Tag: Courts

  • HR and the Courts — January 2025

    HR and the Courts — January 2025

    by CUPA-HR | January 15, 2025

    Each month, CUPA-HR General Counsel Ira Shepard provides an overview of several labor and employment law cases and regulatory actions with implications for the higher ed workplace. Here’s the latest from Ira.

    Dartmouth Men’s Basketball Team, SEIU Withdraw Union Petition

    In March 2024, the Dartmouth College men’s basketball team voted 13-2 in favor of joining the Service Employees International Union Local 560 after the National Labor Relations Board regional director ruled that the players were employees eligible to vote in an NLRB-supervised representation election. On December 31, 2024, Local 560 pulled back its representation petition, and the NLRB will dismiss the case (Trustees of Dartmouth College (N.L.R.B. No. 01-RC-325633, Petition Withdrawn 12/31/24)).

    An SEIU spokesperson stated that they withdrew the petition to preserve the legal precedent of the NLRB regional director’s decision holding that the basketball players were employees of Dartmouth. While SEIU will no longer participate as the collective bargaining representative, the union claims it will pursue its goals via a change in tactics. Dartmouth maintains that the regional director’s decision ruling that the basketball players are employees is legally erroneous.

    The employee status of student-athletes is still subject to NLRB litigation in the University of Southern California and Pac-12 case. The NLRB is pursuing unfair labor practice charges against USC and the Pac-12 as joint employers following their refusal to bargain with a union on the grounds that basketball and football players are students and not employees. We will continue to follow developments in this area as they unfold.

    Federal Court Allows Muslim Professor to Proceed With Religious Discrimination Claim — Dismisses Age Discrimination Claim

    The plaintiff professor, an immigrant from Bosnia and a Muslim, has had a non-tenure-track position for more than a decade with Teachers College, Columbia University. She alleged in federal court that she was discriminated against because of her religion and age when the university did not offer her a tenured position. While the court allowed the religious discrimination and retaliation portions of the complaint to proceed, it dismissed her allegations that she was also denied the tenure-track position because of age and age-related comments (Sabic-El-Rayess v. Teachers College (S.D.N.Y. No.-24-cv-2891, 12/5/24)).

    The plaintiff alleged that no Muslim professor has ever received a tenure-track position in Teachers College, despite many being qualified, and that university leaders made remarks that could be construed as anti-Muslim. The plaintiff claims that the university’s rationale for its decision — that she lacked peer-reviewed publications — is false. The court also allowed the plaintiff’s allegations that she was retaliated against by a salary reduction after she made her religious discrimination complaints to proceed, notwithstanding the university’s denial of such allegations.

    Employer Sued in Class Action for Allegedly Mismanaging Pension Fund

    An employee group has filed a class action lawsuit against a national sports retailer alleging that the employer violated pension plan rules. The employee group alleges REI used non-vested pension fund employee forfeitures to reduce contributions otherwise owed to other employees, rather than adhere to plan provisions requiring the employer to use the funds to pay amounts owed for rehired participants or to pay administrative expenses (Smith v. Recreational Equipment Inc. (W.D. Wash, No. 3:24-cv-03062, complaint, 12/17/24)). Plaintiffs propose to represent a class of 24,000 participant employees.

    Plaintiffs claim that the employer used more than $5.8 million in forfeitures incorrectly from 2018 to 2023. Similar claims along these lines have been litigated in other courts, with some courts dismissing the claims in favor of the employer and others allowing the litigation to continue. It appears to be an unsettled issue at this time.

    Judge Rules Terminated Athletic Director Entitled to Jury Trial Over Allegations of Sex and Age Discrimination — Case Dismissed Subject to a Confidential Settlement

    A university’s first woman athletic director, who was terminated for alleged poor athletic team performance, is entitled to have her claims of age and sex discrimination heard by a federal court jury. The plaintiff alleged that she was discriminated against on the basis of age and sex when she was replaced by a man who was 27 years younger. The judge pointed to this in ruling that a jury could find in the plaintiff’s favor (Ford-Kee v. Miss. Valley State University (2024 BL 460757 N.D. Mis. No. 4:23-cv-00107, 12/17/24)).

    The university president testified that hundreds of people recommended that the athletic director be fired, but he refused to identify people calling for the termination. The court concluded that this did not evidence any discriminatory intent by the president, but it did raise the question of whether the president was influenced by discriminatory views of others. The plaintiff alleged that the poor team performance was an after-the-fact rationalization and that the university president was swayed by the “sexist” views of the athletic foundation and key alumni. The plaintiff claimed the president did not raise poor team performance as a reason for the termination during her final meeting, but rather stated it was time for a change.

    Bloomberg later reported that the parties reached a confidential settlement dismissing the case, which will no longer go to trial.

    Federal Appeals Court Rules No Private Right to Sue Under Law Prohibiting Employment Discrimination Against Marijuana Users

    Under the New Jersey Cannabis Regulatory, Enforcement Assistance, and Market Place Modernization Act (CREAMMA), employers are specifically prohibited from discriminating against workers over the age of 21 for their use or non-use of cannabis. The 3rd U.S. Circuit Court of Appeals recently affirmed the decision of the federal trial court, dismissing the case in which the plaintiff alleged cannabis use employment discrimination (Zanetich v. Walmart Stores East Inc. (0:23-cv-01996, 3rd Cir. 12/9/24).

    The plaintiff alleged that his job offer was rescinded after he tested positive for cannabis use. Nonetheless the appeals court dismissed the case, holding that the CREAMMA statute contains no language creating or suggesting a private remedy. The appeals court also denied the plaintiff’s request to remand the case to the New Jersey Supreme Court so that the New Jersey court could interpret the statute. The appeals court concluded that the absence of an express remedy providing a private right to sue under CREAMMA was a deliberate choice of the legislature rather than an oversight.

    University Prevails in Gender Bias Claim Raised by Former Athletic Director

    The 11th U.S. Circuit Court of Appeals, in a split 2-1 decision, held that a university was entitled to a dismissal of a gender-based pay discrimination claim brought by the university’s former athletic director. The former athletic director claimed that her male successor was discriminatorily paid $170,000 annually compared to her last salary of $135,000. The court concluded that the university raised legitimate factors other than gender which led to its decision to pay the male athletic director more (Williams v. Alabama State University (11th Cir., No. 23-121692, unpublished, 12/23/24)). The majority of the three-judge appellate panel concluded that the university was justified in paying the male athletic director more because of his 10 years of experience in athletic administration leadership and because of his Ph.D. This compared to the plaintiff’s two years of relevant experience and a master’s degree.

    The appeals court pointed out that this is not a case of two employees being employed contemporaneously at different salaries to perform the same job. Rather, the court concluded that the employer met the salary demands of a more experienced leader for the job in order to secure him. One judge dissented from the decision to dismiss the case. The dissenting judge concluded that university leaders made a number of comments concerning this selection that a jury should be able to hear and consider.



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  • HR and the Courts — December 2024

    HR and the Courts — December 2024

    by CUPA-HR | December 10, 2024

    Each month, CUPA-HR General Counsel Ira Shepard provides an overview of several labor and employment law cases and regulatory actions with implications for the higher ed workplace. Here’s the latest from Ira.

