The U.S. Supreme Court recently issued its decision on the Age Discrimination in Employment Act (ADEA) when deciding that the Act permits employers to favor older employees over younger workers. In General Dynamics Land Systems Inc. v. Cline, the decision resolves a conflict that has existed among the various Federal Circuit Courts of Appeal. The decision however, eliminated uncertainty at the federal level and not among the State Courts.

********

The United States Supreme Court refused to consider whether an interested employer is permitted to fund his employee's counterclaim against a union law suit under the Labor Management Reporting and Disclosure Act. By refusing to hear the matter, the Court allowed a divided Court of Appeals for the Second Circuit decision, to stand.

The LMRDA in part, provides:

i. A union may not limit the right of a member to institute an action against the union.
ii. No interested employer or employer association shall directly or indirectly finance, encourage or participate in, except as a party to the action.

The Second Circuit concluded that the counter claim was in response to the Union's commencement of the action and therefore, the employer could not be deemed to have directly or indirectly financed or encouraged the commencement of an action in contravention.

********

The merger of two Carpenters and Joiners of America locals in south Georgia by the International did not violate federal labor laws or the union's constitution, the US District Court for the Southern District of Georgia has ruled. Judge Anthony A. Alaimo ruled that the Carpenters' constitution grants its general president the authority to dissolve and merge local unions, and does not require that the affected members be consulted or even voice their opinion on the moves.

********

On April 20, 2004, the US Department of Labor (DOL) released its much anticipated changes to the Fair Labor Standards Act (FLSA) overtime regulations. The new rules revise the salary and duties tests used to determine whether an employee is entitled to overtime pay under federal law. The final rules were scheduled to be published in the April 23 Federal Register, and will take effect on Aug. 21, 2004.

Under the new rules, employees earning less than $455 per week or $23,660 annually must be paid overtime. The current salary levels for overtime eligibility are $155 per week, or $8600 annually. The new regulations also establish a separate duties test for employees earning more than $100,000 a year.