law cannot stay in the news headlines for long. The US Supreme Court recently ruled in a nationwide discrimination class action lawsuit, one of the largest discrimination lawsuits in history. The lawsuit represented more than 1.5 million women who claimed to have been discriminated against. After working its way through the court system, the Supreme Court finally heard the case and dismissed the lawsuit. They asserted that the class action lawsuit lacked a cohesive claim that would bind them together as a class action lawsuit. This landmark decision addresses several important issues related to all class action lawsuits and provides important information for implementing best human resource practices.

The case clearly affects how employers approach human resource practices and other human resource policies and procedures. Even if a company has recently updated its employee handbook and management practices, it should revisit these policies in light of the Supreme Court decision.

Below are seven important takeaways that employers should consider implementing to comply with EEOC anti-discrimination policies. Taking these actions will help protect them against future class action lawsuits, as well as other laws related to discrimination.

  1. Carefully review pay and promotion policies to determine whether or not they could be misconstrued as favoring one class over another.
  2. Eliminate all subjective decision-making processes by clearly linking promotions, demotions, raises, or bonuses to objective goals and job performance.
  3. Ensure that all managers responsible for performance reviews are properly trained on relevant labor laws, proper labor practices, and proper decision-making processes.
  4. For those employees who have been denied the opportunity for a promotion, or who have been denied a raise, consider implementing an appeals process.
  5. Investigate and implement other corporate policies with the purpose of increasing diversity in the workplace and preventing discriminatory practices.
  6. Continue to train and communicate corporate policies to staff, particularly in areas that address anti-discrimination practices, career growth opportunities, and the ability to access higher education.
  7. Take employee complaints seriously, document your response and follow up, and be sure to address each issue on its own individual merits.

As we have witnessed time and time again, the playing field of labor and employment law continues to change and evolve. The rules are not static and employers should do their best to stay abreast of these changes and recognize how they impact their human resource practices in the workplace. When in doubt, before making any employment decision, it is always recommended to consult with a human resources expert or employment lawyer. The short-term cost will be well spent in protecting against long-term expenses.

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