    Terminated Professor May Pursue Title IX, Anti-Male Bias Claim as John Doe

    A former Boston University professor may anonymously pursue his Title IX claim that the university’s sexual harassment investigation leading to his termination was itself biased against males. The court noted that the use of pseudonyms is strongly disfavored in civil litigation. The judge nonetheless allowed it in this case for the following reasons: the plaintiff’s strong and realistic fear of reputational damage, the chilling effect that name disclosure could have on future litigants, the public interest in disclosing Doe’s identity does not appear significant, and the use of a pseudonym will not prejudice the university’s defense. The case will move forward without disclosure of the professor’s name (Doe v. Trustees of Boston University (2024 Bl 399572 D. Mass. No. 1:24-cv-10619, 11/6/24)).

    Division I Tennis Player Narrows Lawsuit Against NCAA Following Dismissal of Initial Complaint

    A Division I tennis player at the University of North Carolina at Chapel Hill has narrowed her class action complaint against the NCAA a month after her request for an injunction was denied. The federal judge did not view her claim as being ultimately successful because of its breadth. The plaintiff made it to the third round of the U.S. Open tennis tournament in 2021 and was entitled to $48,913 in prize money. NCAA rules allowed her to accept only $10,000 in prize money from all competitions that year. Accepting more would have jeopardized her ability to play on the women’s tennis team at UNC. She was also forced to forfeit other prize money she won in 2021.

    Her initial complaint sought to represent a class of all Division I student-athletes in all individual sports, including swimming and golf. Her amended complaint limits the class to Division I tennis players (Brantmeier v. NCAA (M.D. N.C. No. 1:24-cv-00238, 11/8/24)).

    Federal Court Dismisses Professor’s Claim That DEI Statement on University Application Screening Process Would Render His Application Futile

    A plaintiff’s claims that a university’s required DEI statement on its initial applicant screening process made his application futile or put him a disadvantage to other parties have been dismissed. A California federal trial court dismissed the claims for lack of standing, as the plaintiff professor never actually applied for the position in question. The court concluded that the professor, who had amended his complaint three times, did not include an actual allegation that he applied for the position.

    In dismissing the case against the University of California, Santa Cruz, the court concluded that the professor’s “futility” claim failed because he may well have passed the initial screening stage notwithstanding the DEI statement (Haltigan v. Drake (N.D. Cal. No. 5:23-cv-02437, 11/15/24)).

    House Committee on Education and the Workforce Investigating “Information Sharing Agreement” Between DOL and a Plaintiff’s Law Firm

    Republicans on the House Committee on Education and the Workforce have called upon the Department of Labor’s inspector general to investigate the DOL’s Employee Benefits Security Administration (EBSA) after it shared confidential material with a law firm suing a company that had been the target of a prior agency audit. The material was provided to the plaintiff’s law firm Cohen Milstein Sellars & Toll PLLC under a DOL “information sharing agreement” between the department’s division and the law firm.

    Common interest agreements are standard in litigation when two parties in active litigation share plaintiff or defense interest on the same side of the litigation. In this case, however, the DOL was not a party to the litigation nor had it filed a lawsuit against the defendant involved in this private litigation. The request to the DOL’s inspector general also asks how many other common interest agreements the EBSA has with other plaintiff law firms.

    Coach Denied Injunction Reinstating Him Following Alleged Use of Slur Involving Transgender Athletes

    A high school coach who filed a First Amendment lawsuit against his school district is denied a court-ordered injunction reinstating him while he litigates the propriety of his alleged statements. The coach claims his First Amendment rights were violated when he was terminated following his email critical of the school district’s position on transgender athletes. The school district defended, stating that he would have been terminated regardless of the email because another coach reported that he used a slur in referring to transgender athletes.

    In denying the coach’s request for an injunction, the court concluded that the plaintiff did not show irreparable harm that could not be compensated by monetary damages. The court ruled that the school district’s responsibility to ensure that all students feel safe and are not harassed outweighs the coach’s personal interests in this matter (Parks v. Lake Oswego School District (D. Or., No.3:24-cv-0119, 11/25/24)).



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  • HR and the Courts — November 2024

    HR and the Courts — November 2024

    by CUPA-HR | November 13, 2024

    Each month, CUPA-HR General Counsel Ira Shepard provides an overview of several labor and employment law cases and regulatory actions with implications for the higher ed workplace. Here’s the latest from Ira.

    More Than 35,000 University of California Service Employees Vote to Strike

    The union representing over 35,000 service and patient care employees at all 10 campuses and five medical centers of the University of California reports that the membership has voted overwhelmingly to strike if collective bargaining contracts cannot be reached. The American Federation of State, County and Municipal Employees (AFSCME) Local 3299 is the union representing the service and patient care employees. The contract covering 25,000 patient care employees expired on July 31, 2024, and the contract covering 11,000 service employees expired November 7, 2024. The union stated it would provide the university with 10 days advance notice of any strike.

    The union claims higher costs, especially for housing, has led to a major crisis for its members. The union has filed charges with the California Public Employee Relations Board alleging that the university has not shared information on UC finances as part of the bargaining process.

    University Sues NLRB, Claims Requirement to Turn Over Information Violates FERPA

    Vanderbilt University has sued the National Labor Relations Board in federal court, claiming that the agency’s requirement to turn over student information violates its obligations under the Family Educational Rights and Privacy Act. The NLRB and the United Auto Workers (UAW), the union seeking to organize the unit of graduate student employees, have requested information on about 2,200 graduate student employees, including work locations, shifts, and job classifications. Vanderbilt claims that providing such information would jeopardize the university’s ability to receive federal funds due to FERPA.

    Vanderbilt is seeking an injunction requiring the NLRB to vacate the rules as applied so the university will not have to violate FERPA. Vanderbilt asserts that the NLRB’s rules are arbitrary and capricious and contrary to law given the conflict with the university’s obligations under FERPA (Vanderbilt University v. NLRB (M.D. Tenn. No. 3:24-cv-01301, Comp filed, 10/29/24)). Vanderbilt has asserted more than 80 students have objected to the disclosure of the information. We will follow developments in the case as they unfold.

    Educator’s Anti-Male Bias Title IX Claim Can Go to Trial

    The 2nd U.S. Circuit Court of Appeals ruled that an educator’s Title IX claims can go to trial. The educator alleges that a New York state school district’s harassment probe, which resulted in a ruling against him, violated his Title IX rights. He was accused by a student of inappropriate conduct and touching in his mobile agricultural education trailer. The 2nd Circuit noted that the alleged perpetrator was not given timely notice of the allegations, was not told what was specifically alleged, and was denied the chance to review the evidence and present evidence of his own.

    The appeals court reversed the decision of the trial court, thereby giving the alleged perpetrator the right to a trial over the claim that the Title IX investigation was flawed and biased against him as a male (Schiebel v. Schoharie Central District (2nd Cir., No. 23-01080, 11/1/24)). The appeals court also noted that only one other student was interviewed, despite other students and adults allegedly being present, and that student did not confirm the allegations of the alleged victim.

    Union Election Petitions Filed With NLRB Have Doubled Since Fiscal Year 2021

    The NLRB reports that union election petitions for the most recent fiscal year have totaled 3,286, or more than double the amount in fiscal year 2021. The number of election petitions also amounts to a 27% increase over the previous fiscal year of 2023. The NLRB reported a 7% increase in the number of unfair labor practice filings it has received since fiscal year 2023.

