posted on Tuesday, February 21, 2006 4:01 PM
by
Lou Michels
Sidley Takes Another Hit
Those of us in large firms are following the developments in the EEOC/Sidley & Austin case in Chicago fairly closely. The case is an age discrimination claim by former Sidley partners, and it seems to be moving toward trial directly. Sidley has failed to get the case dismissed on the basis that its partners are not employees, and now has lost on the claim that the EEOC cannot proceed because there were no proper administrative charges of discrimination filed by the Sidley ex-partners.
This case has important ramifications for large partnerships everywhere. Although true partners are not considered employees, and therefore, not subject to Title VII coverage, the EEOC has alleged that the Sidley ex-partners at issue were not actual partners, despite their status and compensation. Rather, the Commission argues that because these individuals had virtually no say in the day-to-day running of the firm, they were more like employees, and therefore, are proper participants in Title VII litigation. Now the Commission has won on its claim that it can represent the interests of the Sidley former partners, even though most of them did not file charges of discrimination with the EEOC.
Perhaps this case will be resolved short of trial; it has been hotly litigated at almost every step by the parties, however. Given what's at stake, it may not be possible for the firm to provide any kind of meaningful settlement with so many of its ex-partners/employees.