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An Epic Supreme Court Decision on Employment
Court Updates |
2018/05/26 00:24
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False dichotomy, meretricious piety, and pay-no-attention-to-that-man-behind-the-curtain misdirection are vital arrows in the quiver of any lawyer or judge, no matter of what persuasion.
These tricks were on particularly egregious display in Epic Systems Corp. v. Lewis, a 5-4 decision announced Monday in which the Supreme Court’s conservative majority continued its drive to narrow protection for employee rights. (The opinion, written by Justice Neil Gorsuch, was joined by Chief Justice John Roberts and Justices Anthony Kennedy, Clarence Thomas, and Samuel Alito; the dissent, by Justice Ruth Bader Ginsburg, was joined by Justices Stephen Breyer, Sonia Sotomayor, and Elena Kagan.)
The issue in Epic Systems was this: Can an employer require its employees, as a condition of keeping their jobs, to submit to individual arbitration of wage-and-hour and other workplace-condition claims—not only without an option to go to court, but without an option to pursue even private arbitration in common with other employees making the same claim?
Employees’ objection to a “no group arbitration” clause is that individual arbitration may concern amounts too small to make pursuing them worthwhile. Thus, these clauses make it easier for employers to maintain unfair or even unlawful employment structures and salary systems.
The question required the court to interpret two federal statutes—the Federal Arbitration Act (1925) and the National Labor Relations Act (1935). The FAA says that “a written provision in a contract evidencing a transaction involving commerce” requiring the parties to arbitrate instead of litigate disputes “shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.” The NLRA provides that “employees shall have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.”
Begin with text: the NLRA states that it is designed to counter “inequality of bargaining power between employees who do not possess full freedom of association or actual liberty of contract and employers who are organized in the corporate or other forms of ownership association.” There is no language like this in the FAA. The best histories of the FAA’s adoption suggest that it was designed to efficiently settle disputes among merchants—business interests with comparable bargaining power. The Act itself says it should not be read to affect “contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce.” The sponsors stated during deliberations that it was not designed to cover labor agreements.
Thus, the issue is whether the no-group-arbitration clause, by violating that provision of the NLRA, provides “grounds as exist at law” to bar the employer-imposed requirement of individual arbitration.
Gorsuch accused Ginsburg, author of the dissent, and the other three moderate liberals—Breyer, Sotomayor, and Kagan—of improperly consulting their own policy preferences, refusing to harmonize two easily reconcilable federal statutes, and illicitly smuggling extra-legal commentary—legislative history—into judicial decisions. But this was purest rhetorical Pecksniffery. Gorsuch himself quite cheerfully invoked a pro-arbitration policy preference; did no more to harmonize the two statutes than did the dissents; and ignored actual history, and the text of the NLRA, in favor of a spurious extra-legal non-textual narrative of the FAA. |
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High court to hear challenge to Virginia uranium mining ban
Court Updates |
2018/05/22 00:23
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The Supreme Court agreed Monday to hear a challenge to Virginia's decades-old ban on uranium mining.
The state has had a ban on uranium mining in place since 1982, soon after the discovery of a massive uranium deposit in the state's Pittsylvania County. It's the largest known deposit in the United States and one of the largest in the world.
The owners of the deposit put its value at $6 billion and said it would be enough uranium to power all of the United States' nuclear reactors continuously for two years.
A few years after the deposit was discovered, the price of uranium plummeted and interest in mining it waned for about two decades. But after the price of uranium rebounded, the deposit's owners attempted between 2008 and 2013 to convince Virginia lawmakers to reconsider the ban. After that effort failed, they sued Virginia in federal court in 2015. The hope was that a court would invalidate the ban and clear the path for mining the uranium. Lower courts agreed with the state, however, and dismissed the lawsuit.
In asking the high court to take the case, the companies underscored the importance of uranium to the United States. Nuclear reactors powered by uranium generate about 20 percent of the electricity consumed in the United States, the companies say. Uranium also powers the nation's fleet of nuclear submarines and aircraft carriers. But 94 percent of the uranium the U.S. needs is imported, they said.
Turning the Virginia deposit into usable uranium would involve three steps. First, the uranium ore would have to be mined from the ground. The uranium would then need to be processed at a mill, where pure uranium is separated from waste rock. The waste rock, called "tailings," which remain radioactive, would then have to be securely stored.
The owners of the Virginia deposit argue that the state can regulate the uranium mining, the first step in the process, but not if the state's purpose in doing so is protecting against radiation hazards that arise from the second two steps. They say that's what motivated the state's ban. They argue the Atomic Energy Act gives federal regulators the exclusive power to regulate the radiation hazards of milling of uranium and of handling and storing the leftover tailings.
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Supreme Court rejects anti-abortion pastor's appeal on noise
Court Updates |
2018/04/15 14:26
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The Supreme Court won't hear an appeal from a pastor who challenged a state law's noise limit that was used to restrict his anti-abortion protest outside a Planned Parenthood clinic in Portland, Maine.
The justices offered no comment Monday in rejecting the appeal from the Rev. Andrew March. He sued after he said Portland police officers repeatedly told him to lower his voice while he was protesting outside the clinic. March says police invoked a part of the Maine Civil Rights Act that applies to noise outside health facilities.
March says the law "targets pro-life advocates" in violation of the Constitution. A district judge temporarily blocked its enforcement, but the federal appeals court in Boston reversed that ruling. |
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Retailers hope for certainty as Supreme Court hears tax case
Court Updates |
2018/04/11 10:10
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Retailers are hoping for a resolution this year from the Supreme Court, which hears arguments Tuesday in a decades-old dispute: Whether companies must collect sales tax on items sold in a state where they don't have a store or other building.
If the court backs government officials who say they're losing billions of dollars in uncollected taxes, thousands of small companies could be forced to start charging their out-of-state customers for them. Some businesses fear that could alienate customers used to tax-free shopping. On the other side: Retailers who do collect sales tax and believe those who don't have an unfair advantage.
The justices will hear online retailers Wayfair, Overstock.com and Newegg challenging a South Dakota law enacted last May requiring out-of-state retailers that have sales of more than $100,000 or over 200 transactions a year in the state to collect sales tax. Their decision could have national implications on e-commerce, although Congress can pass legislation afterward that broadens or narrows the law.
It's not only about the money, says Stephanie Harvey, owner of exit343design in Conshohocken, Pennsylvania. There are more than 10,000 sales tax jurisdictions in the United States: 35 states, the District of Columbia, counties and municipalities.
"Adding this sales tax isn't just about the tax itself — it's about the cost of time to navigate and file (taxes) or the additional expense of hiring someone to do so on behalf of the business," says Harvey, whose design and printing company has an online store and sells merchandise to other retailers.
The justices are likely to rule by June on whether to overturn a 1992 decision, Quill v. North Dakota, that said companies cannot be forced to collect sales tax from customers in a state where they don't have a physical presence like a store or distribution center. Collecting tax from online sales hasn't been a question for big online retailers like Walmart or Macy's since they have physical stores in most or all states. They also have accounting systems and financial staffs to handle the work.
Small retailers have software options to help collect taxes and do the administrative work, but it's an added cost. Whether it's worth it may depend on how much revenue a seller gets from other states. The most comprehensive software can work with the programs retailers use to process sales transactions. The software sellers determine the correct sales tax rate and submit payments and reports to tax authorities. |
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