    The NLRB has jurisdiction over private colleges and universities. Public college and universities in most states are subject to state-based rules in conducting union election matters. Commentators generally report anecdotally that state-based union election petitions are also increasing. There have been increased reports of union organizing among higher ed student employee work groups.

    NLRB General Counsel Says New College Athlete Employment Legislation Unnecessary  

    NLRB General Counsel Jennifer Abruzzo stated that there is no need for special legislation concerning student-athlete employment status, since there is existing legislation under the Fair Labor Standards Act, minimum wage laws, and the National Labor Relations Act (NLRA). No new laws, such as those promoted by the NCAA, are necessary, she said. Abruzzo made these remarks at a symposium hosted by Temple University in October. The general counsel pointed out that the situation under the FLSA is currently being played out in the courts.

    Court of Appeals Reverses NLRB Order for Elon Musk to Delete Tweet That Workers Will Lose Stock Options if They Unionize

    The 5th U.S. Circuit Court of Appeals reversed an earlier decision that affirmed the NLRB’s order against Musk and Tesla. In 2021, the NLRB ordered that Musk delete a tweet saying that employees of Tesla would lose stock options if they were to unionize. The appeals court ruled 9 to 8 that the NLRB order was not enforceable. The appeals court declined to rule one way or the other whether the tweet violated the NLRA, rather holding that the NLRB’s proposed remedy was not enforceable.

    Bloomberg reported that the decision was a “blow” to the NLRB’s authority to enforce the labor law’s prohibitions on an employer’s allegedly coercive anti-union statements, particularly when they appear on social media.



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  • HR and the Courts — October 2024

    HR and the Courts — October 2024

    by CUPA-HR | October 15, 2024

    Each month, CUPA-HR General Counsel Ira Shepard provides an overview of several labor and employment law cases and regulatory actions with implications for the higher ed workplace. Here’s the latest from Ira.

    NCAA & Power Conferences Receive Preliminary Approval of Name, Image and Likeness and Anti-Trust Settlement — Ivies Win Dismissal of Anti-Trust Lawsuit

    A federal district court judge has given preliminary approval to the NCAA and Power Conferences’ revised $2.8 billion settlement proposal to be paid to college athletes over 10 years. The judge set a fairness hearing for April 2025, with all objections to be filed by January 31, 2025. The federal judge in the Northern District of California concluded that the revised settlement was “fair, reasonable and adequate” (In Re College Athlete NIL Litigation (N.D. Ca. No. 4:20-cv-03919, 10/7/24)).

    Commentators immediately voiced concerns that the settlement addresses a small group of male athletes in specific sports to the disadvantage of female athletes. In addition, a number of Division I athletes may express objection on the grounds that the settlement continues to give the NCAA too much control over the free market compensation for student-athletes.

    Separately, the eight Ivy League institutions won a dismissal of a federal lawsuit that claimed their ban on athletic scholarships violated anti-trust laws. The federal district court judge assigned to the case granted the Ivy League’s motion for summary judgement, holding that the plaintiffs failed to allege any properly defined market and therefore failed to allege market wide anti-competitive effects (Choh v. Brown University, et. al. (D. Conn. No. 3:23-cv-00305, 10/10/24)).

    University of Louisville School of Medicine Loses First Amendment Retaliation Claim Brought by Terminated Professor

    A former professor at the University of Louisville School of Medicine will receive a trial over his First Amendment retaliation claims regarding statements he made about gender dysphoria to a conservative think tank. Following comments he made during an event sponsored by the Heritage Foundation, the former medical school professor was demoted and his annual contract was not renewed. The professor expressed the view that gender dysphoria in children “is a sociocultural, psychological phenomenon that cannot be fully addressed with drugs and surgery.”

    The 6th U.S. Circuit Court of Appeals ruled unanimously that the university officials who terminated Allan M. Josephson should have known that he was engaged in protected speech, and that terminating him would violate his First Amendment rights. Moreover, the court ruled that the professor’s outside speech was not part of his professorial duties, and therefore subject to his First Amendment claims. The court concluded that a trial is necessary, as there are facts in dispute regarding the rationale for the actions taken against the professor (Josephson v. Ganzel (6th Cir., No. 23-05293, 9/10/24)).

    Tenured Professor Loses Defamation Case Against Harvard

    A federal district court judge partially dismissed a noted behavioral scientist’s $25 million defamation and breach-of-contract lawsuit against Harvard University. Professor Francesca Gino was placed on administrative leave following claims of data fraud in her research. Gino claimed that the university’s notice on her faculty page that she had been placed on administrative leave after conducting an investigation of her research was libelous because the university acted with ill will.

    The court concluded that the professor was a “public figure” and therefore faces a higher standard for proving defamation. A public figure in these circumstances can only prove defamation if the alleged defamer had knowledge that their statement was untrue or acted with reckless disregard for the truth. Moreover, the court concluded that the issue of “research integrity and potential misconduct” is one of public concern, adding to the reason for the dismissal of the defamation claim (Gino v. Presidents and Fellows of Harvard College (D. Mass. No. 1:23-cv-11775, 9/11/24)).

    Regarding the professor’s breach-of-contract claims, the professor alleged that the university’s decision to place her on administrative leave and its related disciplinary sanctions were the same as tenure removal. The judge concluded that it is premature to rule on the breach-of-contract claims.

    Public School Employees Lose Free Speech Case Challenging Anti-Racism Training

    In a case with possible application to public higher ed training, the 8th U.S. Circuit Court of Appeals affirmed the dismissal of a case brought by two Missouri public school employees who claimed that anti-bias employee training violated their First Amendment rights. The lawsuit failed because the court concluded that they were never asked to leave nor were they disciplined for expressing contrary views and that they received professional development credit for attending the anti-racism training (Henderson v. Springfield R-12 School District (8th Cir No. 2301374, 9/12/24)).

    The decision provides some clarity on such training, as the court noted that the employees were not compelled to express certain views or refrain from expressing certain views during the training. The appellate court did reverse the trial judge’s ruling requiring the plaintiffs to pay $300,000 in attorney fees for filing a frivolous claim.

    Former Student’s Title IX Claim Dismissed as Alleged University Internship Did Not Exist

    A federal district court judge dismissed allegations of a sexually abusive internship at the University of Michigan because the plaintiff could not prove the internship actually existed. The court noted that none of the usual formalities, such as an application or a university authorization of an internship, were established.

    In light of this, the court dismissed the Title IX claims and allegations of failure to investigate sex harassment and abuse allegations as the plaintiff did not allege discrimination while “participating in or at least attempting to participate in” a university program or activity, as the internship did not exist. The University of Michigan prevailed in the case (Doe v. Baum ((2024 BL 340244 E.D. Mich. No. 4-21-cv-12492, 9/26/24)).

    University of Texas Professor Loses First Amendment Complaint

    A federal district judge dismissed a University of Texas professor’s First Amendment claim that his speech was “chilled” by unspecific threats following comments critical of “critical race theory and DEI-based ideology.” The judge dismissed the case, holding that the unspecific threats did not rise to the level of an adverse employment action (Lowery v. Mills ((W.D. Tex. No. 1:23-cv-00129, 10/2/24)).

