10/31/2005
CONTACT: Melissa Sharp, (202) 554-9000
NFIB’s Legal Foundation Argues this is a Legal Question, and Urges U.S. Supreme Court to Leave the Decision up to Judges, not Juries
Washington, D.C. — The National Federation of Independent Business’ Legal Foundation today filed an amicus brief to the U.S. Supreme Court urging the Court to rule that deciding who qualifies as an employee in discriminations suits is a question of law, not fact, that must be determined by a judge.
“Determining who qualifies as an employee under federal discrimination laws is a legal question that must be decided by a judge. It would be unfair to both juries and parties in a dispute, to ask juries to interpret statutes and decide whether the business in a particular case qualifies as an employer subject to the statute the claim relies on,” said Karen Harned, executive director of NFIB’s Legal Foundation.
Understanding who qualifies as an employee under federal law is extremely burdensome for small-business owners because there is no clear definition that businesses can depend on. Laws and regulations often specify that an employer must have a certain number of employees for the law to apply. However, these laws do not clarify who should, or should not, be counted as an employee, leaving this designation to the courts’ interpretation. Delivery drivers, part-time workers, independent contractors and spouses of business owners have been considered by some jurisdictions as non-employees in regards to the federal law requirement while other jurisdictions have decided that these workers should count as employees.
“Asking juries to decide if there is a claim in a case based upon the statute’s definition of an employer, will only lead to more ambiguity in discrimination cases. We need juries to evaluate the facts surrounding the incident in question not be bogged down with legal questions that require interpreting the statute. Small-business owners are already confused trying to figure out which federal and state laws they must comply with. If juries decide on a case-by-case basis who qualifies as an employee, there will be even less of a standard for small-business owners to rely on, and more uncertainty as to what laws govern each small business, “ Harned said.
The case being heard before the Supreme Court is Arbaugh v. Y& H Corp., No. 04-944. In 2001 Arbaugh brought a discrimination claim against Y & H, a restaurant owner in New Orleans, under Title VII of the 1964 Civil Rights Act. After the jury announced their verdict in favor of Arbaugh, Y & H moved for the claim to be dismissed for lack of federal jurisdiction asserting that Y & H, did not qualify as a 15-worker employer because delivery drivers, restaurant owners and their wives should not be counted as employees. Without the required 15 employees, Y & H is not bound by Title VII. The district court granted the motion for dismissal, and the U.S. Court of Appeals for the Fifth Circuit affirmed.
Other business groups have joined NFIB’s Legal Foundation in filing this brief.
The NFIB Legal Foundation is a 501(c)(3) organization created to protect the rights of America's small-business owners by providing advisory material on legal issues and by ensuring that the voice of small business is heard in the nation's courts. The National Federation of Independent Business represents the consensus views of its 600,000 members in Washington, D.C., and all 50 state capitals.
