Tuesday, March 3, 2009

WATCH OUT FOR THE LATEST IN LIABILITY EXPOSURE

One of President Obama's first acts after he assumed office was to sign into law the "Lilly Ledbetter" bill. This law will "make it easier for workers to win lawsuits claiming pay discrimination based on sex, race, religion, national origin, age or disability . . .This bill would relax the statute of limitations, making clear that each new paycheck is a violation of the law if it results 'in whole or in part' from a discriminatory pay decision made in the past." Critics claim that employers will now be exposed to "decades-old discrimination claims that they have no ability to defend", and, that the "individual responsible for the alleged discrimination is no longer with the company, or perhaps not even living." (The New York Times, Jan. 28, 2009).
Earlier, Thomas J.. Donohue, president and CEO of the Chamber of Commerce, declared that if such a law was passed it would "lead to a flood of new litigation that will hurt businesses." Donohue "charged that labor unions and trial lawyers are 'expecting quick and frequent payback for their efforts and their investments' in Democratic election campaigns." (LawyersUSA, Nov. 11, 2008)
Subsequently, Lenora Vhu, CNNMoney.com contributing editor, wrote that under this law "small companies may be at a disadvantage - few have access to the attorneys and human-resource professionals that will help larger businesses comply with the newly expanded law." Elizabeth Milito, senior executive counsel of the National Federation of Independent Business stated that: "There's also the potential for one lawsuit that goes south to put a small business out of business." (CNNMoney.com, Feb. 2, 2009)
Coupled with this new law is last year's expansion of the Americans With Diabilities Act whereby the definition of the term "disability" was greatly expanded. In support of this expansion, the 9th U.S. Circuit Court of Appeals just ruled that a "Type-2 diabetes patient was entitled to the protections of the Americans With Diabilities Act." (Los Angles Times, Feb. 13, 2009)