    The judge ruled in favor of the University of Texas McCombs School of Business. The judge noted in a footnote, however, that the dismissal was not meant to approve of the university’s actions and that “in the context of a world-class university like UT, differences of opinion should be tolerated by those in authority, no matter that they are uncomfortable, so long as they do not incite violence or disrupt the school’s ability to function as a teaching institution.”

    Supreme Court to Review Split in Circuits Regarding Higher Ed ERISA Lawsuit

    The Supreme Court has agreed to hear arguments over the split in circuit courts of appeals as to when a university may be sued by employees under the Employee Retirement Income Security Act (ERISA). Employees of Cornell University alleged that improper service provider fees were charged to their pension fund. They are appealing an adverse 2nd Circuit decision stating employees must plead that the alleged “prohibited transaction” by the service provider involved either “unnecessary services” or the fees were “unreasonable” (Cunningham v. Cornell University (US No. 23-1007 cert granted 10/4/24)).

    The 2nd U.S. Circuit Court of Appeals, the 3rd Circuit, the 7th Circuit, and the 10th Circuit all require the additional pleading that alleges some kind of fraud or impropriety in order to allow the case to move forward. This contrasts with the 8th Circuit and the 9th Circuit, which apply the “ERISA-as-written” rule. That rule allows a plaintiff to simply allege that a transaction between an employer and a pension or welfare plan service provider occurred and proceed with discovery over whether fraud or some other impropriety exists. We will follow developments in this case as it proceeds.



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  • HR and the Courts — September 2024

    HR and the Courts — September 2024

    Each month, CUPA-HR General Counsel Ira Shepard provides an overview of several labor and employment law cases and regulatory actions with implications for the higher ed workplace. Here’s the latest from Ira.

    Fired Professor Who Praised Hitler Loses Free Speech Retaliation Lawsuit

    The New Jersey Institute of Technology prevailed in a federal lawsuit brought by a former philosophy lecturer alleging retaliatory discharge. The professor’s employment agreement was not renewed after a New York Times article exposed his involvement in the “alt-right” (a far-right, white nationalist movement), including his praising Adolph Hitler as a “great European leader” and linking IQ to race. In dismissing the lawsuit, the U.S. District Court for the District of New Jersey held that the professor’s speech disrupted, and would likely continue disrupting, the university’s administration and interfered with the university’s mission (Jorjani v. N.J. Inst. of Technology ((D.N.J. No. 2:18-cv-11693, Jud entered 7/31/24)).

    The judge held that public employers can restrict the speech of employees without violating the First Amendment when necessary to maintain effective and efficient operations. The judge also emphasized that the university did not need to wait for protests and demonstrations in order to show disruptions in operations before acting.

    NLRB: Private Colleges and Universities Must Bargain With Unions Representing Student Employees Over FERPA-Protected Information

    On August 6, 2024, the general counsel of the National Labor Relations Board (NLRB) issued a memo acknowledging the potential conflict between the National Labor Relations Act (NLRA) and the Family Educational Rights and Privacy Act (FERPA) regarding union requests for personal information about student employees. The NLRB general counsel concluded that colleges and universities in this situation must bargain with the applicable union over disclosure of such information and explain why the information request would violate FERPA.

    Further, the NLRB concluded that the college or university can bargain with the union over the distribution of FERPA waivers to applicable student employees but that asking the union to hand out such waivers would be unreasonable and a violation of the employer’s duty to bargain in good faith because the union does not have the student contact information. The general counsel concluded that the college or university should hand out the waivers when the union does not have the student employees’ contact information.

    Proposed $2.8 Billion NCAA Settlement on Hold as Some Student-Athletes Object

    Some student-athletes claiming the NCAA artificially capped the size of college athlete scholarships too low, as well as those pursuing fair-pay claims, objected to the $2.8 billion proposed settlement of the NCAA and the Power Five conferences antitrust case. Plaintiffs in these two areas are asking the Northern District of California court to carve out their claims from the proposed settlement so that they can pursue individual claims in further litigation. The federal judge overseeing the matter questioned the proposed settlement and concluded that the settlement needed a better explanation of damages and a clearer understanding of how much each class member can expect to gain (In re College Athlete NIL Litigation (N.D. Cal. No. 4:20-cv-3919. Brief filed 8/9/24, Fontenot v. NCAA D. Colo. No. 1:23-cv-03076, and Cornelio v. NCAA D. Colo. No. 1:24-cv-02178)).

    Two former Brown University student-athletes have dropped their objection, concluding it will not preclude them from proceeding separately in an antitrust claim against the Ivy League. The two former men’s and women’s basketball players have alleged separately that the Ivies have engaged in an illegal agreement which raised the price of an Ivy League education by illegally suppressing compensation for their services. They alleged that Brown only provided them with need-based assistance that did not cover the full cost of their education.

    Boston University Graduate Workers Strike Is Longest in the Last Decade

    Lasting over 150 days, the Boston University graduate workers strike is the longest student employee strike in the last decade, according to the National Center for the Study of Collective Bargaining in Higher Education and the Professions, located at the City University of New York’s Hunter College. The BU strike, which began on March 25, eclipses a similar work stoppage of 147 days at the University of Michigan in 2023. An unauthorized “wildcat” strike at the University of California, Santa Cruz may have lasted longer but the National Center points out that strike was unauthorized by the applicable union. The center concludes that this is part of the significant increase in unionization of both undergraduate and graduate student workers that has occurred over the past few years.

    The Boston University graduate workers formed their union in December 2022. The union is still engaged in efforts to secure their first collective bargaining agreement. September 3 will be the beginning of the second semester in which the grad student workers are striking. Teaching and regular higher education functions have continued at the university, though some interference with regular activities has been reported.

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  • HR and the Courts — August 2024 – CUPA-HR

    HR and the Courts — August 2024 – CUPA-HR

    by CUPA-HR | August 14, 2024

    Each month, CUPA-HR General Counsel Ira Shepard provides an overview of several labor and employment law cases and regulatory actions with implications for the higher ed workplace. Here’s the latest from Ira.

    Student-Athletes and NCAA Propose a $2.8 Billion Settlement in Antitrust and Name, Image and Likeness Case

    Attorneys representing student-athletes have filed for court approval of a $2.8 billion settlement reached with the NCAA and the Power Five conferences. Bloomberg reports that the student-athletes were pursuing a $4.5 billion claim.

    Under the proposed settlement, a men’s football or basketball player would receive roughly $135,000 and a female basketball player would receive roughly $35,000. Athletes in other Division I sports, including football and basketball players in non-Power Five conferences, would also recover under the proposed settlement, although the terms of that recovery are not yet clear.

    Also under the proposed settlement, Division I schools will be able to provide student-athletes with direct payment up to a cap of 22% of the Power Five schools’ average athletic revenue per year. The payment pool will be more than $20 million per school in the 2025-26 academic year and will grow from there. The Power Five includes the Big Ten, Big 12, Atlantic Coast Conference, Southeastern Conference and Pac-12. (The Pac-12 lost its autonomy status for 2024-25 after 10 of 12 of its members departed for other conferences.) The proposed settlement was filed in the U.S. District Court for the Northern District of California (In Re College Athlete NIL Litigation (N.D. Cal., 4:20-cv-03919, 7/26/24)).

    It is reported that the multibillion-dollar settlement would be paid out over 10 years. A preliminary approval hearing will take place in September to be followed by a comment period from class members. If approval is reached it will spare the NCAA and the Power Five from a trial scheduled to take place in January, 2025.

