Supreme Court Employment Cases
As the 2024/2025 Supreme Court term unfolds, several key labor and employment cases are poised to shape the landscape of workplace rights and regulations. Decisions are expected as soon as June 2025. Here’s a brief overview of the most significant cases to watch:
E.M.D. Sales Inc. v. Carrera
In E.M.D. Sales v. Carrera, the Supreme Court will decide the burden of proof for exemptions under the Fair Labor Standards Act (FLSA). Employees claimed they were denied overtime pay, while the employer argued they qualified as “outside salesmen.” Lower courts rejected this, stating the employees’ duties included stocking shelves. The Court must determine whether the standard should be “preponderance of the evidence” or “clear and convincing evidence,” which will impact how employers classify employees under the FLSA.
Lackey v. Stinnie
Virginia motorists argued that their due process rights were violated when their driver’s licenses were suspended for failing to pay court fees and fines. They received a preliminary injunction after the court determined they were likely to win their case. However, the issue became moot when Virginia repealed the law in question. The plaintiffs now claim they are the prevailing party due to the court’s likelihood of success finding and seek attorney’s fees. Although this case is not directly related to employment, its outcome could influence employment racial discrimination cases under 42 U.S.C. § 1981, which addresses racial discrimination in contracts.
Medical Marijuana, Inc. v. Horn
In Medical Marijuana v. Horn, the Supreme Court will consider a case involving a truck driver who was fired after allegedly failing a drug test for THC, despite claiming he used a CBD tincture for injury treatment. He asserts that he unknowingly ingested THC, leading to a lawsuit against the CBD company for fraud under the Racketeer Influenced and Corrupt Organizations Act (RICO). The driver seeks damages for lost wages due to his termination. A federal court initially dismissed his claim for lack of standing, but the Second Circuit later reversed that decision. The key issue for the Supreme Court is whether economic harms from personal injuries can be classified as injuries to “business or property” under RICO, allowing for a civil treble-damages action.
Stanley v. City of Sanford, Fla.
A firefighter who retired early due to Parkinson’s disease discovered that her city’s policy on health insurance for disabled retirees had changed, offering only two years of coverage instead of lifelong benefits. She sued, claiming the reduction was discriminatory and violated the ADA. However, the Eleventh Circuit ruled that she lacked standing because the ADA applies only to job applicants and employees, not retirees. This decision highlights a current circuit split on the applicability of the ADA to retired employees.
Williams v. Washington
Alabama residents who sought unemployment benefits during COVID-19 alleged that the handling of their claims violated the Social Security Act and their constitutional due process rights. They filed a lawsuit under 42 U.S.C. § 1983, which permits individuals to sue state officials for civil rights violations. The Alabama Supreme Court ruled that state law mandates plaintiffs to exhaust all administrative remedies with the Alabama Department of Labor before initiating a lawsuit. However, the plaintiffs argue that 42 U.S.C. § 1983 does not require such administrative exhaustion.
Implications for Employers and Employees
The decisions in these cases will not only impact legal precedents but also influence workplace policies and practices across the nation. Employers should prepare for potential changes in employee classification, retaliation protections, unionization rights, social media policies, and safety regulations.
Conclusion
As we monitor these critical cases throughout the 2024/2025 Supreme Court term, it’s essential for both employers and employees to stay informed about the evolving legal landscape. These rulings could have lasting effects on labor and employment law, shaping the rights and responsibilities within the workplace for years to come.
For more insights on labor and employment law, stay tuned to our blog for updates and analyses on these significant cases.
