EMPLOYMENT LAW UPDATES

Taxation of damages received for non-economic loss such as emotional distress or loss of reputation is unconstitutional. Taxing such recovery violates the Sixteenth Amendment to the Constitution of the United States. The Amendment authorizes the government to collect taxes on “incomes,” from “whatever source derived”. However, sums paid for non-economic losses are not paid in lieu of wages and thus are not income subject to taxation. Leveille v. IRS, 2006 U.S. App. LEXIS 21401 (D.C. Cir. Aug. 22, 2006).

Note: The effect of this ruling, if it stands, is to allow plaintiffs to retain more settlement dollars. This should make settlements easier to reach.

An employer may legitimately exclude union organizers from its property, even while allowing solicitation from other groups, for example, charities. In this context, “to discriminate” means that an employer commits an unfair labor practice only when it "'favors one union over another.'" Meijer, Inc. v. NLRB, 2006 U.S. App. LEXIS 21302 (6th Cir. Aug., 2006).

Not all differences in treatment give rise “to a case”. Actionable discrimination, exhibited by treating people differently (disparate treatment), does not arise from any and all differences in treatment. It occurs only where the offending party treats some people less favorably than others because of a protected trait such as race, color, religion, age, sex, or national origin. Cmtys. for Equity v. Mich. High Sch. Ath. Ass'n, 2006 U.S. App. LEXIS 20918 (6th Cir. Aug., 2006).