    Employee Status of Student-Athletes Under the FLSA Still Undecided as Court Rejects NCAA’s Appeal

    The 3rd U.S. Circuit Court of Appeals (covering Delaware, New Jersey, Pennsylvania and the Virgin Islands) rejected the appeal of the NCAA contesting the trial court decision that college athletes are entitled to a trial to decide whether they are employees under the FLSA.

    The appeals court remanded the case back to the trial judge for more analysis on the applicable standard to be used in determining whether a student-athlete is an employee. The decision allows the college athletes to continue to pursue their claims, which allege that the NCAA and colleges are joint employers (Johnson V. NCAA (3rd Cir. No. 22-01223, 7/11/24)).

    The decision contrasts with the former holdings of the 7th U.S. Circuit Court of Appeals and the 9th Circuit, which rejected claims that student-athletes were employees. In remanding the case back for further analysis, the 3rd Circuit left room for the court to hold that some college athletes maintain their amateur, non-employee status while others are employees subject to the minimum wage requirements of the FLSA.

    The decision also rejected the term “student-athlete,” commenting that the term is an “NCAA marketing invention” designed to “conjure up the nobility of amateurism,” assert “the precedence of scholarship over athletics,” and “obfuscate the nature of the legal relationship at the heart of a growing commercial enterprise.” The decision stated that college athletes “cannot be barred as a matter of law from asserting FLSA claims simply by virtue of the revered tradition of amateurism.” Finally, the court remanded the case to the trial judge to use common-law factors, such as level of control and presence of payments, to determine the employee status of college athletes.

    Unionization Petitions Filed With NLRB Increase by 30% in 2024 — Decertification Petitions Increase by 12%

    Petitions filed with the National Labor Relations Board (NLRB) to both certify and decertify union representation are up dramatically so far this year.

    The increase in certification petitions is partially attributed to the NLRB’s decision in the Cemex decision. That decision requires employers, in response to a certification petition, to either voluntarily recognize the union or file an RM, which is used by employers to dispute that the union has majority status. The increase in activity also comes after the NLRB altered its administrative procedures to shorten the time between petition filing and the election.

    The NLRB also reports that its regional offices have conducted more representation elections so far in 2024 than in the entire 2023 fiscal year. Finally, the NLRB reports that unions have won 79% of union-filed petitions and 70% of employer-filed petitions.

    EEOC Signals Second Attempt to Require Employers to Report Pay Data by Race, Sex and Job Category

    The Equal Employment Opportunity Commission has indicated in its July regulatory playbook that it intends to make another attempt to require that employers annually report pay data by race, sex and job category. Its first attempt to do so was canceled by court intervention in 2016 during the Obama administration.

    The EEOC indicated it will use the Administrative Procedure Act (APA) as opposed to the Paperwork Reduction Act (PRA) to issue the new regulations. Under the APA, advance notice, including a comment period, is required. Also under the APA, an individual or organization has the private right of action to block the regulation.

    The recent Supreme Court decision in the Chevron case may make such APA challenges easier to manage for employers and employer organizations seeking to challenge the new attempt to collect pay data. In the Chevron case, the Supreme Court abandoned the rule of the presumption of legitimacy of federal agency decisions.

    Court Concludes NLRB Failed to Explain Why It Rejected Employer Objections in Union Election  

    The U.S. Court of Appeals for the District of Columbia Circuit concluded that the NLRB failed to coherently explain its rejection of employer election objections when the NLRB certified a union in a one-vote victory in a mail ballot election.

    The D.C. Circuit court concluded that the NLRB used different legal tests without explanation when it rejected an employer’s objections to the mail ballot election (GHG Mgmt LLC V. NLRB (DC Cir. No, 22-01312, 7/9/24)).

    The court ruled in a unanimous, three-judge decision that the NLRB failed to adequately explain its rejection of employer objections and remanded the case back to the NLRB for determination over which test it used to reject the employer’s objections. The court stated it can only rule on whether the NLRB’s decision was correct if it knows which test the NLRB used in coming to its decision. This case is another criticism of the NLRB’s handling of mail-in ballot elections used during and after the COVID-19 pandemic.

    Federal Judge Temporarily Rejects Texas AG’s Attempt to Block EEOC Guidance on LGBTQ+ Employees

    A federal district trial judge has temporarily rejected the Texas attorney general’s attempt to block current EEOC guidance that covers LGBTQ+ employees. The guidance protects employees’ right to choose pronouns and bathrooms consistent with their gender identity.

    The federal judge dismissed the case, holding that the Texas attorney general must file a new case and not rely on the past decision in which the federal judge vacated similar EEOC regulations protecting LGBTQ+ employees (State of Texas V. EEOC (N.D. Tex. No. 2-21-cv-00194, 7/17/24)).

    The judge ruled that his prior decision in favor of the Texas attorney general vacating prior EEOC LGBTQ+ regulations can be used as a predicate for a new case. Nonetheless, the Texas attorney general must file a new case seeking new injunctive relief. The federal judge explained that his prior decision addressed the EEOC’s 2021 guidance alone and a new case must be filed to adjudicate the issues involved in the new EEOC guidance.



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  • HR and the Courts — July 2024 – CUPA-HR

    HR and the Courts — July 2024 – CUPA-HR

    by CUPA-HR | July 10, 2024

    Each month, CUPA-HR General Counsel Ira Shepard provides an overview of several labor and employment law cases and regulatory actions with implications for the higher ed workplace. Here’s the latest from Ira.

    University of California and UAW Agree to End Grad Student Strike

    The rolling strike of University of California graduate students at several campuses, protesting the university’s handling of Israel-Hamas war protests is formally over as a result of the university and union agreement to extend the injunction granted by a California state court at the university’s request. The university successfully argued that the rolling strike violated the collective bargaining agreement’s no-strike provision. The UAW represents 38,000 grad students at several University of California campuses.

    UC student workers walked off their jobs at six campuses in May and continued a rolling strike until the court enjoined the strike activity. The university breach-of-contract litigation continues, as there remain issues to be decided by the court as to the breadth of the no-strike provisions and the university’s claim for damages resulting from the breach of the no-strike provisions.

    University Prevails in Title IX Lawsuit Alleging Student Sex Harassment at a Private Party Off Campus

    A federal judge recent ruled that a plaintiff student failed to provide evidence that the university had substantial control over the context in which the assault or sex harassment occurred to make the university liable under Title IX. The judge concluded that even though the university had control over the alleged harasser because of an alleged student code violation, this was not enough to substantiate jurisdiction under Title IX (Roe V. Marshall University Board of Governors (2024 BL 215044, S.D. W. Va. No. 3:22-cv-00532, 6/24/24)).

    When the harassment occurs off campus, the judge ruled that the court must find some nexus between the “out of school conduct and the school.” The court concluded that the incident in question took place at a private party at a private residence and the party was not sanctioned, hosted or sponsored by the university or an entity affiliated with the university. Moreover, permission for the party was not sought from the university, and the university was unaware of the party until it was over.

    The university’s Title IX office determined, four days after the incident, that the matter should be handled by the university’s Office of Student Conduct, which the judge concluded was consistent with Title IX regulations at the time. The student conduct office immediately issued an no-contact order between the student and the alleged harasser and conducted a six-week investigation.

