LITIGATION AND TRIALS
LOOKING AHEAD TO 2025
SCOTUS Watch The Supreme Court’s 2024-2025 term is well underway, and we’re watching several cases that will likely impact the workplace. Here’s what we’re predicting after tuning in to oral arguments in a few cases: Justices Will Reject Higher Standard of Proof in OT Exemption Cases • What evidence does an employer need to show a court to prove it correctly classified employees as exempt from minimum wage and overtime pay? The Supreme Court heard oral arguments in November in a case raising this question – and the Justices seem poised to agree with the employer that an unusually high “clear and convincing” evidence standard does not apply to federal wage law. Employers will want to pay close attention to E.M.D. Sales Inc. v. Carrera as the decision will impact your litigation strategy. It will also have practical implications when determining whether to classify your employees as exempt or non-exempt. No RICO Claim for Driver Who Failed Drug Test • A commercial truck driver who lost his job after failing a drug test wants to hold cannabis product makers liable under a federal racketeering law. The driver claims the product he used was advertised as THC-free, but he says it actually contained the psychoactive component of cannabis. Notably, these claims are generally brought under state law, and based on oral arguments in October, we think the Justices will say his federal racketeering claim is a stretch. Businesses in the cannabis industry will want to pay close attention to this case and employers in general may also be curious about how a SCOTUS ruling in Medical Marijuana, Inc. v. Horn will impact evolving cannabis laws. SCOTUS Will Make It Harder for Plaintiffs to Recover Attorney’s Fees • The Justices will soon decide whether obtaining a preliminary injunction is sufficient to qualify as a “prevailing party” to recover attorney’s fees in certain civil rights actions. After hearing oral arguments in October, we predict the Court will rule that obtaining a preliminary injunction, without a final determination from the court, is insufficient. While Lackey v. Stinnie is not a workplace case, it could impact the ability of employers to recover fees when challenging a state regulation, or how courts view other workplace laws, like civil rights or wage and hour laws, that grant attorney’s fees to prevailing plaintiffs. More Cases to Track We’re also following additional SCOTUS cases involving Title VII of the Civil Rights Act, the Americans with Disabilities Act, the Employee Retirement Income Security Act, arbitration, and more. Make sure you’re subscribed to Fisher Phillips’ Insight Systems so you don’t miss out.
2024 PREDICTIONS RECAP
SCOTUS Shakes Things Up The Supreme Court issued several momentous decisions last term that will have a lasting impact on employer practices. The Justices continued to shape the workplace law landscape by ruling on an array of issues involving federal agency power, labor relations, arbitration, and employment discrimination. Most significantly, as we predicted, SCOTUS overturned the decades-old Chevron doctrine, which required courts to defer to a federal agency’s position on the law when a statute is open to interpretation. The Court tossed out that standard in favor of judicial interpretation, enabling courts to strike down agency rules much more easily and giving employers a powerful tool to fight back against regulatory overreach. Uptick in “Nuclear” Jury Verdicts Employers have increasingly been on the receiving end of massive verdicts from so-called runaway juries in recent years, and we knew this trend would continue. A groundbreaking study from the U.S. Chamber of Commerce revealed that the jump in eight-figure jury verdicts over the past decade had far outpaced inflation, and record-breaking numbers continue to be reached year after year for workplace trials. In July, for example, a group of nursing facilities was ordered to pay a whopping $36 million in an overtime pay action. Employers need to take compliance more seriously than ever given the risk of massive damage awards.
MORE OF 2024 IN REVIEW
Feds File First Lawsuit Under Pregnant Workers Fairness Act The EEOC filed a lawsuit in September against an employer for allegedly failing to accommodate an employee’s known pregnancy-related limitations. This was the first-ever lawsuit filed under the Pregnant Workers Fairness Act (PWFA), prompting many employers to take a closer look at their compliance plans.
HOW’D WE DO ON OUR PREDICTIONS?
AI Reshapes Litigation
We knew Generative AI would have a huge impact on many aspects of work in 2024, including litigation. Beyond legal research, document review and drafting, and summarizing large amounts of data, AI technology continues to revolutionize the way litigators perform in and out of the courtroom. But you should be sure to have checks and balances in place. The only way to ensure that the AI you use aligns with your business goals, complies with regulations, and operates ethically is through “AI governance.”
We got the predictions RIGHT
Todd Alan Ewan
Karl R. Lindegren
Partner and Co-Chair Litigation Practice Group Philadelphia/Pittsburgh tewan@fisherphillips.com
Partner and Co-Chair California Litigation Practice Group Irvine/Los Angeles/Portland klindegren@fisherphillips.com
Suzanne Kelly Michael
Kristen J. Nesbit
Partner and Co-Chair Litigation Practice Group Seattle/Portland smichael@fisherphillips.com
Co-Regional Managing Partner and Co-Chair California Litigation Practice Group Los Angeles knesbit@fisherphillips.com
BACK TO HOME
Made with FlippingBook Annual report maker