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Courts typically have dismissed discrimination claims under Title VII if those claims were made by an independent contractor, rather than by an “employee†of the company. However, 42 U.S.C. §1981 (“Section 1981â€), which prohibits racial discrimination in the formation of contracts, states that “all persons†shall have the same right “to make and enforce contracts as is enjoyed by white citizens.†In a case of first impression for the 3d U.S. Circuit Court of Appeals, that court has followed prior decisions of three sister-appellate courts in holding that an independent contractor may sue f...
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Blog About: Independent Contractor May Bring Section 1981 Race Discrimination Claim.
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Section 1981 Race Discrimination Claim Cannot Survive Without a Contractual Interest as its Basis.
Under certain circumstances, 42 U.S.C. §1981 (Section 1981) creates a federal cause of action for individuals claiming intentional racial discrimination. To support such a claim, a plaintiff must allege that he is a member of a racial minority, and that he was discriminated against within a particular group of activities set forth in the statute. Those activities include the right to “make and enforce contracts . . . as is enjoyed by white citizens.” The 11th U.S. Circuit Court of Appeal recently dismissed the claims of a physician who claimed that the suspension of his medical staff privileges violated rights protected by Section 1981, holding that such privileges did not constitute contractual rights as defined...
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Section 1981 race discrimination claim cannot survive without a contractual interest as its basis.
Under certain circumstances, 42 U.S.C. §1981 (Section 1981) creates a federal cause of action for individuals claiming intentional racial discrimination. To support such a claim, a plaintiff must allege that he is a member of a racial minority, and that he was discriminated against within a particular group of activities set forth in the statute. Those activities include the right to “make and enforce contracts . . . as is enjoyed by white citizens.” The 11th U.S. Circuit Court of Appeal recently dismissed the claims of a physician who claimed that the suspension of his medical staff privileges violated rights protected by Section 1981, holding that such privileges did not constitute contractual rights as defined by the statute

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New Prohibitions of Mandatory Arbitration for Defense Contractors

Lost in the shuffle of the COBRA subsidy extension have been new restrictions that prohibit some defense contractors from using mandatory arbitration provisions with their employees.

The Washington Employment Law Update does an excellent job at recapping the relevant provisions and points out that there w...

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Ninth Circuit Delivers Blow to Employer in Independent Contractor Classification Case

By Dan Forman

Continuing the recent trend in questioniong the propriety of classifying workers as independent contractors instead of employees, the Ninth Circuit reversed an employer's victory on this issue in Narayan v. EGL, Inc.  EGL, headquartered and incorporated in Texas, contracts with hundreds of persons and is the employer of hundreds of employees worldwide.  EGL enters into contracts with persons intended to be independent contractors (ICs).  The ICs lease vehicles and acknowledge that...

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Defense Appropriations Bill Restricts Federal Defense Contractors’ Use of Arbitration Agreements.
On December 19, 2009, President Obama signed into law the Fiscal Year 2010 Department of Defense Appropriations Act (the "Act"). Embedded in this $636 billion spending measure is a provision that prohibits federal contractors receiving Defense Department funds for contracts in excess of $1,000,000 from requiring their employees or independent contractors to arbitrate certain disputes, including claims under Title VII of the Civil Rights Act of 1964. Such federal contractors also will be required to ...
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