    The male student (alleged harasser) was ultimately placed on probation and required to participate in an alcohol education program, do 20 hours of community service, and accept responsibility for violation of the student code. The plaintiff (alleged victim) was also put on probation and required to participate in an alcohol education program and complete 10 hours of community service, after admitting to underage drinking. In dismissing the case against the university, the judge also concluded that the male student (alleged harasser) also faced possible independent criminal penalties.

    Two Conservative Groups Are Bringing Court Challenges to Large Employers’ Workplace DEI Programs

    America First Legal, led by former Trump adviser Stephen Miller, has filed at least 15 lawsuits alleging that employer DEI programs are illegal under Title VII and has sent more than 30 letters asking the EEOC to probe employer DEI programs at large employers, including Morgan Stanley and IBM Corp. Academic institutions could be their next target.

    The second organization, American Alliance for Equal Rights, led by conservative activist Edward Blum, has claimed that these DEI programs violate Section 1981 of the Civil Rights Act of 1866, which affirms that all citizens are equally protected by the law. The organization has used the 1866 statute in challenging DEI programs at law firms, including Winston and Strawn, Morrison Foerster, and Perkins Coe. The 1866 statute is broader than Title VII. Plaintiffs suing under the 1866 statute avoid the Title VII damage cap and the requirement that a charge be filed with the EEOC before filing suit.

    Transgender Woman Reaches Settlement of Claim That She Was Wrongly Denied Medical Coverage

    A transgender woman plaintiff sued her employer’s group insurance plan, alleging that she was wrongly denied medical coverage for facial hair removal, which she claimed is an extremely important part of gender-affirming care. The plaintiff alleged that the care is deemed medically necessary for treating gender dysphoria by the World Professional Association for Transgender Health. The lawsuit claimed that the denial, based on the conclusion that the surgery was cosmetic and unnecessary, was inconsistent with the evidence presented that the treatment was medically necessary (Cox V. WSP USA Inc. Group Insurance Plan (N.D. Cal. No. 3-24-cv-01312, 6/6/24)).

    The plaintiff sought $5,000 in out-of-pocket expenses plus $20,000 for future services. The case was dismissed after the parties stipulated to the judge that they had reached an undisclosed settlement.

    Supreme Court Raises the Bar for the NLRB to Obtain an Adverse Injunction Against an Employer for Unfair Labor Practices

    The U.S. Supreme Court concluded that the federal courts should give no more weight to an NLRB request for injunctive relief against employers allegedly violating the NLRA unfair labor practice provisions than it would give other litigants in injunction cases (Starbucks Corp, V. McKinney (U.S. No. 23-367, 6/13/24)). The Supreme Court essentially held that a defending employer is entitled to discovery over the NLRB’s alleged evidence before the court can issue an injunction. In the past, the NLRB has been able to maintain secrecy over this information when seeking extraordinary relief (e.g. an injunction requiring reinstatement of employees allegedly terminated for supporting a union).

    Supreme Court to Determine Employer Burden of Proof to Obtain an Exemption From FLSA Minimum Wage and Overtime Provisions

    The Supreme Court has granted certiorari to resolve the split in appellate courts on the precise evidentiary burden applicable to employers attempting to justify an exemption to the application of the FLSA’s minimum wage and overtime provisions. Right now the circuits are split over whether an employer must prove an exemption by “clear and convincing evidence” rather than the lesser standard of “preponderance of the evidence.” The Supreme Court will resolve this split and decide which standard is applicable to employers going forward (E.M.D. Sales Inc. V. Carrera (U.S. No. 23-217, petition granted 6/17/24)).

    The issue involves whether the defendant firm’s sales personnel fall inside the “outside sales exemption.”  The company lost the case at trial, where the federal court held that it did not meet the “clear and convincing” standard, while numerous other appellate courts have applied the less stringent “preponderance of the evidence” standard.



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  • HR and the Courts — June 2024 – CUPA-HR

    HR and the Courts — June 2024 – CUPA-HR

    by CUPA-HR | June 12, 2024

    Each month, CUPA-HR General Counsel Ira Shepard provides an overview of several labor and employment law cases and regulatory actions with implications for the higher ed workplace. Here’s the latest from Ira.

    Judge Halts Academic Workers’ Strike at Several University of California Campuses

    The University of California has taken legal action against United Auto Workers Local 4811, which represents some 48,000 academic workers and graduate students across UC’s multiple campuses. The lawsuit requested an injunction to end the rolling strike at six campuses, which the university contended is in violation of the applicable no-strike contractual provisions. The judge granted the university’s request for a temporary restraining order on June 7, 2024. The order will halt the strike until the judge conducts a hearing over whether to grant a permanent injunction enforcing the no-strike provisions of the applicable labor contract (Regents of the University of California v. UAW Local 4811 (Cal Sup Court, No. 30-2024-01403666-CU-MC-CXC, 6/7/24)).

    This case followed the university’s complaint to the California Public Employment Relations Board alleging that the union had violated the applicable no-strike provisions. The board filed a complaint against the union, arguing it failed to give the university “adequate advance notice” and “failed and refused to meet and confer in good faith,” but declined the university’s request to seek a court order halting the strike.

    Following its exhaustion of all remedies at the state board, the university filed its own state court complaint, seeking to end the strike. The complaint accused picketers of blocking entrances to university property, including hospitals, and illegally occupying buildings. The university argued that the breach of contract endangers lifesaving research at hundreds of laboratories across many campuses. The UAW claimed that the no-strike clause is inapplicable because the university violated state law by calling in police to break up pro-Palestinian encampments on several campuses and allegedly changed workplace rules in response to the protests. The proceedings will continue with a full hearing over whether to convert the restraining order into a permanent injunction further barring the strike activity.

    University of Florida Recruit Sues Over Claimed $13.85 Million NIL Deal — NCAA Proposes Settlement of NIL Class Action

    A former football recruit has sued the University of Florida’s football coach and boosters, alleging they recruited him with the promise of $13.85 million in name, image and likeness payments and then reneged. The complaint, filed in federal district court in Florida, alleges fraud, tortious interference and other claims. The plaintiff alleges that, after the NIL offer, he rejected other lucrative offers only to have the Florida offer “decrease drastically” (Rashada v. Hathcock (N.D. Fla., 3:24-cv-00219, complaint 5/21/24)).

    The plaintiff alleges that, as a 19-year-old college-bound athlete, he was persuaded by a network of university officials and donors to flip on his commitment to the University of Miami, but they never came through on the NIL promises. After the deal never materialized, the plaintiff went to the University of Arizona instead and ultimately transferred to the University of Georgia.

    Separately, the NCAA and the Power Five conferences have proposed a nearly $2.8 billion settlement of the class action claim against them relating to their former ban on NIL payments to student-athletes. If the settlement is approved, the NCAA also agrees that it would no longer attempt to regulate NIL payments, which would be solely up to each college and university to determine and administer (In Re College Athlete NIL Litigation (N.D. Cal., No., 4:20-cv-03919)).

    Court of Appeals to Review Whether Discharge for Refusal to Take Anti-Discrimination Training Is Itself Discriminatory

    The 7th U.S. Circuit Court of Appeals (covering Illinois, Indiana and Wisconsin) will decide whether to affirm a federal trial court’s dismissal of a discrimination claim brought by a White employee. The employee claimed he was discharged in violation of federal and state anti-discrimination laws for his refusal to take the employer’s mandatory anti-discrimination training, which he claimed was discriminatory. The plaintiff claimed the training was inherently biased against White employees, after admitting he had no knowledge of the contents of the training (Vavra v. Honeywell International Inc. (Case No. 23-02823, oral arg sched 5/21/24)).

