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United States Supreme Court Confirms that Employees May Pursue Retaliation Claims Under Section 1981

The United States Supreme Court has recognized a right to sue for retaliation under Section 1981 of the Civil Rights Act of 1866 ("Section 1981"), even though Section 1981 does not expressly prohibit retaliation. In CBOCS West, Inc. v. Humphries, the Court affirmed the consensus reached by a majority of the Courts of Appeals that the statute, as amended by Congress in 1991, encompasses retaliation claims.
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President Bush Signs Law Prohibiting Genetic Discrimination

The Genetic Information Nondiscrimination Act ("GINA") becomes effective in November 2009. Among other provisions, Title II of GINA, Prohibiting Employment Discrimination on the Basis of Genetic Information, will prohibit covered employers from firing, refusing to hire, or otherwise discriminating against individuals on the basis of their genetic information, and from discriminating against employees and applicants on the basis of a family member's genetic information. The United States Equal Employment Opportunity Commission will administer Title II of GINA.
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Federal Contractors Required to Use E-Verify System

For further information regarding federal contractors' obligations under E.O. 12989, please see our June 25, 2008 Alert.

Effective immediately, all federal contractors are required to use E-Verify, an Internet-based system operated by the U.S. Department of Homeland Security (DHS) and the Social Security Administration, to electronically verify the immigration status/employment eligibility of new employees. E-Verify is a free and, until recently, voluntary way to determine the employment eligibility of new hires and the validity of their Social Security Numbers. However, as of June 6, 2008, when President Bush amended Executive Order (E.O.) 12989, federal contractors' use of E-Verify is mandatory.
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California Supreme Court To Address Whether "Forfeiture" Provision in a Voluntary Incentive Compensation Plan Violates California's Labor Code

The California Supreme Court has agreed to review an appellate ruling in a class action brought by employee participants in an incentive compensation plan maintained by Salomon Smith Barney ("Smith Barney," a subsidiary of Citigroup). The case has broad implications for employers who maintain employee stock purchase plans that include forfeiture provisions requiring departing employees to forfeit any or all shares they have purchased under the terms of the plan.
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