    The trial court concluded that the plaintiff’s internal emails to the company’s president, which accused the company of “race baiting,” were protected communications. The court further concluded that the plaintiff was not terminated for the communications, but rather because of his refusal to take mandatory anti-discrimination training that was not itself discriminatory. The employer’s diversity, equity and inclusion and law departments had properly vetted the training and concluded it was intended to foster an inclusive work environment.

    U.S. Supreme Court Rejects White Professor’s Claims of Race and Sex Discrimination Filed Against HBCU

    The Supreme Court turned down a request for certiorari and declined to hear a White law school professor’s claim that the 5th U.S. Circuit Court of Appeals had erroneously dismissed her claim of race and sex discrimination and retaliation under Title VII and the Equal Pay Act. The law professor had claimed that the appeals court erroneously dismissed her claims that she and other female professors were treated poorly in violation of Title VII and the Equal Pay Act and that she was forced to resign from Texas Southern University, a historically Black institution. The court denied the professor’s two petitions for it to hear her case without issuing an opinion (Sacks v. Texas Southern University (Case Nos. 23-891 & 23-1031, Cert denied 5/13/24)).

    The plaintiff asked the Supreme Court to adopt a “totality of circumstances” standard in determining whether her claims of years of “alleged” harassment and continuing violations justified her conclusion that she felt compelled to resign. The plaintiff also complained that the lower court had denied her the right to receive female wage data while requiring her to identify male comparators to make her Equal Pay Act claims. The Supreme Court denied the professor’s request to be heard in the absence of a response from the university, which had waived its right to respond to the professor’s petitions.

    In Employment Law Matter, U.S. Supreme Court Rules Federal Courts Can No Longer Dismiss Federal Lawsuits Subject to Mandatory Arbitration

    The U.S. Supreme Court resolved a split among federal appellate courts on whether, under the Federal Arbitration Act, federal trial courts can dismiss rather than stay a lawsuit that is covered by the terms of a mandatory arbitration agreement pending the outcome of arbitration. The 1st, 5th, 8th and 9th U.S. Circuit Courts of Appeals have previously allowed dismissal while the 2nd, 3rd, 6th, 7th, 10th and 11th have ruled that the case must be stayed pending the outcome of the arbitration.

    The case involved a group of drivers who claimed they were misclassified as independent contractors rather than employees entitled to minimum wage, overtime and paid sick leave under federal and state laws. Both sides agreed that the dispute was subject to a mandatory arbitration agreement. The 9th Circuit ruled the case should be dismissed. The Supreme Court reversed, concluding that the specific provisions of the Federal Arbitration Act require the courts to stay the action while it is referred to arbitration, pending the outcome of the arbitration (Smith v. Spizzirri (US No, 22-1218, 5/16/24)).

    Texas Sues EEOC Over Guidance Protecting LGBTQIA+ Employees From Sex Harassment Relating to Their Choice of Pronouns and Bathrooms Consistent With Gender Identity

    The Texas attorney general has filed suit in federal court seeking to block enforcement of the Equal Employment Opportunity Commission’s recent guidance aimed at shielding LGBTQIA+ employees who seek to use pronouns and bathrooms consistent with their gender identity. The Texas suit alleges that the most recent EEOC guidance goes beyond the statutory limits of Title VII just as the prior EEOC workplace guidance, which was vacated in Texas federal court, did (The State of Texas v. EEOC (N/D. Tex., 2:21-CV-194-Z, Complaint, filed 5/21/24)).

    Separately, a coalition of 18 Republican attorneys general have also filed suit, seeking to block this EEOC guidance and alleging the same legal overreach by the EEOC.



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  • HR and the Courts — May 2024 – CUPA-HR

    HR and the Courts — May 2024 – CUPA-HR

    by CUPA-HR | May 14, 2024

    Each month, CUPA-HR General Counsel Ira Shepard provides an overview of several labor and employment law cases and regulatory actions with implications for the higher ed workplace. Here’s the latest from Ira.

    Unions Representing Student Employees File Unfair Labor Practice Charges Related to Student Protests

    Nearly 30 unions representing more than 100,000 student workers at 58 campuses throughout the country have issued a joint letter supporting protesting students and condemning violent responses to peaceful protests. Unfair labor practice charges have also been filed with the National Labor Relations Board against a small number of private institutions in protest of schools’ enforcement of their rules.

    The NLRB has found in the past that civil rights protests — for example, those connected to the Black Lives Matter movement — are protected concerted activity when they are tied to protesting employer or employment discrimination matters. However, commentators have drawn a distinction related to the Israel-Hamas war protests. While each unfair labor practice case will rise and fall on the specific facts related to the situation, a university enforcing safety rules and cracking down on protests will likely not violate the National Labor Relations Act. Additionally, if a union member participates in a protest unrelated to their employment and violates university rules, the sanctions involved will likely not violate the NLRA.

    Court of Appeals Affirms Dismissal of ERISA Lawsuit Against Georgetown University

    The U.S. Court of Appeals for the District of Columbia Circuit unanimously affirmed the dismissal of an employee-filed Employee Retirement Income Security Act lawsuit. The lawsuit claimed that Georgetown University had packed its retirement plans with expensive and badly performing investment options.

    The lawsuit further alleged that Georgetown had offered its faculty and staff retirement plans with too many investment options and retained multiple recordkeepers, which drove up the administrative costs of the plans. A federal district court judge dismissed the amended complaint in April 2023, ruling that the amended complaint did not address the concerns that led to the dismissal of the original complaint.

    The Court of Appeals unanimously concluded that the original complaint failed to plead any adequate claims and the proposed amended complaint was futile as it did not cure the problem (Wilcox et al. v. Georgetown University et al. (Case no. 23-7059, DC Cir. 4/23/24)).

    Student-Athlete NLRB Unionization Decisions May Modify Taxability of Athletic Scholarships

    Although the NLRB’s decision in the Dartmouth College men’s basketball team case is under review, if the board affirms the decision that players are employees and can unionize, it could ultimately cause the IRS to rethink its current position that student-athletes receiving scholarships are not employees for purposes of the tax code. This could possibly include a change in the current position that these scholarships are not taxable as income.

    If the NLRB affirms the regional director’s decision, which many commentators conclude is likely given its composition under the Biden administration, the decision is not binding for the IRS. The IRS has independent authority to conclude whether these student-athletes are employees and are receiving taxable compensation in the form of scholarships under the Internal Revenue Code. Separately, the courts are wrestling with the question of whether student-athletes are employees under the Fair Labor Standards Act and are entitled to minimum wage and overtime. We will keep following these issues as they unfold.

    IRS Giving More Scrutiny to Tax-Exempt Status of Name, Image and Likeness Payments to Student-Athletes From Booster Donations

    Bloomberg reports that the IRS has begun revoking and not granting 501(c)(3) status to some groups formed to collect money from boosters to fund name, image and likeness payments to student-athletes. In testimony before the Senate finance committee, the IRS commissioner stated that they are scrutinizing those NIL groups that are not operating for tax-exempt purposes. These collectives have raised millions of dollars from boosters who generally expect those gifts to be tax deductible. For specific tax guidance, a tax professional should be consulted on questions arising in this area.

    U.S. Supreme Court Rules Job Transfers Can Violate Title VII and Other Anti-Discrimination Statutes

    The Supreme Court ruled unanimously on the issue of whether a plaintiff must prove significant harm to state a claim of discrimination under the applicable anti-discrimination statutes because of a job transfer. The court reversed the holdings of some circuit courts of appeal that “significant harm” must be stated to state a claim of job discrimination resulting from a job transfer.

    Nonetheless, the Supreme Court stopped short of eliminating the harm requirement entirely. The court held that a plaintiff must show that the transfer resulted in some level of injury or harm, concluding that the statute does not require by its terms the high bar of “significant” harm (Muldrow v. St. Louis (U.S. Case No. 22-193, 4/17/24)). The concurring justices, who did not dissent, argued that the change from significant harm to some other lower level of harm was confusing and would lead to further inconsistent litigation.

    NLRB Reports 10% Rise in Case Load in First Half of Fiscal Year 2024

    The NLRB reports that case filings of unfair labor practice charges or union representation votes rose 10% during the first half of fiscal year 2024 compared to the same period in the previous fiscal year. Union election petitions rose by 35% during this period, and unfair labor practice charges rose by 7%. The NLRB has jurisdiction over private institutions of higher education and has no jurisdiction over state-based public institutions. State public institutions are generally subject to state labor boards and state statutes with separate, but often parallel, rules. This uptick in private employer unfair labor practice charges and election petitions will likely be accompanied by an increase in activity by public-sector unions at public institutions of higher education.



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  • HR and the Courts — April 2024 – CUPA-HR

    HR and the Courts — April 2024 – CUPA-HR

    by CUPA-HR | April 9, 2024

    Each month, CUPA-HR General Counsel Ira Shepard provides an overview of several labor and employment law cases and regulatory actions with implications for the higher ed workplace. Here’s the latest from Ira.

    Dartmouth Refuses to Bargain With Men’s Basketball Team Union

    As the next chapter in the Dartmouth College men’s basketball players union dispute, Dartmouth has refused to bargain with the union elected to represent the players. The men’s basketball team voted 13-2, in a National Labor Relations Board-supervised election, to be represented in collective bargaining negotiations by the Service Employees International Union Local 560. The election was conducted after the NLRB regional director ruled that the student-athletes were employees under the National Labor Relations Act and therefore were entitled to an NLRB-supervised election as to whether they wanted a union to represent them. Dartmouth stated, “While we continue to negotiate in good faith with multiple unions representing Dartmouth employees, our responsibility to future generations of students means we must explore all our legal options for challenging the regional director’s legal error.”

    This action will likely lead to the NLRB filing unfair labor practice charges against Dartmouth. Dartmouth can defend on the grounds that the student-athletes do not meet the NLRA definition of employees. If the NLRB again rejects this argument, the case will be reviewable by a federal court of appeals with jurisdiction over this matter.

    Tufts Professors Charge That Fundraising Part of Their Salary Violates Their Tenure Contract

    A state of Massachusetts appellate court ruled that tenured faculty at Tufts University School of Medicine must pursue more discovery concerning their claim that the university’s requirement that they fundraise to pay for a significant part of their salary violates their tenure contract (Wortis v. Trustees of Tufts College (Mass., No. SJC-13472, 3/14/24)). The medical school professors claim that the fundraising requirement violates their contractual rights to academic freedom and to economic security.

    The allegations include the college nearly halving the salary and lab space of some of the professors who did not meet the fundraising requirement. The court sided with the college on the professors’ lab space claim, concluding that altering lab space did not threaten a professor’s economic security. The court concluded, however, that tenure is “permanent and continuous” once granted, and it would seem a “hollow promise” without a salary commitment of strong protections. Nonetheless, the court concluded that the tenure documents are ambiguous on “economic security” and more discovery is necessary to flush out the meaning of the tenure documents as they pertain to the college’s significant reductions of salary and full-time status alleged here.

    University Baseball Coach’s Reverse-Discrimination Claim Dismissed, But Retaliation Claim Proceeds to Jury Trial

    A White baseball coach’s reverse-discrimination claim against St. Edward’s University was dismissed. The coach claimed that he was fired after two separate investigations concluded that he did not discriminate against two Black baseball players. However, the federal trial court judge ruled that his retaliation claim that he was discharged because he complained about reverse discrimination should proceed to trial (Penders v. St. Edward’s University (2024 BL 90254, W.D. Tex., No. 1-22-CV-178 – DAE, 3/18/24)).

    While the investigations were ongoing, the university reviewed a tape submitted by one of the complaining players which evidenced the coach cursing at the player. While the university concluded that incident did not involve discrimination by the coach, it told the coach that his values were not in line with the school’s values and that he would be terminated at the end of the season.

    The coach alleged that the decision to terminate him at the end of the season was illegal and demanded another meeting with his lawyer present. The university allegedly responded a couple of hours later terminating the coach immediately. The judge ruled that the coach’s claim that his termination was “illegal” was protected activity and a jury could conclude that the termination, in close proximity to his protected activity, was an unlawful retaliation against the coach for raising his legal claim.

    School Board Prevails in Race Discrimination and Defamation Lawsuit Brought by Former Track Coach

    Maryland’s Anne Arundel County school board won summary judgement, after a judge dismissed a discrimination case brought by a former track and cross-country coach who was fired after a verbal and physical altercation with a student. The federal court dismissed the coach’s discrimination claims after review of the incident, which was recorded on video, concluding that the plaintiff exercised poor judgement in his actions, which violated school policy, and presented no evidence of discrimination or more favorable treatment of comparators (Daniels v. Board of Education of Anne Arundel County (2024 BL 77797, D. Md. No. 1:22-cv-03057, 3/8/24)).

    The federal court judge rejected the plaintiff’s argument that his conduct was justified because he also served as a substitute school security officer, concluding that his actions still violated school policy. The court also dismissed the plaintiff’s defamation claims, holding that the school board’s statements to a local news blog, including that the plaintiff had been suspended while an investigation was taking place, were not false.

    Several States Pass Ban on Anti-Union Captive-Audience Meetings — Employer DEI Training Is a Target in Conservative-Leaning States

    Five states have passed employer bans on anti-union captive-audience speeches (New York, Connecticut, Maine, Oregon and Minnesota) and such legislation has been introduced in nine additional states (California, Washington, Alaska, Colorado, Illinois, Maryland, Vermont, Massachusetts and Rhode Island). Business groups in Minnesota and Connecticut have initiated litigation challenging these state bans.

    As a federal matter, the NLRB has not ruled that such captive-audience meetings violate the NLRA. However, the NLRB’s general counsel has taken the position publicly that such captive-audience meetings violate employees’ federal labor rights.

    At the same time, conservative-leaning states such as Florida have enacted restrictions on employer diversity, equity and inclusion training. The 11th U.S. Circuit Court of Appeals (covering Alabama, Florida and Georgia) has struck down part of the Florida DEI restriction on First Amendment grounds. Separately, about six states, according to Bloomberg, require anti-discrimination training, including sex harassment training, as a matter distinct from DEI training. It is important to keep up with these matters according to the latest developments in the individual states in which your institution is operating.



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